| The BenefitsLink Newsletter - Retirement Plans Edition |  |
April 10, 2001
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PWBA Settles Lawsuit Against Plan and Sponsor for Failing to Bond the Plan
Excerpt: "[T]his suit against a very small plan regarding a modest bonding requirement illustrates that there are no 'de minimis' exceptions for fiduciary duties and the protection of plan assets." (EBIA Weekly)
A New GUST of Retirement Plan and Distributions Changes: Time for Plan Redesign?
Excerpt: "A new wind is blowing around retirement plan design issues ... While many plans might be able to satisfy these new rules with relatively minimal changes, the plan documents and the possible amendments will need careful analysis from a retirement policy, employee retention, and cost goals perspective." (Deloitte & Touche)
DOL "Clarifies" Guidance on Using Plan Assets to Pay Plan-Related Expenses
Excerpt: "Permissible expense payments by ERISA plans may be less narrow than the Department of Labor (DOL) has indicated in the past, based on a recent advisory opinion (2001-01A) updating guidance from the DOL's Pension and Welfare Benefits Administration (PWBA). The guidance represented a somewhat surprising turnaround from earlier advisory opinions and from recent enforcement actions and statements from that agency." (Deloitte & Touche)
Contractor Liabilities - Participating in the Multiemployer Pension Plan
Excerpt: "The concept of withdrawal liability is relatively simple. If an employer withdraws from participation in a multiemployer pension plan, and if at the time of the withdrawal that pension plan is underfunded, then the employer must pay its share of that underfunding to the plan in the form of a withdrawal liability payment." (William K. Ecklund, Esq. of Felhaber, Larson, Fenlon and Vogt, P.A.)
Funds of Funds: Putting the Portfolio on Auto-Pilot
Excerpt: "Autopilot-type funds typically fall into one of four categories: index funds that simply copy major market indexes; asset-allocation or 'lifestyle' funds, some of which automatically change their investment mix as you age; 'funds of funds' that mix mutual funds for you in a single fund portfolio; and balanced funds that always maintain some mix of stocks and bonds." (Los Angeles Times)
After the Dust Has Settled: a 401(k) Makeover
Excerpt: "It's the first time many Americans have confronted month after month of losses in their retirement plans, and they're wondering what to do now, financial experts say." (Los Angeles Times)
Prudential Wants to Go Public
Excerpt: "Prudential Insurance Co. of America, the nation's largest life insurer, on Monday filed plans showing it intends to raise up to nearly $3.9 billion by becoming a publicly traded company." (Associated Press, via Excite News)
Ninth Circuit Offers "Safe Harbor" Language to Grant Discretion to Plan Administrator
Ingram v. Martin Marietta Long Term Disability Income Plan for Salaried Employees of Transferred GE Operations (9th Cir. 2001). Excerpt: "With this opinion, the Ninth Circuit joins the Seventh Circuit in offering 'safe harbor' language which, if included in an ERISA plan, will be sufficient to trigger the deferential arbitrary and capricious standard of review." (EBIA Weekly)
Benefits in Brief: March 2001 Issue (PDF)
Articles include: IRS Proposes New Minimum Distribution Rules; Department of Labor Issues Guidance on Plan Expenses; Supreme Court's Decision Not to Hear Erie Case; Failure to Provide Notice of Reduced Future Retirement Benefits in Summary Plan Description Violated ERISA's Disclosure Requirements; Notice of Domestic Relations Order Immediately Before Participant's Death Was Sufficient to Enforce Post-Death QDRO; IRS Enhances Plan Correction Programs; IRS Issues Final COBRA Regulations; more. (Morgan Lewis & Bockius LLP)
Simply Asking Is Found to be Substantial Compliance with Plan's Beneficiary Change Rules
Sun Life Assurance Co. of Canada v. Richardson (E.D. La. 2001). Excerpt: "This is an unusual case in that the court found substantial compliance even though the participant merely asked for the forms. The result in this case is based upon the very specific facts of the participant's situation. Other courts have found that merely asking for a change in beneficiary form is not enough to change a life insurance beneficiary." (EBIA Weekly)
Newly Posted or Renewed Job Openings (Post Yours!)
| Payroll Project Manager | for Fidelity Investments in TX |
| Manager, Employee Benefits Tax Consulting | for Deloitte & Touche, LLP in NC |
| Retirement Services Communication Specialist | for Principal Financial Group in TX |
| 401(k) Consultant | for Louis Kravitz & Associates, Inc. in CA |
| Project Manager | for Fidelity Investments in TX |
| Employee Benefits Consultant | for Fidelity Investments in TX |
| