Headlines about "Ret plans - info for employees"
Gathered from the web by the editors at BenefitsLink.com.
Deloitte's 2011 401(k) Benchmarking Survey (PDF)
68 pages. 'While plan sponsors and fiduciaries are generally aware of the fees charged for the administration of their plans, the possibility exists that many will be surprised by the sum total of costs." (Deloitte)
Is My American Airlines Pension Guaranteed? Yes, But...
"Who gets the haircut? The PBGC has a sliding scale of maximum benefits, depending on age. The most it will pay people who retire at age 65 is $55,841. If your benefit is less than that you have only the long-term health of the PBGC to worry about." (TIME.com)
New Fee Disclosure Solution Released By NEA, NTSAA & ASPPA Joint 403(b) Taskforce
"Partners of the 403(b) Transparency Taskforce including the National Education Association (NEA), the National Tax Sheltered Accounts Association (NTSAA) and The American Society of Pension Professionals & Actuaries (ASPPA) today launched the 403(b) Model Disclosure Form -- the first ever transparency standards for disclosure of fees and services in the public school 403(b) marketplace." (American Society of Pension Professionals & Actuaries)
[Opinion] The Savings Crisis of Working Americans: The Retirement Industry Call to Action
"[I]f our society does not acknowledge and address the coming retirement savings shortfall, the American dream of retirement will most certainly become a nightmare. . . . Americans must save more for their retirement." (Legg Mason Retirement Advisory Council)
Finding Trustworthy Financial Advice for Retirement and Avoiding Pitfalls (PDF)
"Many older people say they would like to have the assistance of a good advisor, but they do not know how to locate one. They can look to large institutions like Fidelity, Vanguard, or Schwab or they can utilize smaller firms or individuals who provide advisory services. Employers sometimes offer advice as part of their benefit programs. Here are some factors to help guide the search." (Society of Actuaries)
Baby Boomers Are Reaching Age 65, But Are They Actually Retiring?
"Health care is another issue that is causing many baby boomers to delay retirement . . . especially for those who are under the age of 65 and not yet eligible for Medicare. For pre-Medicare retirees, although 80 percent of employers offer a pre-Medicare subsidy, 51 percent of those employers have a subsidy cap . . . ." (BenefitsPro)
Four Retirement Plan Features Employers Need to Emphasize
"Employees are in need of simple, straightforward guidance regarding their retirement plans, a survey . . . by State Street Global Advisors found." (BenefitsPro)
The Number of Working Americans Covered by a Workplace Retirement Plan
"One of the more pervasive statistics bandied around about the voluntary retirement system is that only about half of working Americans are covered by a workplace retirement plan. It's a data point that is widely and openly presented as fact -- not only by those inclined to dismiss the current system as inadequate, but even by some of its most ardent champions, who see that result as a call to action for expanded access to these programs. There's only one problem: It doesn't tell the whole story." (Employee Benefit Research Institute)
U.S. Workers Delaying Retirement (PDF)
Originally published May 2011. 'U.S. workers have been working longer and retiring later since the mid-1990s, but the Great Recession has put even greater pressure on workers to stay on the job. Yet, increases in delayed retirement are not uniform across regions, industries, or occupations. Moreover, these trends are quite predictable and thus useful forforecasting and planning. Businesses can build a better workforce strategy by incorporating retirement trends specific to their operating environment." (The Conference Board, Inc. via Financial Finesse, Inc.)
Big Question: When Should I Retire? (PDF)
"The 'when-to-retire' question has many companions. They often pop up at the same time as the 'when' question. Answering some or all of these companion questions sometimes helps uncover the answer to the big question." (Society of Actuaries)
Retirement Plan Participants Want Simple Guidance
"Retirement plan participants are in need of direct, simple guidance to help them reach their retirement goals, according to State Street Global Advisors [Defined Contribution] Investor survey." (PLANSPONSOR.COM)
Starting and Maintaining a 401(k) Made Easy
"The No. 1 thing to remember, as financial professionals remind us, is to diversify. That helps mitigate risk, which can erode investment returns." (TheStreet, Inc.)
Should You Roll Over Your 401(k)?
"[T]he most common advice that retirees with 401(k) money receive is to roll the plan over into an individual retirement account (IRA). But is this really always the best option? Although the answer to this is clearly yes in many cases, this article will examine the pros and cons of this common financial transaction, and when it may make sense to avoid it." (Investopedia US via Hearst Communications Inc.)
Fiduciary Duty and Employee Education in Defined Contribution Plans (PDF)
"Since fiduciaries must act for the exclusive purposes of providing benefits to participants and their beneficiaries, a fiduciary should consider providing participants with every reasonable opportunity to maximize their benefits, which would include education on the plan's provisions and investment options." (Conrad Siegel Actuaries)
[Guidance Overview] The DOL's Position on 'Capturing' Rollovers (PDF)
"This article examines statements made by [DOL] regarding distributions and rollovers from qualified plans to IRAs. We are advising RIA and broker-dealer clients on how to structure their rollover programs in light of this guidance, and it is important for advisers to understand the DOL's views on this significant issue." (Drinker Biddle & Reath LLP)
Financial Education Initiatives in the Workplace Survey Findings
"Approximately one-half of organizations (52%) offer financial education to their employees, [but] this percentage has decreased from 64% in 2009. These findings examine the impact that personal financial challenges have on employees as well as the types of initiatives that organizations have in place to alleviate the financial challenges faced by their employees." (Society for Human Resource Management)
[Opinion] Taxing Seniors' Pensions 'Tough But Necessary' in Michigan
"Many people may not realize that Michigan was one of only a handful of states that exempted pensions from taxation in the first place. Our plan treats the income of retirees just like that of working seniors." ([Saline, MI] Patch)
The Replacement 'Window' in Retirement Planning
"[T]he replacement rate approach represents, at best, an indirect approach to evaluating whether retired workers can maintain their standard of living in retirement -- because what matters is not how much you have to spend, but how much you need to spend." (Employee Benefit Research Institute)
Federal Retirees Face Confusion, Possibly Payment Delay
"'With OPM's current backlog and the expected significant rise in retirement processing workload, the time frame for OPM to place an annuitant in interim pay may increase to 6-8 weeks after their retirement date,' according to the Army." (The Washington Post; free registration required)
American Airlines Works to Ease Employees' Pension Fears
"American Airlines says more than 90 percent of its workers with vested pensions would not see reduced benefits even if the Fort Worth-based airline terminates its pension plans." (Fort Worth Star-Telegram)
Retirement Readiness of Generation X: An Overview of the Next Generation of Retirement Investors (PDF)
"[The Insured Retirement Institute] has embarked on a large-scale analysis of Americans in their 30s and 40s, thereby including Generation X and the youngest Boomers. In this report, we share a key portion of this research -- the preparations they are making for retirement, and the issues that are shaping these expectations." (Insured Retirement Institute)
[Guidance Overview] Finally, a Final Regulation on Providing Investment Advice (PDF)
"The final regulation, effective for transactions occurring on or after December 27, 2011, is the culmination of a five-year effort by the DOL to implement a prohibited transaction exemption to allow fiduciary investmentadvisers to render investment advice to plan participants and beneficiaries while receiving compensation from investment funds." (Trucker Huss, APC.)
Post Retirement Needs and Risks: Managing Retirement Decisions
"The Committee on Post Retirement Needs and Risks recently completed a landmark effort examining the major decisions encountered in retirement. Drawing upon the expertise of prominent retirement professionals, the result is a thought-provoking series of 11 issue briefs written in everyday language. The briefs tackle a variety of retirement decisions with practical considerations and advice." (Society of Actuaries)
Retirement Planning in a Post-Crisis Economy
"As the economic recovery proceeds -- albeit in fits and starts -- economic satisfaction levels and optimism about retirement are slowly rising as well. Nevertheless, fallout from the crisis lingers in the psyche of American workers, as many remain apprehensive about their economic future generally and about retirement in particular." (Towers Watson)
Oregon Retirement Security: Meeting Retirement Needs Now and in the Future
"By examining the income sources of retirees, we highlight Oregon retirees' heavy reliance on Social Security income and uncover important, and sometimes dramatic, differences in the reliance on Social Security and retirement funds1 by income, race, and gender." (Economic Policy Institute)
Tools for Plan Sponsors to Meet the Retirement Income Challenge
"Around age 50 -- the time they become eligible for catch-up contributions -- participants should be introduced to core income products and strategies. They'll need to prepare for critical decisions, including when to take Social Security, how much they can prudently spend from their savings, and how much they value lifetime income guarantees. The sooner participants know where to find the right resources, the better." (The Vanguard Group, Inc.)
