Headlines about "Ret plan investments - misc"

Gathered from the web by the editors at BenefitsLink.com.
Impact of Economic Crisis on Your Pension Plans (PDF)
2 pages. Excerpt: "The economic crisis brought about by the credit crunch resulting from aggressive lending practices and the even more aggressive packaging of debt instruments will have an impact on corporate and other employers in many different ways. Here are some of the implications on employer-sponsored defined benefit pension plans." (Findley Davies, Inc.)

Treasury Expands Money-Market Guarantee Program
Excerpt: "The U.S. Treasury Department on Wednesday announced a technical correction that would permit additional money market funds to participate in its Temporary Money Market Fund Guarantee Program. Funds that have a policy of maintaining a stable net asset value or share price that is greater than $1.00 and had such policy on September 19, 2008, are now eligible to participate, provided the fund meets all of the original program requirements . . . . The enrollment deadline for funds that are now eligible as a result of this technical correction is 11:59 p.m. EST on October 10, 2008." (PLANSPONSOR.com; free registration required)

Retirement Plan Investment Committee Considerations in a Time of Extraordinary Events Affecting Financial Markets
Excerpt: "These are challenging times for investment committees, with dramatic market events affecting retirement plan assets and participants. Vanguard Institutional Strategic Consulting (ISC) has released [this] bulletin, with steps that can help investment committees confidently fulfill their fiduciary responsibilities during the current turbulence. The ISC bulletin spells out what to consider in oversight and monitoring plans, and provides process suggestions fiduciaries can undertake to monitor investments during times of unusual market volatility." (The Vanguard Group)

[Guidance Overview] Final ERISA Regulations on Annuity Selection for Defined Contribution Plans (PDF)
2 pages. Excerpt: "The final regulations take effect on December 8, 2008. DOL simultaneously finalized its amendment of Interpretive Bulletin 95-1 . . . limiting the applicability of the so-called 'safest available annuity' rule to defined benefit plans effective as of the same date. (Interim guidance published in September 2007 provided the same result effective November 13, 2007.)" (Sutherland)

[Opinion] Fiduciary Prudence Is Key in Times of Market Extremes (PDF)
Excerpt: "There are key considerations for a fiduciary to address in times like these. The first is to stick to the basics: Review your Investment Policy Statement and any other governance protocols; consider the time horizon of your plan(s); focus on your plan participants; help them understand the current situation and not to panic, and lastly document, document, document the process." (OneFiduciary Group via 401khelpcenter.com)

Baltimore School Officials Give Thumbs Down on 403(b) Vendor Consolidation
Excerpt: "At a time when many 403(b) plans across the country are consolidating to a single service provider to ease compliance with new IRS rules, the Baltimore County school board voted not to follow that path in light of a protest from hundreds of employees and the district's five labor groups. A Baltimore Sun news report said board members unanimously opposed the recommended contract with 403(b) provider Lincoln Financial Group, which would have moved away from the multiple vendors currently available to employees." (PLANSPONSOR.com; free registration required)

[Opinion] Congressional Hearing Considers Market Drop's Impact on Retirement Security
Excerpt: "Aptly titled 'The Impact of the Financial Crisis on Workers' Retirement Security', the hearing, convened by the U.S. House Committee on Education and Labor, included testimony from a number of experts." (PLANSPONSOR.com)

Advisers Set to Benefit from the Transformation of 403(b) Plans
Excerpt: "Prior to the new regulations this employer segment did not really need an adviser, but as 403(b) plans are being made to look more like 401(k)s a new market is developing for retirement plan experts. Why are the regulations making the products more 401(k)-like? Simply put, 403(b)s haven't performed as well as their counterparts." (Employee Benefit Adviser; free registration required)

