Mainspring in Motion

Winter 2009


Fund Profiles are Going Green

As part of an overall effort to reduce the amount of paper we use, enrollment books will now contain a resized Fund Profiles page, from a full-page to one-half page.

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Invesmart plan sponsors, click here


Streamlined PIN Assignment Process Eliminates Wait Time for Newly Eligible Employees

Our enhanced Personal Identification Number assignment process is designed to make life easier for plan participants — allowing them to enroll online and access their accounts as quickly as possible.

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Invesmart plan sponsors, click here


Redesigned Standard.com Features Improved Navigation

If you haven’t seen the new standard.com yet, you’ll notice more than a clean, new design the next time you visit. The site is now easier to use and navigate.

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Your Learning Page Makes Learning Web Applications Easy

Your Learning Page, an online resource for retirement plan sponsors, uses voice and on-screen demonstrations to teach plan administrators how to take full advantage of The Standard’s web applications.

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Fourth Quarter Market Commentary

After declining nearly 20 percent in the first three quarters of the year, the S&P 500 fell off a cliff in October and November, declining more than 24 percent in the fourth quarter. Can the market go lower?

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Minimum Distribution Requirements Waived
for 2009

The Worker, Retiree and Employer Recovery Act of 2008 waives the requirement for minimum distributions for 2009. Find out how the Act affects your plan and participants.

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IRS Extends Deadline for 403(b) Plan Document

The IRS announced relief for 403(b) plan sponsors who struggled to meet the written plan document requirement by Jan. 1.

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The Standard to Restate Plans for EGTRRA Compliance

The Standard seeks to restate 401(k) and other defined contribution plans in 2009.

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What Happens When Participants Practice Excessive Trading?

In addition to redemption fees charged by many fund companies, retirement plan participants can face suspension from their accounts if they transfer a fund too frequently in a short time period.

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Keep Participant Accounts Balanced,
Without the Effort

Volatile markets, such as those affected by the economic downturn, can change the proportion of funds in participant portfolios. Rebalancing moves these portfolios back to their desired investment mixes, but it doesn't have to take time or effort.

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The Mainspring in Motion quarterly newsletter for retirement plan sponsors features market commentary, regulatory and legislative updates, product enhancement announcements and articles on retirement readiness, savings, participant behavior and improving plan effectiveness.

 

Plan Sponsor Quarterly Calendar

Consult your plan's counsel or tax advisor regarding these and other items that may apply to your plan.

January

Audit fourth-quarter payroll and plan deposit dates to ensure compliance with the Department of Labor’s rule regarding timely deposit of participant contributions and loan repayments.

Send payroll and employee census data to the plan’s recordkeeper for plan-year-end compliance testing. (Calendar-year plans).

Verify that employees who became eligible for the plan between Oct. 1 and Dec. 31 received and returned an enrollment form. Follow up on forms that were not returned.

February

Review and revise the roster of all plan fiduciaries and confirm each individual’s specific responsibilities and duties in writing. Ensure that each fiduciary understands his or her obligations to the plan.

Update the plan’s ERISA fidelity bond coverage to reflect the plan’s assets as of Dec. 31. Remember that if the plan holds employer stock, bond coverage is higher than for non-stock plans. (Calendar-year plans).

Issue a reminder memo or email to all employees to encourage them to review and update, if necessary, their beneficiary designations for all benefit plans.

March

Review all outstanding participant plan loans to determine if there are any delinquent payments. Also, confirm that each loan’s repayment period and the amount borrowed do not violate legal limits.

Begin planning for timely completion and submission of the plan’s Form 5500 and, if required, a plan audit. Consider the Department of Labor’s small plan audit waiver requirements. (Calendar-year plans).

Check bulletin boards and display racks to make sure that posters and other plan materials are conspicuously posted and readily available to employees, and that the information is current.