Headlines about "Ret plan investments - self-directed"

Gathered from the web by the editors at BenefitsLink.com.
EBSA Schedules Advice Rule Public Hearing
Excerpt: "The U. S. Department of Labor's Employee Benefits Security Administration (EBSA) has scheduled an October 21 public hearing on its proposed regulation for providing retirement plan investment advice." (PLANSPONSOR.com; free registration required)

[Opinion] ERIC Files Comments on DOL Proposed Regulation on Investment Advice
Excerpt: "ERIC on October 6 submitted to the Department of Labor comments on a proposed regulation and proposed class exemption on investment advice. DOL on August 22 published in the Federal Register the proposed rule under the Pension Protection Act (PPA) along with the proposed class exemption allowing fiduciary advisers to provide investment advice to participants in 401(k) type plans and individual retirement accounts (IRAs). ERIC's comment letter addresses a number of areas of concern . . . ." (The ERISA Industry Committee)

[Guidance Overview] Improving Plan Diversification Through Reenrollment in a QDIA (PDF)
8 pages. Excerpt: "As a result of PPA, a new plan design strategy to improve portfolio diversification has emerged. Under this approach known as reenrollment, the holdings of current participants are transferred into the plan's qualified default investment alternative (QDIA), with the right to opt out available for participants who prefer to retain their existing asset allocations. Such a strategy has the dual benefit of improving diversification of plan assets and limiting fiduciary liability." (The Vanguard Group)

[Opinion] Pension Rights Center Comments on Proposed Regulations and Class Exemption on Investment Advice (PDF)
4 pages. Excerpt: "The Department has issued a class exemption from the prohibited transaction rules for certain investment advice that goes well beyond the statutory exemption that is the subject of the proposed regulations. The exemption permits conflicted investment advice so long as the advice is preceded by investment recommendations generated by a computer model (similar to that described in the proposed regulation). Alternatively, the exemption permits advice so long as the compensation earned by the actual person giving advice (rather than the entity employing them) does not vary depending on the basis of any investment option selected by the participant. In our view, the potential for conflicted advice is even greater in these situations than in the more circumscribed statutory exceptions interpreted by the proposed regulations." (Pension Rights Center)

[Opinion] Congressional Hearing Considers Market Drop's Impact on Retirement Security
Excerpt: "Aptly titled 'The Impact of the Financial Crisis on Workers' Retirement Security', the hearing, convened by the U.S. House Committee on Education and Labor, included testimony from a number of experts." (PLANSPONSOR.com)

Committee Hearing: 'The Impact of the Financial Crisis on Workers' Retirement Security'
Excerpt: "This hearing will examine how the current financial crisis is impacting pension funds and workers' directed retirement accounts, such as 401(k) plans. According to a recent poll by the Associated Press, more than half of all Americans are worried that the ongoing financial crisis will force them to postpone retirement. [The hearing is scheduled to begin at 1 p.m. EDT today.]" (U.S. House of Representatives Education and Labor Committee)

What Is This 'Credit Crisis' All About and How Does All of This Affect My 401(k) Investments?
Excerpt: "We feel that it is important to help plan sponsors and their participants sort through all of the information out there so that they can decide if they need to react to, or if they can take advantage of what is happening in the financial markets. We understand how stressful these times can be and we hope that this information is useful to you." (MJM401k)

Is Your Retirement Plan 404(c) and 404(a) Compliant?
Excerpt: "There are two code sections of ERISA - 404(a) and 404(c) - that deal directly with fiduciary concerns in a 401(k) plan. These sections outline requirements for the investment knowledge of the plan sponsor and the investment selection and monitoring process. Careful review and compliance with these code sections will help to ensure fulfillment of your fiduciary responsibility and lessen the chance of any potential litigation." (Employee Benefit News; free registration required)

[Opinion] Investment Advice—ERISA's Culture War
Excerpt: "The genesis of the issue comes from DOL's broad interpretation of the prohibition on self-dealing in section 406(b). DOL takes the position that a fiduciary engages in self-dealing if it uses its authority to affect the amount or timing of its compensation. This, according to DOL, is an automatic, per se violation regardless of the terms of the transaction and whether it is in the interests of plan participants." (Pension & Benefits Blog)

[Guidance Overview] DOL's Proposed Regulations on Participant Investment Advice (PDF)
Excerpt: "The Department of Labor recently issued guidance on provisions under the Pension Protection Act of 2006 relating to certain types of investment advice to participants in certain individual account plans, such as 401(k) plans. The guidance is in the form of proposed regulations and a proposed class exemption." (Buck Consultants)

