Expand Access, Preserve Employer Plans, ASPPA’s Judy Miller Tells Hill Subcommittee

Testifying at a Feb. 26 Senate Finance Subcommittee hearing on retirement savings for low-income workers, Judy Miller, the Director of Retirement Policy for ASPPA and NAPA, explained how the current private employer-sponsored retirement plan system is working for tens of millions of American workers, many of whom are on the lower end of the income distribution scale.   Read More

Managing Participant Risk: Tips from the Experts

Investors — and those who manage their funds — are no strangers to risk. But acceptance of risk does not equate to helplessness, nor to inevitable loss. “Using Tactical Asset Allocation to Manage Participant Risk,” a recent webinar by F-Squared Investments moderated by NAPA Net Editor-in-Chief Fred Barstein, offered ideas on how to meet risk head on and mitigate it, if not head it off.   Read More

Advice and Trust

A 2013 EBRI analysis found that the savings targets set by participants in the lowest income quartile who had sought the input of a financial advisor were associated with a lower risk of running short of money in retirement by anywhere from 9 to nearly 13 percentage points (depending on family status and gender), EBRI’s Nevin Adams writes in his column in the most recent issue of NAPA Net the Magazine.   Read More

The Ivory Tower Returns

At long last, we have the final publication of Yale Law School professor Ian Ayres’ research paper. Not surprisingly, it is still ill-informed — and uses now-five-year-old, incomplete plan data. And despite our attempts to edify him about his flawed methodology, the professor still comes to the same wrong conclusions about fees.   Read More

Wisconsin Could be Next to Jump into State Run Retirement Plan Fray

Following the lead of many other states in what is becoming a national groundswell, Democrats in Wisconsin proposed a bill that would allow workers in private companies without a “pension” plan to invest in the state DB program. Additionally, a feasibility study was requested to review the costs and benefits of the program, which would be made available to the estimated 1.5 million private workers without access to an employer-sponsored retirement plan.   Read More

Massachusetts to Investigate Annual Lump Sum Matches

Reacting to recent news about the practice of companies like AOL and IBM withholding matching contributions until after the end of the year, William F. Galvin, Massachusetts’ secretary of the commonwealth and chief securities regulator, has sent a request to the top 25 401(k) providers about the number of companies that have made the switch, Bloomberg BusinessWeek reports.   Read More

New Stage in Detroit Bankruptcy

As expected, a plan of adjustment was filed in the Detroit bankruptcy case awaiting approval by Judge Steven Rhodes. The plan, which suggests a 80% haircut for creditors and 50% for pensioners, is expected to be the subject of intense and bitter negotiations, with creditors claiming that the city’s pension system is not in as bad shape as emergency manager Kevin Orr has portrayed, and that more cuts to the city’s budget should be made.   Read More

Last Week’s Top 5 Posts on NAPA Net

Last week’s top five most-read posts on NAPA Net reflected keen interest in the findings from the latest 401(k) Averages Book, RCS Capital’s aggressive retention plan, the Maryland legislature’s consideration of an auto-IRA program, IRS reporting for small plans and the newly released DCIIA guide to evaluating TDFs.   Read More