Headlines about "Distributions - misc"

Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Final ERISA Regulations on Annuity Selection for Defined Contribution Plans (PDF)
2 pages. Excerpt: "The final regulations take effect on December 8, 2008. DOL simultaneously finalized its amendment of Interpretive Bulletin 95-1 . . . limiting the applicability of the so-called 'safest available annuity' rule to defined benefit plans effective as of the same date. (Interim guidance published in September 2007 provided the same result effective November 13, 2007.)" (Sutherland)

[Official Guidance] Text of IRS Notice 2008-93: Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates (PDF)
4 pages. Excerpt: "This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), the 24-month average segment rates, and the funding transitional segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007." (Internal Revenue Service)

[Official Guidance] Text of Proposed IRS Regs: Notice to Participant of Consequences of Failure to Elect to Defer Receipt of Retirement Plan Benefit; Expansion of Periods for Other Notices and Elections (PDF)
18 pages. Excerpt: "These proposed regulations would provide that the notice required by section 411(a)(11) advising a participant of the right, if any, to defer receipt of a distribution must also inform the participant of the consequences of failing to defer such receipt. The proposed regulations would also provide guidance on the relevant information that must be provided to a participant in order to satisfy the requirement that the participant be notified of the consequences of failing to defer. . . . These regulations are proposed to become effective for notices provided (and election periods beginning) on or after the first day of the first plan year beginning on or after January 1, 2010. However, in no event will the regulations become effective for notices provided (and election periods beginning) earlier than the first day of the first plan year beginning 90 days after publication of final regulations in the Federal Register." (Internal Revenue Service)

[Official Guidance] Text of EBSA Amendment to ERISA Prohibited Transaction Exemption for Services Provided in Connection with Termination of Abandoned Individual Account Pension Plans (PDF)
3 pages. Excerpt: "This document amends PTE 2006–06 . . . , a prohibited transaction class exemption issued under [ERISA]. Among other things, PTE 2006–06 permits a 'qualified termination administrator' (QTA) of an individual account plan that has been abandoned by its sponsoring employer to select itself to provide services to the plan in connection with the plan's termination, and to pay itself fees for those services. In response to changes to the Internal Revenue Code of 1986 (the Code) enacted as part of the Pension Protection Act (PPA) of 2006, PTE 2006–06 is amended to require, as a condition of relief under the exemption, that benefits for a missing, designated nonspouse beneficiary be directly rolled over into an inherited individual retirement plan that fully complies with Code requirements." (Employee Benefits Security Administration, U.S. Department of Labor)

[Official Guidance] Text of Amendment to Final EBSA Regs: Safe Harbor for Distributions from Terminated Retirement Plans, Including Orphan Plans (PDF)
9 pages. Excerpt: "The [DOL] is amending these regulations to reflect changes enacted as part of the Pension Protection Act of 2006 to the Internal Revenue Code of 1986 . . . under which a distribution of a deceased plan participant's benefit from an eligible retirement plan may be directly transferred to an individual retirement plan established on behalf of the designated nonspouse beneficiary of such participant. Specifically, the amended regulations require as a condition of relief under the fiduciary safe harbor that benefits for a missing, designated nonspouse beneficiary be directly rolled over to an individual retirement plan that fully complies with Code requirements. . . . This final rule is effective November 6, 2008." (Employee Benefits Security Administration, U.S. Department of Labor)

[Guidance Overview] IRS Guidance on FSA Distributions under the Heroes Earnings Assistance and Relief Tax Act (PDF)
2 pages. Excerpt: "HEART amended Internal Revenue Code Section 125 to allow employers to provide 'qualified reservist distributions' (QRDs) from health flexible spending accounts (FSAs) to employee-reservists who are called to active duty for 180 or more days, or for an indefinite period of time. . . . The IRS has issued Notice 2008-82, which provides important guidance for plan sponsors who wish to add this feature to their FSAs." (Buck Consultants)

