Plan Participants Displaying 'Calm After the Storm' MassMutual's Retirement Services Division has released new data indicating that participants in retirement plans administered by MassMutual are taking a calmer, longer-term approach to their retirement saving plans. Source:401khelpcenter.com

Obama Administration Unveils Retirement Security Initiatives After a year of meetings held all over the country, President Obama's Task Force on the Middle Class gave a preview of elements of their upcoming recommendations. Here we an overview those covered in the retirement security section of the report. Source:401khelpcenter.com

Why the 401k Will Prevail — and How Ed Murphy, Putnam's Head of Defined Contribution, partners with the Profit Sharing Council of America to discuss how the 401k program will continue to adapt and improve to meet the needs of the American work force. The positive effects introduced by the Pension Protection Act of 2006 will be complemented by assured income products, increased fee transparency, and extended coverage to more Americans. Source:Scribd

Participants Using 401k Help Offered Through Their Employer Have Higher Returns 401k plan participants using professional investment help provided by their employer—such as target date funds, managed accounts and online advice—experience better returns on their retirement investments than those who do not, according to a joint study from Hewitt Associates and Financial Engines. Source:401khelpcenter.com

Customize Your Plan Document While small companies may need to use pre-approved documents because of cost considerations, mid-size and larger companies should consider drafting documents to meet their needs. This article describes three items to consider. Source:Reish & Reicher PC

401ks: The Last Hurdle for the ETF Industry Exchange traded funds have been encroaching upon mutual funds' territory. The lucrative 401k market, however, is one area that the fast-growing industry has yet to fully infiltrate. Source:ETF Trends

Required Disclosures in Service Agreements Reish & Reicher anticipates that the DOL will continue to use its enforcement authority to require written agreements with advance disclosures regardless of what the regulations may – or may not – require. Source:Reish & Reicher PC

Investment Policy Statements Most investment policy statements prepared by advisers are well-drafted, however some have problems. This article highlights four of those. Source:Reish & Reicher PC

Ways for BD/RIAs to Mitigate Fiduciary Risk Given that many advisers may rely upon cross-selling and rollovers to augment their plan level services, Reish & Reicher recommend undertaking a review of current policies to ensure that such activities are consistent with regulatory and home office guidance. Source:Reish & Reicher PC

Supreme Court Won't Review Hecker v. Deere 401k Fee Decision The US Supreme Court has declined to review a controversial pro-fiduciary decision on 401k fees (Hecker v. Deere). In 2009, the US Seventh Circuit Court of Appeals ruled that participants' ability to select from a wide range of funds within the structure of ERISA Section 404(c) shielded fiduciaries from claims of excessive fees. Source:Mercer

Kraft Excessive Fee Case Thrown Out A federal judge in Illinois has turned away allegations by 401k participants at Kraft Foods Global that recordkeeping fees paid to Hewitt Associates were too high and the company stock fund was improperly unitized. Source:Plansponsor.com

Federal Court Approves 401k Settlement Involving Hartford Life A federal court in Connecticut has approved a partial settlement in a class-action civil suit involving the handling of 401k plans by Hartford Life Insurance Co. Source:Ifawebnews.com

DOL Final Rule on Definition of Plan Assets – Participant Contributions On January 14, 2010, the DOL published a final rule that establishes a safe harbor period by which amounts that a small employer has received from participants or withheld from wages for contribution to certain pension plans and welfare benefit plans will become plan assets for purposes of Title I of the ERISA and the related prohibited transaction provisions of the Internal Revenue Code of 1986, as amended. Source:Transamerica Center for Retirement Studies

DOL Finalizes Safe Harbor for Depositing Plan Contributions From Participants The final regulation is the same as the proposed regulation (with some clarifications) and is effective January 14, 2010. While the safe harbor itself only applies to small employers, the preamble to the regulation provides insight into the operation of the general rule for all employers. Source:McGuireWoods