Retirement Plans
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June 23, 2006
Today's sponsor: InvestLink

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InvestLink offers the "Best of Breed" Software for Defined Contribution Recordkeeping, Administration and Trading

InvestLink offers "Best in Class" administration and record keeping software on an Application Services Platform (ASP) for 401(k), Profit Sharing and all other Defined Contribution plans. The product was designed by administrators for administrators. This ASP platform requires no hardware investment for clients. It provides secure, disaster recovery, web-based services all at one bundled price. Additionally, InvestLink converts your old data on to our new platform at NO cost to you, with NO installation for the standard platform. Training and support included in the bundled price. Also, if you are a distributor contact us and learn more about working with us to distribute your investment products. For a free demo and pricing, contact or call Tim Slavin-CEO at 1-888-507-LINK.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Chart of the Retirement Savings Provisions of EGTRRA: Current Law vs. Possible 2011 Reinstatement (PDF)
This 7-page chart shows both the state of current law for various important retirement plan rules and how those rules would change in 2011 (reverting to prior law) if EGTRRA sunsets. (American Benefits Council)

Looming SEC Rule 22c-2 Might Hurt 401(k) Plans
Excerpt: "Scheduled to take effect Oct. 16, the SEC's Rule 22c-2 allows mutual funds to charge a redemption fee of up to 2% on short-term transactions. But critics say the regulations lack uniformity and are likely to create major administrative headaches." (

4th Circuit: District Court Justified in Ordering Removal, Permanent Injunction Against Fiduciaries (PDF)
Excerpt: "[R]emoval is only appropriate where fiduciaries 'have engaged in repeated or substantial violations of their fiduciary duties.' ... We find no error in the district court's determination. Defendants' repeated efforts to plunder the Plan's assets and minimize their own liabilities demonstrate that they were administering the Plan neither for the sole benefit of Plan participants and beneficiaries ... nor with the skill and care of a prudent person in like circumstances ..." (

4th Circuit: No ERISA Remedy Despite Fiduciary's Alleged Failure to Follow Investment Instructions
Excerpt: "LaRue sued DeWolff, Boberg for breach of fiduciary duty, saying the company never made the investment changes to his 401(k) plan that he directed in 2001 and 2002. He alleged that he lost approximately $150,000 in interest due to his instructions not being followed. His complaint sought to have his account made whole." (; one-time registration required)

Report: Fees and Expenses of Mutual Funds, 2005 (PDF)
8 pages. Excerpt: "Mutual fund fees and expenses fell to their lowest levels in more than a quarter century during 2005: Stock fund investors on average paid 113 basis points in fees and expenses, a drop of 4 basis points from 2004. Fees and expenses on bond funds fell to 90 basis points in 2005, a decline of 2 basis points." (Investment Company Institute)

SEC Adopts New Rules and Amendments for Fund of Funds Investments and Disclosure
Excerpt: "On June 20, 2006, the Securities and Exchange Commission adopted three new rules and amendments to several forms under the Investment Company Act that address 'fund of funds arrangements.' The new rules will codify several exemptions from the Act that the Commission has issued over the years, and will provide greater transparency of expenses investors in these arrangements pay." (U.S. Securities and Exchange Commission)

Can Pricey Target-Date Funds Be Competitive?
Excerpt: "These funds have gained favor among 401(k) providers and wary investors in the wake of the bear market; more than two thirds of the 155 target-date funds in Morningstar's database are less than three years old, and we introduced three new fund categories in March 2006 to address this phenomenon." (Morningstar)

Resources on the British Pension System, Compiled by AARP
Excerpt: "The UK Department for Work and Pensions has released its White Paper on pension reform ... Some of the key changes to the current system include raising the pension qualification age, introducing an automatic savings scheme, and tying pension payments to average earnings. The AARP Global Aging Program would like to contribute to the dialogue by dedicating this site to house the resources and research that we have produced over the years on British pension issues." (AARP)

Links to Items on Executive Comp, Benefits in General

Executive Pensions Can Be Big Liability Says Wall Street Journal
Excerpt: "Executive benefits play a large and hidden role in the declining health of U.S. pensions, and executive pension obligations exceed $1 billion at seven U.S. companies, The Wall Street Journal said on Friday [June 23]." (Reuters)

The Fallout of Automotive Buyouts of Employees
Excerpt: "To tens of thousands of workers, it's a wrenching decision. To their employers, it's much-needed cost-cutting. To their already depleted union, it's an exodus." (Washington Post; one-time registration required)

Newly Posted Events
(Post Yours!)

Hardship Distributions - Basics and Beyond
Nationwide on July 18, 2006
presented by SunGard Corbel

How to Fix a Broken 401(k) Plan
in Georgia on July 20, 2006
presented by WEB and ABC of Atlanta

Newly Posted Press Releases
(Post Yours!)

Suspension of DOE Procurement Policy Gives Pension Bill Negotiators New Opportunity to Craft Predictable Funding Rules
(American Benefits Council) Announces The Release Of ftwPortal

9th Annual Ariel/Schwab Survey Shows Blacks & Whites Differ in Expectations and Strategies for Retirement
(Ariel Capital Management, LLC)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Sr. Strategic Planning Consultant
for Transamerica
in CA

Retirement Plan Administrator
for MVP Plan Administrators Inc
in NC

Not-for-Profit / 403(b) Market Manager
for Transamerica
in CA

Compliance Manager
for Associated Pension Consultants
in CA

Pension Administrator
for Associated Benefit Planners, Ltd.
in PA

Financial Planner / Investment Specialist
for Diversified Investment Advisors
in NY

Institutional Trust Relationship Manager - RPS
for U.S. Bank
in WA

Operations (EDI) Administrator
for Sentinel Benefits Group
in MA

Conversion Specialist
for Third Party Administrator located in the Southeast
in NC

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