[Opinion] American Benefits Council Statement for Hearing on Impact of Financial Crisis on Workers' Retirement Security (PDF)
4 pages. Excerpt: "Regardless of the type of plan (or plans) an employer offers to its workforce, there is a dimension of employer plan sponsorship that deserves particular mention as it brings tremendous value to plan participants in financial circumstances like those we are experiencing. That is the simple fact of employer plan sponsorship and the fiduciary oversight that accompanies this employer role. Retirement plan participants have a fiduciary whose legal obligation it is to act solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits." (American Benefits Council)

EBRI Testimony: The Impact of the Financial Crisis on Workers' Retirement Security (PDF)
6 pages. Excerpt: "The impact of the current financial crisis on defined benefit (pension) plans is impossible to quantify, but it is obvious that a marked reduction in funding ratios and/or increase in volatility may make continued sponsorship of these plans less attractive under some forms of pension accounting modifications. Moreover, the Pension Protection Act of 2006 (PPA) has established specific restrictions with respect to freezing of accruals, plan amendments and lump-sum distributions as a function of funding ratios." (Employee Benefit Research Institute)

CBO Testimony: The Effects of Recent Turmoil in Financial Markets on Retirement Security (PDF)
10 pages. Excerpt: "The turmoil in financial markets has affected many aspects of the economy, including pensions. The most direct effect on pensions is through the prices of financial assets such as corporate equities and bonds." (U.S. Congressional Budget Office)

Congressional Budget Office Estimates Retirement Plan Losses of $1 Trillion, or 10 Percent of Assets, Over Four Quarters
Excerpt: "It notes that Federal Reserve data suggest the decline in the value of financial assets cost pension funds roughly $1 trillion -- almost 10 percent of their assets -- from the second quarter of 2007 to the second quarter of 2008, the latest period for which data are available. Given the significant further drop in asset prices since the end of the second quarter, 'it is plausible that the cumulative decline in pension assets over the past year and a half amounts to about $2 trillion,' says CBO director Peter Orszag in a blog detailing his Tuesday testimony before the House Committee on Education and Labor." (CFO.com)

Retirement Accounts Have Lost $2 Trillion - So Far
Excerpt: "Americans' retirement plans have lost as much as $2 trillion in the past 15 months -- about 20 percent of their value -- Congress' top budget analyst estimated Tuesday as lawmakers began investigating how turmoil in the financial industry is whittling away workers' nest eggs." (AP via The New York Times; free registration required)

Accounting Rules Help Pension Plans, But Losses Continue, According to Mercer
Excerpt: "The upheaval on Wall Street that began a few weeks ago is the latest chapter in the financial market turmoil that began in the middle of last year. Since the end of 2007, the funded status of pension plans sponsored by large US companies has fallen by almost $100 billion. However, during the third quarter, despite the falls in global equity markets, the financial position improved, due to the increase in 'high-quality' corporate bond yields, according to analysis conducted by Mercer." (Business Wire via MarketWatch)

[Opinion] Breach of Fiduciary Duty Claims
Excerpt: "I talked about a case last week that addressed the damages aspect of making out a breach of fiduciary duty claim related to stock drop type issues, and pointed out the broad, ambiguous and easy to manipulate nature of a damages claim in that scenario. Another case last week, also out of the United States District Court for the District of Massachusetts, points out that other aspects of making out a breach of fiduciary duty case on a class action basis based on the administration of 401(k) plans provide a real check on such cases. The issue in that case? Namely that not everyone involved in operating a 401(k) plan is a fiduciary, and that while deep pockets involved in allegedly inappropriate behavior with regard to such a plan may make tempting targets, they cannot be sued successfully for breach of fiduciary duty if the prerequisite of having acted as a fiduciary is not satisfied." (Stephen Rosenberg of The McCormack Firm, LLC)

Committee Hearing: 'The Impact of the Financial Crisis on Workers' Retirement Security'
Excerpt: "This hearing will examine how the current financial crisis is impacting pension funds and workers' directed retirement accounts, such as 401(k) plans. According to a recent poll by the Associated Press, more than half of all Americans are worried that the ongoing financial crisis will force them to postpone retirement. [The hearing is scheduled to begin at 1 p.m. EDT today.]" (U.S. House of Representatives Education and Labor Committee)

