This e-newsletter is a digest of information published by a variety of sources on employee benefit plans and related issues. We hope you find the information useful.
General Items
Fiduciary Prudence is Key in Times of Market Extremes - Summary: We are experiencing extreme turmoil in the U.S. financial markets. The volatility is incredible, especially compared to the relative low volatility in the markets during the beginning of this decade. While these conditions will have yet-to-be determined effects for plan participants, they certainly amplify the importance of fiduciary prudence for plan fiduciaries.
Located at: 401khelpcenter.com (PDF File). Click on headline for full article.
Is Your 401k Plan Protected - Summary: With the turmoil in the financial services sector, you might be concerned about the safety of all that money you've allowed to be deducted from your paycheck and invested in a 401k or other retirement account.
Located at: Netscape.com. Click on headline for full article.
It's Not a Good Idea to Let Company Stock Dominate 401k - Summary: Recent company reversals of fortune offer a cautionary lesson for employees who are allowed to invest in their company's stock through their 401k plan.
Located at: USA Today. Click on headline for full article.
Court and Legislative Items
ERISA Revenue-Sharing Litigation Update - Summary: Over the past two years, numerous putative class actions have been filed challenging alleged revenue-sharing practices in connection with 401k plans and other types of pension plans. This is a summary of the decisions and a brief update on the current state of the litigation.
Located at: Sutherland Asbill & Brennan LLP (PDF File). Click on headline for full article.
Do Your Benefit Plans Comply With the HEART Act? - Summary: The recently enacted Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) provides tax relief and protections to members of the armed forces. This Act impacts a number of employee benefit plan provisions, and some provisions of the HEART Act will require employers to amend their benefit plan documents.
Located at: Poyner & Spruill LLP. Click on headline for full article.
Research
How America Saves 2008: A Report on Vanguard 2007 DC Plan Data - Summary: Illustrated with numerous charts and tables, this valuable reference tool provides an analysis of savings, investing, and account activity trends in Vanguard defined contribution plans. You'll also find useful insights on a variety of contemporary issues, including automatic or default plan features, target-date funds, and company stock.
Located at: Vanguard Center for Retirement Research (PDF File). Click on headline for full article.
DOL and IRS Items
DOL Publishes Participant Contribution Timing Rules - Summary: DOL publishes participant contribution timing rules for small plans and clarifies trustee role for late transmittal of contributions.
Located at: Prudential (PDF File). Click on headline for full article.
IRS Gives Plan Sponsors More Time to Self-Correct Errors - Summary: The IRS has updated the Employee Plans Compliance Resolution System (EPCRS), giving sponsors of defined benefit and defined contribution plans more time to self-correct operational errors.
Located at: Watson Wyatt. Click on headline for full article.