The 12th Annual Transamerica Retirement Survey: Women (PDF)
"This report focuses on full-time and part-time women workers combined." (Transamerica Center for Retirement Studies)
TopRetirements.com Releases List of 10 Worst States for Retirement
"The list for 2012 is based on five considerations, including: fiscal health, property taxes, income taxes, cost of living and climate." (PLANSPONSOR.COM)
[Guidance Overview] New DOL Regs Offer More Investment Advisers the Opportunity to Provide Advice to Participants in 401(k) Plans and IRAs
"Under the New Regulations, relief is provided for investment advice arrangements qualifying as fee-leveling arrangements, 'certified' computer model programs, or both." (Kilpatrick Townsend & Stockton LLP)
The New Retirement Rulebook
"[One retirement industry worker] advocates an approach that takes into account an 'individualized inflation rate' based upon standard of living. A laddered annuity approach can cover baseline expenses to 'give peace of mind for lifetime income that they can never outlive.' 'In theory, they can spend the rest of their money and never run out of income,' he says." (Forbes.com LLC)
Is the 4 Percent Retirement-Withdrawal Rule Viable?
"'Market valuations' -- the relative health of markets at the moment you enter retirement -- are now an important part of calculating withdrawal rates. The thinking: Markets move in cycles (bull markets follow bear markets, and so on), and we can measure (to some extent) whether we're on the cusp of the former or the latter. Why is that important? If you happen to retire at the start of a bear market and withdraw too much too soon, your nest egg might expire before you do." (Dow Jones & Company, Inc.)
Recovery at Risk as Americans Raid Savings
"In an ominous sign for America's economic growth prospects, workers are paring back contributions to college funds and growing numbers are borrowing from their retirement accounts." (The New York Times; free registration required)
Smart Automatic Retirement Plan Investing (PDF)
"This brochure will help you understand your automatic plan and point out what aspects you should pay close attention to." (Retirement Made Simpler)
Secrets of the 401(k) Millionaires
"'The one characteristic that differentiates the winners from the non-winners here is contribution rate -- a high percentage of those million-dollar savers had constant participation and high contribution rates.'" (The Wall Street Journal)
Can a Professional Retirement Plan Advisor Really Make That Much of a Difference? (PDF)
"This survey of 409 employer offering a 401(k) or a 403(b) plan completed in September 2011 found that sponsors who partner with a Professional Retirement Plan Advisor enjoy superior retirement outcomes for their participants, superior understanding of fiduciary issues, improved plan designs, improved plan arrays, improved overall asset allocation among plan participants, more reasonable fees, and greater confidence in plan compliance and investment options." (Retirement Advisor Council / EACH Enterprise, LLC)
Plan Design Enhancements Can Confuse Instead of Engage Employees
"When you do communicate the changes, try to group several changes together so they don't get the feeling that things are constantly changing, and conclude that they should wait until things stabilize to make important saving or investment decisions. Also, ALWAYS start any communications with their needs in mind. Focus your communication and education efforts first and foremost on their goals, and then show how these changes can help them achieve their goals." (Financial Finesse via 401khelpcenter.com, LLC)
Favorable Tax Environment Adds to Roth 401(k) Appeal
"For most workers, the key factor in determining whether to save for retirement pre-tax or through a Roth 401(k) is their tax rate in retirement. Pre-tax savings are generally more valuable for participants in lower tax brackets in retirement while Roth savings are more beneficial for participants in the same or higher tax brackets in retirement. But with effective tax rates so low right now, Ms. Young points out that it is possible for some workers to be better prepared for retirement using a Roth, even if their tax burden is the same or slightly lower in retirement." (The Vanguard Group, Inc.)