[Official Guidance] Text of Final EBSA Regs: Statutory Exemption for Cross-Trading of Securities by ERISA Plan Fiduciaries (PDF)
10 pages. Excerpt: "This [regulation] implements the content requirements for the written cross-trading policies and procedures required under section 408(b)(19)(H) of [ERISA]. Section 611(g) of the Pension Protection Act of 2006 . . . amended section 408(b) of ERISA by adding a new subsection (19) that exempts the purchase and sale of a security between a plan and any other account managed by the same investment manager if certain conditions are satisfied. Among other requirements, section 408(b)(19)(H) stipulates that the investment manager must adopt, and effect cross-trades in accordance with, written cross-trading policies and procedures that are fair and equitable to all accounts participating in the crosstrading program. . . . [The DOL] has determined to make the final regulation effective 120 days after [October 7, 2008]." (Employee Benefits Security Administration, U.S. Department of Labor)

[Official Guidance] Text of Final EBSA Regs: Selection of Annuity Providers; Safe Harbor for Individual Account Plans (PDF)
4 pages. Excerpt: "[T]he substance of the final rule is very similar to the Department's proposed rule. The Department, however, has made changes to the proposed rule that clarify and simplify the safe harbor conditions, consistent with the suggestions of the commenters. . . . This final regulation will be effective 60 days after [October 7, 2008]." (Employee Benefits Security Administration, U.S. Department of Labor)

Florida Retirement System Sends 'Comfort' Letter to Participants
Excerpt: "As of July 1, 2008, the plan has more assets than currently needed to pay future benefit retirements by about 106%, or $6.9 Billion. Under SBA's stewardship, FRS is one of only a handful of public pension systems to maintain full funding. During these financial times, Ms. South wants members to understand that under Florida law, accrued FRS pension plan benefits are guaranteed, regardless of investment performance. (The foregoing statement is true for virtually every municipal plan in Florida, including all fire and police plans that participate in Chapters 175 and 185.) And what is Ms. South's advice to those unfortunate souls who opted out of the FRS Pension Plan and chose the Investment Plan, which is a defined contribution arrangement? '[M]ake sure you are putting money away for your retirement by investing in a well-diversified portfolio. ... Members should consult their personal financial advisers for guidance.' In other words, you're on your own. Oh, well." (Cypen & Cypen)

Six Ways to Quash Employees' 401(k) Anxieties Over the Financial Crisis
Excerpt: "Lynn Unsworth, regional manager of Capital Associated Industries, offers a few tips to help employers ease workers' concerns about their 401(k) balances in light of the recent mood swings of the stock market." (Employee Benefit News; free registration required)

DOL Issues Final Rules on Missing Benefits and Other PPA Provisions
Excerpt: "The U.S. Department of Labor (DoL) has announced final rules under the Pension Protection Act of 2006 (PPA) relating to distribution of 401(k) benefits for missing nonspouse beneficiaries in terminated plans, selection of annuity providers, and cross trading of securities by plans governed by the Employee Retirement Income Security Act (ERISA)." (PLANSPONSOR.com; free registration required)

Advisers to Make Funds Transparent to Avoid Suits
Excerpt: "Since the financial crisis shined a harsh light on the viability of stable-value and money market funds, advisers who counsel employers on their 401(k) plans are taking a closer look at these investments." (Investment News; free registration required)

[Guidance Overview] LaRue v. DeWolff, Boberg & Associates, the History Behind It, and How One Case Can Clarify and Create Confusion at the Same Time (PDF)
14 pages. (Journal of Taxation of Investments via Reish Luftman Reicher & Cohen)

[Guidance Overview] The Emergency Economic Stabilization Act of 2008: Impact of the Historic New Law
Morgan Lewis provides a summary and practice-specific comments as useful resources on the Act. (Morgan, Lewis & Bockius LLP)

