Headlines about "Ret plans - admin"

Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Supreme Court Accepts Xerox ERISA Case for Review
Excerpt: "U.S. Supreme Court justices have agreed to consider an appeal of an Employee Retirement Income Security Act (ERISA) violations case involving the method used by the Xerox Corp. pension plan to figure out how much to offset a participant's benefits to properly reflect distributions already taken." (PLANSPONSOR.com; free registration required)

Supreme Court Will Review Decision Concerning Whether Employer Followed Proper Procedures When Changing Pension Benefits Calculation Rules
Excerpt: "The court has granted certiorari to Sally L. Conkright et al. Petitioners vs. Paul J. Frommert et al., a class-action brought on behalf of participants in a pension plan sponsored by Xerox Corp., Norwalk, Conn. The plaintiffs sued the administrators of the Xerox Corporation Retirement Income Guarantee Plan and the plan itself, alleging the plan had violated the participants' rights under the Employee Retirement Income Security Act by adding a mechanism that involved use of 'phantom account' factor and the hypothetical growth of an employee's previous lump-sum retirement benefits distribution to calculate current benefits." (The National Underwriter Company; free registration or paid subscription required)

[Guidance Overview] Supreme Court Will Hear Case Concerning an ERISA Retirement Plan and Administrator
Excerpt: "The US Supreme Court has granted certiorari in an ERISA case that raises issues on (1) the extent to which a district court must defer to the views of an ERISA plan administrator and (2) the appropriate scope of appellate review. This case will be argued in the fall. Conkright v. Frommert (Certiorari granted 06/29/2009)." (LawMemo Employment Law Blog)

IRS Newsletter Highlights Updates to Web Resource Page on Large Plan Audits
Excerpt: "IRS has updated its web page devoted to the Employee Plans Team Audit Program (EPTA), which focuses on audits of large retirement plans by a team of IRS specialists. The Summer issue of Employee Plans News highlights many changes to the site, including summaries of common audit issues now organized by plan type. IRS also posted its 'Internal Controls Questionnaire,' with examples of audit questions that assess system procedures and internal controls. IRS developed the questionnaire to spotlight compliance responsibilities and areas of coordination between plan sponsors and administrators." (Mercer LLC)

[Guidance Overview] Heroes Earnings Assistance and Relief Tax Act (HEART) Provisions by Effective Date
Chart. (McKay Hochman Co., Inc.)

DOL's Employee Benefits Security Administration Holding Compliance Seminar Series in Atlanta
Excerpt: "According to a press release, 'Getting It Right - Know Your Fiduciary Responsibilities,' a free compliance assistance seminar will be held in Atlanta on July 9 at the Federal Reserve Bank of Atlanta, 1000 Peachtree St. N.E. This seminar is part of EBSA's national fiduciary education campaign to increase awareness and understanding of basic responsibilities associated with operating private sector retirement plans. . . . Registration is first-come, first-served, with limited spaces available. All parties who wish to attend, including press, should contact Pat Humphlett by e-mail at humphlett.patricia@dol.gov or fax at 202-219-8141. More information is available at http://www.dol.gov/ebsa/pdf/FidEdGA.pdf[.]" (PLANSPONSOR.com; free registration required)

[Guidance Overview] Smith Barney Fails to Get Florida Pension Case Moved Out of Court
Excerpt: "The U.S. District Court for the Southern District of Florida has declined to enforce arbitration clauses contained in account agreements between the City of Delray Beach Police and Firefighters Retirement System and Smith Barney. According to the court's decision, chairman of the retirement system's board William Adams signed Pension Consulting Agreements and other documents for Smith Barney. The agreements have an arbitration clause that says contract disputes must be resolved by arbitration. Smith Barney moved to remove the case from court and have the court direct the board to proceed through arbitration. However, the board argued that Adams lacked authority to execute the account agreements, and the court agreed." (PLANSPONSOR.com; free registration required)

