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BenefitsLink Retirement Plans Newsletter
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Mid-Caps in DC Lineups: Considerations for Plan Sponsors (PDF)
"Passive investing may feel a bit boring to many investors who have been conditioned to believe that successful investors are those who beat the market. . . . [I]f the goal of employers is to offer retirement plans that offer a high probability of generating adequate retirement funding for participants, then index funds should surely play a central role in DC lineups."
(Standard & Poor's Financial Services LLC)
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Wolters Kluwer Law & Business brings you ftwPortal Express! [Advert.]

ftwPortal Express, a new member of the ftwilliam.com suite of products, will streamline the document/form collection/dissemination process and provide a secure means to communicate confidential information with clients. Ask us about a demo.
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Product Development in the Retirement Income Space
"[T]he market has been flooded with new and/or improved products promising income in retirement. In 2010, there were 15 new variable annuities introduced and 21 new living benefits rolled out, with an additional three VAs and eight living benefits in the first quarter of this year, according to Ernst & Young. There are currently 62 open-end mutual funds focusing in Morningstar's retirement income category."
(Penton Media, Inc.)
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Retirement Pessimism/Optimism: the Difference Is All in Perception
"A recent report from HSBC shows that people across the West—including the U.S.—are generally pessimistic about their retirement prospects while those in the East are relatively optimistic. And yet, by every objective measure, citizens in Western developed countries control significantly more assets per capita than their counterparts in Eastern emerging economies."
(Employee Benefit News; free registration required)
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PBGC Removes Obsolete Regs on Participant Disclosures
"Former ERISA §4011 required certain underfunded plans to notify participants of a plan's funding status and the limits on the PBGC's guarantee. The PPA repealed ERISA §4011 for plan years beginning after 2006 and replaced the disclosure requirement under that section with a disclosure requirement under Title I of ERISA."
(Wolters Kluwer Law & Business / CCH)
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California Public Sector Retirement Programs and Compensation
"This report is prepared in response to a request by The California Foundation for Fiscal Responsibility (CFFR) for an analysis of retiree benefits and taxpayer costs for California state and local government retirement programs. We also look at the impact of two alternative CFFRreform proposals."
(California Foundation for Fiscal Responsibility)
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401(k) Nation: Road to Retirement Gets Rockier
"Ghilarducci characterizes 401(k)s as 'do-it-yourself pensions.' She says most investors can't afford truly independent financial advice, so instead they rely on brokers who themselves have a conflict of interest."
(NPR)
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Radical Overhaul of Military Retirement Reviewed
"The proposal comes from an influential panel of military advisors called the Defense Business Board. Their plan, laid out in a 24-page presentation 'Modernizing the Military Retirement System,' would eliminate the familiar system under which anyone who serves 20 years is eligible for retirement at half their salary. Instead, they'd get a 401k-style plan with government contributions. They'd have to wait until normal retirement age. It would save $250 bil.lion dollars over 20 years."
(CBS Interactive Inc.)
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[Opinion]
Why 401(k) Plans Are Doomed from the Start
"The mistakes of plan participants and plan sponsors prevent most 401(k) plans from providing meaningful retirement income. The '401(k) industry' has made a killing off the current system, which has made the problem worse. The Department of Labor has provided written guidance as to what to do to address these issues, but too few plan sponsors are aware of this guidance or have embraced it."
(Forbes.com LLC)
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[Opinion]
The Origins and Severity of the Public Pension Crisis, February 2011 (PDF)
"The shortfalls facing most state and local pension funds have been seriously misrepresented in public debates. The major cause of these shortfalls has not been inadequate contributions by state governments, but rather the plunge in the stock market following the collapse of the housing bubble. Given the low PE ratios in the stock market, pension fund assumptions on the future rate of return on their assets are consistent with most projections of economic growth and past experience. Furthermore, when expressed relative to the size of their economies, most states are facing shortfalls that appear easily manageable."
(Center for Economic and Policy Research)
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Benefits in General; Executive Compensation
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Employee Benefits Update, August 2011 (PDF)
The newsletter covers selected compliance deadlines and reminders, retirement plan developments, and, health and welfare plan developments.
(Reinhart Boerner Van Deuren s.c.)
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Employee Ownership Update for August 15, 2011
NCEO Executive Director Loren Rodgers discusses lower employee turnover at employee-owned companies, a new equity plan at Republic Airlines, experimental economics and employee ownership, a Polish IPO with an equity stake, and the Ownership Thinking conference.
(National Center for Employee Ownership)
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[Opinion]
Everything You Wanted to Know About TPAs But Were Afraid to Ask
"Like every industry, TPAs could conceivably be crippled or wake up to a different market by the flick of the legislative pen. On the other hand, responsible politicians see that 'single-payer' programs such as Medicare & Medicaid and in other countries is not financially sustainable. So, most of the recent government laws & actions project the continuation of the current benefits system[.] However, no matter what the funding method, TPAs are strictly service providers. They do not participate in the 'risk' of the plan. Thus, future prospects of TPAs are like that of CPA and law firms. There is work to do as long as there is red tape & bureaucratic requirements."
(Society of Professional Benefit Administrators)
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Press Releases
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Jeanette Hull, News Editor
David Rhett Baker, J.D., Editor and Publisher
Lois Baker, J.D., President
Holly Horton, Business Manager
Copyright © 2011 BenefitsLink.com, Inc. All rights reserved.
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