Money Market Mutual Funds Given Temporary Guaranty
Excerpt: "In an unprecedented effort to plug a run on money market mutual funds, the federal government has put into effect a temporary guaranty insurance program for money funds. The program, which started last week, will insure participating money market funds until Dec. 18. After that, the Treasury Department can decide whether it wants to extend the program to Sept. 18, 2009." (The Dallas Morning News)

Bailout Brings With It Diverse Perks
Excerpt: "DEPOSIT INSURANCE The Federal Deposit Insurance Corporation will back bank deposits of as much as $250,000 per account holder, up from $100,000, through the end of 2009. That means accounts held by two people would be covered up to $500,000. Retirement account coverage was held steady at $250,000." (The New York Times; free registration required)

Stock-Drop Plaintiffs Win Skirmishes in Fifth Third Case
Excerpt: "Plaintiffs in a January 2005 stock-drop and excessive fee case have won two legal skirmishes with a federal judge's rulings certifying the case as a class action and refusing a request to throw out the lawsuit. A news release from the Scott and Scott law firm said the rulings came in a suit filed by Benjamin Shirk seeking to represent participants and beneficiaries in the Fifth Third Master Profit Sharing Plan. The case charged the bank and a number of its executives with mismanaging the plan and breaching their fiduciary duties under the Employee Retirement Income Security Act (ERISA)." (planadvisor)

Retirement Plans and the Troubled Asset Relief Program
Excerpt: "When considering which troubled assets should be purchased, the Treasury Secretary would have been required to consider, among other things, purchasing troubled assets held by or on behalf of qualified pension plans, section 457 plans, and section 403(b) plans. So, if this bill had been adopted, any plan out there holding a troubled asset would have had to consider participating in TARP." (Baker & Daniels)

Market Decline Jeopardizes Pensions
Excerpt: "Unless the market makes a miraculous recovery before year-end, the tougher federal funding requirements mandated by the Pension Protection Act of 2006 could force companies to come up with cash for their pension funds." (Pittsburgh Post-Gazette)

The Five Elements of a Realistic Retirement Strategy
Excerpt: "People preparing for retirement need a vision of what they can afford to spend and how it relates to their expected income. You should monitor expenses, draw up a budget and project spending changes in retirement. As a rule, plan on spending in retirement 70 to 90 percent of what you do now. Factor in inflation at 2 to 5 percent yearly." (The Arizona Republic via azcentral.com.)

Court Certifies Class in ERISA Breach of Fiduciary Duty 401(k) Case against R.J. Reynolds Tobacco Company
Excerpt: "Plaintiffs allege that defendants breached their fiduciary duty to the plan by forcing the liquidation of two investment funds consisting of stock of formerly affiliated companies without adequate investigation or analysis. At the time, the stock was trading at historic lows, but was widely expected to rise and investment analysts were increasing recommending that it be held or purchased." (Lewis, Feinberg, Lee, Renaker & Jackson, P.C.)

The U.S. Retirement Market, First Quarter 2008 (PDF)
27 pages. Excerpt: "Total U.S. retirement assets fell to $17.1 trillion as of March 31, 2008, down from $18.0 trillion on December 31, 2007. Retirement savings accounted for almost 40 percent of all household financial assets in the United States." (Investment Company Institute)

[Guidance Overview] Financial Bailout Bill: Pension Plan and Executive Compensation Implications (PDF)
5 pages. Excerpt: "Subject to certain limitations, EESA defines the term 'troubled assets' generally to mean 'residential or commercial mortgages and any securities, obligations or other instruments that are based upon such mortgages.' The quoted language – especially 'any securities . . . based upon such mortgages' – seems broad enough to cover most types of mortgage-based investments traditionally held by or on behalf of pension plans." (Groom Law Group)