Is Your 401(k) Any Good? See How Your Company's Plan Stacks Up in 11 Areas
Excerpt: "What are the features of the best 401(k) plans? What is best in breed? The questions were posed to some of the nation's leading pension and employee-benefit consultants. Here's what they emphasized . . . ." (MSM.Money)

401(k) Hardship Withdrawls and Borrowing Rise, Leading to Worries That Workers Will Have Even Fewer Funds for Retirement
Excerpt: "For Americans just scraping by, the only savings they've salted away are in a 401(k). That was fine in a growing economy. But now that it's slumping, inflation is up and layoffs are spreading, a small but increasing number of people are tapping those accounts. T. Rowe Price says 401(k) withdrawals rose 19 percent last year through June 2008. Vanguard reports its hardship 401(k) withdrawals rose 22% in 2007. Though just representing 1.5% of all plan holders -- these numbers are nonetheless troubling. Moreover, withdrawals aren't the only threat to the 401(k) assets of 44 million American workers." (Treasury & Risk)

Using Retirement Financing to Fund Your Start-Up Business
Excerpt: "The advisory firms that advocate retirement financing, including BeneTrends, SD Cooper and Guidant Financial, say they can shelter most of the profits from taxes by turning them back into retirement contributions, thus replenishing the initial retirement cash and deferring taxes. They also say that companies started in this way are more likely to survive the tough-going early years, because they are not weighed down by debt." (The New York Times; free registration required)

What Happens When We Forget To Diversify
Excerpt: "When you diversify, all you're really doing is hedging against a future unknown. It's like using crutches after you break your leg. You have to distribute your weight just right to keep from falling or putting too much pressure on any one side of your body. The same is true with your money. You have to be strategic about accumulating cash, debt and assets. If the distribution of any one of those areas is way off, you can fall." (The Washington Post; free registration required)

[Guidance Overview] Proposed Regs Require Defined Contribution Plans to Disclose Fee and Investment Information to Participants Beginning January 1, 2009 (PDF)
7 pages. Excerpt: "The proposed effective date of the new requirements is plan years beginning on and after January 1, 2009. While it's possible the DOL may defer this effective date, the DOL has indicated it intends to finalize the regulations before the end of this year. It's likely that final regulations will be similar to the proposed version in many respects." (Alston & Bird LLP)

Reducing Retirement Investment and Income Risk
Excerpt: "[T]he proper asset allocation depends on a number of factors, including the investor's tolerance for risk, spending and bequest goals, life expectancy, etc. However, when longevity risk becomes the primary concern, it may be that a more conservative portfolio is in order during the early retirement years, in order to get through the riskiest period. Later, it may be safe to move to a more aggressive portfolio." (Financial Planning)

Savers Seek Yields as Market Trims Retirement Plans
Excerpt: "Savers who have seen their retirement accounts slashed by a 19 percent drop in the Standard & Poor's 500 Index this year may be looking for higher yields to prepare for retirement. That is if they have any money left to invest." (Bloomberg L.P.)

[Guidance Overview] DOL Proposed Regulations on Investment Advice and Proposed Class Exemption from the ERISA Prohibited Transaction Rules (PDF)
6 pages. Excerpt: "These regulations are proposed to be effective 60 days after publication of the final regulations in the Federal Register. To be considered, written comments on the proposed regulations must be submitted to the DOL by October 6, 2008." (Transamerica Center for Retirement Studies)

Market Gyrations Last Week Trigger Shift of Retirement Savings Into Fixed-Income Funds
Excerpt: "It takes a lot to scare workers into making sudden changes to their 401(k) plans, yet droves of participants moved their retirement assets around last week as the volatile equity markets became too much for many to stomach. Participants in 401(k) plans fled from equity funds and moved investments into safer fixed-income investments last week as manic market conditions and an uncertain economy rattled many workers, said Pam Hess, director of retirement research at Hewitt Associates." (Financial Week; free registration required)

Advice, Participant Fee Disclosure Proposals Covered in EBSA Web Cast
Excerpt: "The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) will host a free web cast next week to help employers and plan administrators understand recent regulatory and interpretative guidance under the Employee Retirement Income Security Act (ERISA). [You can register for the September 25 Webcast at https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=120366&sessionid=1&key=64151CDCA7A9BDA7C16C84EB5F1D4E30&sourcepage=register.]" (PLANSPONSOR.com; free registration required)

