Headlines about "Ret plan investments - misc"

Gathered from the web by the editors at BenefitsLink.com.
Guaranteed Income Wrappers Pose Challenge, Opportunity
Excerpt: "In the recent issue of The Cerulli Edge -- Managed Accounts Edition, Cerulli Associates reports that insurance vehicles such as guaranteed income wrappers represent a development in the retirement income space. However, Cerulli analysts remain skeptical that the vehicles will take off among fee-based advisers." (planadvisor)

Income-Harvesting Strategy a New Twist on Producing Secure Retirement Income Stream
Excerpt: "The use of four distinct investment accounts can produce a higher percentage of income withdrawals to fund retirement, compared with more traditional retirement-withdrawal strategies, contends an award-winning article in the August 2008 issue of the Journal of Financial Planning, published monthly by the Financial Planning Association® (FPA®)." (Financial Planning Association)

[Opinion] Independent: What Does It Really Mean When Talking About Advisors?
Excerpt: "One of the more commonly used adjectives in the retirement plan advisory space is independent. Consultants use it to describe their practices. Brokers use it to describe their culture. Plan sponsors inherently expect it. Regulators say they favor it. The connotation is certainly positive. But what does it really mean?" (Jeb Graham via 401khelpcenter.com)

[Opinion] How the PBGC Plans to Increase Profits Without Taking on Risk
Excerpt: "The Pension Benefit Guaranty Corporation, which is supposed to guarantee that those of us with pensions will get paid even if our employers go broke, has a $14 billion deficit. But it claims to have found a way to climb out of that hole while reducing the risk of its investments. It plans to move a lot of money out of bonds and into stocks, with sizable investments going into real estate and private equity funds." (The New York Times; free registration required)

PBGC's New Diversified Investment Policy (PDF)
Written by Charles E. F. Millard, PGBC Director, March 4, 2008. Excerpt: "The new policy is designed to take advantage of the PBGC's long-term investment horizon, and will allocate 45 percent of Corporation assets to equity investments, 45 percent to fixed income, and 10 percent to alternative investments such as private equity. This strategy of increased diversification aims at generating better returns, while providing superior protection against ultimate downside risks over time. The previous policy was not diversified, and therefore carried greater risk." (The Bureau of National Affairs, Inc. via Pension Benefit Guaranty Corporation)

Class Action Filed to Recover Retirement Benefits for Employees of Failed Arkansas Bank
Excerpt: "A class action filed on behalf of over 250 former employees of ANB Financial, N.A., charges that the bank holding company, individual trustees, and other fiduciaries of the ANB Employee Stock Ownership Plan (ESOP) breached their duties to plan participants by continuing to invest participants' retirement savings in company stock even after the fiduciaries knew that the bank was engaged in unsafe and unsound banking practices." (Lewis, Feinberg, Lee, Renaker & Jackson P.C.)

Successful Retirement More Than Investments
Excerpt: "The bottom line is that successful retirement -- at whatever age -- is about much more than one's stock portfolio. The conversation about retirement planning must move from one of just finances to one of how to achieve a desired lifestyle. Discussing and defining what we really want from our retirement lifestyle is critical, but in times of economic instability, boomers may have to revise their retirement goals and timelines and think creatively about how to achieve those goals." (IndyStar.com)

The Real Reason to Invest for Your Retirement
Excerpt: "Your retirement is far more than simply no longer showing up to work. It's about having the freedom to do what you want in life, and enough control over your personal finances to enjoy that freedom. . . . The stronger your retirement nest egg, the easier it is to break free of the lifestyle trap that can otherwise handcuff you to a job you no longer love. Even better, thanks to something known as a SEPP (Substantially Equal Periodic Payments) plan, you can start withdrawing your retirement money early, without getting socked by penalties." (The Motley Fool)