Schering-Plough Stock Drop Case Gets Class Action Status
Excerpt: "A federal judge in New Jersey has declared a participant lawsuit against Schering-Plough Corp., over employee company stock investments, can be pursued as a class action. U.S. District Judge Katharine S. Hayden of the U.S. District Court for the District of New Jersey said the employees can move forward with their suit based on three of the four allegations in their suit filed under the Employee Retirement Income Security Act (ERISA)." (PLANSPONSOR.com; free registration required)

International Paper Fee Suit Certified as Class Action
Excerpt: "The U.S. District Court for the Southern District of Illinois has granted class action certification to plaintiffs suing International Paper Co. for fiduciary breaches. . . . As for International's argument that the class lacked commonality, the court pointed out that the plaintiffs have focused their claims on the excessive fees paid by the plans and the fiduciaries' decision to maintain Company Stock Fund as an imprudent investment by forcing participants to hold company stock when the fiduciaries had dumped the stock from the pension fund. 'It is this injury, rather than direct injury to their individual accounts, that the putative class members assert." (PLANSPONSOR.com; free registration required)

School Districts and New Federal Duties in Overseeing Workers' 403(b) Supplemental Retirement Accounts
Excerpt: "The changes represent dramatic new responsibilities in oversight and administration that had been 'virtually nonexistent' for district business officials, said John Kevin, the investment officer for the 139,000-student Montgomery County, Md., school system. The impact of the new IRS rules, which became final in July 2007, will be felt far beyond district business offices. Teachers and other employees may find their investment choices limited as their districts, for simplicity's sake, seek to scale down the number of investment companies allowed to offer their plans." (Education Week)

Stock Losses Take Heavy Toll on Retirement Savings
Excerpt: "The financial crisis that toppled major Wall Street banks and snarled credit markets around the world has also taken a toll on nest eggs, forcing people to rethink when -- and even if -- their savings will allow them to retire. More than half of people surveyed in an Associated Press-GfK poll released Wednesday said they worry that they will have to work longer because the value of their retirement savings has declined." (AP via The New York Times; free registration required)

Senate Passes the Emergency Economic Stabilization Act of 2008
Excerpt: "The bill appears to contain the same reference to retirement plans as did the House bill . . . ." (Attorney B. Janell Grenier via Benefitsblog.com)

Pensions Industry Struggling to Determine Consequences of U.S. Congress' Failure to Pass the $700B Bail-Out Plan
Excerpt: "Global Pensions contacted several other pension consultants and asset mangers to gauge reactions to the failure of the bail-out bill, but was told by many the situation was changing too rapidly to comment on and, moreover, the industry itself was struggling to keep up to date with the latest developments." (Global Pensions)

[Opinion] Wall Street's Havoc Expected to Be Especially Hard on Retirement Plans of Women
Excerpt: "'If it has taken a woman 40 years of back-breaking labor to save $20,000, she is going to feel the sting of loss more than a man who has a larger and more comfortable cushion,' said Cindy Hounsell, president of WISER, a women's retirement advocacy group based in Washington, D.C. 'Smaller losses hit women harder because almost 2.5 million older women live in poverty in the U.S. compared with 1.1 million men.'" (Women's eNews)

WaMu Employees Try to Tally Stock Losses; Pension Uncertain
Excerpt: "Thousands of Washington Mutual employees across the country whose stock options are worthless now face the possibility that their pension benefits may be at risk. JPMorgan Chase & Co., which took over Washington Mutual's banking assets last Thursday, is expected to make a decision about employees' pension plans by the end of this week. The company has not disclosed the alternatives it's considering." (Puget Sound Business Journal via bizjournals.com; free registration required)

Resources for Information About Treasury's Temporary Guarantee Program for Money Market Funds
Excerpt: "The Treasury has issued FAQs concerning the government's recently announced guarantee program for money market funds." (Attorney B. Janell Grenier via Benefitsblog.com)

Caterpillar Fee Suit Survives First Legal Hurdle
Excerpt: "A federal judge cleared the way for participants in Caterpillar's 401(k) plan to pursue their fiduciary breach claims, but only on issues other than allegations of inadequate revenue-sharing disclosures." (planadvisor)