[Guidance Overview] New Proposed Disclosure Requirements for Retirement Plan Fees and Investment Expenses: Part II (PDF)
2 pages. Excerpt: "The U.S. Department of Labor ('DOL') proposed ERISA 404(a) and (c) regulations would require disclosure in two main categories: plan information and investment information. The first part of this Alert discussed the onerous plan information disclosures. Here, we discuss the investment information disclosures. The DOL's new proposed regulations would require detailed disclosure of investment expenses in participant directed individual account plans like 401(k) plans and IRAs. Investment expense disclosures would be required upon eligibility, and at least annually, to each participant . . . ." (Holme Roberts & Owen LLP)

Retirement Benefits Planning - What Not to Do
Excerpt: "The following is an excerpt from 'Ten Common Errors,' part of a special report on retirement benefits that ran in the September issue of Trusts & Estates, a sister publication to Registered Rep. For many clients, retirement benefits are their largest asset. For others, they are important even if not determinative. For all, the rules governing retirement benefits are complicated. There's also a potential for tension between income tax planning and estate tax planning. So let's at least be sure to avoid these 10 common errors when planning for retirement benefits . . . ." (Registered Rep)

[Opinion] Links to Comments Received by DOL on Proposed Regs on Fee Disclosure for Self-Directed Retirement Plans
91 comments. (Employee Benefits Security Administration, U.S. Department of Labor)

[Guidance Overview] Text of DOL EBSA Chief's Testimony on Legislative Proposals for More Fee Disclosure
Excerpt: "The regulatory process currently underway ensures that all voices and points of view will be heard and provides an effective means of resolving the many complex and technical issues presented. I hope that as Congress considers this issue, it recognizes the Department's existing statutory authority and takes no action that could disrupt our current efforts to provide these important disclosures to workers. My testimony today will discuss in more detail the Department's activities related to plan fees. Also, I will describe the Department's regulatory and enforcement initiatives . . . ." (Employee Benefits Security Administration, U.S. Department of Labor)

Canadians Getting Retirement Financial Advice More Likely to be Optimistic about Nest Egg
Excerpt: "About two-thirds of near-retirees in Canada (45 to 59 years old in 2007) say they will have a big enough retirement nest egg to maintain their standard of living when they stop working. That was a key conclusion of a new research report released by Statistics Canada, a Canadian government agency. According to the agency, that sense of optimism about one's retirement finances was tied to whether the respondent was getting financial advice . . . ." (PLANSPONSOR.com; free registration required)

[Opinion] Text of American Bankers Association Comments on Proposed DOL Regs on Disclosure in Self-Directed DC Plans (PDF)
15 pages. Excerpt: "Our concerns are based primarily on the fact that the Department has proposed a disclosure regime appropriate only for mutual fund products, not one that works well for many other fiduciaries, the institutions that serve those fiduciaries, plan participants, or many of the investment products offered to those participants. Specifically, we have strong reservations about this proposal and its impact on bank collective funds." (American Bankers Association)

[Guidance Overview] Department of Labor Proposes Guidance on Participant Advice
Excerpt: "The Department of Labor recently released a proposed regulation implementing the statutory exemption under the Pension Protection Act (PPA) for the provision of investment advice to participants in participant-directed individual account plans (such as 401(k) plans). Additionally they've released a proposed class exemption, expanding the statutory exemption in two respects. In this article we review the proposed regulation and (briefly and in passing) the class exemption, focusing on the key issues for plan sponsors." (JPMorgan)

[Guidance Overview] Employee Benefits Update, September 2008 (PDF)
5 pages. This issue examines the following topics: Same-sex marriage; LaRue decision and lawsuits against plan fiduciaries; Section 404(c) compliance; Finding and fixing qualified plan mistakes; 7-day safe harbor for forwarding employee contributions to small plans; and, IRS opens determination letter cycle for preapproved defined contributions plans. (Snell & Wilmer LLP)

DOL Opens Advice Window for Investment Firms
Excerpt: "The Labor Department has proposed to dramatically open the door for mutual funds and other investment companies to offer investment advice directly to participants in defined-contribution plans. Fund companies long have been effectively barred from offering direct advice to participants because of fears that the advisors might steer participants to the companies' own investment options." (Workforce Management; free registration required)

