401(k)s need investment policy statements

Article Abstract:

A 401(k) plan requires investment policy statements for selecting and monitoring investment options. This statement is defined as a written expression of the goals of the plan and the rules that money managers need to follow in obtaining the aforementioned goals. Investment policy statements should concentrate on the steps required for protecting the rights and interests of participants as indicated by Sec. 404(c) and ERISA case law and regulations. Seven steps in developing such statements are presented.

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SEC insider trading rules may affect 401(k) liability

Article Abstract:

The insider trading regulations established by the SEC have to be carefully scrutinized by salary-reduction savings plan sponsors before allowing investment in corporate stock by participants. There are complicated rules that govern such ordinary activities as withdrawals of stock and elections. The SEC is quite strict about reporting insider trading activity and imposes a time constraint on such activity.

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How small plans benefit from provider competition

Article Abstract:

The market for small-scale pension plans with less than 500 participants is expected to grow to over $300 billion by 1999. To effectively compete in the small plan market, pension providers should focus on designing low cost products. Moreover, they should aim at diversifying their investments to ensure long-term viability. In addition, they should strive to enhance their distribution networks.

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