Winter 2010
Market Commentary
By Julie Grandstaff, vice president and managing director, StanCorp Investment Advisers, Inc.
We’ve said goodbye to 2009, and it was a year to remember (or wish we could forget). The year had a rough start. The financial sector was still in turmoil following a near meltdown in the fourth quarter of 2008. Despite significant efforts, government attempts to calm the markets and stabilize the financial sector only added to anxiety, and the market reached its low point for the downturn in March.
In the second quarter, we began to see the light at the end of the tunnel. Equity markets rallied substantially from their lows, consumer confidence improved and job losses slowed. While home values continued to decline, low prices started bringing buyers to the market, and there was an uptick in home sales. The third quarter brought further recovery and a declaration by Fed Chairman Ben Bernanke that the recession was likely over. Another rally of the same magnitude as the second-quarter rally didn’t hurt either.
The fourth quarter brought additional good news, but also highlighted how difficult it will be to fully return to capacity growth rates. What’s ahead for 2010?
continuePlan Design Features Gaining in Popularity
Several recent surveys again demonstrate that certain plan design features are being incorporated into increasing numbers of retirement plans.
Features such as automatic enrollment, Roth 401(k) or 403(b) contributions and relaxed eligibility requirements are becoming more popular with each passing year.
continueMainspring Managed Now Available to 403(b) Plans
Formerly an option only for 401(k) plans, The Standard’s Mainspring Managed service is now available to 403(b) plans as well.
Mainspring Managed goes beyond the traditional managed account/advice solution common in the retirement plan industry today.
It is a formal, goal-based savings and investment plan that is implemented and managed by The Standard. Above all, it’s about addressing the needs of individual participants.
continueFinal Rule on Safe Harbor Announced
The U.S. Department of Labor issued its final rule on the safe harbor for depositing employee contributions to retirement plans that have fewer than 100 participants.
continueThe Standard gets ready to file your electronic 2009 Form 5500
As you may know, the IRS has changed how Form 5500s are to be filed for plan years commencing on or after January 1, 2009. Electronic filing of all 5500s is now mandatory.
With The Standard’s new service offering, we will submit your completed 5500s on your behalf. Learn more about how we can assist you.
continueConfused by Form 5500 for 403(b) Plans?
In 2009, ERISA 403(b) plans became subject to the same reporting and audit requirements as 401(k) plans. Plan sponsors who previously took a hands-off approach to their 403(b) plans must now take an active role in administration and oversight of their plans.
The Standard now offers a concise and practical guide to meeting these new requirements.
continueMark Your Calendar: Due Dates for 2010
It can be very challenging for sponsors of retirement plans to keep up with the many reporting, disclosure and other requirements they face each year.
The American Society of Pension Professionals and Actuaries (ASPPA) has now made keeping track and planning ahead much easier.
continue
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.
Verify that employees who became eligible for the plan between October 1 and December 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 December 31. (Calendar-year plans) Remember that if the plan holds employer stock, bond coverage is higher than for non-stock 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 in which they participate.
March
Begin planning for timely completion and submission of the plan’s Form 5500 and, if required, a plan audit. (Calendar-year plans) Consider, if appropriate, the Department of Labor’s small plan audit waiver requirements.
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 complete and current.