Shortage of Retirement Savings Services for Those Who Fall in Middle of Wage Scale or Lower
Excerpt: "[F]ew middle- or lower-income workers are getting the advice they need not only for retirement savings but also for all their other finances. Now, a wave of innovation is aimed at meeting these needs. Public-policy experts are pushing state and federal laws that would vastly widen the availability of low-cost, tax-advantaged retirement-savings programs. And some financial-services firms are looking for ways to better serve the less well-heeled -- instead of shunting them to online investment tools and call centers for advice -- and still turn a profit. Here is a look at three approaches in different stages of development . . . ." (The Wall Street Journal)

New Multiple Fund Scheme System Created for Latin America's Colombia
Excerpt: "New legislation will allow Colombia's contributors to its defined contribution retirement system access to more investment options. The new regulation, which will come into effect in 2010, aims to more accurately align risk profiles with returns and to increase the return on investment received by workers." (Watson Wyatt Worldwide)

Harvard's Endowment Offers an Education in Asset Allocation (PDF)
2 pages. Excerpt: "From yesterday's WSJ, how individual investors can benefit from the wisdom behind the successful returns of Harvard University's endowment." (The Wall Street Journal via MJM401k, LLC)

Overhauling 40(k) Plans to Net Employees More Money for Retirement
Excerpt: "Rare is the corporation that won't at least consider changes in DC plans that will net participants more money for retirement and, eventually, guaranteed lifetime income. Call the new and improved plans, DC Version 2.0 . . . . The transformation began quietly a few years ago with automatic enrollment, which got a big boost when the Pension Protection Act of 2006 identified allowable default investments. Since then, pioneers have been overhauling their 401(k) offerings. Consultants label it the DBization of DC plans. What started with auto-enrollment designed to mimic the automated enlistment of pension offerings, has turned into innovative companies adding automatic yearly escalation of employer contributions and managed, institutional fund choices." (Treasury & Risk)

[Guidance Overview] Proposed Regs, Class PTE, Liberalize Exemption for Provision of Investment Advice to Self-Directed Plan Participants
Excerpt: "These proposals are intended to implement changes made to ERISA §408(b)(14) and ERISA §408(g) by the PPA. ERISA §408(b)(14) provides an exemption from certain prohibited transaction provisions in ERISA with respect to the provision of investment advice, and the direct or indirect receipt of fees or other compensation by the fiduciary adviser or an affiliate. ERISA §408(g) describes the conditions under which the investment advice-related transactions are exempt." (Wolters Kluwer)

[Guidance Overview] DOL Proposed Rules on Investment Advice Exemptions for 401(k) Plans and IRAs
Excerpt: "The proposed class exemption would provide relief for individualized investment advice to individuals following the furnishing of recommendations generated by a computer model (or, in the case of an IRA with respect to which modeling is not feasible, the furnishing of certain investment educational material)." (Deloitte via BenefitsLink.com)

[Guidance Overview] DOL's Proposed Regulations Regarding Disclosures to Participants of 401(k) Plans
Excerpt: "The regulations are proposed to be effective for plan years beginning on or after January 1, 2009. The regulations do not apply to 'self-directed brokerage accounts' or similar plan arrangements that permit participants to select investments beyond those that are specifically designated by a plan." (The Metropolitan Corporate Counsel, Inc.)

[Guidance Overview] DOL's Proposed Participant Disclosure Rules for Defined Contribution Plans (PDF)
2 pages. (Milliman)

DOL Report on Availability of Computer Model Investment Advice Programs for Individual Retirement Account Submitted to House/Senate Committees
Excerpt: "Four commenters . . . identified existing computer model investment advice programs that, in their view, meet all three of the criteria set forth in section 601(b)(3)(B) of the PPA. Each of the Four Commenters identified a different model. These and other comments are further discussed [in the target report]." (U.S. Department of Labor)

The Efficiency of Pension Plan Investment Menus: Investment Choices in Defined Contribution Pension Plans (PDF)
32 pages. Excerpt: "This paper assesses the efficiency and performance of 401(k) investment options offered by a large group of US employers. We show that most plans are efficient compared to market benchmark indexes. Three performance measures underscore the fact that these plans tend to offer a sensible investment menu, when measured in terms of the menus' mean-variance efficiency, diversification, and participant utility. The key factor contributing to plan efficiency and performance has to do with the types of funds offered, rather than the total number of investment options provided." (Center for Retirement Research at Boston College)