[Official Guidance] ERISA Advisory Council to Meet in D.C. Next Month; Open to Public, Comments Accepted; September 2 Deadline (PDF)
Excerpt: "The focus of the Working Group meeting on September 9 will be on phased retirement, including issues facing employers who wish to create phased retirement plans, as well as the issues facing employees who wish to take part in phased retirement programs, and whether there are any legal impediments that discourage American workers from continuing to work in their retirement years. The focus of the Working Group meeting on September 10 will be on spending down retirement assets, including the issues and barriers facing plan fiduciaries, plan sponsors, and plan participants as they attempt to evaluate approaches that guarantee periodic income levels at retirement. The focus of the Working Group meeting on September 11 will be on hard to value assets and target date funds, including potential risks and the roles of fiduciaries, trustees, investment managers, accountants/auditors and participants when employee benefit plans invest in hard to value assets, a review of regulatory policy involving assets for which there is not a generally recognized market, and challenges and risks associated with plans' use of target date funds." (Employee Benefits Security Administration, U.S. Department of Labor)

IRA Rollover Dynamics 2008: Market Sizing, Benchmarks, & Best Practices - Overview and Table of Contents (PDF)
11 pages. Excerpt: "The study evaluates existing distribution platforms and assesses the involvement and impact of asset managers in capturing and retaining rollover assets. A detailed examination of current and future market size projections offers a unique analysis behind the trends shaping these projections. The study also provides insights into advisor preferences for value-added programs that will assist in better positioning and targeting these programs with relation to retirement and rollovers." (Financial Research Corporation)

IRS Rules That Wall Street Cannot Buy Your Company's Pension Plan - at This Time
Excerpt: "The proposal has its advocates and its detractors. The fact that the idea has arisen now certainly reflects the desperate situation in which many defined benefit pension plans find themselves in light of the recent bear market, which has exacerbated an already troubled funding situation. One has to wonder, however, whether the timing of such a proposal is propitious, in light of the current instability of financial institutions and the ongoing credit crisis. Furthermore, a Democratically controlled Congress presumably would be reluctant to adopt such a measure, particularly in view of the strenuous opposition that has been voiced by the AFL-CIO and AARP, among others." (Tax Management Inc.)

Home Depot Retirement Fund Participants Get Second Chance in Court
Excerpt: "Former Home Depot employees get a second chance at recovering losses to their ERISA portfolios after a federal appellation court reversed a dismissal of their lawsuit. Several lawsuits have been filed against Home Depot's former CEO and retirement plan management for the imprudent investment of employee retirement funds." (Online Legal Marketing)

Managing Pension Funding Surpluses (PDF)
12 pages. Excerpt: "Higher funding targets under the U.S. Pension Protection Act of 2006 (PPA) and the reduction or elimination of future pension accruals are increasing the likelihood of signifi cant surplus in defi ned benefi t pension plans. Now is the time to develop a strategy for effectively managing emerging pension surpluses." (Towers Perrin)

PBGC Head Fires Back on GAO Investment Policy Criticisms
Excerpt: "The nation's private-sector pension insurer on Monday defended itself against questions raised in a new Congressional oversight report about the Pension Benefit Guaranty Corporation's (PBGC) new investment policy. The Government Accountability Office (GAO) report, 'Implementation of New Investment Policy Will Need Stronger Board Oversight,' raised questions about whether the PBGC board has been sufficiently involved in approving investment policy changes in concept - including the one the board okayed in February 2008 . . . ." (PLANSPONSOR.com; free registration required)

[Guidance Overview] DOL's and SEC's Memorandum of Understanding to Share Retirement and Investment Information
Excerpt: "EBIA Comment: The DOL's news release makes clear that a primary goal of the MOU is to improve investigative and enforcement activities with respect to retirement plans, including 401(k) plans. In the portions of the MOU that address non-public information, however, the MOU focuses more specifically on information 'concerning investment advisers or other firms of mutual interest,' sending a strong message to the investment community about the agencies' continued commitment to combined oversight of those firms." (Employee Benefits Institute of America)

