May 26, 2010 — The number of large U.S. companies that are replacing defined benefit (DB) programs with account-based retirement plans for new salaried employees continues to be on the upswing. —
Continue reading “Fortune 100 Companies Continue Shift away from Pension Plans” »
The Benefits Game: Year End Edition
It has been a busy year for benefit professionals. During 2009 numerous new rules have been issued and/or gone into effect that may impact your benefit programs. Other rules require compliance by the end of 2009 or in 2010. Legislation ranging from a complete overhaul of our health care system to additional pension funding relief is pending The following alert is intended to provide an overview of some of the employee benefit issues you should consider before year-end.
Continue reading “2010 New Benefit Rules” »
December 10, 2009 — A new study from Fidelity finds more Americans than in the past are resolving to save more and learn more about finances in the coming year. —
The telephone survey of more than 1,000 Americans ages 18 and older indicated that 35% typically consider New Year’s resolutions regarding their finances, but 43% of individuals said they are more likely to consider financial resolutions for the coming year. This number increases to 55% among those ages 35 to 44, Fidelity said.
Continue reading “Resolutions for 2010 Will be More Financially Focused” »
December 10, 2009 — In an advisory opinion, the U.S. Department of Labor (DoL) addressed whether investment advisers to the mutual funds underlying target-date funds used in a retirement plan are plan fiduciaries. —
Continue reading “DoL: Advisers to Funds in Target-Dates not Fiduciaries” »
By MICHAEL R. CRITTENDEN and JESSICA HOLZER
WASHINGTON — Sen. Chris Dodd introduced a wide-ranging financial-regulatory-overhaul measure Tuesday, seeking more ambitious changes in some areas than the regime envisioned by the White House or his counterparts in the House of Representatives.
The Connecticut Democrat’s discussion draft, running more than 1,100 pages, would create an Agency for Financial Stability that would be tasked with identifying and removing systemic risks to the economy. It also would consolidate bank supervision into a single regulator–the Financial Institutions Regulatory Administration–and create a new Consumer Financial Protection Agency to oversee the products made available to consumers.
Continue reading “Dodd Unveils Financial-Overhaul Measure” »
November 09, 2009 — A new study in three countries found that sending a simple text message can remind individuals to save. — The study by a group of economists found that sending out text reminders to individuals’ cell phones increased savings balances by 6%. The study challenges the idea that people don’t have enough self-control to save, according to a Dow Jones news report.
Continue reading “Text Messages Might Help People Save” »
This Compliance Alert reminds sponsors of qualified plans about imminent deadlines for compliance with certain provisions of the Pension Protection Act of 2006 (PPA ’06). Most significantly, by December 31, 2009, sponsors of calendar-year plans must adopt amendments required by PPA ’06.
Continue reading “Reminders for Qualified Retirement Plans of Imminent PPA ’06 Compliance Deadlines” »
November 9, 2009 (PLANSPONSOR.com) – Heavy equipment manufacturer Caterpillar Inc. has agreed to a $16.5-million settlement of an excessive fee lawsuit in federal court in Illinois.
A company newsletter said the September 2006 suit leveled the fiduciary breach charges against Caterpillar regarding its four 401(k) plans for workers and retirees.
Continue reading “Caterpillar Ready to Ink $16.5M Fee Suit Settlement” »
Nevin E. Adams, JD
October 26, 2009 — This week a Senate committee will once again take up the topic of target-date funds. —
U.S. Senator Herb Kohl (D-Wisconsin), chairman of the Senate Special Committee on Aging, today released a report by the U.S. Government Accountability Office (GAO) examining the effect automatic enrollment has on 401(k) participation and retirement savings (see GAO Says Automatic IRA no Silver Bullet), and also announced panelists for a hearing titled, “Default Nation: Are 401(k) Target Date Funds Missing the Mark?”
Continue reading “Senate Hearing Asks, Are Target-Date Funds Missing the Mark?” »
Fred Schneyer
October 27, 2009 — Despite the Wall Street turmoil and the economic downturn, the number of employees joining 401(k) plans serviced by Charles Schwab actually increased. —
A Schwab news release said participation rates in its 401(k) plans jumped from 73% at the end of 2007 to 77% a year later with the stepped-up rates seen in all plans—particularly at small- and mid-sized employers. Auto-enrolled plans went from 77% to 84% by year-end 2008.
Continue reading “401(k) Participants Hung in during Downturn” »