[Guidance Overview]
Court Gives Final Approval to Settlement of 401(k) Fee Case
"The agreement ends proceedings in Kanawai v. Bechtel Corp. . . . in which two former Bechtel employees alleged the company violated its [ERISA] fiduciary responsibilities by not using its size to get lower fees from vendors."
(PLANSPONSOR.COM)
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Register for ASPPA’s Spring Exams! (advert.)
ASPPA’s Education and Examination programs provide affordable and convenient ways of earning credentials and Continuing Professional Education (CPE) credits. Register before April 14 at asppa.org/education to save money with the "early bird" discount
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[Guidance Overview]
IRS's Final and Proposed Regulations for Hybrid Plans (PDF)
"These developments affect sponsors of and participants in hybrid plans, such as cash balance plans and pension equity plans. They also affect plan sponsors that are considering converting a traditional defined benefit plan to a hybrid plan design."
(Prudential Retirement)
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[Guidance Overview]
What if Your 401(k) Plan Failed the ADP and ACP Tests?
"The failure to address ADP and ACP problems will likely mean that an employer will have to come out-of-pocket with an unanticipated, but required, contribution into the 401(k) plan."
(Constangy, Brooks & Smith, LLP)
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EBSA Faces More Criticism on Definition of Fiduciary Proposal
"The Securities Industry and Financial Markets Association . . . and the Investment Company Institute . . . both agreed with previous witnesses that [EBSA's] proposal is too broad . . . and may disrupt established business practices of financial institutions interacting with employee benefit plans."
(PLANSPONSOR.COM)
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Calculators No Substitute for a Qualified Retirement Planner
"Real life doesn't fit neatly into most static retirement savings models. Even the best-laid plans are complicated by disability, providing for aging parents, college financing or second marriages. There's also the prospect of working in retirement. If you choose to work, that could change your picture as well."
(The New York Times; free registration required)
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Shifting Strategies for Target-Date Funds
"[The fund managers are now] de-emphasizing stocks and adding investments that are more diversified, less likely to make sharp moves and more likely to provide a steady income."
(The New York Times; free registration required)
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Middle-Income Retirement Preparedness Study (PDF)
"Almost two in three (63%) middle-income Americans age 55 to 75 are unsure if they have saved enough to live comfortably in retirement. Of this group, thirty-nine percent (39%) are only somewhat confident in the adequacy of their retirement savings and one-fourth (24%) are not too or not at all confident."
(Bankers Life and Casualty Company Center for a Secure Retirement)
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Judge Declines to Cap Damages in Chicago-Based Tribune Co.'s ESOP Lawsuit
"Greatbanc Trust Co. asked the court to limit its damages to $15 mil.lion after [the] District Court ruled last year that the trustee violated [ERISA] when it let the ESOP buy $250 mil.lion in shares as part of Tribune's 2007 leveraged buyout by Chicago real estate mogul Sam Zell."
(Crain Communications, Inc.)
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State Worker Retirements Soaring Across the Country
"Many employees of cash-strapped states, such as New Jersey, California and New York, appear headed for the exits -- trying to get out while they still have pensions -- as governors pressure workers and their unions to contribute more toward their health care and retirement."
(AOL Inc.)
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Florida Town's Pension Investigation Faults Morgan Stanley
"The preliminary results of the Longboat Key firefighters pension fund forensic investigation, performed by Benchmark Financial Services Inc., implicates Morgan Stanley as operating with financial conflict of interest and in violation of Florida law."
(Longboat Key News)
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ASPPA Calls DOL Disclaimer for Broker-Dealers 'Unduly Harsh'
"The Labor Department's proposed expansion of the definition of 'fiduciary' treats broker-dealers that work with retirement plans too harshly -- or so says the American Society of Pension Professionals and Actuaries."
(Investment News; free registration required)
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Better Business Bureau to Honor Investor Protection Trust's CEO Don Blandin
"Don Blandin, President and CEO of Investor Protection Trust (IPT) located in Washington, DC, will receive the Torch Award for Consumer Leadership, given to 'a leader who has significantly advanced marketplace trust through consumer advocacy, protection or education, or through a specific action or lifetime achievement.' Blandin is being recognized especially for his demonstrated skill, commitment and passion for financial education and protection for consumers of all ages. As president of IPT, he has developed and sponsored numerous programs that have helped Americans become wise and safe investors . . . ."
(Better Business Bureau)
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[Opinion]
Who Killed the Private Sector DB Plan? Answer: Volatility
"In recent decades, defined benefit pension coverage has declined for private sector workers. This issue brief finds that funding volatility is the primary culprit, not pension costs. It also identifies opportunities to reverse the trend. "
(National Institute on Retirement Security)
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[Opinion]
Four Red Flags in the SEC's Fiduciary Report
"[W]ithin the Dodd-Frank Act was enacted one measure, which if applied correctly could largely correct the excesses of unfettered capitalism and shrink the financial services sector. It is a measure so feared by financial services companies that they have engaged in an all-out war against it - first by fighting its application, then by seeking to 're-define' it, and now by seeking to delay it."
(RIABiz LLC)
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[Opinion]
Testimony of Norman Stein Before DOL Hearing on Proposed Regulations Defining Fiduciary
"My statement today will cover five points: first, that the current regulations improperly constrict the statutory definition of fiduciary; second, that the current regulations were promulgated in a different economic and legal environment than today and as a result sometimes fail today to shield unsophisticated participants in retirement plans from investment advice tainted by conflicts of interest; third, that the proposed regulations should not condition fiduciary status on whether a person provides 'individualized' investment advice; fourth, that the 'sales' limitation on the definition of fiduciary status should not apply to advice given to participants; and fifth, that advice about distributions should be considered investment advice."
(Pension Rights Center)
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Benefits in General; Executive Compensation
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[Guidance Overview]
Proposed Rules on Incentive Compensation from the SEC
"Like the rules proposed for 'covered financial institutions' by the SEC and six other agencies last month . . . the proposed rules have three main sections . . . ."
(Michael S. Melbinger via Winston & Strawn LLP)
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ERISA Bonding Requirements (PDF)
"[ERISA] bonding requirements are quite voluminous and complex, so it is important that all plan sponsors and fiduciaries understand the requirement in order to make sure their current fidelity bond is in compliance with the current rules and regulations."
(WithumSmith+Brown, PC)
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[Opinion]
What Public Employees Really Cost
"If we seize upon this crisis to make basic changes -- to start rewarding public employees in part on the basis of how effective they are, for example -- we could do more than just stabilize our budgets; we could raise our entire economy."
(Time Inc.)
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Press Releases
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