Most Small Employers Would Face Low Costs to Implement Automatic IRAs
Excerpt: "This report finds that most employers would likely face low costs to implement a system of automatic individual retirement accounts (IRAs). Automatic IRAs can be designed to integrate into existing business payroll systems in a way that will minimize an employer's responsibilities. Most small employers will have only small incremental costs to modify their payroll processing systems in order to facilitate enrollment in Automatic IRAs and withholding of Automatic IRA contributions. The widespread adoption of automated payroll systems, including within the small business sector, and the ability of those system providers to build the Automatic IRA into their services, will make this new employee benefit relatively simple to implement." (AARP)

Business Group Presses Los Angeles City Council for Details on Early-Retirement Proposal
Excerpt: "Two days before the Los Angeles City Council is expected to vote on an early retirement package for thousands of workers, the city's largest business organization warned the proposal would contribute to a 'massively unfunded and unsustainable' pension liability. The Los Angeles Area Chamber of Commerce sent Mayor Antonio Villaraigosa and the City Council a letter demanding that taxpayers receive more information on the financial consequences of the proposed five-year labor agreement with the Coalition of L.A. City Unions, which represents 22,000 workers." (Los Angeles Times)

[Official Guidance] Summer 2009 Issue of 'Employee Plans News' from IRS (PDF)
13 pages. Excerpt: "This edition contains the following articles: . . . Two-Year Adoption/Submission Period for DC Pre-Approved Plans Expires on April 30, 2010 . . . The EPCU Insider . . . Free Phone Forums . . . A New Look for EP Large Case Program Web Page . . . Employee Plans Published Guidance . . . Calendar of EP Benefits Conferences." (Internal Revenue Service)

Employee Benefits Update, June 2009 (PDF)
The nine-page newsletter presents select compliance deadlines and reminders; retirement plan developments; and, health and welfare plan developments, with comments from Reinhart. (Reinhart Boerner Van Deuren s.c.)

IRS Final List of Out-of-Date 403(b) Documents
Excerpt: "The Internal Revenue Service (IRS) has finalized its list of guidance documents issued in the last 45 years dealing with 403(b) plans declared obsolete in light of the agency's recent comprehensive rules rewrite." (PLANSPONSOR.com; free registration required)

EBSA Bringing Compliance Seminar to Chicago
Excerpt: "EBSA Brings its Compliance Seminar to Chicago June 19, 2009 (PLANSPONSOR.com) ? Chicagoland plan sponsors, fiduciaries, and providers can bone up on their fiduciary responsibilities next week. The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) is sponsoring another of its free compliance assistance seminars, 'Getting It Right - Know Your Fiduciary Responsibilities,' on June 24 in Chicago, Illinois. The seminar is part of EBSA's national fiduciary education campaign to increase awareness and understanding of basic responsibilities associated with operating private sector retirement plans." (PLANSPONSOR.com; free registration required)

[Guidance Overview] Plans Failing to Follow Own Procedures Must Pay Spouse Amounts Already Paid to Children
Excerpt: "EBIA Comment: Although the trial court in this case agreed with the plans that it was reasonable to make payment even in the face of a potentially conflicting claim, the reversal on appeal shows that the safer course was to wait and allow the conflict to be resolved before proceeding. This case is another lesson to plan administrators of how important it is to know, understand, and follow their plans' own procedures. But even in the absence of specific procedures, controlling law in many jurisdictions would require plans to investigate conflicting claims or risk the double-payment liability now facing the plans in this case." (Employee Benefits Institute of America)

Service Provider's Notice of Overpayment Imputed to Plan Administrator
Excerpt: "The Fifth Circuit recent affirmed this district court opinion wherein the court held that a two year statute of limitations applied and that knowledge of an 'overpayment' by a service provider may be imputed to the plan administrator for purposes of the discovery rule." (Roy Harmon III via Health Plan Law)

