How Do Retirement Plans Affect Employee Behavior? - Summary: Watson Wyatt set out to learn how employees felt about their defined benefit and defined contribution plans and how these plans affect employees' workforce decisions. Watson Wyatt's Retirement Attitude Survey found that most workers value both types of plans very highly. And workers who strongly value their retirement plan are more likely to want to continue working for their current employer than workers who don't. As such, the design and features of a retirement program can have very meaningful effects on workers' behavior, which can deliver favorable economic returns to the organization. Located at: Watson Wyatt Worldwide. Click on headline for full article.
Are Corporate Retirement Plans Threatened by Social Security Private Accounts? - Summary: As the debate rages over whether Americans should be allowed to "carve out" some of their Social Security payroll tax to create individual accounts (IAs) for retirement, one potentially volatile question has gone largely unasked: How would the existence of the private IAs affect participation in corporate 401k plans? Located at: CFO.com. Click on headline for full article.
Practitioner's Forum Discussion on Federal Bankruptcy Law and Retirement Plans - Summary: This is the transcript of an informal discussion of employee benefit practitioners held in Washington, DC on April 20, 2005. The topic centers on recent developments in federal bankruptcy law and retirement plans. Located at: BNAtax.com. Click on headline for full article.
Why a Wealth of Choices in 401ks May Not be Good - Summary: Employer-sponsored retirement-savings plans are under constant pressure to boost their array of investment options. Financially savvy employees are always angling to get their favorite funds added. Memo to 401k providers: If you want employees to choose intelligently, don't give them too much choice. Located at: Arizona Republic. Click on headline for full article.
Coming to a 401k Near You: Automatic Enrollment - Summary: To counter the lethargy, if not the antipathy, that many employees feel toward 401k programs, more and more employers have turned to automatic enrollment as one way to get greater numbers of employees to contribute to such plans. Located at: The Journal News. Click on headline for full article.
Firms Give Lifecycle Strategies Another Look - Summary: Some firms have started to rethink the lifecycle fund, a fixture of many 401k plans since the late 90s. While ordinary lifecycle funds simply change asset allocations based on age, the last few months have seen both AllianceBernstein and SunLife Financial tweak that model, in part to reflect increased life spans and address the issues of post-employment income and market risk. Located at: DC News. Click on headline for full article.
Pension Reform
Summary of the 'Individual and Workplace Retirement Savings Promotion Act' (H.R. 1960) - Summary: This is a summary of the provisions of this bill recently introduced by Representative Rob Portman. Located at: American Benefits Council (PDF file). Click on headline for full article.
Summary of the 'Pension Preservation and Savings Expansion Act' (H.R. 1961) - Summary: This is a summary of the provisions of this bill recently introduced by Representative Cardin. Located at: American Benefits Council (PDF file). Click on headline for full article.
Fiduciary Issues
Vendors Whacking Company Stock - Summary: Because of recent court cases several vendors have chosen to end the problem by remove company stock from managed accounts, even though participants sign disclaimers with managed accounts designed to show that they know the risks. Located at: DC News. Click on headline for full article.
Taking Stock - Summary: Amid lawsuits, companies rethink offering company stock in their retirement plans. They also are considering doing away with lock-ins and other restrictions on shares. Located at: Workforce.com (free registration required). Click on headline for full article.
Fiduciary's Removal From Decision Making to Avoid Conflict of Interest Not Enough - Summary: In this Advisory Opinion, the DOL again states its view that when an ERISA fiduciary removes himself or herself from fiduciary decision making to avoid a conflict of interest, the fiduciary's duty does not end with the removal; the fiduciary also must provide to the other fiduciaries any information that may be material to the decision. Located at: Employee Benefits Institute of America. Click on headline for full article.
Department of Labor and IRS Issues
Proposed Regulations Breathe Life Into the Roth 401k Plan - Summary: On March 2, 2005, the IRS issued proposed regulations for Roth contributions to 401k plans, rekindling interest in the subject. The rules regarding Roth contributions to 401k plans are summarized in this article. Located at: Ice Miller. Click on headline for full article.
Roth 401k - Summary: The Economic Growth and Tax Relief Reconciliation Act of 2001 added section 402A to the Internal Revenue Code. Section 402A provides for designated Roth contributions to 401k plans. This is a good summary of the requirements, advantages, disadvantages and more. Located at: Transamerica Retirement Services (PDF file). Click on headline for full article.
Services 