DOL Issues Final Rules on Missing Benefits and Other PPA Provisions
Excerpt: "The U.S. Department of Labor (DoL) has announced final rules under the Pension Protection Act of 2006 (PPA) relating to distribution of 401(k) benefits for missing nonspouse beneficiaries in terminated plans, selection of annuity providers, and cross trading of securities by plans governed by the Employee Retirement Income Security Act (ERISA)." (PLANSPONSOR.com; free registration required)

Is Your Defined Contribution Plan Leaking?
Excerpt: "It's in everyone's best interest for companies to keep employees from cashing out their 401(k) plans when they leave, defined-contribution specialist Lori Lucas says in this commentary." (Workforce Management; free registration required)

The IRS Employee Plans News - Fall 2008 Edition (PDF)
Excerpt: "This edition includes articles such as Weathering the Storm: Advising Clients about Loans and Hardship Withdrawals from Retirement Plans; Update on Pre-Approved Plan Program for 403(b) Plans; Relief for Hurricane Victims; Remind Your Clients to Do the Right Thing Even When Times are Tough!; Ordering the Form 5500; VCP Applications – Appendix F; DOL Corner; and PBGC Insights." (Internal Revenue Service)

A Former WaMu Employee Asks, 'What Will Happen to My WaMu Pension Plan?'
Excerpt: "The government seized Washington Mutual's banking operations and sold parts of the company to JPMorgan Chase on September 25. But the jurisdiction of employee pension benefits was a point of contention during a tumultuous week that left current employees and retirees nervously awaiting an announcement that could affect their financial future." (U.S. News & World Report)

High Court to Hear Arguments on ERISA Beneficiary Designation
Excerpt: "The U.S. Supreme Court will hear arguments Tuesday regarding whether a qualified domestic relations order (QDRO) under the Employee Retirement Income Security Act trumps a woman's voluntary waiver of her ex-husband's pension benefits, an issue that has divided federal appeals courts and left divorce lawyers unsure how to advise clients." (Law.com)

Supreme Court Will Officially Begin the October 2008 Term This Week
Excerpt: "On Tuesday, the Court will hear argument in: . . . Kennedy v. Plan Adm. for Dupont Savings (07-636) [http://www.scotuswiki.com/index.php?title=Kennedy_v._Plan_Adm._for_Dupont_Savings], on whether a specific ERISA provision is the only way a divorcing spouse can waive her right to receive her ex-husband's pension benefits under the Act." (Supreme Court of the United States Blog)

401(k) Hardship Withdrawls and Borrowing Rise, Leading to Worries That Workers Will Have Even Fewer Funds for Retirement
Excerpt: "For Americans just scraping by, the only savings they've salted away are in a 401(k). That was fine in a growing economy. But now that it's slumping, inflation is up and layoffs are spreading, a small but increasing number of people are tapping those accounts. T. Rowe Price says 401(k) withdrawals rose 19 percent last year through June 2008. Vanguard reports its hardship 401(k) withdrawals rose 22% in 2007. Though just representing 1.5% of all plan holders -- these numbers are nonetheless troubling. Moreover, withdrawals aren't the only threat to the 401(k) assets of 44 million American workers." (Treasury & Risk)

IRS Provides Guidance on Reservist FSA Distributions
Excerpt: "The Internal Revenue Service has issued Notice 2008-82 providing guidance on qualified reservist distributions (QRDs) from health flexible spending accounts (FSAs) and including a transition rule allowing plans to be retroactively amended for QRDs made before January 1, 2010." (PLANSPONSOR.com; free registration required)

[Official Guidance] Text of IRS Notice 2008-85: Updated Static Mortality Tables for Years 2009 Through 2013 (PDF)
19 pages. Excerpt: "These tables apply for purposes of calculating the funding target and other items for valuation dates occurring during calendar years 2009 through 2013. This notice also includes a modified 'unisex' version of the mortality tables for use in determining minimum present value under § 417(e)(3) of the Code and § 205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in calendar years 2009 through 2013." (Internal Revenue Service)

Are Low-Wage Workers Destined for Low Income at Retirement?
Excerpt: "This brief assesses whether boomers with low earnings between ages 22 and 62 are destined for low income at age 67. We find that nearly two-thirds of this group will end up with low income at retirement, but more than one-third will manage to defy the odds and escape being among the lowest-income older Americans." (The Urban Institute)