[Guidance Overview] IRS's Internal Control Questionnaire to Help Plan Sponsors, Administrators with Plan Compliance
Excerpt: "The questionnaire, which was developed with outside practitioner input, provides examples of questions asked by EP examiners to acquire an understanding of system procedures and internal controls. The questionnaire is divided up into questions concerning plan failures --internal control impact, plan administration, HR personnel, and payroll." (Wolters Kluwer)

[Guidance Overview] IRS Will Focus on Qualified Retirement Plan Failures This Year
Excerpt: "The IRS has listed on its website the most common failures in qualified retirement plans. The apparent purpose of the listing is to raise awareness of the more common failures so that sponsors may have an opportunity to take corrective action and perhaps begin steps towards voluntary compliance before an audit." (Baker, Donelson, Bearman, Caldwell & Berkowitz, PC)

IRS Trends, Tips, Internal Control Questionnaire and Plan Documentation Guide Online
Excerpt: "The Internal Revenue Service (IRS) has recently added important guidance to its Employee Plan Team Audit (EPTA) website that is very helpful to retirement plan sponsors and retirement plan administrators. This article summarizes the important features of these IRS materials." (Littler Mendelson P.C.)

[Guidance Overview] Centralized versus Decentralized 403(b) Administration
Excerpt: "Some 403(b) plan sponsors have structured their plans with a single investment provider, and the number of plans designed this way has likely increased in the wake of the final 403(b) regulations. Nevertheless, many 403(b) plans continue to include multiple investment providers/recordkeepers." (Richard Turner via PLANSPONSOR.com; free registration required)

Retirement Plan Administrator Must Ascertain Marital Status Before Paying Benefits
Excerpt: "Where there is conflicting information about a deceased retirement plan participant's marital status, it is unreasonable for a plan administrator to disburse funds until the conflict is resolved, a federal appeals court has ruled (Smith v. New Mexico Coal 401(k) Personal Savings Plan (10th Cir. June 9, 2009)). The US Court of Appeals for the Tenth Circuit found that a plan administrator acted arbitrarily and contrary to plan procedures when it paid benefits to a deceased participant's children after learning that legal proceedings on the participant's marital status were ongoing." (Mercer LLC)

[Guidance Overview] Section 403(b) Plan Participants Need to Correct Defective Contract Exchanges by June 30
Excerpt: "Plan sponsors whose plans permitted exchanges with non-approved vendors after September 24, 2007, and who did not enter into ISAs with such vendors by January 1, 2009, might wish to remind plan participants of the upcoming deadline and the need to re-exchange any such contracts back into the plan in order to avoid the potential income tax consequences." (The Segal Group, Inc.)

Auto Sector Pension Plans: Information for Workers and Retirees
Excerpt: "This information page is offered as a service to workers and retirees who have questions about their PBGC-insured benefits. The PBGC is not commenting on the future of U.S automotive companies or suggesting their pension plans will be assumed by the PBGC." (Pension Benefit Guaranty Corporation)

[Guidance Overview] Judge Throws Out Unpaid Contribution Collection Provision in Plan Document
Excerpt: "A federal judge in Massachusetts has ordered the sponsor of a master plan to strike a clause in its plan documents relieving the trustee of the duty to collect unpaid employer plan contributions. U.S. District Judge Douglas P. Woodlock of the U.S. District Court for the District of Massachusetts ruled that Employee Retirement Income Security Act (ERISA) Section 403 imposed the duty on a trustee to monitor and pursue unpaid employer contributions. A plan provision going against that obligation would be contrary to public policy and shouldn't be allowed to stand, Woodlock asserted." (planadvisor)

[Official Guidance] Text of IRS Notice 2009-56: 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)

