Products October 13, 2009

ING Announces New Retirement Planning Tool

October 13, 2009 (PLANSPONSOR.com) - ING's U.S. Retirement Services operation has introduced a new Web tool for customers to help them determine if they are on track to achieve their financial objectives in retirement.
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According to a news release, My Retirement Outlook provides both a retirement and a paycheck analysis function for users – not only telling users how much they will need at retirement, but whether they can afford to save that much on a per-paycheck basis. It also factors in the user’s defined benefit plan assets, Social Security benefits, and personal savings into the calculations.

In the retirement portion of the tool, users can estimate how much they need to save annually – and per paycheck – in order to reach their financial objectives.  In the paycheck portion they can see how various savings amounts will impact their take-home pay today.

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Though the tool was specifically introduced for education professionals using the ING Educator’s Direct 403(b) offering in Delaware, it is available to all ING clients. ING introduced the ING Educator’s Direct 403(b) Program, a variable annuity issued by ING Life Insurance and Annuity Company, to education professionals in Delaware in January (see ING Introduces Educator’s Direct 403(b) Program ). The news release said school districts in other states are expected to get access to Educator’s Direct in the coming months.

More information is at www.ingeducatorsdirect.com .

My Retirement Outlook is available to anyone free of charge under the “Tools & Calculators” section of www.ingretirementplans.com , and it will also be featured on a number of other ING customer Web sites.

Compliance October 12, 2009

Court Dismisses Company Stock Suit against Harley-Davidson

October 12, 2009 (PLANSPONSOR.com) - The U.S. District Court for the Eastern District of Wisconsin has dismissed a lawsuit accusing Harley-Davidson and certain of its executives of breaching their fiduciary duties under the Employee Retirement Income Security Act (ERISA) by continuing to offer company stock as an investment option in the company's retirement plans.
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After first determining that former employee Lisa Bosman had standing to sue even though she had cashed out her retirement plan account, Chief U.S. District Judge C. N. Clevert, Jr. said that “Stating a valid claim of imprudence under these circumstances requires more than allegations that there were gaps between supply and demand and a corresponding bad quarter.”

Dismissing the suit for failure to state a claim, Clevert likened Bosman’s claims to those in Edgar v. Avaya , in which the 3 rd U.S. Circuit Court of Appeals found that a disruption in sales and the corresponding drop in stock price do not create the type of dire situation which would require defendants to disobey the terms of the plans by not offering company stock as an investment option, or by divesting plans of company stock (see  Case Sensitive: “Dire” Circumstance ).

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In addition, Clevert said, “Bosman’s assertions are even more dubious given that the April 2005 stock price drop was in no way indicative of a chronic, deteriorating financial condition.” He noted the company’s stock prices generally increased throughout the remainder of the class period.

According to the opinion, the retirement plans at issue gave participants a choice of 19 funds, including the Harley-Davidson Stock Fund, and company match contributions were invested in the company stock fund, but were only required to remain there until participants were fully vested at three years of service or until age 55. The opinion also said that the SPD warned in bold, all capital letters that ” IT IS VERY IMPORTANT THAT YOU NOT PUT ALL OF YOUR RETIREMENT SAVINGS IN JUST ONE FUND – AND THIS INCLUDES THE HARLEY DAVIDSON COMMON STOCK FUND .”

Bosman had invested all of her plan assets in company stock.

She asserted in her suit that Harley-Davidson was shipping to dealers more motorcycles than were being sold, and that Harley-Davidson Financial Services (HDFS) lowered credit standards to boost sales. The complaint asserts that these practices were intended to deceive the market and to cause Harley stock to trade at inflated prices, leading to an April 13, 2005, announcement that Harley was adjusting its shipment and earnings projections, which caused a 23% drop in the value of Harley stock over the next several days of trading.

The case isIn re Harley-Davidson Inc. Securities Litigation,E.D. Wis., No. 05-C-0547-CNC, 10/8/09.

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