[Guidance Overview] DC Plans, Distributed Annuities, Spousal Consent and QJSAs
Excerpt: "One of the most nagging issues related to distributing annuities from defined contribution plans is how and when to apply the spousal consent and qualified joint and survivor annuity ('QJSA') rules to distributions." (Baker & Daniels)

What to Do If You Are About to Retire and It Looks Like Your Money Is Vanishing
Excerpt: "[I]t's easy for someone who is 25 years from retirement just to ignore the current gyrations, but if you're going to actually need that money? Or you already do? It's hard not to look. And what you see when you look probably isn't pretty. In fact, you probably feel angry, and fearful, and powerless to do anything about it. But there are a few things you can do to minimize the damage, and maybe even come out a bit ahead." (The Motley Fool)

When Cashing Out of an Annuity Makes Sense
Excerpt: "Sometimes cashing out of an annuity can make more sense than doing a tax-free transfer into a new product -- even if it presents the client with a tax bill. 'If a new client comes in with an annuity that's inappropriate for him -- a young person whose tax rates will be higher in 30 years than they are now, for example -- I'd probably encourage him to get out of it this year, when tax rates are at a historic low' . . . ." (Investment News; free registration required)

When Cashing Out of an Annuity Makes Sense
Excerpt: "Sometimes cashing out of an annuity can make more sense than doing a tax-free transfer into a new product -- even if it presents the client with a tax bill. 'If a new client comes in with an annuity that's inappropriate for him -- a young person whose tax rates will be higher in 30 years than they are now, for example -- I'd probably encourage him to get out of it this year, when tax rates are at a historic low' . . . ." (Investment News; free registration required)

When Cashing Out of an Annuity Makes Sense
Excerpt: "Sometimes cashing out of an annuity can make more sense than doing a tax-free transfer into a new product -- even if it presents the client with a tax bill. 'If a new client comes in with an annuity that's inappropriate for him -- a young person whose tax rates will be higher in 30 years than they are now, for example -- I'd probably encourage him to get out of it this year, when tax rates are at a historic low' . . . ." (Investment News; free registration required)

[Opinion] Using Favorable Tax Treatment for Pension Distributions to Blunt Nation's Mortgage Crisis
Excerpt: "AS the federal government debates the details of a plan to bail out corporations devastated by the mortgage crisis, taxpayers wonder how it is we can afford the $700 billion it will take to do so. In fact, much of that sum can be raised by accelerating tax collections in a way that benefits the government, the mortgage industry and the taxpayers. With about $18 trillion sitting untapped and untaxed in pension funds, the answer lies in providing favorable tax treatment for retirees to withdraw that money to pay down existing mortgages." (The Seattle Times)

The Intergenerational Transfer of Public Pension Promises
Excerpt: "The value of pension promises already made by US state governments will grow to approximately $7.9 trillion in 15 years. We study investment strategies of state pension plans and estimate the distribution of future funding outcomes. We conservatively predict a 50% chance of aggregate underfunding greater than $750 billion and a 25% chance of at least $1.75 trillion (in 2005 dollars). Adjusting for risk, the true intergenerational transfer is substantially larger." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve fulltext)

Biggest Pension Monthly Payout Not Always Best Choice
Excerpt: "Assuming you have made the decision to take your pension as an annuity instead of a lump sum, or you don't have the option of a lump sum, most likely there will be little or no difference in your pension options from an actuarial standpoint. But your health history and overall financial picture could make one option significantly better." (Newsday)

9th Circuit Stands with Other Courts on Ex-Participant Lawsuit Ruling
Excerpt: "Another court ruled that participants who have cashed our of their defined contribution plan can still pursue fiduciary breach lawsuits. The 9th U.S. Circuit Court of Appeals became the seventh appellate panel to rule that way. The court overturned a lower court ruling by holding that allowing former participants to pursue fiduciary claims under the Employee Retirement Income Security Act (ERISA) to recover their losses fit with the true meaning of the federal benefits rights law. . . . [The case is Vaughn v. Bay Environmental Management Inc., 9th Cir., No. 05-17100, 9/19/08.]" (planadvisor)