How to Improve Social Security Education: Retirement Plan Providers' Perspectives (PDF)
"The experts and retirement plan providers interviewed in this study indicate a significant desire for greater collaboration with the Social Security Administration to develop effective communications and deliver useful and credible information to retirement plan participants and Americans as a whole. Some have specific suggestions for how the Social Security Administration can work more closely with defined contribution plan providers to help educate plan participants about the Social Security system and how Social Security benefits may serve as a critical component of their retirement income." (Financial Literacy Center)
Low-Wage Workers Get Better Deal Out of 401(k) Plans Than Previously Thought
"While high-income workers may enjoy a bigger tax break, they also face a 'short-term trade-off,' writes . . . a tax expert and guest blogger for Forbes. 'That's because their employers tend to offset their contributions to these plans by paying them less in wages?while lower-wage workers get less of a tax benefit than their higher-paid colleagues, their wages fall by much less for every dollar their employer contributes to their retirement plan.'" (BenefitsPro)
Fidelity Analysis Highlights Positive Impact of PPA on 401(k) Plans
"The study found that more than half (51%) of Fidelity's 401(k) participants are now in a plan that offers auto enrollment, up from just 16% five years ago, having a dramatic impact on participation rates. Additionally, the percentage of plans defaulting participants into age-based lifecycle funds has increased from 11% to 73%." (Wolters Kluwer Law & Business / CCH)
401(k) Contribution Limits Rise for 2012
"The Internal Revenue Service announced last fall that it was raising the maximum contribution to $17,000 in 2012, up from the $16,500 limit in 2011. Additional catch-up contributions for participants age 50 or older remain at $5,500 per year, in addition to the $17,000." (Employee Benefit News)
Recovering from the Market Downturn of 2008 (PDF)
"We first assess how declines in typical portfolio values impacted overall projected retirement incomes, factoring in Social Security, future growth and future savings. We then find that even for investors within five years of retirement, modest increases in savings combined with slightly delayed retirement can recover their pre-2008 retirement outlooks if they stay in diversified age-appropriate portfolios." (Society of Actuaries)
Data Shows Majority of Pensions Still Accruing Benefits
"According to the data, 46% are 'active' in that the 'plan is active and open to new hires,' and 29% are 'closed' in that the 'plan is closed to new entrants, but participants are still accruing benefits.'" (PLANSPONSOR.COM)
Americans Want to Save for Retirement and for Survivors
"According to the Multi-Generational Views on Family financial Obligations: A MetLife Survey of Baby Boomers and Members of Generations X and Y, nearly four in five (78%) survey respondents believe there is an obligation to provide a for a surviving spouse if one dies unexpectedly." (PLANSPONSOR.COM)
Five Retirement Numbers for You and Your Employees to Know and Take to Heart
"#5. 9.6% The smallest recommended retirement savings rate for workers, taking into account Social Security. This figure may sound daunting, but keep in mind that it does not consider employer contributions to a retirement plan." (Employee Benefit Advisor)
[Guidance Overview] 2011 Reporting for 2010 Roth Rollovers and Conversions
"The [IRS] guidance explains how participants should complete various line items of the 2011 Form 1040 series (which varies based on whether any portion of the amount involved was distributed in 2010 or 2011). Some participants may have a separate reporting obligation on the 2011 Form 8606 for subsequent distributions from the Roth account in 2011." (Mercer Select)
Secrets of The 401(k) Millionaires
"[T]o put $1 million in perspective: as nest egg's go, it's not exactly Faberge. The rule of thumb, advisers say, is to accumulate enough to be able to replace 75% to 80% of one's income in retirement, without -- ideally -- having to draw down more than 5% of the balance per year. So a $1 million nest egg would give off just $50,000 annually, enough to replace 75% of the income of someone who made $66,666. Even if the retiree collects the current maximum Social Security payment of $30,156 annually for a total income of $80,156, that's still just the recommended replacement for an income of $106,874." (SmartMoney)
Favorable Tax Environment Adds to Roth 401(k) Appeal
"While there are many reasons why the Roth 401(k) may be an attractive option for higher-income employees, what has surprised many about this innovative plan feature are the benefits it offers participants across the income spectrum, making it advantageous for a wide range of employees and plans." (The Vanguard Group, Inc.)
