Sean K. McMahan of Alston & Bird LLP summarizes a recent U.S. court of appeals case, Edgar v. Avaya, Inc., et al.:

Edgar is an important development in the jurisprudence surrounding employee stock in 401(k) plans. It raises the bar for plaintiffs to survive motions to dismiss such cases, and it adds to the growing list of opinions that reject these claims.

In the unanimous panel opinion authored by Judge Julio M. Fuentes, the court holds that a deferential "abuse of discretion" standard applies to a 401(k) plan fiduciary’s decision to follow plan terms that require employer stock to be an investment option...

Read more at the Alston & Bird website (pdf).

The IRS and Treasury Department issued final regulations under Section 403(b) that provide updated guidance on 403(b) contracts and custodial accounts available to certain tax-exempt entities and employees of public schools.

These final regulations offer comprehensive guidance for the first time since 1964.

Here are some of the highlights:

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Cowden Associates' 401(k) Survey got a mention on SmartMoney:

...today presented results from its first Tri-State 401(k) Plan Sponsor Survey. The results identified areas of 401(k) plan sponsorship and participation in need of improvement as the plans emerge as America's primary retirement vehicle...

and Forbes:

The survey provides a baseline for measuring the effectiveness of the Pension Protection Act, which was passed to make participation in 401(k) plans easier. In light of a recent federal court decision to change the way investment brokers must provide investment recommendations to 401(k) plans, the survey results also reveal the prevalence of brokers in the region who provide investment support to plan sponsors...