September 2001

Take It Or Leave It

Plan sponsors are finding that it pays to help employees plot their post-retirement strategies-including that pivotal decision: to roll over, or to leave the money in the plan

No Place Like Home

The more one discusses the "R" word (rollovers), the harder it is to ignore the all-around advantages of a decision to leave defined contribution assets in the plan. Your participant deserves to know them, too.

Decision Time

Rollovers-the term used to describe that pivotal step taken when defined contribution accumulation stops and either distribution or reallocation begins-mean a great deal to the individuals who are either retiring or changing jobs.

Sharing The Wealth

In June, the Internal Revenue Service issued new final regulations that add another requirement for employers to meet if they are to be entitled to claim tax-qualified status for a transfer of excess pension assets from a defined benefit plan to a retiree health-care account.

Bill Targets “All Employers”

That is not all. Just a day after the plan sponsor summit with EEOC, Representative Thomas E Petri (R-Wisconsin) introduced House legislation that would override the Third Circuit decision by providing that employers who alter, reduce, or eliminate retiree health benefits once a retiree is eligible for Medicare would not be in violation of ADEA.

Bill Targets “All Employers”

That is not all. Just a day after the plan sponsor summit with EEOC, Representative Thomas E Petri (R-Wisconsin) introduced House legislation that would override the Third Circuit decision by providing that employers who alter, reduce, or eliminate retiree health benefits once a retiree is eligible for Medicare would not be in violation of ADEA.

Plan Sponsor – Friendly?

The "new" PWBA under Ann Combs is putting a new emphasis on guidance in murky areas of ERISA. It is seeking to expand its voluntary fiduciary correction program, reviewing the exemption process for prohibited transactions, and seeking new authority from Congress for discretion in imposing fines in negotiated settlements. What's a plan administrator not to like?

In Good Conscience

Participant demand and new, low-expense offerings help socially responsible funds to catch on

Too Many Managers?

Why some see whole-stock portfolios as the antidote to teams of specialists and lackluster active returns

Money Pit

Taft-Hartley learns about diversification-the hard way

Making The Grade

Lawsuits allege that forced evaluation systems discriminate against older workers

Catch As Catch Can

One of the better-known parts of the new tax bill is its provision for plan participants over the age of 50 to set aside additional funds for retirement-above and beyond their regular savings. While many in the press touted that group's ability to sock away an extra $5,000 per year, the reality is that it will be several years before that much can be set aside.

Loyal Customer

KKR's returns are down. Why OPERF is sticking with the legendary buyout fund, anyway

(k) Plan Balances Were Stable In 2000, Says EBRI

Newsflash: The average 401(k) plan participant balance slipped just 0.1% last year, though older participants fared worse, according to preliminary research from the Investment Company Institute and the Employee Benefit Research Institute.

“Universal Pass-Through”

Would simplifying retirement savings plan administration via a streamlined payroll deduction scheme-which all employers would offer and in which any employee could elect to participate-be an effective means of increasing retirement savings rates? A senior AARP official is seeking support for the idea.

Big Deal!

Florida hires "newcomer" CitiStreet for its new DC plan

Sidebar: Leaving Assets In The Plan: The Up Side

While many plan sponsors do not advise employees to keep their assets in their defined contribution plans after retiring, a number of independent experts say they should. Since more assets yield more clout for their plans when negotiating fees with their service providers-including investment managers, advice providers, and recordkeepers-"you end up with a triple win," says EBRI's Dallas Salisbury. "Active participants have lower costs, the employer has lower costs, and the separated vested participant has lower costs."