PBGC Assets: Implementation of New Investment Policy Will Need Stronger Board Oversight (PDF)
62 pages. Excerpt: "GAO recommends (1) improvements to the way that PBGC's board monitors progress in achieving investment policy goals, and (2) additional analyses on the new investment policy. In response, PBGC's board stated its informal guidance is appropriate oversight. GAO states this type of guidance is not strong enough for investing $68 billion. Further, PBGC is conducting additional analysis on the new policy." (U.S. Government Accountability Office)

Retire Now, and Risk Falling Short on Your Nest Egg
Excerpt: "If you have just retired or are about to retire, your timing could not be worse. Leaving the work force just as markets stumble can do real damage to retirement savings. Your nest egg has shrunk just as you need to start withdrawing money from it; you are essentially locking in your losses. (And at the moment, sinking home values make matters even worse.)" (The New York Times; free registration required)

Pension Benefit Guaranty Corporation Downplayed Investment Risk - GAO Criticizes Volatile Strategy
Excerpt: "The federal agency charged with backstopping pension benefits for 44 million Americans has understated the risks of its new investment policy, a congressional watchdog said Monday. The Government Accountability Office (GAO) said in a report that the Pension Benefit Guaranty Corp.'s new strategy could significantly boost the PBGC's investment returns, but it 'will likely also carry more risk than acknowledged by PBGC's analysis.'" (The Washington Times)

401(k) Plan Participants Continue Move to Fixed Income Investments
Excerpt: "401(k) participants moved assets out of equity into fixed income investments again in July, according to the results of the Hewitt 401(k) Index. Net transfers were fixed income oriented on 91% of the days during the month." (PLANSPONSOR.com; free registration required)

ERISA vs. the Hedge Fund Industry
Excerpt: "According to Pensions and Investment, the Boston office of the US Department of Labor . . . recently issued a letter to an (unidentified) US Pension Plan subject to ERISA (the Employee Retirement Income Security Act) stating that the plan was in violation of ERISA regulations. . . . The problem? When valuing hedge funds and other alternative assets for purposes of the Plan's annual filing, the pension investor had apparently relied upon valuations provided by the underlying funds' general partners and, in some cases, on audited financial statements for those funds." (Castle Hall Alternatives)

[Opinion] The Stock Market, Returns, and Investing for Retirement
Excerpt: "Sometimes when I see a news story about the stock market that sounds either too ominous or overly optimistic, I ask myself what headline I might write instead. It usually goes something like this: 'In the long run, stock returns are likely to revert to historical averages.' It's not very snappy, sensational, or even very interesting. But it's a guidepost that you can stick to in both good markets and bad ... for the long term." (The Vanguard Group)

[Opinion] Yet Another Reporting Issue for Private Equity and Other Investment Funds
Excerpt: "To me, the first step is to limit the analysis to where it belongs. The level of valuation information to be given over time by a fund should be considered another factor, not some super-factor, taken into account by a court in analyzing whether, on all facts and circumstances, the fiduciary has satisfied its Section 404(a)(1) obligations." (Pension & Benefits Blog)

[Guidance Overview] The Eleventh Circuit in Lanfear v. Home Depot
Excerpt: "While the decision makes clear that the claim asserted by the participants was a breach of duty causing losses to the plan that allegedly diminished participant accounts, just as in Graden, the court says definitively it is claim for benefits, not damages. This view certainly supports the eccentric Eleventh Circuit view that there must be exhaustion of administrative remedies in fiduciary breach claims, though it is a mystery how such procedures can afford relief against plan fiduciaries, but it does nothing to advance understanding." (Pension & Benefits Blog)

Fifth Third Bancorp Slapped with Stock-Drop Participant Lawsuit
Excerpt: "Fifth Third Bancorp has joined the ranks of plan sponsors hit with a participant stock-drop lawsuit with a new case filed this week alleging bank officials imprudently kept a stock fund in their plan." (PLANSPONSOR.com; free registration required)

