An online, clickable version of this newsletter is available at: http://benefitslink.com/2008/2008_05_09_retirement.html =========================================================== BenefitsLink Retirement Plans Newsletter (Plain Text Format) May 9, 2008 Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. =========================================================== TODAY'S SPONSOR: DATAIR Employee Benefit Systems, Inc. 5500 / PBGC / 1099-R / 5300 / FAS 158 Software from DATAIR (Advert.) http://benefitslink.com/modperl/a_d_top.cgi?a_d=2008_05_09_retirement (Click on the above address or copy and paste it into your web browser.) DATAIR Pension Reporter System. Easy to use and economical for electronic and paper filing with instant access to forms and instructions. Live, expert support included. Choose from 4 modules: * Annual Reporting Series: EFAST 5500-series, PBGC Premium-series, SAR, and 5500 electronic filing; * 1099-R Series: 1099-R and related forms, 945/945-A, and 1099 electronic filing; * Qualification & Termination: 5300/5310-series and PBGC 500/600 series forms. * FAS 132/158: Audit Letter, Worksheets, Schedules Contact sales@datair.com or call 1-888-DATAIR-4 (1-888-324-2474) ---------------------------------------------------------- [Guidance Overview] Retirement Plan Service Provider May Be Liable for Breach of ERISA Fiduciary Duty in Cross-Selling Rollover IRAs Invested in Proprietary Mutual Funds http://www.goodwinprocter.com/~/media/EFA06A707E7047039CC837693433CB37.ashx Pages 1-2 of 7 pages. Excerpt: "A federal district court in Iowa allowed class action claims to proceed against a financial services company for alleged breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974, as amended ('ERISA'), resulting from the company encouraging retirement plan participants to roll over their 401(k) plan assets into IRAs invested in the company's proprietary mutual funds." (Goodwin Procter LLP) ---------------------------------------------------------- [Guidance Overview] DOL FAB Addresses QDIA Issues http://www.relius.net/News/TechnicalUpdates.aspx?ID=399 Excerpt: "The Department of Labor (DOL) has issued Field Assistance Bulletin (FAB) 2008-03 to respond to a number of questions practitioners have raised regarding the final regulations on qualified default investment alternatives (QDIAs) published in October 2007 and effective last December. The DOL also issued minor modifications to the final QDIA regulations." (SunGard Corbel LLC) ---------------------------------------------------------- [Guidance Overview] Improving Returns on 401(k) Plans http://www.towersperrin.com/tp/showdctmdoc.jsp?country=usa&url=Master_Brand_2/USA/News/Monitor/2008/200805/mon_article_0508b.htm Excerpt: "[I]s your 401(k) plan as effective as it can be in helping employees save for their retirement? Does it have auto-enrollment and other useful features that are available today from providers? These features can enhance the appeal of your employee savings programs and increase usage, making them even more effective." (Towers Perrin) ---------------------------------------------------------- 401(k) Disclosure Rule Would Affect Brokers http://eba.benefitnews.com/asset/article/581311/401k-disclosure-rule-would-affect-brokers.html?pg= Excerpt: "Concerns mount about planned ERISA changes. Some say DOL's proposed changes to 408(b)(2) of ERISA -- especially those dealing with advance compensation disclosure and conflict of interest reporting aspects -- are overly burdensome and redundant. 'It switches the burden from the employer to the service provider to actually provide the information . . . .'" (Employee Benefit Adviser; free registration required) ---------------------------------------------------------- Why Women Are at Greater Financial Risk in Retirement and How Annuities Can Help (PDF) http://www.paycheckforlife.org/uploads/ASR-white_paper_FINAL.pdf 31 pages. Excerpt: "The Female Factor offers an analysis of women's economic position in retirement, laying out the factors that determine whether they will achieve financial security in their 'golden years.' This recently-updated report discusses lifetime annuities as an important retirement income security tool for women. When combined with Social Security and other retirement income, an annuity can help cover basic living expenses while addressing the risk of outliving assets." (Americans for Secure Retirement) ---------------------------------------------------------- New York Attorney General Cuomo Sees Fraud in Some Lawyers' State Pensions http://www.nytimes.com/2008/05/09/nyregion/09pension.html?partner=rssuserland&emc=rss&pagewanted=all Excerpt: "Over the years, Mr. Cuomo said, the benefits have become a standard and expected perk for the lawyers, who often have political ties to the officials handing out the benefit. The system has proliferated, Mr. Cuomo suggested, because of New York's profusion of state, county and local governments." (The New York Times; free registration required) ---------------------------------------------------------- Hispanic Americans and Retirement (PDF) http://www.prudential.com/media/managed/Hispanic_Retirement_FINAL_3-19-08.pdf Excerpt: "While the following pages reveal the retirement attitudes and behaviors of Hispanic Americans, it is important to recognize that for some, the English language barrier is a cultural obstacle that has had a significant impact on their financial ambitions. Success -- as measured by earned income, financial assessment, and confidence in meeting retirement goals -- is greater among Hispanics who live in predominantly English-speaking households." (Prudential Retirement) ---------------------------------------------------------- 2008 Investment