Of survey respondents, 68 percent said their companies have closed defined benefit plans to new or all employees in the past five years. Read More
'The reality is that 401(k)s were never intended to take the place of pensions,' according to New York state comptroller Thomas DiNapoli in a speech at the New School's Schwartz Center for Economic Policy Analysis in New York City.
Nearly half of defined contribution plan sponsors either offer or plan to soon offer some type of inflation protection strategy to their participants, a Mercer study shows. Stand-alone Treasury Inflation-Protected Securities, or TIPS, are the most widely used option, ahead of combining multiple asset classes.Read More
The revised technical release updates an interim e-disclosure policy issued in September allowing defined contribution plan administrators to provide fee-disclosure information to participants electronically.Read More
Two plans to cut the federal deficit could drastically change the tax treatment of 401(k) plans. The first, called the ‘20/20 cap,’ would limit annual 401(k) contributions to $20,000 or 20 percent of salary. The second would end tax deductions for 401(k) plans and replace them with a flat-rate refundable credit.Read More
As was the case in the prior fiscal year, the Pension Benefit Guaranty Fund did not incur any multibillion-dollar losses in fiscal 2011.Read More
Nearly 96 percent of participants enrolled in target-date funds in 2007 were still using them in 2009. And because more target-date fund products are in the marketplace, expenses are dropping. Despite their popularity and lower prices, target-date funds have their critics.
Target-date funds employ a mix of stocks and bonds that are put on a set glide path.Read More
Worker and employer contributions to a 401(k) plan are capped at $49,000 or 100 percent of a worker's pay, whichever is lower, under the current federal tax code.Read More
The U.S. Postal Service would get back $6.9 billion in pension overpayments and use some of that money to encourage at least 100,000 employees to retire early, according to a proposal announced Nov. 2 by a bipartisan group of senators.Read More