Auto-Annuity Could Stretch 401(k) Savings
Excerpt: "A Washington-based think tank published a paper proposing a way that companies could automatically enroll a portion of retiring employees' 401(k) assets into a lifetime income option that would provide them with monthly payments." (Workforce Management; free registration required)

[Guidance Overview] IRS Application of IRC Section 72(w) to Annuity Partially Accrued While a Non-Resident Alien (PDF)
2 pages. Excerpt: "In PLR 200828037 (April 14, 2008), the Internal Revenue Service for the first time ruled on the application of Code Section 72(w), enacted as part of the American Jobs Creation Act of 2004 and effective for distributions on or after October 22, 2004." (Sutherland)

Legislation Defeated that Would Limit Pension Fund Investments in Commodities
Excerpt: "The House of Representatives on July 30 was turned back from approving legislation that would have threatened the ability of pension funds to legitimately invest in commodities, derivatives, and other financial instruments. Pension funds utilize legitimate hedging to counter volatility in market rates, which has become particularly important since enactment of the Pension Protection Act of 2006." (The ERISA Industry Committee)

[Guidance Overview] Regulators Tell Pensions to Independently Value Positions
Excerpt: "This admonition is hardly news to this blogger. I've long been advocating (a) the use of an independent third party pricing professional and (b) the need for fiduciary training in this area. . . . Several things come to mind." (Pension Risk Matters)

Retirement Disclosure Presents Challenges, Opportunities for Plan Advisors
Excerpt: "Now that employers are more focused on their role as a fiduciary they are asking questions about whether or not the adviser serves as a fiduciary to their plan. This issue comes partially from rules in the DOL's pending 408(b)(2) regulation. The requirement to explain whether or not a service provider is a fiduciary would apply to broker-consultants as well as investment advisers." (Employee Benefit Advisor; free registration required)

[Guidance Overview] Ruling Prohibiting the Transfer of a Retirement Plan Outside of the Controlled Group as a Financial Transaction (PDF)
2 pages. Excerpt: "In conjunction with the ruling, the Administration put forth a 'framework of principles.' This framework, it is thought, will serve as a guide in the development of legislation permitting transactions such as the one described in the ruling in which frozen pension plans are transferred to unrelated entities. The Administration set out certain conditions aimed at protecting participants, including providing for advance notice to participants and regulators, requiring a demonstration that the transfer would be in the best interest of participants and limiting transfers in the face of undue risk." (Sutherland)

Boeing Presses Unions to Drop Traditional Pensions
Excerpt: "Boeing, like many other companies, wants to phase out traditional pensions and instead put new workers into a 401(k)-like plan. As Boeing's contract talks with its two main unions gather steam in August, the issue is taking on heat. The move, company spokesman Timothy Healy says, would free up money for research and development or other purposes that Boeing (BA) now must set aside for pension plans whenever an investment, in the stock market or elsewhere, comes up short." (BusinessWeek)

Credit Crisis Brings Pension Fund Attention to Liquidity
Excerpt: "During the worst of the global credit crisis in 2007, a significant proportion of U.S institutions experienced either an unexpected interruption in liquidity or unanticipated risks and credit exposures in securities lending pools and short-term investment funds, a new survey from Greenwich Associates reveals." (PLANSPONSOR.com; free registration required)

One-Fourth of DC Sponsors Lack Investment Policy Statement, According to Survey
Excerpt: "In a recent survey by Cowden Associates, 25% of defined contribution plan sponsors reported not having an investment policy statement (IPS)." (planadvisor)

Labor Department Wants Independent Alternatives Valuation - Could Result in Increase in Expense and Work for Plan Fiduciaries
Excerpt: "The Department of Labor's regional office in Boston is investigating how corporate pension plan fiduciaries value their alternative investments. . . . Pension plans often rely on the financial statements of general partners to report the value of those investments in their Form 5500 annual filings with the DOL. But in at least one letter to an unidentified pension plan, James Benages, director of the DOL's Boston regional office, contends that plan fiduciaries need to have a process in place to independently evaluate the alternative assets." (Pensions & Investments)