[Guidance Overview] 9th Circuit Decides QJSA Tug of War in Favor of Spouse at Time of Retirement
Excerpt: "[T]he 9th Circuit Court of Appeals decided whether or not a participant in a plan with a Qualified Joint and Survivor Annuity (QJSA) may change the surviving spouse beneficiary after the participant has retired and the annuity has become payable. In Caruso v. Caruso, No. 06-15938 (CA9 Sept. 17, 2008), the Court held that the 'QJSA surviving spouse benefits irrevocably vest in the participant's spouse at the time of the annuity start date - in this case the participant's retirement - and may not be reassigned to a subsequent spouse.'" (Pension Protection Act Blog)

[Guidance Overview] Canadian Federal Appeal Court Rules on Distribution of Pension Surplus (PDF)
1 page. Excerpt: "The appeal court overturned a lower federal court judgment (Cousins v. Attorney General of Canada and Marine Atlantic Inc.) and ruled that there was no statutory requirement to distribute a proportionate share of surplus on a partial termination of a pension plan." (Towers Perrin)

Another Reason Not to Use Your Pension before Retirement: ERISA Offset
Excerpt: "Every year thousands of people are wrongfully denied long-term disability benefits from their insurance company. Often, these individuals will take early withdrawal from their retirement plan in order to meet basic living expenses while appealing the denial of benefits. As a result, they are left with nothing to fund their retirement and because of the disability, no means of ever earning that income again. To add insult to injury, once the disability carrier decides that they were wrong and should not have denied benefits, they also take credit for the income received from the individual's pension, IRA or other retirement plan." (Florida Disability & LTD Weblog)

[Guidance Overview] Impact of the Heroes Earnings Assistance and Relief Tax Act of 2008 on Employee Benefit Plans (PDF)
6 pages. Excerpt: "The IRS has yet to issue guidance clarifying the provisions of the HEART Act and their impact on employee benefit plans, although it has identified this guidance as a high priority. Since plan amendments incorporating the mandatory provisions of the HEART Act are not required until the last day of the plan year beginning on or after January 1, 2010, you can wait for further guidance from the IRS before amending your plans. Nonetheless, you must be careful to operate your plans in accordance with the provisions of the HEART Act that are effective retroactively or that will take effect as of January 1, 2009." (Harter Secrest & Emery LLP)

Deferred Annuities and Strategic Asset Allocation (PDF)
28 pages. Excerpt: "We show that a considerable fraction of wealth should be annuitized to skim the return enhancing mortality credit. The remaining liquid wealth (stocks and bonds) is used to hedge labor income risk during work life and to earn the equity premium. We find a marginal difference between a strategy involving deferred annuities and one where the investor can purchase immediate life annuities." (Michigan Retirement Research Center)

Is Retirement Different for Women?
Excerpt: "Women are more likely than men to spend their golden years in poverty. According to a report from the Women's Institute for a Secure Retirement, more than one in 10 women in retirement live on less than $10,000 a year. The reason is attributable to financial physics: Women earn less than men over their lifetimes and live longer." (FOX News Network, LLC.)

[Guidance Overview] IRS Finalizes Mortality Tables for DB Plans
Excerpt: "The IRS has finalized the regulations proposed in 2007 regarding the mortality assumptions used to determine present values for minimum funding purposes for defined benefit (DB) pension plans under the Pension Protection Act of 2006. There are no surprises in the final rules for the standard mortality tables . . . . Despite comments urging the IRS to make some changes, the rules for plan-specific mortality tables remain mostly the same, too, except that the IRS expanded the study period for making a credible case for using substitute tables from four to five years. Sponsors must use the applicable tables for 2008 and later plan years." (Watson Wyatt Worldwide)

