That’s the expression that AllianceBernstein, the global asset management firm, uses to describe what 401(k) plan are all about now. Since the beginning of 401(k) plans over 25 years ago, 401(k) providers have escalated the number of plan features to stay competitive with other providers. We’ve seen the evolution of such features as:
- Daily valuation
- Loans
- Self-directed brokerage
- Web access
- Investment education tools
- Multi-share classes
- Co-fiduciary responsibility
- Advice tools
But AllianceBernstein’s 2006 research shows that it isn’t about that any more. What employers and employees want, says their 2006 research, is quite basic.
Employers want to "keep it simple”. They want 401(k) plans that focus on participant needs, are user friendly, and provide personal service.
Employees also want 401(k) plans that "just do it for me” Plans that require little work to join, little work to invest, and minimize tough decisions.
Now let’s move forward!
Picture credit: The new New Economy Analyst Report – Oct 06, 2001, Juergen Daum.
It was a big media event a few weeks ago when the "first" Baby Boomer, a retired school teacher from New Jersey, born one second after midnight on January 1, 1946, 
There’s an important deadline on the horizon if an employer has a SIMPLE in 2007 but would like a 401(k) in 2008. It’s November 1. The employer must provide notice to employees at least 60 days prior to the start of the next calendar year or no later than November 1, 2007 that the SIMPLE will not be maintained in 2008.
That’s what Social Security Commissioner Michael Astrue is calling the expected avalanche of applications from the post-World War II generation. The "first" Baby Boomer, a retired school teacher from New Jersey, born one second after midnight on January 1, 1946 ,applied for Social Security benefits Monday, signaling the start of an expected avalanche of applications from the post World War II generation. An estimated 10,000 people a day will become eligible for Social Security benefits over the next two decades, Commissioner Astrue said. The Social Security trust fund, if left alone, is projected to go broke in 2041.
A few days ago, I wrote about the Department of Labor’s new interactive website called 
The Department of Labor, the Federal agency responsible for overseeing the fiduciary aspects of ERISA, last week released an interactive website called elaws-ERISA Fiduciary Advisor. The website is designed to provide an overview of the basic fiduciary responsibilities applicable to retirement plans under the law. The intended audience is employers and third party service providers. Additional information for employees is listed in the Resource section. And it’s extremely well done.
CPA firms – we’re aware – provide more than just traditional accounting and auditing services. And that includes providing investment and financial planning. So just how successful are they. In terms of money under management, pretty darn successful. You may be surprised to know that there are 11 firms that are have over $1 billion in assets under management and 41 more firms that have over $100 million in assets under management. 
Back in the day – before the Boomers were called Boomers and before choice entererd the employee benefit lexicon– the standard retirement plan was a defined benefit pension plan. The employer was responsible for the investment of plan assets, and the employee received a monthly income at retirement. Today the standard retirement plan is a 401(k) plan starting to embrace automatic enrollment, default funds, and an annuity distribution option. The more things change the more they look the same.
Asset protection now isn’t just about walling off assets from legal assaults. It’s now about walling off sensitive data from technological assaults. I’ve written about this issue several times before. 
We’ve been here before. Back when employers were freezing or terminating retiree medical care plans, affected employees were suing based on conflicts between plan documents and employee communication materials. 