[Guidance Overview] DOL's Webcast Tomorrow Featuring the Form 5500 Electronic Filing Requirements
Excerpt: "Tomorrow there will be a DOL webcast on the new Form 5500 electronic filing requirements which will go into effect for the 2009 plan year (for filings in 2010). I would highly recommend that practitioners and fiduciaries listen in for the following reasons: (1) These webcasts are free to the public and generally contain great information that might not otherwise be available. (2) At yesterday's Mid-Atlantic Pension Liaison Meeting that I attended in Washington, D.C., Michael Auerbach, Chief of the Division of Accounting Services for EBSA, gave a great overview of these new rules. Practitioners seemed surprised at the impact these rules will have on a number of aspects of the current 5500 process. A couple of the surprises are as follows . . . ." (ERISA Fiduciary Guidebook)

IRS and DOL Priorities: Spring 2009 Regulatory Agenda
Excerpt: "In the first Semiannual Regulatory Agenda released during the Obama Administration, the Department of Labor and the Internal Revenue Service list their priorities for the coming year." (Deloitte via BenefitsLink.com)

[Guidance Overview] Safe Harbor 401(k) Chart: Factors to Consider and Key Operational Rules
Excerpt: "These are some of the basics that an employer needs to know before considering a 401(k) Safe Harbor Plan. Each employer's goals, plan design, contribution sources and demographics from a unique scenario which the employer will wish to discuss with his or her plan provider before finalizing the decision to make the plan a 401(k) Safe Harbor Plan. " (McKay Hochman Co., Inc.)

GM Retirees Face An Uncertain Future
Excerpt: "As a last resort, pensions are somewhat guaranteed by the Pension Benefit Guaranty Corp., a federal outfit. Pensions for retirees 65 and older are guaranteed for up to $54,000 a year. Coverage is lower for younger retirees." (BusinessWeek)

[Guidance Overview] Fiduciary Exception Eclipses ERISA Fiduciary's Claim of Attorney Client Privilege
Excerpt: "This opinion involves consideration of the dimensions of the fiduciary exception to attorney-client and work product privileges. The issue arose in the context of district court review of plaintiffs' objections to a magistrate judge's ruling on a motion to compel." (Attorney Roy F Harmon III in the Health Plan Law blog)

Retirement When Union Pension Collapses
Excerpt: "Gregg Trunell, 43, began planning for an early retirement even before he began his career. Over the years, he and his wife put the maximum amount into their 401(k) plans, thousands more into IRAs and set 2011 as a target date for retiring. But now all bets are off. Trunell's union pension fund took a hit when the stock market plunged." (National Public Radio)

Bolster Employee Retirement Benefits By Making Statements Comprehensible
Excerpt: "More evidence of how clueless the average American investor may be is that one-third of 401(k) participants admit they do not know what percentage of their account is invested in U.S. stocks, foreign stocks, or fixed-income products . . . ." (Employee Benefit Adviser; free registration required)

Delphi Retirees Plan Class Action Suit Over Pension Benefits; Claim 'Liquidation' Not Reorganization
Excerpt: "Think that Delphi Corp.'s salaried retirees are going to fade away after several negative rulings in federal court? Think again. (Business-Journal.com)

Principal Financial Group Lays Off 140 in Des Moines
Excerpt: "The positions are primarily in the retirement business to accommodate changing customers needs, said spokeswoman Susan Houser in a statement." (DesMoinesRegister.com)

[Guidance Overview] Optional IRS Withholding Calculations Address ARRA Provisions Affecting Pensioners (PDF)
2 pages. Excerpt: "Employers may want to proactively communicate with pensioners regarding their withholding directions as well as advise them of the one-time $250 economic recovery payment under ARRA." (Buck Consultants)

IRS's Online Internal Controls Questionnaire: A Helpful Tool for Monitoring Fiduciaries
Excerpt: "The DOL holds that fiduciaries have a duty under ERISA to monitor their service providers who are involved in plan administration. The IRS has recently posted on their website an Internal Controls Questionnaire [at http://www.irs.gov/retirement/article/0,,id=206492,00.html] which fiduciaries might find useful as a tool in determining whether their service providers have practices and procedures in place which will ensure compliance with plan terms and the statutory provisions of ERISA." (ERISA Fiduciary Guidebook)