A Reality Check on Criticisms of Debit Card Loan Programs
Excerpt: "This recent debate has revealed a number of common misconceptions about 401(k) loan products, and criticisms that rely on these misconceptions need a reality check. Commentators who have singled out debit card loan programs have failed to acknowledge Congress' intent to allow retirement plans to permit loans. Critics of debit card loan programs also have failed to recognize their advantages over 'traditional' plan loan products, which generally have escaped criticism." (Investment News; free registration required)

Testimony to EBSA Advisory Council on Spend-Down of DC Assets at Retirement (PDF)
7 pages. Excerpt: "[W]e propose that a substantial portion of each participant's account balance in 401(k) and other similar plans be automatically directed (defaulted) into a two-year trial income product when retirees take distributions, unless they affirmatively choose not to participate. The automatic trial income arrangement would make 24 consecutive monthly payments to an individual on a voluntary basis, i.e., if the individual did not opt out. At the end of the trial period, retirees could elect an alternative distribution option, but if they did nothing, they then would be defaulted into a permanent income payment program. Employers and plan sponsors would be encouraged to offer the trial income plan and would have discretion over some of its structure and implementation." (Mark Iwry for the Retirement Security Project)

[Guidance Overview] Options for Transitioning to PPA Lump Sums
Excerpt: "The Pension Protection Act of 2006 (PPA) changed the minimum basis for calculating lump sums. IRS Notice 2008-30, issued in March 2008, provides helpful guidance for transitioning from 'old law lump sums' to 'PPA lump sums.' In this article, we explore the paths a plan sponsor may take as they transition to the new 'PPA lump sums.'" (JPMorgan)

Employee Benefits Security Administration Notice of Meeting: Advisory Council on Employee Welfare and Pension Benefit Plans
Excerpt: "[T]he Working Groups assigned by the Advisory Council on Employee Welfare and Pension Benefit Plans to study the issues of (1) The spend down of retirement assets, (2) hard to value assets/target date funds, and (3) phased retirement, will hold a public teleconference meeting on September 29, 2008." (U.S. Employee Benefits Security Administration)

SEC Issues 401(k) Debit Card Precautions
Excerpt: "The Securities and Exchange Commission (SEC) has posted on its website a brief list of precautions regarding 401(k) debit cards." (Wolters Kluwer)

[Opinion] ASPPA Testimony before the ERISA Advisory Council's Working Group on Spend Down of Defined Contribution Assets at Retirement (PDF)
7 pages. Excerpt: "Proposed Change: Encourage plans to offer participants the opportunity to elect a portion of their benefits in a lump sum/IRA rollover and a portion (a minimum percentage or dollar amount) as an annuity or a set of fixed payments. Reason for Change: Even when participants prefer a lifetime guarantee, it is difficult for them to commit 100% of their benefit to an annuity payment. There is a psychological desire to have a portion available as needed for unanticipated living expenses or for the initial expenses of the transition to retirement." (American Society of Pension Professionals & Actuaries)

Portland Considers Letting Go of $3M Overpayments
Excerpt: "The Portland Fire and Police Disability and Retirement Fund board of trustees voted unanimously to ask the Internal Revenue Service if the fund can simply stop the overpayment of retirees' pensions and not recover the $3.1 million erroneously paid out. According to The Oregonian, the trustees say they are concerned about how the mistake that went unnoticed for 13 years may impact the fund's tax-qualified status about their fiduciary responsibility to follow the city charter that governs the fund." (PLANSPONSOR.com; free registration required)

NFL Pension Controversy Continues As Ex-Players Grow Increasingly Bitter
Excerpt: "In an Indianapolis Star survey of players who played five years or more for the Baltimore or Indianapolis Colts, 30 of the 35 respondents (86 percent) said their pension plan either 'doesn't go far enough' or 'doesn't go nearly far enough,' the most unfavorable of five choices. A similar percentage responded the same way to whether medical and disability benefits are satisfactory." (IndyStar.com)

[Guidance Overview] Military Retirement Benefits - Structuring Payments as Deductible Alimony
Excerpt: "To be deductible as alimony by the payer, the payment must satisfy the requirements of IRC section 71. A recent Tax Court decision involving the payment of military retirement benefits under the Uniformed Services Former Spouses' Protection Act (USFSPA) to the former spouse of a retired serviceman sheds light on the treatment of alimony payments." (The New York State Society of CPAs)