The Role of Annuity's Value on Decision (Not) to Annuitize: Evidence from a Large Policy Change
Excerpt: "This paper presents new evidence on how the annuitization decision is affected by changes in the annuity's value. We take advantage of an unprecendented change in policy, which in 2004 moderated the super-mandatory Swiss occupational pension scheme: The 20 percent reduction in the rate at which retirement capital is translated into a life-long annuity equates to a net present value loss of approximately 20'000 SFR (20'000 US$) for the average retiree." (Social Science Research Network)

Structuring Assets in Retirement to Avoid Running Out of Money
Excerpt: "The message of how to optimally sequence a withdrawal strategy in retirement in terms of tax efficiency, choosing from among taxable and tax-deferred accounts, is neither loud nor clear. Many of the best practices are little known or even counterintuitive. And planners aren't necessarily compensated for the hard work involved. But solving this retirement spend-down problem is a great opportunity for advisors. After all, these problems are too complex for most clients to solve without expert advice . . . ." (Financial Planning)

[Opinion] Retirement Income Products: A Wish List
Excerpt: "This article will focus on financial products individuals can purchase to reduce the risk of outliving their assets, including products being offered today and products that are under development. My views are somewhat unconventional, particularly with regard to current products." (Financial Planning)

[Guidance Overview] Trends in Capital Accumulation Plans, August 2008 (PDF)
5 pages. Excerpt: "Over the past 15 to 20 years, Capital Accumulation Plans (CAPs) have become popular retirement vehicles for many Canadian employers. Unlike Defined Benefit (DB) pension plans, which provide a particular level of retirement income, CAP sponsors commit only a specified contribution to their employees' retirement plans, which are most often managed by the individual members." (Towers Perrin)

[Opinion] Why 401(k) Retirement Plans Really Don't Work
Excerpt: "The differences between retirement programs and savings programs are very real, extremely fundamental, and politically incomprehensible to legislators--- so long as it's not their money. Retirement programs are income machines designed to support people, not to make them feel wealthy, investment savvy, or temporarily tax-free. Pension plans produce fixed amounts of monthly income that don't change appreciably when dot-coms, real estate, CDOs, or index funds (they're next) self-destruct. You just can't buy dinner or medications with currency futures, gold bars, or appreciated acreage." (American Chronicle)

Timeline of Dol's Proposed Rule on Self-Directed Plan Fee Disclosure Too Aggressive, Some Say
Excerpt: "[I]ndustry officials say the rule's proposed effective date -- the comment period expires September 8 and the effective date is January 2009 -- is unrealistic, and will be costly to implement in such a short period of time." (Investment Advisor)

Fees Surpass Service as Top Reason to Switch Providers
Excerpt: "Spectrem Group announced that for the first time since it began tracking data in 1989, fees ranked as the number one reason defined contribution plan sponsors switch providers." (planadviser)

DOL's Proposed Regulations and PTE Under PPA Exemption for Eligible Investment Advice Arrangements
Excerpt: "The guidance is proposed to be effective 60 days after it is issued in final form." (Employee Benefits Institute of America)

[Opinion] Baby Boomers Had Better Plan on Working Past Age 65; Procrastination and DC Plan Designs at Fault
Excerpt: "The inconvenient truth that most investors in their 40s and 50s need to hear is that no investment product can make up for decades of little or no saving. That is why baby boomers must stay in the 'accumulation phase' until they have achieved a minimum of 10 times their final salary." (Jane White in Investment News)

[Opinion] The Provisions of PPA Dealing with Investment Advice Offered to Participants Under the Auspices of a Fiduciary Adviser
Excerpt: "Of course, the heart of the controversy lies in the potential, if not inherent, conflicts of interest that arise when advisers offer advice on investments that provide compensation to those same advisers. Some, of course, believe that those conflicts can never be surmounted, or at least that they cannot be surmounted by every adviser every time. Others believe that the problem can be overcome by a combination of process structure, disclosure, and oversight." (PLANSPONSOR.com; free registration required)

[Official Guidance] Proposed DOL Regs on Investment Advice to Self-Directed Plan Participants by Fiduciaries Receiving Fees (PDF)
29 pages. Excerpt from DOL press release: 'The PPA amended [ERISA] by adding a new prohibited transaction exemption that allows greater flexibility for participants of 401(k) plans and IRAs to obtain investment advice. One of the ways in which investment advice may be given under the exemption is through the use of a computer model certified as unbiased, the other is through an adviser compensated on a 'level-fee' basis. Several other requirements also must be satisfied, including disclosure of fees the adviser is to receive." (Employee Benefits Security Administration, U.S. Department of Labor)

