401(k) plans (BenefitsLink.com)Headlines re 401(k) plans, gathered by BenefitsLink.comImmediate Income Annuities and Defined Contribution Plans (PDF)- (Found June 29, 2008 ) 12 pages. Excerpt: "With the growing interest in generating retirement income, plan sponsors are weighing whether to offer an immediate income annuity as a 'within-the-plan' distribution option. However, fiduciary, tax, and other considerations are likely to inhibit the use of payout annuities as a plan feature. Meanwhile, a broad array of retirement income solutions are emerging outside the qualified plan system." (The Vanguard Group, Inc.)https://institutional.vanguard.com/iam/pdf/CRRADC.pdf Are Lifecycle Funds the QDIA of Choice- (Found June 29, 2008 ) Excerpt: "Nearly eight-in-ten (78%) employers surveyed by Fidelity Investments already offer a qualified default investment alternative (QDIA), with most (63%) holding lifecycle funds as the QDIA." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=41819 Why ETFs And 401(k)s Will Never Match- (Found June 29, 2008 ) Excerpt: "Similar to ETFs, index mutual funds are less expensive than actively managed mutual funds. Therefore, the real debate regarding the potential benefits of ETFs in 401(k)s is not whether ETFs create cost savings versus actively managed mutual funds, but whether ETFs create additional cost savings when compared with traditional index mutual funds." (IndexUniverse.com)http://www.indexuniverse.com/component/content/article/4220.html?magazineID=2&issue=13... Guidance Overview A Comparative Look at 401(k), 403(b), and 457(b) Plans (PDF)- (Found June 29, 2008 ) Pages 5-8 of 12 pages. (Milliman)http://www.milliman.com/expertise/employee-benefits/publications/bp/pdfs/BP06-10-08.pdf Unsigned Form Throws Disputed 401(k) Assets to Participant's Son- (Found June 29, 2008 ) Excerpt: "A federal judge in Florida has ruled that a deceased 401(k) plan participant's girlfriend is not entitled to half the approximately $450,000 in his account because he did not sign the designation form naming her a partial beneficiary." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=41777 Increasing Annuitization in 401(k) Plans with Automatic Trial Income (PDF)- (Found June 29, 2008 ) 24 pages. Excerpt: "Specifically, we propose that a substantial portion of assets in 401(k) and other similar plans be automatically directed (defaulted) into a two-year trial income product when retirees take distributions from their plan, unless they affirmatively choose not to participate." (The Retirement Security Project)http://www.retirementsecurityproject.org/pubs/File/RSP_TrialIncomev4(2).pdf Advisers Say Exchange-Traded Funds Will Grow in 401(k)s- (Found June 29, 2008 ) Excerpt: "State Street Global Advisors (SSgA), the investment management arm of State Street Corporation KnowledgeWharton, the online business journal of The Wharton School at the University of Pennsylvania, note that two-thirds of 840 investment professionals surveyed identified exchange-traded funds (ETFs) as the most innovative investment vehicle of the last two decades." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=41790 Paychex Offers Auto Enrollment Option for 401(k) Plans- (Found June 29, 2008 ) Excerpt: "Paychex, Inc. has announced the addition of auto enrollment as an optional plan feature of its 401(k) offerings, which will allow employers to automatically enroll their employees in the company 401(k) and increase overall plan participation." (Business Wire)http://www.businesswire.com/portal/site/home/email/headlines/?ndmViewId=news_view&news... Proposed 401(k) Automatic Contribution Regs Need Clarification, Practitioners Tell IRS- (Found June 29, 2008 ) Excerpt: "Proposed regulations issued by the IRS in November 2007 governing Eligible Automatic Contribution Arrangements (EACAs) (CCH Pension Plan Guide 20,262E) should be modified to specifically allow for mid-year elections, according to practitioner comments at a May 19, 2008 IRS hearing on the regulations." (Wolters Kluwer)http://hr.cch.com/news/pension/060908a.asp The West Virginia Teacher Retirement Plan Lawsuit- (Found June 29, 2008 ) Excerpt: "An attorney representing hundreds of teachers and school service workers in West Virginia says he has a database of those workers who can talk specifically about how they were duped into signing up with life insurance company VALIC. It happened back when the newer teacher retirement system, the defined contribution plan, was formed." (West Virginia MetroNews Network)http://www.wvmetronews.com/index.cfm?func=displayfullstory&storyid=25043 |