Retirement Vulnerability of New Retirees: The Likelihood of Outliving Their Assets (PDF)
26 pages. Excerpt: "The analysis finds that almost three out of five middle-class new retirees can expect to outlive their financial assets if they attempt to maintain their current pre-retirement standard of living. To avoid outliving their financial assets, middle-class retirees will have to reduce their standard of living, on average, by 24 percent." (Ernst & Young LLP)

Chart: Nevada's Retirement Benefits Compared to Other States
Excerpt: "The pension plan, which the study said is 'among the nation's most favorable public employee retirement systems,' provides a $37,380 annual pension to general government workers earning annual salaries of $50,000 who retire today after 30 years on the job." (Las Vegas Review-Journal)

House Bill Joins Effort Against 401(k) Loans
Excerpt: "A new House bill joins a Senate effort to curb the use of loans from 401(k) plans and credit cards that tap such accounts. Sponsored by Rep. Bill Foster, D-Ill., HR 6708 joins S 3278 in aiming to stop investors from depleting their retirement funds through the use of credit or debit cards . . . ." (Investment News; free registration required)

Call for Papers: Housing Wealth, Options, and Spending Issues in Retirement
Excerpt: "To expand thinking on housing issues in retirement, the Society of Actuaries' Committee on Post Retirement Needs and Risks is issuing this Call for Papers, inviting researchers, practitioners and other professionals to explore this issue from a variety of perspectives. The Committee is seeking to compile papers that represent the latest in thinking about housing issues related to retirement planning and financing. It is the goal of this effort that taken together, the chosen papers will provide a multi–disciplinary, textured analysis of the topic. Please submit an abstract or outline of your proposed paper by September 15, 2008 . . . ." (Society of Actuaries)

[Guidance Overview] HEART Act Affords Greater Protections to Those Serving on Active Military Duty
Excerpt: "Under the Act, retirement plans must provide certain survivor benefits to participants who die while serving in active military duty and make plan contributions for 'differential pay.' The Act also modifies the tax treatment of certain deferred compensation items." (Littler Mendelson P.C.)

Nevada's Public Employees Retirement System Billions in Debt, According to Study
Excerpt: "The pension plan, which the study said is 'among the nation's most favorable public employee retirement systems,' provides a $37,380 annual pension to general government workers earning annual salaries of $50,000 who retire today after 30 years on the job. Those hired since 2001 would receive the same benefit if they retire after working 28 years." (Las Vegas Review-Journal)

[Guidance Overview] IRS Guidance on Finding, Correcting and Preventing 401(k) Loan Errors
Excerpt: "In the latest issue of Retirement News for Employers, the IRS has provided guidance on the corrective steps which can be taken when mistakes are made in a 401(k) loan repayment which could result in the entire loan amount being considered a taxable distribution to the participant." (Wolters Kluwer)

401k Retirees, Take An Annuity for a Test-Drive
Excerpt: "[T]here will always be two kinds of people: those who hire a professional, and those who prefer to do things themselves. It's as true in retirement planning as it is in other areas of life. The common goal is funding a secure retirement, but there are two vastly different approaches to getting there. On one end of the spectrum is the 'hire it done' mentality of a defined benefit plan. . . . Way at the other end of the spectrum is the 'do-it-yourself' mentality of a 401k plan." (401khelpcenter.com)

[Guidance Overview] SEC Warns Investors About Pitfalls of Using 401(k) Debit Cards
Excerpt: "EBIA Comment: While SEC guidance generally is outside the scope of the EBIA Weekly, we are covering this alert because of the important information it provides for plan sponsors and advisors that might be considering 401(k) debit cards for plan participants. We note that these debit cards could dramatically increase both the demand for and the actual number of plan loans. We are not aware of any recent IRS or DOL actions or guidance on debit cards . . . ." (Employee Benefits Institute of America)