Company Fact Book http://www.icifactbook.org/ Excerpt: "The 2008 Investment Company Fact Book provides an entry point to our extensive body of research and statistics on retirement savings, as well as statistics on, and analysis of, all types of registered investment companies and their investors, collectively referred to as funds and fund investors." (Investment Company Institute) ---------------------------------------------------------- PLANSPONSOR 2008 Ultimate Buyer's Guide: 403(b) http://www.plansponsor.com/magazine_type3/?RECORD_ID=41202 Excerpt: "Sponsors who decide to search for new plan vendors or a vendor that will take on the monitoring or recordkeeping function should look for providers that have 'best-in-class' investment choices . . . . Sponsors also should ask what services the providers offer and what fees they charge for the services. Finally, . . . sponsors should look for providers that are committed to the 403(b) business and the retirement readiness of participants." (PLANSPONSOR.com; free registration required) ---------------------------------------------------------- Towers Perrin U.S. Legislative Tracking Charts -- Retirement -- Updated May 2, 2008 (PDF) http://www.towersperrin.com/tp/getwebcachedoc?country=usa&webc=HRS/USA/2007/200708/Retirement.pdf 11 pages. These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors. (Towers Perrin) ---------------------------------------------------------- Benefit Plan Reporting Can Aid Plan Sponsor Functions http://www.plansponsor.com/pi_type11/?RECORD_ID=41423 Excerpt: "Scott C. Albert, Chief of EBSA's Division of Reporting Compliance, told the Webinar audience that employers can actually fend off a variety of problems by properly gathering the data necessary to complete the annual report, Form 5500. Among other benefits, Albert said, having good data management systems in place can help the plan sponsor properly monitor the investment returns of the plan's lineup options as well as to keep an eye on provider performance." (PLANSPONSOR.com; free registration required) ---------------------------------------------------------- Connecticut State 401(k) Plan Proposal Dies As Legislative Session Ends http://www.plansponsor.com/pi_type10/?RECORD_ID=41427 Excerpt: "A bill allowing the state of Connecticut to sponsor a 401(k) plan for small businesses apparently was a casualty of the last-minute scramble by lawmakers to end their current session Wednesday night." (PLANSPONSOR.com; free registration required) ---------------------------------------------------------- EBSA Studying 403(b) Orphan Contract Problem http://www.plansponsor.com/pi_type10/?RECORD_ID=41425 Excerpt: "A top Department of Labor (DOL) benefits regulator on Thursday revealed that the agency is studying ways to help 403(b) plan sponsors better deal with the difficult problem of getting an exact accounting of their orphan contracts." (PLANSPONSOR.com; free registration required) ---------------------------------------------------------- Nest Egg Plan Hatched for Home Buying http://www.libn.com/article.htm?articleID=42283 Excerpt: "The federal government's slow response to the housing crisis has prompted one Long Islander to formulate a remedy of his own. Ed Mazoyer, a financial consultant at Vanderbilt Securities in Melville . . ., wants the government to allow homebuyers to take up to $100,000 from their retirement plans, either from a 401(k) or an Individual Retirement Account, with no penalty, if they use the funds to buy a house." (Long Island Business News) ---------------------------------------------------------- Consolidating Retirement Funds http://www.republican-eagle.com/articles/index.cfm?id=50105§ion=Business&freebie_check&CFID=33142549&CFTOKEN=68936361&jsessionid=88309a787c983f6eef50 Excerpt: "Consolidating multiple retirement plans can help simplify life and gain control over qualified plan assets. For example, consolidating IRA and 401(k) assets with one institution may save both time and money. Assets can be transferred from one IRA provider to another without taxes or penalties." (The Republican Eagle) ---------------------------------------------------------- Retirement Firms Consolidate http://www.onwallstreet.com/asset/article/582281/news/scale-matters-retirement-firms-consolidate.html?pg=&topicName=news Excerpt: "The retirement services market has been consolidating quickly in the past two years. In addition to ING's deal for CitiStreet, MassMutual bought First Mercantile Trust's retirement plan business this year, and in December Hartford Financial Services Inc. bought Sun Life Financial Inc.'s U.S. defined contribution plan administration business; Princeton Retirement Group; and Top Noggin, which offers data management, administration, and benefit calculation tools for sponsors of defined benefit plans." (American Banker via On Wall Street) ---------------------------------------------------------- [Opinion] Building on Social Security's Success - The Retirement Debate http://www.retirementdebate.com/2008/05/07/building-on-social-security%e2%80%99s-success/#more-32 Excerpt: "Social Security is an excellent tool to meet the economic risks working families face. Given its proven track record, wise policy will balance Social Security finances without cutting benefits and then seek to restore the adequacy of benefits." (Virginia P. Reno via The Wall Street Journal) ---------------------------------------------------------- [Opinion] Big Questions from a Small Story on a (Relatively) Small Loss http://www.bostonerisalaw.com/archives/fiduciaries-big-questions-from-a-small-story-on-a-relatively-small-loss.html Excerpt: "Here's a short newspaper story of a local municipal pension plan that suffered a $2.4 