An online, clickable version of this newsletter is available at: http://benefitslink.com/2008/2008_04_23_retirement.html =========================================================== BenefitsLink Retirement Plans Newsletter (Plain Text Format) April 23, 2008 Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. =========================================================== TODAY'S SPONSOR: SunGard SunGard's Document Management Services (DMS) (Advert.) http://benefitslink.com/modperl/a_d_top.cgi?a_d=2008_04_23_retirement (Click on the above address or copy and paste it into your web browser.) Rely on SunGard as your back office resource for EGTRRA restatements. If you have 500 or more retirement plan documents, turn to SunGard's expert DMS staff to cost-effectively create, amend and restate your plans. Outsource some or all of the processes you currently maintain in-house. Let us focus on your plan documents, so you can focus on growing your business. Call today. 800-326-7235, ext. 1100, or visit www.sungard.com/reliusdocuments/dmsbp ---------------------------------------------------------- [Opinion] American Benefits Council Letter to Senate Regarding Fair Pay Restoration Act, S. 1843 (PDF) http://www.americanbenefitscouncil.org/documents/ledbetter_senateltr_042208.pdf 2 pages. Excerpt: "I am writing on behalf of the American Benefits Council (the Council) to express concern regarding S. 1843, which would overrule the U.S. Supreme Court's decision in Ledbetter v. Goodyear Tire and Rubber Co. . . . The proposed legislation could raise serious retirement plan issues that we believe are unresolved in the current draft S. 1843. Under the bill, each payment of compensation or benefits that is lower as a result of past discrimination is deemed a new act of discrimination and thus an employee could file a charge or sue many years after the original action giving rise to the claim actually occurred." (American Benefits Council) ---------------------------------------------------------- [Opinion] The Downside to 401(k) Loans (PDF) http://www.tri-ad.com/pdfs/401k_Loans_2008.PDF Excerpt: "401(k) conventional wisdom is that loans are just a part of any well-rounded 401(k) plan. Because TRI-AD tends to be a leader rather than blindly following conventional wisdom, we are going to express the opinion that largely unfettered access to 401(k) accounts is counter to the plans' purpose of providing a way for participants to save successfully for retirement." (TRI-AD) ---------------------------------------------------------- [Guidance Overview] Presentation on Common Prohibited Transactions for Portfolio Management and Trading (PDF) http://www.morganlewis.com/pubs/CommonProhibitedTransactions.pdf 34 pages. The presentation asks, and answers, Is the Broker-Dealer a Fiduciary – ERISA or Otherwise? What are ERISA Prohibited Transactions? Types of Exemption, and more. (Morgan, Lewis & Bockius LLP) ---------------------------------------------------------- [Guidance Overview] Update on DOL Audit Profiling & Investigational Focus http://healthplanlaw.com/?p=606 Excerpt: "What does the EBSA investigate? Fiduciary Duty of Loyalty and Prudence (ERISA Section 404(a), 29 U.S.C. Section 1104(a) - Fiduciary duties - Prudent man standard of care) Prohibited Transactions: Certain transactions between the plan and parties-in-interest are prohibited absent an exemption (ERISA Section 406(a), 29 U.S.C. Section 1106(a) - Prohibited Transactions - Transactions between plan and party in interest) Conflicts of Interest (ERISA Section 406(b), 29 U.S.C. Section 1106(b) - Prohibited Transactions - Transactions between plan and fiduciary)" (Health Plan Law blog by Attorney Roy F. Harmon III) ---------------------------------------------------------- [Guidance Overview] If an Individual Rolls Over Two IRA Distributions in a 12-Month Period, What Are the Consequences? http://www.complianceheadquarters.com/Question/IRA_042308.aspx Excerpt: "An IRA owner is allowed to roll over just one distribution from the same IRA, or the same assets, in a 12-month period. According to the instructions for filing Form 5498, an IRA custodian/trustee should report (or correct any reporting already completed) any ineligible rollover contribution as a regular contribution. This required reporting serves to make the second (or third, etc.) distribution from a single IRA in a 12-month period, taxable." (Wolters Kluwer) ---------------------------------------------------------- [Guidance Overview] Employee Plans Compliance Resolution System Update Expected 'Soon' http://hr.cch.com/news/pension/042308a.asp Excerpt: "An updated version of Rev. Proc. 2006-27 . . . will not be a major overhaul of the old procedure, . . . but will contain a number of smaller changes that taken together will have a significant effect on the program." (Wolters Kluwer) ---------------------------------------------------------- Inmate Pension Quirk Unique to Hillsborough County, Florida http://www.tampabay.com/news/publicsafety/article467038.ece# Excerpt: "Pension contributions were an unintended consequence of a Hillsborough County program, born in the 1970s, that hires inmates into