[Opinion] Frozen Pension Plan Sales Could Help Employers
Excerpt: "It's a fact that employers for years have been moving away from defined benefit plans in favor of defined contribution and similar approaches. Traditional pension plans entail heavy administrative and funding burdens, which many employers are loath to keep carrying. If the option of selling frozen plans enabled employers to better afford other retirement savings plans, that certainly would be in the public interest." (Business Insurance)

[Guidance Overview] DOL Staff Members Provide Informal Views on ERISA 404(c) Plans, Fiduciary Liability, and Plan Expenses
Excerpt: "The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has posted a report on the May 7, 2008 Q&A session between JCEB representatives and DOL staff members. Highlights include the following unofficial, nonbinding remarks about these 401(k) plan topics: ERISA 404(c) plans, fiduciary liability, and plan expenses." (Employee Benefits Institute of America (EBIA))

Treasury / IRS Say Pension Plan Liability Buyouts Illegal
Excerpt: "However, the Treasury outlined a series of proposed guidelines developed with the Labor and Commerce departments as well as the Pension Benefit Guaranty Corp. for any federal legislation that would clear the way for buyouts of frozen plans." (Workforce Management; free registration required)

A Collective Trust Fund Overview
Excerpt: "The Cleveland based Victory Capital Management Inc., has produced a Collective Trust Fund Resource Guide for sponsors, advisors, and providers. This one page recap gives an overview of Collective Trust Funds (CTFs), outlines their advantages and discusses their recent growth in popularity." (401khelpcenter.com)

Sustaining Income Through Retirement: Four Strategies for Retiring Clients
20 pages. Excerpt: "The objective of this paper is to potentially add to a financial professional's knowledge base by discussing and contrasting four strategies for turning retirement savings into a sustainable retirement income stream for their clients. To accomplish this, we will look specifically at the use of mutual funds with automated income payments, variable annuities with guaranteed minimum withdrawal benefits, income annuities, and combinations of mutual funds and income annuities." (The Principal Financial Group)

Asset Allocation Patterns in DB and DC Plans (PDF)
12 pages. Excerpt: "We examine whether the move from DB to DC plans has had an impact on the way retirement assets are invested. Individual investors, for instance, may have a shorter term investment horizon than DB plans. This raises questions about the risk exposure and investment performance of DC plans relative to DB plans. The shift from DB plans to DC plans may have reduced the supply of patient capital over time, meaning that businesses may have a harder time than in the past getting the financing for long-term productive investment projects." (National Institute on Retirement Security)

Proposed Legislation Would Restrict Investment in Commodities by Pension Plans
Excerpt: "Seeking to provide relief from rising food and energy prices, Senators Joseph Lieberman (ID-CT) and Susan Collins (R-ME) have proposed amendments to the Commodity Exchange Act that would prohibit public and private pension funds with more than $500 million in assets from investing in agricultural and energy commodities, and in passively managed index funds tied to physical commodities." (Deloitte via BenefitsLink.com)

[Official Guidance] Full Text: IRS Press Release Providing 'Framework' for Legislation to Address Transfer of Frozen DB Plans
Excerpt: "Accompanying today's [Revenue Ruling 2008-45, to which this press release contains a link], the Administration put forth a framework of principles, as described below [in this press release], that should guide the development of legislation that could permit such transactions, in circumstances where the transaction is in the best interest of plan participants, their beneficiaries, employers, and the pension insurance system. The legislative framework was developed by the Treasury Department, the Labor Department, the Commerce Department, and the Pension Benefit Guaranty Corporation." (Internal Revenue Service)