[Official Guidance] Proposed DOL Class Exemption for Investment Advice to Self-Directed Plan Participants by Fiduciaries Receiving Fees (PDF)
9 pages. Excerpt: "[T]he proposed exemption would permit the provision of investment advice described in section 3(21)(A)(ii) of the Act by a fiduciary adviser to a participant or beneficiary in an individual account plan or individual retirement accounts (and certain similar plans), the acquisition, holding or sale of a security or other property pursuant to the investment advice, and the direct or indirect receipt of fees or other compensation by the fiduciary adviser (or any employee, agent, registered representative or affiliate thereof) in connection with such transactions." (Employee Benefits Security Administration, U.S. Department of Labor)

Small Firms Beef Up Retirement Services for Employees
Excerpt: "It is no longer enough to simply give workers a vehicle by which to save. So some companies are turning to consulting firms that provide small businesses with services and tools to help workers better manage their investments -- for a fraction of the cost of doing it in-house." (The Wall Street Journal)

Storm Clouds Ahead for 401(k) Plans? (PDF)
10 pages. The paper is an overview of recent issues concerning 401(k) plans highlighting 'A Progress Report on Automatic 401(k) Plan Features' and 'The Threat from LaRue." (Urban Institute)

[Guidance Overview] DOL's Proposed Defined Contribution Plan Investment and Expense Disclosure Rules (PDF)
2 pages. Excerpt: "The U.S. Department of Labor (DOL) recently proposed regulations to address concerns that participants who self-direct investment of their retirement plan accounts are paying excessive plan-related fees because they lack the information necessary to make informed investment decisions. If adopted, the proposed rules will substantially expand the investment disclosure requirements applicable to ERISA-covered 401(k), profit-sharing, and 403(b) plans that permit participant self-direction. The rules are proposed to be effective for plan years beginning on or after January 1, 2009." (Hay Group)

Tax Secrets of the Wealthy: Supreme Court Deals Blow to Most 401(k) Plans
Excerpt: "Do you own all or part of a business that sponsors a 401(k) plan for your employees? If so, this column is a must. You won't like the liability position the Supreme Court has hung over your head. But, as it is often the case, adverse circumstances bring opportunity. On Feb. 20, 2008 our top court decided LaRue versus DeWolff." (The E.W. Scripps Co.)

[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))

[Opinion] Workers Deserve Index Fund Options in Self-Directed Plans
Excerpt: "The inconvenient truth about mutual funds is that the low-cost, generic version of a fund also is a better performer than its managed counterpart. . . . If plan sponsors could only offer index funds, as is the case with the thrift savings plan that covers many federal employees, the funds would never be dumped because they are the benchmark." (Jane White in Employee Benefit News)

Some 401(k) Advice That Can Pay Off for Employees
Excerpt: "Offering advice as part of a 401(k) plan can be pivotal in creating employees that are happy, engaged, and more knowledgeable about the plan itself, the investment choices you have made available to them and what it takes for them to reach their goal of retiring securely. Employers who boast the most successful advice programs have found that people prefer to receive 401(k) guidance through a personal, one-on-one interaction, typically over the phone or in an in-person meeting." (Human Resource Executive Online)

CRS Report for Congress: H.R. 6500, The Thrift Savings Plan Enhancement Act of 2008 (PDF)
6 pages. Excerpt: "On July 16, 2008, the House Committee on Oversight and Government Reform approved H.R. 6500, the Thrift Savings Plan Enhancement Act of 2008, by voice vote . . . [which] would provide for newly hired federal employees to be enrolled automatically in the Thrift Savings Plan (TSP) at a default contribution rate of 3%; require the Federal Retirement Thrift Investment Board to establish within the Thrift Savings Plan a qualified Roth contribution program that provides for after-tax contributions and tax-free distributions; give the Federal Retirement Thrift Investment Board authority to include self-directed investment options in the TSP . . . ." (Congressional Research Service, U.S. Library of Congress)

Senate Aging Committee Challenges TIAA-CREF and Fidelity Ads
Excerpt: "The problem, according to Sen. Herb Kohl (D-Wis.), chairman of the Senate Special Committee on Aging, is that the ads mislead people who are retiring that it is imperative for them to roll their [federal Thrift Savings Plan] money into an IRA, The Wall Street Journal reports. The reality, Kohl says, is that the TSP charges a mere 15 cents for every $1,000 in the plans, and that might be a better choice for investors." (Money Management Executive via On Wall Street)

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