A U.S. District Court judge has granted final approval of an $18.5-
million settlement in an excessive 401(k) fee suit.
The agreement ends proceedings in Kanawai v. Bechtel Corp., in which two former Bechtel employees alleged the company violated its Employee Retirement Income Security Act (ERISA) fiduciary responsibilities by not using its size to get lower fees from vendors.
Continue reading “Court Gives Final Approval to 401(k) Fee Case” »
Feb 03, 2011 — The ERISA Industry Committee (ERIC) warned the Department of Labor (DoL) about the unintended consequences that can result from broadening the definition of fiduciary. —
Continue reading “ERIC: Fiduciary Redefinition Could Discourage Assistance” »
Feb 03, 2011 — The Securities Industry and Financial Markets Association (SIFMA) has asked the Department of Labor (DoL) to reconsider its proposed rule that would redefine the term “fiduciary” under the Employee Retirement Income Security Act (ERISA). —
Continue reading “SIFMA Asks DoL to Reconsider Fiduciary Definition Change” »
Witnesses appearing before the U.S. Senate Committee on Health, Education, Labor and Pensions (HELP) Thursday told lawmakers that while the retirement income sufficiency issue in the U.S. is a difficult one, there are “fixes” to consider.
Continue reading “HELP Panel Hears Support for Auto Features, Education” »
For the first time in a generation, the Labor Department has taken another crack at the definition of a fiduciary under the Employee Retirement Income Security Act (ERISA).
The proposed rule was unveiled today by the Department of Labor (DoL), which noted that its adoption “would protect beneficiaries of pension plans and individual retirement accounts by more broadly defining the circumstances under which a person is considered to be a ‘fiduciary’ by reason of giving investment advice to an employee benefit plan or a plan’s participants.”
Continue reading “DoL Broadens Fiduciary Net” »
December 16, 2010 (PLANSPONSOR.com) – Not so long ago plan sponsors gauged the success of their defined contribution offerings by a single metric; participation rate.
It’s not that they didn’t pay attention to other criteria, but participation rate is objective, easy to calculate and, certainly for a voluntary savings program, it’s not an inappropriate gauge of the program’s perceived value.
Continue reading “IMHO: The Measure of the Plan” »
A report released from Barclays Wealth shows that high-net-worth Americans are not as inclined to a traditional retirement as was once the norm.
Continue reading “Traditional Retirement Losing Appeal for Wealthy” »
President Obama on Monday signed into law the Small Business Jobs Act, which included a provision allowing in-plan Roth conversions in 401(k), 403(b), and governmental 457(b) plans.
Continue reading “In-Plan Roth Conversions Present Challenges” »
By Howard J. Stock
September 29, 2010
Most defined-contribution plan participants want automatic escalation to kick in at 45, according to a survey of 300 workers. Sixty-seven percent of respondents wanted automatic escalation of at least 1% when they hit 45. Forty five percent of DC plan participants would be happy if their employer signed them up for automatic escalations of 2% or more per year after they hit 45.
Continue reading “When Should 401(k) Plans Automatically Escalate?” »
Many of the more than 87 million Americans age 18-34, popularly known as “Gen Y” are in financial trouble, according to survey results just released by Western Union.
The latest Western Union Money Mindset Index, a national survey of 3,000 consumers, finds nearly 30% of Gen Yers report having difficulty in managing their spending, more than 20% wait longer to pay their bills, and 35% have borrowed money from friends or family members.
Continue reading “Survey Finds Gen Y in Trouble Financially” »