[Guidance Overview] New ERISA Reporting and Disclosure Rules and Guidance Appear to Favor VCOC/REOC Compliance Over 25% Test Reliance (PDF)
3 pages. Excerpt: "One surprising aspect of these new rules is that they appear to apply to investment funds that rely on the '25% Test' for their exemption from ERISA, while investment funds that qualify as 'venture capital operating companies' ('VCOCs') or 'real estate operating companies' ('REOCs') are specifically exempt from these rules." (Paul, Hastings, Janofsky & Walker LLP)

Agencies Hope To Permit Pension Plan Deals
Excerpt: "The Bush administration wants Congress to let employers transfer pension plans through sales and other types of transactions. The U.S. Treasury Department, the U.S. Labor Department, the U.S. Commerce Department and the Pension Benefit Guaranty Corp. [on August 6, 2008] proposed a 'legislative framework' that Congress could use to authorize transfers of frozen pension plans." (The National Underwriter Company; free registration or paid subscription required)

IRS Ruling Prevents Certain Pension Transfers
Excerpt: "However, in conjunction with the ruling, they have announced that, with the help of the PBGC, the DOL, and the Commerce Department, they have put together 'a legislative framework of principles' that are intended to guide the development of legislation that would permit such transactions for 'frozen' plans." (Attorney B. Janell Grenier via Benefitsblog.com)

Wall Street Firms Discussing How They Could Buy Frozen Defined-Benefit Plans from Employers
Excerpt: "There are different ideas of how it could work. Under a proposal being floated by Aon Consulting, a number of financial institutions could invest in a pension management company whose purpose would be to acquire and manage pension assets. That company would manage the pension plan assets until the plan was sufficiently overfunded, at which point it could then start returning a portion of the invested money to its initial investors, says Scott Macey, senior vice president and director of government affairs at Aon." (Workforce Management; free registration required)

Investment Management Firms Seek to Acquire Frozen DB Plans (Note: Written Before Issuance of Rev. Rul. 2008-45 This Morning)
Excerpt: "The $2.3 trillion pension honey pot has $500 billion in 'frozen plans' that are closed to new employees and whose benefits are capped, including those at IBM IBM, Hewlett Packard (HPQ), Verizon (VZ), and Alcoa (AA). And that figure could triple by 2012, according to consulting firm McKinsey. By managing those troubled plans, Wall Street also gains entrée to an appealing set of customers to whom it can sell a broad array of fee-generating products." (BusinessWeek)

Massachusetts Pension Fund Chief Getting Bonus Despite Fund Performance
Excerpt: "The executive director of the state's pension fund is getting a $64,000 bonus even though the fund lost more than $1 billion. Michael Travaglini, whose $322,000 annual salary makes him the highest paid state employee, will get the bonus . . . . " (Associated Press via The-Dispatch.com)

[Guidance Overview] Frequently Asked Questions About Schedule C Fee Disclosures for Defined Contribution Plans (PDF)
2 pages. Excerpt: "The new Form 5500, which was finalized in November of last year, is effective for 2009 plan years, which means it must be filed (electronically) by the end of July 2010 for calendar-year plans . . . . " (Milliman)

Retirement Assets Continue to Grow, Hybrid Plans Get Bulk of New Money - 8/6/08
Excerpt: "Retirement assets grew in the United States from $16.509 trillion at the end of 2006 to $17.619 trillion at the end of 2007 . . . ." (Wolters Kluwer)

[Guidance Overview] Choosing Between 401(k) and 403(b): Legal Considerations for Non-Profit Employers Other Than Public Schools
Excerpt: "In the wake of the 403(b) regulations under the Internal Revenue Code, tax-exempt entities are asking whether they should forget the 403(b) arrangement and adopt a 401(k) plan instead. (Public schools don't have the option; government entities haven't been able to sponsor a 401(k) plan since the Tax Reform Act of 1986.) Some considerations are highlighted below." (PLANSPONSOR.com)

[Official Guidance] Text of IRS Rev. Rul. 2008-45: Transferring Sponsorship of Frozen DB Plans to an Unrelated Company (PDF)
4 pages. Kaboom! Wall Street meets the 'exclusive benefit of employees and their beneficiaries' rule in section 401(a) of the Internal Revenue Code. (Internal Revenue Service)