million loss to its pension fund, which is only about a $53 million fund, as a result of investments in subprime mortgage backed assets made either by State Street or in State Street funds . . . . This whole scenario raises an interesting question, aside from whether it is the plaintiff administrators or instead State Street that is right, because no matter which one is correct in their interpretation of the events at issue, you still end up in the same place, which is that the plans signing off on these investments just plain didn't know what they were buying." (Stephen Rosenberg of The McCormack Firm, LLC) =========================================================== Sponsored by: ASPPA ASPPA Spring Exam Window - Registration ends May 14, 2008 (Advert.) http://benefitslink.com/modperl/a_d_center.cgi?a_d=2008_05_09_retirement (Click on the address above or copy and paste it into your web browser.) Looking for a way to enhance your professional image and gain the knowledge you need to succeed in the retirement industry? ASPPA credentials provide that and more for the retirement professionals who have obtained the most sought after credentials in our industry. Comprehensive and practical, the ASPPA credentialing program has a path for you. The deadline for the spring exam window, May 14, is rapidly approaching. Don't wait another day to start your journey towards a professional ASPPA credential. Register Now. ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- The Effect of Conflicts of Interest on the Scope of Discovery http://healthplanlaw.com/?p=619 Excerpt: "As discussed in a prior article, the federal judiciary has permitted limited discovery beyond the 'administrative record' as the inquiries may bear upon the question of a structural conflict of interest as, for example, where the administrator and the insurer are the same entity. Another level of conflict of interest may exist, namely, that of 'third parties', such as consultants, who review the record and advise the administrator." (Health Plan Law blog by Attorney Roy F. Harmon III) ---------------------------------------------------------- Financial Experience & Behaviors Among Women http://www.prudential.com/media/managed/2006WomenBrochure_FINAL.pdf?seg=10&name=womensretirementconcernstranscend 16 pages. Excerpt: "[This report is the fifth in a series]. Looking back at the data, it appears that there has been some progress in women's overall financial knowledge and confidence, they are more involved in these decisions and, in fact, some women are taking the leading role for their household. This year's study is designed to give a deeper look at some of the generational differences among women as it relates to their concerns, goals, and progress." (Prudential Retirement) ---------------------------------------------------------- ExxonMobil Pilot Retirement Mandate Survives Legal Challenge http://www.plansponsor.com/pi_type10/?RECORD_ID=41418 Excerpt: "A federal judge in Texas has dismissed an Equal Employment Opportunity Commission (EEOC) lawsuit alleging ExxonMobil violated the Age Discrimination in Employment Act (ADEA) by requiring its corporate pilots to retire at age 60." (PLANSPONSOR.com; free registration required) ---------------------------------------------------------- New Resource for ERISA Attorneys http://healthplanlaw.com/?p=622 Excerpt: "[Rob] Hoskins, Esq. (legal counsel to the petitioner in LaRue v. DeWolff, Boberg) has put together a great resource for ERISA attorneys. The resource is called ERISABoard.com [http://www.erisaboard.com/] and, despite having been recently launched, already has substantial enrollment by some of the top practitioners in the field. The site is non-commercial - it serves as forum for the exchange of ideas by attorneys interested in ERISA issues." (Health Plan Law blog by Attorney Roy F. Harmon III) ========================================================== Newly Posted Events Retiree Medical Spending Accounts (RMSAs) and Other Innovative Retiree Medical Designs - Webcast Nationwide on May 14, 2008 presented by Employers Council on Flexible Compensation (ECFC) http://benefitslink.com/events/detail.php?id=43784 The 401k Service Training Program™ Accredited by Robert Morris University -- June 9-10, 2008 in Pennsylvania on June 9, 2008 presented by Financial Service Standards, LLC http://benefitslink.com/events/detail.php?id=43783 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases BenefitStreet Restructuring Take First Two Steps BenefitStreet, Inc. http://benefitslink.com/pr/detail.php?id=41914 CFDD Launches Strategic Marketing Service For Advisors Center for Due Diligence http://benefitslink.com/pr/detail.php?id=41911 The 401k Service Training Program™ Accredited by Robert Morris University -- June 9-10, 2008 Financial Service Standards, LLC http://benefitslink.com/pr/detail.php?id=41912 DataPath and RelayHealth Announce Strategic Relationship to Streamline Payment Reimbursements from Employee Healthcare Accounts RelayHealth http://benefitslink.com/pr/detail.php?id=41913 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Benefits Consultant for Northwestern Benefit Corporation of Georgia in GA http://benefitslink.com/modperl/job.cgi?n=H55117 Enrolled Actuary- Director Pension Admin for American National Insurance Company in TX http://benefitslink.com/modperl/job.cgi?n=H55118 Actuary/Pension Plan Administrator for Howard Simon & Associates in IL http://benefitslink.com/modperl/job.cgi?n=H55119 Defined Benefit Administrator / Actuarial Assistant for Pacific Coast Actuaries, Inc. in CA http://benefitslink.com/modperl/job.cgi?n=H55120 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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