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
Financial Crisis Calls for Communication - Summary: As employees struggle with the personal implications of current market meltdowns, communications tips from Watson Wyatt will resonate with senior leaders, benefit directors and other HR professionals.
Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Social Networking and 401ks Can Be a Good Fit - Summary: Two years ago, when Ann Bender suggested using Best Buy's internal social networking site to tout the company's 401k plan, she was met with blank stares. But social networking sites may prove to be powerful marketing tool for 401k plans.
Located at: Workforce Management (free registration may be required). Click on headline for full article.
Participation in Retirement Plans Showed a Significant Increase, First Since 1998 - Summary: The percentage of workers participating in an employment-based retirement plan increased significantly in 2007 for the first time since 1998, with the increase affecting virtually all categories of workers, according to a study released today by the nonpartisan Employee Benefit Research Institute.
Located at: 401khelpcenter.com. Click on headline for full article.
Court and Legislative Items
House Committee Signals Intent to Revamp Retirement Landscape - Summary: George Miller (D-CA), Chairman of the House Education and Labor Committee, has called for a major overhaul of 401k plans. Miller reiterated his position that 401k plans were not designed to support individuals in retirement and are failing to do so.
Located at: ERISA Industry Committee. Click on headline for full article.
Research
Are Retirement Savings Too Exposed to Market Risk? - Summary: Much of the reform discussion regarding private sector employer-sponsored pensions has focused on extending coverage. But the current financial tsunami also underlines the need to construct arrangements where the full market risk does not fall on pension participants.
Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
DC Plan Distribution Choices at Retirement - Summary: Research on DC plan participants largely has focused on participants’ decision making during their working years. This study reports the findings from a new survey of recent retirees who had participated in DC plans, focusing on the decisions they made at retirement.
Located at: Investment Company Institute (PDF File). Click on headline for full article.
403(b) Items
Final 403(b) Regulations Require Action by January 1, 2009 - Summary: This article summarizes the new regulatory requirements and lists what an employer needs to do in the coming months to prepare for the January 1, 2009 effective date.
Located at: Porter Wright Morris & Arthur LLP (PDF File). Click on headline for full article.
DOL and IRS Items
2009 Plan Limits Announced - Summary: The Internal Revenue Service has announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2009. Here are the 401k related items.
Located at: 401khelpcenter.com. Click on headline for full article.
DOL Proposes New Disclosure Requirements for 401k Fees and Expenses - Summary: The DOL has proposed new disclosure rules, which are intended to help 401k plan participants make informed retirement savings decisions. Under the proposal, companies offering 401k and other participant-directed individual account plans would have to disclose summary information, including fee and expense information, for all investment options under the plan.
Located at: Watson Wyatt. Click on headline for full article.