EBSA Semiannual Regulatory Agenda Addresses Mental Health Parity
Excerpt: "The Employee Benefits Security Administration (EBSA) has released its semiannual regulatory agenda, which outlines regulations that have been selected for review or development during the next year, as well as any regulations that have been finalized during the last six months. . . . [Among t]he prerule and proposed rule EBSA agenda items are . . . The review of the plan assets-participant contributions regulation in accordance with section 610 of the Regulatory Flexibility Act; The development of regulatory guidance pursuant to ERISA ?712, as amended by the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (P.L. 110-343) . . . ." (Wolters Kluwer)

[Guidance Overview] California Supreme Court Upholds Ban on Same-Sex Marriage, but Recognizes Marriages Performed in 2008
Excerpt: "From an employee benefits perspective, the immediate impact of the court's ruling is that approximately 18,000 same-sex marriages have been ruled valid (unlike the same-sex marriages performed in San Francisco in 2004). As a result, employers will need to review their employee benefit plans to determine whether changes are necessary or desirable in light of the fact that spousal benefits may be provided indefinitely to a limited number of same-sex couples." (McDermott Will & Emery)

[Guidance Overview] IRS Provides Online Copy of Internal Controls Questionnaire Used during Audits
Excerpt: "The posting of these questionnaires is helpful to plan sponsors because they now have a 'heads up' as to what to anticipate in an IRS examination and can use these questionnaires to be better prepared. Please note that, while the IRS has stated informally that it no longer asks for a copy of formal or informal self-audits conducted by the plan sponsor, some of the questions that the IRS asks in its questionnaires does appear to be aimed at extracting information that would normally be obtained from such audits, i.e. 'Do you know of any operation or form failures with the plan' and 'What are the failures and how many years did it occur?'" (Attorney B. Janell Grenier via Benefitsblog.com)

[Guidance Overview] Office of Labor Management Standards Extends Comment Period for Proposed Regulations on LM-2 and LM-3 Forms
Excerpt: "The regulations were issued on April 21, 2009 and orginally, the comment period was scheduled to end on May 21, 2009. The new deadline is June 22, 2009. The notice of proposed rulemaking proposes to withdraw a rule published in the Federal Register on January 21, 2009, pertaining to the filing by labor organizations of the Form LM-2, an annual financial report required by the Labor-Management Reporting and Disclosure Act of 1959, as amended (LMRDA)." (International Foundation of Employee Benefit Plans)

Shift of Assets to Roth IRA Corporation Constituted Reportable Transaction, Chief Counsel Rules
Excerpt: "A transaction under which a couple set up a corporation, opened Roth IRA accounts, and then each directed their Roth IRA accounts to purchase 50% of the stock of the corporation constituted a reportable transaction, the IRS Chief Counsel has ruled in IRS Letter Ruling 200917030." (Wolters Kluwer)

[Guidance Overview] Supreme Court Upholds Pension Calculations that Include Pre-1979 Pregnancy Leave Crediting Rules (PDF)
2 pages. Excerpt: "In AT&T Corporation v. Hulteen, the Supreme Court upheld AT&T's method of calculating benefit accruals under its pension plan for individuals that took maternity leaves from the mid 1960s through the late 1970s ? i.e., based in part on pre-1979 provisions that gave less credit for pregnancy leaves than for other types of disability leaves. The Court said the Pregnancy Discrimination Act of 1978 was not intended to be retroactive, thus AT&T was not required to redress the past crediting practices in calculating current pension benefits." (Buck Consultants)

[Guidance Overview] Proposed Regulations on 'Exiting' Safe Harbor Nonelective Issued
Excerpt: "The new rules will apply both to a traditional safe harbor plan leaving the deferral choice totally with each participant and to a qualified automatic contribution arrangement ? a QACA ? providing for specified levels of automatic contributions in absence of a participant's affirmative deferral election. The proposed regulations respond to an omission in the final regulations perceived by many practitioners. This technical update summarizes the proposed regulations, and explains the current regulatory provisions that provide the context for the proposed regulations." (SunGard)