Rescue Plan Draft Expands Retirement References
Excerpt: "In a revision posted Thursday on the Senate Banking Committee site , Sen. Christopher Dodd, D-Conn., chairman of the committee, adds a section stating that 'nothing in this Act prevents the [Treasury] Secretary from protecting the retirement security of Americans by purchasing troubled assets that a financial institution holds or manages on behalf of a cash or deferred arrangement . . . ." (The National Underwriter Company; free registration or paid subscription required)

[Opinion] Will the 401(k) Allow for Retirement?
Excerpt: "The trend away from defined-benefit plans toward defined-contribution plans makes it harder for workers to have adequate retirement income. And even with default enrollment and other provisions in the pension-reform act, it's likely that many workers will not be able to stop working." (Dallas Salisbury via Human Resource Executive Online)

Wall Street Lays Egg With Its Nest Eggs: Retirement Lessons of Dumb Moves by 'Smart Money'
Excerpt: "In the past week, Merrill Lynch's Web site still displayed an article, 'Understanding Your Entire Portfolio,' full of sensible advice. If shares in your employer's stock are 'a significant portion of your investments,' it said, 'you'll want to consider the potential impact of a falling stock price on your portfolio.' Physician, heal thyself. At the end of 2006, Merrill employees had 27% of all their retirement money in Merrill shares. In 2007, Merrill employees lost $669.8 million on their holdings of Merrill, and so far this year, probably at least $400 million." (The Wall Street Journal)

Comparison of Original Paulson Bailout to Compromise Proposal
Excerpt: "House Republican Whip Roy Blunt's office provides this side-by-side comparison of Treasury Secretary Henry Paulson's original Wall Street bailout proposal with the final compromise agreed to over the weekend by congressional and Treasury negotiators . . . ." (The Examiner)

Market Turbulence Has Implications for ERISA Fiduciaries
Excerpt: "The recent turmoil in the financial markets, while troubling for individual investors, also has potentially significant implications for ERISA fiduciaries. Individuals and committees who have investment authority over plan assets should reevaluate their portfolios in light of these developments. This is true not only for fiduciaries of qualified retirement plans, but also welfare plan fiduciaries." (Spencer Fane)

ICI Answers Questions on Money Market Funds
Excerpt: "Following the U.S. Department of the Treasury's announcement on September 19 of an emergency, temporary guaranty program to protect shareholders of money market mutual funds from losses if their funds are unable to maintain a $1.00 net asset value, the Investment Company Institute (ICI) is addressing frequently asked questions about money market funds. See http://www.ici.org/funds/abt/faqs_money_markets.html.]" (PLANSPONSOR.com; free registration required)

Lifestyle/Lifecycle Funds Best Strategy for Capturing Rollovers
Excerpt: "A new Cerulli report suggests that between 2008 and 2013, rollovers from 401(k), 403(b), and 457 plans will account for nearly $1.9 trillion of asset flows into traditional IRAs, which will increase to $6.1 trillion by 2013. According to the report, 'IRA Rollover and Retention: Strategies and Positioning,' real success in capturing these assets will hinge on the right mix of advice." (PLANSPONSOR.com; free registration required)

[Opinion] On Backdating, ERISA, and the Possibly Unintended Consequences of the Diamond Hypothetical
Excerpt: "If you have an interest in both ERISA and in well written, logical judicial opinions, I can't recommend highly enough this opinion, by Judge Gertner of the United States District Court for Massachusetts, in Bendaoud v. Hodgson, deciding a number of issues at the motion to dismiss stage." (Stephen Rosenberg of The McCormack Firm, LLC)