undesirable county jobs, such as ditch digging and roadway cleaning. The program saved the county $533,000 in 2006, Public Works director Bob Gordon said. It could save even more if the county didn't have to treat the inmate workers as public employees potentially entitled to pensions." (St. Petersburg Times) ---------------------------------------------------------- The Plan to Save Early Retirement - Economist Teresa Ghilarducci Argues We Needn't Be Chained to Our Desks Forever http://money.cnn.com/2008/04/22/pf/retirement/early_retirement.moneymag/ Excerpt: "Teresa Ghilarducci isn't one for conventional wisdom. In her upcoming book, 'When I'm Sixty-Four: The Plot Against Pensions and the Plan to Save Them,' the New School University economist argues that a rich nation ought to be able to ensure a secure old age. And she has a radical proposal for making that happen." (Money Magazine via CNNMoney.com) ---------------------------------------------------------- Retirement Plan Expert Says Use 401(k) Loan to Eliminate Credit Card Debt http://enewschannels.com/2008/04/22/enc2942_034910.php Excerpt: "Consumers stung by the sudden doubling of their minimum required monthly credit card payments are finding new ways to eliminate credit card debt by replacing their card debt with cheaper alternatives such as 401(k) loans . . . ." (Neotrope®) ---------------------------------------------------------- 403(b) Investment Options - More Is Not Always Better http://www.plansponsor.com/pi_type10/?RECORD_ID=41083 Excerpt: "When it comes to the size of a 403(b) plan's investment lineup, more isn't always better. That is particularly true now that 403(b) sponsors will be required to exercise the same due diligence about their investment options as their 401(k) cousins have always had to do, panelists said at an investment options discussion . . . ." (PLANSPONSOR.com; free registration required) ---------------------------------------------------------- Macy's Fiduciary Breach Suit Will Stay in Ohio http://www.plansponsor.com/pi_type10/?RECORD_ID=41171 Excerpt: "Macy's Inc.'s motion to move a fiduciary breach suit on behalf of a class of participants in its 401(k) plan has been denied by the U.S. District Court for the Southern District of Ohio." (PLANSPONSOR.com; free registration required) ---------------------------------------------------------- Average Investor Lives Somewhere Between 'Ignorance Is Bliss' and 'Knowledge Is Power' http://www.marketwatch.com/news/story/chuck-jaffe-investors-dont-have/story.aspx?guid=%7BCACD9E26-025F-484D-8F63-D7CA2996FA28%7D&dist=hplatest Excerpt: "[C]onsider two recent and very different studies of investors, one concerning knowledge and its ability to provide and create control, and the other about surrendering control, presumably due to a lack of knowledge. When juxtaposed, the two studies make for an intriguing landscape, giving investors food for thought about just what position they want to assume on the financial horizon." (MarketWatch) ---------------------------------------------------------- [Official Guidance] IRS Issues Notice of May 29, 2008 Hearing on Proposed Regs About Determination of Assets and Liabilities for Single-Employer DB Plan Funding (PDF) http://benefitslink.com/IRS/notice_of_hearing_single_emp_funding.pdf 3 pages. Excerpt: "The public hearing is being held on May 29, 2008, at 10 a.m. The IRS must receive outlines of the topics to be discussed at the hearing by May 8, 2008." (Internal Revenue Service) =========================================================== Sponsored by: ASPPA The ERISA Outline Book (Advert.) http://benefitslink.com/modperl/a_d_center.cgi?a_d=2008_04_23_retirement (Click on the address above or copy and paste it into your web browser.) Stay current with The ERISA Outline Book, 2008 Edition, by Sal Tripodi, J.D., LL.M. only from ASPPA. Available in both print or on CD, this one of a kind resource has become the must have for anyone working in the pension industry today. Fully updated with the latest guidance on a variety of PPA 2006 items, the 2008 Edition also includes automatic enrollment guidance including QACAs, final regulations on QDIA's, guidance on benefit restrictions and much more. Stay current and order your copy today. ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- [Official Guidance] Text of First Periodic Update to IRS 2007-2008 Priority Guidance Plan (PDF) http://benefitslink.com/IRS/2007_2008_pgp_update.pdf 49 pages. Excerpt: "The attached update sets forth the guidance on the original 2007-2008 Priority Guidance Plan that we have published. Although the update may indicate that a particular item on the plan has been completed, it is possible that one or more additional projects may be completed in the plan year relating to that item. The update also includes 61 items of additional guidance, some of which have already been published.' See section entitled EMPLOYEE BENEFITS and section entitled EXECUTIVE COMPENSATION, HEALTH CARE AND OTHER BENEFITS, AND EMPLOYMENT TAXES. (Internal Revenue Service) ---------------------------------------------------------- Survey Shows Middle East Companies Considering