International Accounting Standards Board Agrees to Weigh in on Use of Discount Rate for Pension Funding
Excerpt: "The International Accounting Standards Board (IASB) has agreed to delay publication of an exposure draft on pensions accounting in order to address certain aspects of the use of the discount rate in pension funding calculations. According to a BNA news report, 'Some IASB constituents have complained that using an AA-corporate bond discount rate in current markets has led to entities reporting lower pension fund surpluses merely as a consequence of widening credit spreads.'" (PLANSPONSOR.com; free registration required)

[Guidance Overview] Ceasing Safe Harbor Nonelectives
Excerpt: "On May 18, 2009, the IRS released proposed amendments to Treasury Regulation 1.401(k)-3 and 1.401(m)-3 permitting the suspension or reduction of safe harbor nonelective contributions in a qualified plan. Previously, plans were only permitted to cease safe harbor nonelective contributions upon termination of the plan for specified situations. Taxpayers may rely on the proposed regulations." (Fort William LLC)

Are General Motors Pensions in Peril?
Excerpt: "James Seward, an associate professor of finance, investment and banking at UW-Madison, said if GM files for bankruptcy, it likely would terminate the pension plan and offload its obligations to the Pension Benefit Guaranty Corp. The PBGC insures private-sector pension plans and pays benefits to workers when plans fail. It likely would pick up a portion -- but not all -- of the unfunded obligations. . . . The shortfall likely would hit retirees in the form of smaller benefits. Some analysts have said retirees on average could see a 10 to 20 percent reduction in monthly pensions. But that reduction likely will be much larger for workers age 55 to 62, said Karen DeOrnellas of the newly formed General Motors Retirees Association." (The Janesville Gazette)

Milwaukee County Settles Pension Case for $45 Million
Excerpt: "The Milwaukee County Board approved a $45 million settlement of the county's pension lawsuit against Mercer Tuesday, following a nearly two-hour closed-door session. The vote in favor of settling the case in mid-trial was 18-0. There was no public discussion of the settlement, but supervisors broke into applause after the vote. The Pension Board approved the settlement on an 8-0 vote shortly after supervisors acted. Members of the board exchanged hugs with some of the lawyers who handled the case following that vote. The county expects to receive about $32 million after paying its attorneys and litigation costs, officials said. The funds, by previous resolution, will go to the county's pension fund." (Milwaukee Journal Sentinel)

[Guidance Overview] IRS Provision of WRERA Funding Relief Election Procedures (PDF)
5 pages. Excerpt: "These developments affect sponsors of and participants in qualified multiemployer defined benefit plans. They do not affect single-employer plans, multiple employer plans, governmental plans or church plans that do not elect to be covered by ERISA ('non-electing church plans'). . . . On December 23, 2008, President Bush signed into law the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA). In response to the current economic crisis, WRERA provides welcome funding relief for multiemployer plans. For plan years beginning on or after October 1, 2008, and before October 1, 2009, WRERA allows plans to temporarily freeze their funding status based on the prior year's actuarial certification. In addition, the sponsor of a multiemployer plan may elect for a plan year beginning in 2008 or 2009 to extend the plan's applicable funding improvement plan or rehabilitation plan by three years.The IRS recently issued Notice 2009-31 to provide guidance relating to the elections offered under WRERA." (Prudential Retirement)

[Guidance Overview] New Contribution Relief Proposal for Employers Sponsoring Safe Harbor 401(k) Plans
Excerpt: "On May 18, 2009, the Internal Revenue Service (IRS) proposed a regulation that would permit employers that sponsor a safe harbor defined contribution plan to reduce or suspend employer nonelective contributions after the start of the plan year if the employer has incurred a substantial business hardship and certain other requirements are met. The proposed change liberalizes current restrictions on the suspension or reduction of a safe harbor plan's nonelective contributions after the plan year has begun." (McGuireWoods LLP)

