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BenefitsLink Retirement Plans Newsletter
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401(k) Participants Who Stuck with Equities Saw Balances Grow
"For 401(k) investors who kept with their equity allocation and continued to contribute to their plan as the financial markets went into free-fall in late 2008, their average account balance grew by 64% in the period from Oct. 1, 2008, through June 30, 2011, according to a Fidelity Investments study . . . ."
(MarketWatch, Inc.)
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DATAIR Retirement Plan Document Software [Advert.]

Cost-effective PC software gives you everything needed to produce and maintain accurate plan documents, SPDs, amendments and employee communications. Many choices of DC, DB, 403(b) and Cash Balance plan types, plus expert support from DATAIR's team.
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The Question of Retirement Plan Portability
"A majority of pension plans based the retirement benefit accrual upon final average pay, while 401(k) plans tend to base benefit accruals on current pay levels. Without doubt, an employee who job-hopped among final-pay pension plan employers would receive a reduced benefit compared to a similarly situated employee who remained at the same employer -- even if each employer had identical pension plans."
(Milliman, Inc.)
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Rethinking Defined Contribution Retirement Plan Design: A Survey of Experts
"The TIAA-CREF Institute surveyed experts in behavioral economics, actuarial science, decision-making, and financial education and advice to examine uses and combinations of plan features, product designs and participant services to address the retirement income needs of a heterogeneous workforce."
(TIAA-CREF Institute)
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ICI Submits Brief in Retail vs. Institutional Funds Case
"ICI contends the plaintiffs' argument that what they call 'retail' mutual funds should not be offered to plan participants rests upon unfounded premises about the costs and benefits of such mutual funds and their potential alternatives. ICI noted research, including its own, demonstrates that the expenses borne by mutual fund investors in 401(k) plans compare well to alternatives."
(PLANSPONSOR.COM)
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DOL Files Brief in SunTrust Stock Drop Case
"In an amicus brief . . ., [the Labor secretary] says the district court was correct to decline to dismiss plaintiffs' participant disclosure claim. She notes under [ERISA], defendants were obligated to truthfully communicate to participants' information material to the protection of their Plan investments, and SunTrust defendants' arguments to the contrary do not have merit."
(PLANSPONSOR.COM)
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[Opinion]
Impressions of the Concerns over DOL's Proposed New Fiduciary Definition
"One ought not be too surprised, I suppose, at those lobbying so fiercely to preserve the status quo. For good or ill, this industry has grown up around the so-called five-part test for an ERISA fiduciary. Entire business practices and means of conducting business have been constructed with an eye toward avoiding becoming ensnared in ERISA's web."
(PLANSPONSOR.COM)
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Benefits in General; Executive Compensation
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Verizon Tells Striking Workers It Plans to Suspend Benefits
"Workers at two unions that have called strikes will lose basic health-insurance, dental, vision and prescription-drug benefits, said Richard Young, a spokesman for the New York-based telephone company. Verizon stopped funding the workers' pensions when their former contract expired Aug. 6."
(The Washington Post; free registration required)
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Press Releases
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