Employee Benefits http://www.workforce.com/section/00/article/25/48/97.html Excerpt: "Employee benefits such as pensions and medical, life and disability insurance are gaining more attention in the Middle East as the number of multinational companies and expatriate workers in the region increases, according to a Mercer survey." (Workforce Management; free registration required) ---------------------------------------------------------- IRS Solicits 2008-2009 Guidance Priority List Recommendations http://www.ifebp.org/Resources/News/Regulatory+Updates/IRSNotice200847.htm Excerpt: "In Notice 2008-47, the Department of Treasury and Internal Revenue Service invite public comment on recommendations for inclusion on the 2008-2009 Guidance Priority List. The list is used to identify and prioritize tax issues to be addressed, to focus resources on important tax admniistration items, to increase voluntary compliance and to clarify areas of tax law." (International Foundation of Employee Benefit Plans) ---------------------------------------------------------- TIAA-CREF Endorses Legislation Calling for Domestic Partner Benefits http://www.pr-inside.com/tiaa-cref-endorses-legislation-calling-for-domestic-partner-benefits-r552948.htm Excerpt: "TIAA-CREF today announced its support for H.R. 1820, Tax Equity for Health Plan Beneficiaries Act of 2007, introduced by Congressman Jim McDermott (D-WA) in the House and S. 1556, Tax Equity for Domestic Partner and Health Plan Beneficiaries Act of 2007, introduced by Senator Gordon Smith (R-OR) in the Senate." (Business Wire via PR-inside.com) ---------------------------------------------------------- Benefit Trends: Change Is the New Constant http://online.wsj.com/ad/employeebenefits-benefit_trends.html Excerpt: "To set the backdrop for the forces at work today in employee benefits, consider this statement by a president of one firm listed in the Dow Jones Industrial Average. In a recent PBS interview, he said, 'We no longer view ourselves as an American company; we act as a global company in all of our decision-making.' Executives of two other DJIA firms recently pointed out in presentations that 'less than half of our workforce is now in the United States -- but 95 percent of our health care costs are.'" (The Wall Street Journal) ========================================================== Newly Posted Press Releases Most Companies Oppose Single-Payer Health Care System, State Coverage Mandates Watson Wyatt http://benefitslink.com/pr/detail.php?id=41853 U.S. Labor Department Obtains Judgment Ordering Restoration of Plan Assets for Former Employees of Team America Inc., Worthington, Ohio U.S. Department of Labor, Employee Benefits Security Administration (EBSA) http://benefitslink.com/pr/detail.php?id=41848 Great-West Retirement Services® Joins With Ceridian To Ease 401(k) Administration For Small Businesses Great-West Retirement Services http://benefitslink.com/pr/detail.php?id=41850 Tips To Help Protect Non-Traditional Families Facing Retirement Planning Hurdles MassMutual http://benefitslink.com/pr/detail.php?id=41851 The Online 401k Adds 15 New Financial Advisor Partners The Online 401(k) http://benefitslink.com/pr/detail.php?id=41849 CDM Retirement Consultants Renews Contract With CFFM CDM Retirement Consultants, Inc. http://benefitslink.com/pr/detail.php?id=41847 Poster Compliance Center Advises U.S. Employers That Public Comment Period for Federal FMLA Has Ended Poster Compliance Center http://benefitslink.com/pr/detail.php?id=41852 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Benefits Consultant for Carilion Clinic in VA http://benefitslink.com/modperl/job.cgi?n=H54966 Language Development Beta Tester for SunGard Relius in FL http://benefitslink.com/modperl/job.cgi?n=H54975 DMS Account Representative for SunGard Relius in FL http://benefitslink.com/modperl/job.cgi?n=H54976 DC or DB Plan Administrator for Derby and Company, Inc. in MA http://benefitslink.com/modperl/job.cgi?n=H54978 Pension Supervisor for Ceridian in FL http://benefitslink.com/modperl/job.cgi?n=H54980 Operations Specialist- Pension Administrator for Ceridian in FL http://benefitslink.com/modperl/job.cgi?n=H54981 Actuarial Analyst for New York Life Retirement Plan Services in MA http://benefitslink.com/modperl/job.cgi?n=H54987 Defined Benefit Client Account Manager for New York Life Retirement Plan Services in MA http://benefitslink.com/modperl/job.cgi?n=H54988 Unit Manager for DST Systems in MO http://benefitslink.com/modperl/job.cgi?n=H54989 Post yours! http://EmployeeBenefitsJobs.com/jobs/post_help_wanted.html View all jobs http://EmployeeBenefitsJobs.com/ RSS feed http://EmployeeBenefitsJobs.com/rss/jobs.rss =========================================================== Search previous newsletters: http://benefitslink.com/search =========================================================== Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too Sign-up form is at: http://benefitslink.com/newsletter/ =========================================================== This newsletter is sent to you each workday except federal holidays. 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