[Guidance Overview] Guide to New Form 5500 Schedule C Reporting and Disclosure Rules Including Gifts and Gratuities (PDF)
10 pages. Excerpt: "A number of questions have been raised by the new rules governing Form 5500 Schedule C and related gifts reporting. This question and answer guide provides background information for CIEBA members. CIEBA wishes to thank Morgan, Lewis and Bockius, LLP for preparing this educational resource. This Guide is general in nature and does not constitute legal advice on any specific matter." (The Committee on Investment of Employee Benefit Assets)

[Guidance Overview] Tips to Keep the Company 401(k) Plan on Track
Excerpt: "Looking forward, there are several issues plan sponsors need to address in reviewing their plans, from the plan's governance to the choices of a low-risk investment option. . . . To keep their plans on sound footing, Mercer suggests that plan sponsors investigate 10 key issues: [1] Determine how much participants are paying in investment and plan administration fees. 'If you haven't benchmarked these fees in over a year, it is time for an update,' Mercer advises. 'Consider whether the market decline has jeopardized the fee guarantees under your contract, thus reducing your leverage in enforcing service-level agreements.'" (Institute of Management & Administration via insurancenewsnet.com)

Many Frozen Pension Plans Likely to Be Terminated, According to Report
Excerpt: "Companies with frozen pension plans are more likely to consider investment strategies that will eventually allow them to terminate the plans, rather than continue them, Aon Consulting reports in the brief titled 'Ready 2012: Pension Pulse Survey.'" (Employee Benefit Adviser)

[Guidance Overview] IRS Withholding Table Fix for Pension Payments
Excerpt: "Many plan sponsors will wish to use the new withholding tables and some have already provided their participants with information regarding the February 2009 change in the withholding tables. If the plan sponsor desires to implement the optional procedure to apply additional withholding, a supplemental communication may be appropriate. Plan sponsors should be aware that the IRS will soon launch an outreach effort to educate pensioners about the withholding tables and the Making Work Pay Tax Credit. Plan sponsors should be prepared for inquiries from participants." (McDermott Will & Emery)

[Guidance Overview] The IRS's Employee Plans Compliance Resolution System for Retirement Plans
Excerpt: "In a perfect world, all retirement plans would be amended on time and operated properly according to the plan terms and the law. However, we don't live in a perfect world and the IRS's Employee Plans Compliance Resolution System (EPCRS) acknowledges that fact. EPCRS lets plan sponsors correct certain common plan failures to satisfy the plan qualification requirements without suffering the severe penalty of plan disqualification. This article provides an overview of EPCRS and how you can save a retirement plan from disqualification." (Chang Ruthenberg & Long PC)

Annual Pension Funding Notice Causes Widespread Participant Confusion, Termination Fears
Excerpt: "A recent PBGC website posting reassures pension plan participants that receiving an annual funding notice (AFN) 'does not mean that your plan is terminating or that it has been trusteed by the PBGC.' The PBGC has been flooded with calls from participants misinterpreting their first AFNs -- distributed by April 30 for calendar-year plans -- as a sign their plans were terminating. The confusion may have resulted from sponsors' use of a DOL model notice prominently stating that the AFN summarizes federal plan termination rules but never mentioning that the plan is not actually terminating." (Mercer LLC)

[Official Guidance] Text of 'IRS Retirement News for Employers' -- Spring 2009 Edition (PDF)
14 pages. Excerpt: "The EP Team Audit (Large Case Program) web pages have been updated to include: EPTA Trends and Tips (now organized according to plan type): Common Trends Across All Plan Types; Multiemployer Plan Trends; 401(k) Plan Trends; Defined Benefit Plan Trends; 403(b) Tax-Sheltered Annuity Plan, 457 Plan and Governmental Plan Trends; 'EPTA Trends and Tips' includes links to videos on the EPTA program and on finding, fixing and avoiding plan errors; Internal Controls Questionnaire - Examples of questions asked by EP examiners to understand the system procedures and internal controls; Taxpayer Documentation Guide - This guide, developed by EPTA agents and outside practitioners, provides a comprehensive list of documents that need to be made available for examination." (Internal Revenue Service)