Cashed-Out Participant Gets Go-Ahead in Company Stock Drop Case
Excerpt: "A federal judge in Massachusetts cleared the way for a participant invested in a company stock fund to pursue a fiduciary breach suit. The judge gave the OK, despite the fact that the plaintiff had cashed out of the fund more than two years before the employer disclosed its stock option backdating practices. U.S. District Judge Nancy Gertner of the U.S. District Court for the District of Massachusetts ruled that Soufiane Bendaoud had legal standing to sue over the Analog Devices Inc. (ADI) company stock fund under the Employee Retirement Income Security Act (ERISA)." (planadvisor)

Shareholder Suits Face Uncertainty, Higher Hurdles
Excerpt: "[T]he FBI is conducting preliminary investigations of AIG, Lehman, Fannie Mae and Freddie Mac, according to news reports last week. In addition to dozens of shareholder lawsuits -- both derivative actions and class actions -- all four companies face related suits filed on behalf of their employees who had retirement plans tied up in company stock. Those suits are filed under the Employee Retirement Income Security Act of 1974 (ERISA)." (Law.com)

[Opinion] save our retirement funds now and create a more secure system of investments for retirement accounts
Excerpt: "The Treasury-Federal Reserve proposal should give not only investment banks but also retirees and those close to retirement the option to clear the junk -- bad mortgage-based securities and their derivatives -- out of their 401(k) accounts and invest in government-guaranteed bonds." (Teresa Ghilarducci via The New York Times; free registration required)

[Opinion] In Financial Food Chains, Little Guys Can't Win
Excerpt: "The people whose conduct got us into this catastrophe have not only taken our money, hopes and peace of mind, but they apparently also want a trillion or so more dollars to put into their Wall Street Buddy System Fund. This may be the most dangerous attack on the law in my lifetime. What anarchists even dared consider this plan? Thank heaven that minds more devoted to the Constitution on Capitol Hill are questioning this shocking request." (Ben Stein via The New York Times; free registration required)

[Guidance Overview] Financial Markets Impact ERISA Retirement Plans and Plan Fiduciaries
Excerpt: "At a minimum, plan fiduciaries should contact their investment providers and investment advisors and ask for a current update on the status of the mutual funds and other investment vehicles. Fund ratings should be reviewed, as should the plan's investment policy statement. In any case, even where no action is warranted, it is important to document the efforts of fiduciaries." (Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C.)

Update in the On-Going ERISA 401(k) Class Action Against American Electric Power
Excerpt: "Stull, Stull & Brody announced today that it has filed its initial brief on the issue of whether Plaintiff's claim for Plan-wide relief under ERISA Section 502(a)(2), 29 U.S.C. Section 1132(a)(2), may continue notwithstanding an order denying class certification." (GlobeNewswire, Inc. via MarketWatch)

When Cashing Out of an Annuity Makes Sense
Excerpt: "Sometimes cashing out of an annuity can make more sense than doing a tax-free transfer into a new product -- even if it presents the client with a tax bill. 'If a new client comes in with an annuity that's inappropriate for him -- a young person whose tax rates will be higher in 30 years than they are now, for example -- I'd probably encourage him to get out of it this year, when tax rates are at a historic low' . . . ." (Investment News; free registration required)

When Cashing Out of an Annuity Makes Sense
Excerpt: "Sometimes cashing out of an annuity can make more sense than doing a tax-free transfer into a new product -- even if it presents the client with a tax bill. 'If a new client comes in with an annuity that's inappropriate for him -- a young person whose tax rates will be higher in 30 years than they are now, for example -- I'd probably encourage him to get out of it this year, when tax rates are at a historic low' . . . ." (Investment News; free registration required)

When Cashing Out of an Annuity Makes Sense
Excerpt: "Sometimes cashing out of an annuity can make more sense than doing a tax-free transfer into a new product -- even if it presents the client with a tax bill. 'If a new client comes in with an annuity that's inappropriate for him -- a young person whose tax rates will be higher in 30 years than they are now, for example -- I'd probably encourage him to get out of it this year, when tax rates are at a historic low' . . . ." (Investment News; free registration required)

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