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January 22, 2013          Get Health & Welfare News  |  Advertise  |  Unsubscribe
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Employee Benefits Jobs

Benefit Plan Administrator
for Brown, Edwards and Company, LLP in VA, WV

Retirement Plan Associate, Recordkeeping - Entry Level
for Rains Plan Group in ANY STATE, WA

Business Acceptance Consultant
for Charles Schwab in OH

Senior Conversion Manager
for Charles Schwab & Co., Inc. in TX

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Webcasts and Conferences

Form 5500 Update
Nationwide on March 26, 2013 presented by McKay Hochman Co., Inc.

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PBGC Semiannual Regulatory Agenda Addresses Cash Balance Plans, Missing Participants, Rollovers, Premiums
"Among the items in the PBGC's proposed rule stage are: [1] Proposed amendments that would amend the PBGC's regulation on Reportable Events and Certain Other Notification Requirements (part 4043) to conform to changes under the Pension Protection Act of 2006 (PPA; P.L. 109-280) and the PBGC's regulations on Premium Rates (part 4006). [2] A proposed rule to implement section 410 of the PPA, which allows certain terminating plans not covered by the existing Missing Participants program to participate in that program. [3] A proposed rule to address ERISA Title IV treatment of rollovers from defined contribution plans to defined benefit plans, including asset allocation and guarantee limits." (Wolters Kluwer Law & Business)


[Advert.]

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[Guidance Overview]

IRS Correction Procedures Address Failure to Adopt Written 403(b) Plan
"Revenue Procedure 2013-12 included a provision for correction for failure to timely adopt a written 403(b) plan under the IRS' Voluntary Correction Program (VCP), and Audit Closing Agreement Program (Audit CAP). If the proper procedure is followed, the IRS will issue a compliance statement or closing agreement, and the 403(b) plan will be treated as if the written plan was adopted timely. The Audit CAP is used if the IRS identifies the failure during the examination of the 403(b). The VCP is used when the Plan Sponsor detects the failure and voluntarily makes the correction according to IRS procedural requirements." (Appleby Retirement Dictionary)

Boeing Will Provide Survivor Pension Benefits to Gay Spouses
"[A]s contract negotiations continue with the Society of Professional Engineering Employees in Aerospace, the company has agreed to the following language: 'Recognizing Boeing's commitment to equality without regard to sexual orientation, Boeing will extend pension survivor benefits to all spouses, as defined under either State or Federal law whichever defines the same gender person as a spouse'." (Advocate.com)

Alternatives Are Only Asset Class Having Material Drop in Asset Management Fees
"Asset management fees in alternatives have fallen due to supply and demand dynamics, according to a report by Mercer. In particular, asset managers are under pressure to negotiate fees for hedge funds, direct private equity and infrastructure funds.... [During 2012] the majority of managers left fees relatively unchanged. Where fee reductions have occurred, the greatest falls have been in equity mandates. Retail equity funds have tended to lower their fees more than have their institutional and segregated counterparts. Around a third of managers have increased their fees." (Mercer)

CalPERS Buy-Hold Rule Recoups $95 Billion Recession Loss
"[CalPERS] is poised to top a record $260 billion in assets, the market value it held before the global financial crisis wiped out more than a third of its wealth, by sticking with a strategy of buy-and-hold.... CalPERS isn't alone in nearing previous high marks. The 100 largest public pensions in the U.S. had $2.9 trillion in assets in the fourth quarter of 2007 ... That dropped to $2 trillion in 2009 and rebounded to almost $2.8 trillion as of Sept. 30." (Bloomberg)

What to Consider Before Raiding Your 401(k)
"Recent reports say one out of four people are borrowing money from their 401(k) retirement accounts to pay for monthly expenses.... When it comes to borrowing from your 401(k) plan, some financial counselors say it should be avoided at all costs. Others say it's sometimes necessary when people need emergency cash. If you're considering doing this, there are a few steps you need to take before it happens." (KSL.com)

U.K. Pension Plans Increase Life Expectancy Assumptions
"UK pension schemes continue to increase the life expectancy assumptions for funding valuations in reaction to regulatory pressure according to Mercer's valuations survey. The median life span assumed for active and deferred members is expected to be 89 years and one month. This compares to valuations a year ago, where the median assumption was 88 years and two months." (Mercer)

Canadian Funds Investing in Global Trade
"Buying stakes in Australian ports and snapping up one of the world's largest container leasing companies aren't deals you do if you think global trade is about to tank again. It's obvious Ontario Teachers' and other Canadian pension funds are betting on a global economic recovery. Are Canadian pension funds doing the right thing?" (Pension Pulse)

Many Aussies Unprepared for Retirement
"Most Australian baby boomers are financially unprepared for retirement but still don't think they'll have to make sacrifices in their winter years.... One in three respondents admitted they were completely financially unprepared to take the jump, while a further 51 per cent said they were only 'somewhat' financially prepared." (The West Australian)

[Opinion]

Text of Comments to the Financial Stability Oversight Council on Proposed Recommendations Regarding Money Market Mutual Fund Reform
"FSOC should not make recommendations to the SEC at this time. The SEC is the appropriate agency to determine which additional reforms should be implemented for MMFs.... FSOC should not address systemic risk by reducing the size of the MMF industry.... The proposal's recommendations present significant operational, tax, and regulatory challenges for MMFs and, if implemented, are likely to result in unintended consequences.... The proposal should apply only to Prime MMFs." (The Vanguard Group, Inc.)

[Opinion]

California Public Pension Funds Still in Denial
"California union officials and [CalPERS] are behaving as if the state's pension crisis is gone and have reverted to their profligate ways. CalPERS, for instance, quietly gutted, by regulatory edict, a new law that bans certain types of pension spiking. But ... the financial problems faced by CalPERS and other funds are growing, especially if Moody's, the prestigious credit-rating service, changes the assumptions it uses for calculating public-employee pension debt." (Orange County Register)

Benefits in General; Executive Compensation

[Opinion]

Chicago Municipal Retirees May Not Need City-Provided Health Insurance
"The most promising proposal [made by the Retiree Health Benefits Commission] -- and surely its most controversial -- would end the city's comprehensive retiree health-insurance plan, which primarily covers retirees under age 65. Beginning in 2014, these retirees and their dependents could instead purchase coverage through the Illinois health-insurance exchange, in many cases at a lower price. [The Commission estimates] the proposal could save the city $60 million in 2014 and the cash-starved pension funds another $9 million." (Chicago Sun-Times)

Press Releases

Important Announcement Regarding 2013 ASPPA Online Exams: New 2013 Exam Access Periods
American Society of Pension Professionals & Actuaries (ASPPA)

B&C Pension Fund Retains Gordian Group, LLC in Hostess Bankruptcy
Bakery, Confectionery Union and Industry International Pension Fund (Bakers Fund)

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