[Official Guidance] Text of IRS Employee Plans News: May 2009 Special Edition: Overview of Prop. Regs. on Suspension or Reduction of Safe Harbor Nonelective Contributions (PDF)
2 pages. Excerpt: "The proposed regulations allow an employer that suffers a substantial business hardship to amend its plan to reduce or suspend the plan's safe harbor nonelective contributions if all the following requirements are satisfied: [1] the plan is amended prior to the end of the plan year to reduce or suspend the safe harbor nonelective contributions; [2] the plan as amended, provides that the ADP test (and ACP test if applicable to the plan) will be satisfied for the entire plan year in which the safe harbor nonelective contributions are reduced or suspended; [3] all eligible employees must be given a 'supplemental notice' that explains the reduction or suspension of future safe harbor nonelective contributions and its consequences, the procedures for changing employee elections and the effective date of the amendment . . . . [three more conditions not shown here -- ed.]" (Internal Revenue Service)

[Guidance Overview] Tax Information for Sponsors of Retirement Plans: Retirement News for Employers, Spring 2009 (PDF)
14 pages. This edition includes: Do You Have a Safe Harbor 401(k) Plan?; New Federal Income Tax Withholding for Pensions; Information Reporting Program Advisory Committee Is Looking for New Members; EPCRS Phone Forum ? July 27, 2009; e-News for Small Businesses: A Time-Saver for You; Desk Side Chat With Monika Templeman ? Automatic Enrollment; Employee Plans Published Guidance; New on the Web; DOL News; Notice of Approval to Extend Form 5500 Filing; Mark Your Calendar; Timing Is Everything Flyer. (Internal Revenue Service)

U.S. Supreme Court Upholds AT&T Pension Plan's Treatment of Pregnancy Leave Taken Prior to 1978
The Supreme Court holds that AT&T's pension plan formula does not violate the Pregnancy Discrimination Act of 1978 merely because pregnancy leave taken before 1978 (then considered a 'personal' leave of absence, with a cap of 60 days counted as service for plan purposes) is not counted as liberally as other disability leaves of absence. (Associated Press via New York Times)

[Official Guidance] Text of U.S. Supreme Court Opinion Holding for AT&T; Approves Special Treatment of Pregnancy Leave Prior to 1978 Under Pension Formula (PDF)
31 pages. Excerpt: "Held: An employer does not necessarily violate the PDA when it pays pension benefits calculated in part under an accrual rule, applied only pre-[Pregnancy Discrimination Act], that gave less retirement credit for pregnancy than for medical leave generally. Because AT&T's pension payments accord with a bona fide seniority system's terms, they are insulated from challenge under Title VII section 703(h)." (U.S. Supreme Court)

[Guidance Overview] Retirement Governance and Compliance Advisory Update and Insights: May 2009
Excerpt: "In April, significant legislation focused on participants' rights in defined contribution plans. These bills include: the Savings Recovery Act of 2009, which, among other things, increases 401(k) contribution limits; the Conflicted Investment Advice Prohibition Act of 2009, which revises Pension Protection Act (PPA) rules for providing investment advice to participants; the 401(k) Fair Disclosure for Retirement Security Act of 2009, which requires specific fee disclosure to plan participants. In addition, the IRS released a proposed IRC Section 403(b) opinion letter program and sample language for drafting a 403(b) prototype plan; the Federal Trade Commission delayed enforcement of its new 'red flags' rules (which are conceivably applicable to 401(k) plans that allow loans), and Vermont, Iowa and Maine legalized same-sex marriage." (Towers Perrin)

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