[Opinion] Pension Governance: Preventing Fraud at Public Pension Funds
Excerpt: "Today I am going to discuss a subject that very few people really understand: preventing fraud at public pension funds. Fraud can happen at any institution but when big money is involved, it is imperative that fiduciaries and stakeholders take the necessary measures to prevent fraud from occurring in the first place." (Leo Kolivakis via Pension Pulse)

Court Tells 401(k) Participants at Home Depot They Can Sue
Excerpt: "A lawsuit that 401(k) participants filed against Home Depot and former executives -- including Robert Nardelli and Ken Langone -- has been given new life. The suit, which was dismissed in district court, has now been revived by an appeals court ruling that asserted participants may sue the company to recover losses that were sustained from holding Home Depot stock in their 401(k) plans." (Financial Week; free registration required)

FAS 132: for Reporting on the Quality of Pension Assets and Certain Other Things
Excerpt: "As proposed, the FAS 132 [FASB staff position] would, basically, apply the FAS 157 requirements to companies reporting on DB plans. It would require that sponsors provide information about what kinds of assets are held in the DB plan -- stocks, hedge funds, real estate, etc. Critically, the company would have to provide information about the riskiness of the DB plan's portfolio." (PLANSPONSOR.com; free registration required)

The Active-Passive Debate: Market Cyclicality and Leadership Volatility
Excerpt: "In this paper, we examine the active‑versus‑index debate from the perspective of market cyclicality, and provide context for the changing nature of performance leadership. We show that when evaluating the performance of active managers versus a given benchmark, investors should be acutely aware of the differences in the managers' strategies involving factors such as size (market capitalization), style (price/earnings ratio and price/book ratio), and relative positioning." (The Vanguard Group)

Employee Class Action Suit Against Home Depot Revived
Excerpt: "A class action lawsuit filed by Home Depot employees against former company CEO Robert Nardelli and several directors has a new lease on life. The case has been revived by a federal appellate court decision that gives a life line to the retirees while being pro-business, said two lawyers who studied the case. The lawsuit, possibly worth tens of millions of dollars to current and future retirees, alleges that Nardelli, and other directors . . ., mismanaged the employees' defined contribution plan by purchasing Home Depot stock even though the executives backdated stock options." (The Atlanta Journal-Constitution)

Federal Pension Agency Seeks Investment Partners
Excerpt: "The federal agency that backs the retirement benefits of 44 million Americans is seeking financial firms to invest about $2.5 billion of its assets in private equity and real estate. The Pension Benefit Guaranty Corp. . . . adopted a new policy in February to shift a greater portion of its $55 billion in assets to stocks and alternative investments such as private equity funds." (AP via Forbes.com)

Managing Pension Surplus: A New Playbook for a New Era (PDF)
12 pages. Excerpt: "Higher funding targets under the U.S. Pension Protection Act of 2006 (PPA) and the reduction or elimination of future pension accruals are increasing the likelihood of significant surplus in defined benefit pension plans. Now is the time to develop a strategy for effectively managing emerging pension surpluses." (Towers Perrin)

Target-Date Funds Investing in Wider Array of Products
Excerpt: "Target-date mutual funds were supposed to lead a revolution in retirement savings. These funds, which automatically adjust their asset mix as an investor's retirement date approaches, were seen as a way for individual investors to achieve the discipline, diversity, and typically higher returns of pension funds. Now, 15 years after the first target-date fund launched, they are finally positioned to live up to their initial promise." (BusinessWeek)

The links shown above have been gathered from the web by the editors at BenefitsLink.com. Each article's publisher is shown above in parentheses. Opinions expressed in each article are those of the article's publisher, not necessarily those of BenefitsLink.com, Inc. or any web site that displays these headlines in a "frame." You should contact the listed publisher for copyright information about any particular article or to inquire into the right to use the article in any manner.