401(k) 'Dippers' Robbing Future to Pay Now
Excerpt: "In its early days, prematurely tapping into the tax-deferred savings plan could only be done for special purchases, such as for a down payment on a home. For financial relief, many consumers would use home-equity loans and other forms of credit, leaving 401(k)s to accumulate money for retirement. But now, with home values falling and credit drying up for many consumers, 401(k) plans are being raided with greater frequency to pay medical bills and credit-card debt, avert home foreclosures and other big-ticket problems, and even pay for day-to-day expenses, such as groceries." (The Atlanta Journal Constitution)

The Pros and Cons of Offering 401(k) Loans to Employees
Excerpt: "[I]ncreasing numbers of employees are beginning to take advantage of 401(k) plans that offer the option of taking funds out of the retirement plan in the form of a loan. When drafting or amending a plan, the employer determines whether to include a loan feature or not. Employers should carefully examine their 401(k) plans and determine whether they want to make loans available to participants." (The Central New York Business Journal)

Confusion Over IBM Pension Hike
Excerpt: "IBM pensioners are frustrated and bewildered by the technology giant's silence months after it announced they might get a raise. . . . 'It's taking us a little longer to determine their specific adjustment because of the complexity of their personal situation,' [IBM spokesman Douglas] Shelton said, adding that the increases became effective Sept. 1. 'Payments to those people for whom we are still calculating adjustments will be retroactive to that date.'" (Hudson Valley Media Group)

[Guidance Overview] Welfare Plan Violated ERISA § 204(g); Amendment Adopted with Intent To Penalize the Exercise of Accrued Rights under a Pension Plan (PDF)
At page 3 of 5. Excerpt: "After several unsuccessful attempts to amend the merged pension plan to limit lump sum payments, the trustees amended the welfare plan to preclude payment of retiree welfare benefits for participants who elected a lump sum payment from the pension plan." (Proskauer Rose)

[Opinion] American Benefits Council Letter to Treasury Requesting Guidance on HEART Act Benefit Provisions (PDF)
6 pages. Excerpt: "The Council's members have raised a number of questions about sections 104, 105 and 107 of the HEART Act, which generally provide relief from certain retirement plan rules for distributions, contributions and accruals made on behalf of participants engaged in qualified military service." (American Benefits Council)

[Guidance Overview] HEART Act Changes Retirement Plan Rules for Military Reservists
Excerpt: "In June, the Heroes Earnings Assistance and Relief Tax ('HEART') Act became law. The Act makes a number of significant changes to the treatment of military reservists under employee benefit plans. This article summarizes those changes as they apply to qualified defined benefit and defined contribution plans, Section 403(b) plans, and Section 457(b) plans." (Spencer Fane Britt & Browne LLP)

[Guidance Overview] Retirement Provisions in the HEART Act May Affect Multiemployer Plans (PDF)
2 pages. (The Segal Group, Inc.)

[Opinion] What Financial Services Companies Are Doing to Protect the Retirement Assets of the Baby Boomers
Excerpt: "[F]orward-thinking insurers are looking for ways to mine the power of the Internet. A great example is Axa Equitable, which just unveiled MyRetirementShop.com, an exciting new retiree Web portal that demonstrates the power of thinking outside the box to cement your brand with the Boomers." (LOMA)

Borrowing from Your Retirement Plan Is a Bad Idea
Excerpt: "Given the dicey economy, says Examiner.com, it makes sense that workers are seeking refuge in their retirement savings, but even in extreme situations, it is best for workers to seek other sources of capital before tapping their 401(k) accounts. Otherwise, borrowers are leaving much of their potential earnings on the table, and a small loan can equal to a huge loss in future retirement security . . . ." (National Center for Policy Analysis)

Novel Charges Stand Against Lawyer in Benefits Fraud Case
Excerpt: "A federal judge has upheld novel employee-benefits fraud charges against a lawyer, calling his argument for dismissal 'provocative' but 'fatally flawed.' Prosecutors from the Eastern District of New York U.S. Attorney's Office obtained the indictment of Steven Coren of Coren & Associates last year on charges that he helped clients divert for their own use money supposedly set aside for employee benefits." (Law.com)

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