[Guidance Overview] New DOL Regs Offer More Investment Advisers the Opportunity to Provide Advice to Participants in 401(k) Plans and IRAs
"The relief provided under the New Regulations will not apply to any transaction for which the conditions under the New Regulations were not satisfied. Further, if a fiduciary adviser has engaged in a pattern or practice of noncompliance with any of the applicable conditions of the New Regulations, the prohibited transaction relief will not apply to any transaction connected with the provision of investment advice during the period of such noncompliance." (Kilpatrick Townsend & Stockton LLP)
Working Longer: The Solution to the Retirement Income Challenge
"This timely and insightful book assesses the potential of longer work lives to strengthen retirement security." (The Center for Retirement Research at Boston College)
Insights from ING's Study, Retirement Revealed, to Start the New Year (PDF)
"While the study revealed that employer-sponsored plans are widely used,consumers could do better supplementing this important means of saving.Overall, more consumers could increase their contributions in order toreceive the full employer match, taking better advantage of the sponsoredbenefits available through their workplace. Some of the data revealed keyareas where consumers are doing well, and other areas where there is roomfor improvement . . . ." (ING North America Insurance Corporation)
The Floor-Leverage Rule for Retirement
"Financial planners assume that retirees have a strong preference for consistent, predictable spending. Their widely used rule of thumb, the 4% rule, was developed to identify the maximum spending level that could be maintained throughout retirement. In stark contrast, the standard advice from financial economist may result in large fluctuations in spending." (Social Science Research Network)
First Generation of Highly Paid Professional Women about to Enter Retirement
"Among full-time, full-year workers, a higher percentage of women than men have participated in employer-sponsored retirement plans since 2001, according to the Employee Benefits Research Institute. In 2010, it was 55.5 percent for women and 53.8 percent for men." (Bloomberg L.P.)
Reasons To Boost Your 401(k) Contributions
"[T]he prospect of higher taxes and the fact that more traditional retirement savings vehicles are going away completely or [are] about to experience severe stress given the coming rapid rise in retirees, the 401(k) could end up making or breaking your retirement. The prospect for higher market returns going forward is another key consideration." (Investopedia US via Hearst Communications Inc.)
The New Year Is a Good Time to Review and Adjust Your Retirement Plan
"If you're aiming to improve your finances in the new year, try to incorporate a few of these tips into your retirement plan. Here are 12 ways to get better prepared for retirement in 2012." (Microsoft)
Strategies to Get Nonnative Speakers into Retirement Plans
"Changes in plan design -- primarily automatic enrollment -- are the main drivers of the increased participation along with improved, culturally sensitive communications, experts say . . . ." (Business Insurance)
Private Pension Plan Bulletin: Abstract of 2009 Form 5500 Annual Reports (PDF)
"The total amount of assets held by pension plans increased 17 percent to $5.5 trillion in 2009. DB plan assets increased 7 percent to $2.2 trillion, while DC plan assets increased by 25 percent to $3.3 trillion." (U.S. Employee Benefits Security Administration)
Private Pension Plan Bulletin Historical Tables and Graphs, 1975-2009, December 2011 Update (PDF)
This is a supporting document of the Private Pension Plan Bulletin: Abstract of Form 5500 Annual Reports. (U.S. Employee Benefits Security Administration)
401(k) Plans, a Volatile Stock Market and Generation Y Participants
"Gen Y never had a chance to learn about investing before its members were jolted by a near 40% market drop in 2008. This drop frightened even the most seasoned investors, but it shook Gen Y investors to the core; 52% of them liquidated a portion of their portfolio in 2010 or 2011 due to market concerns.' (Microsoft)
End of the Year 401(k) Options
"It's time to evaluate the performance of your 401(k) plan over the past year. If your plan has grown, or at least done well relative to the markets at large, then you may not need to make any major changes to your investment portfolio." (Investopedia US via Hearst Communications Inc.)
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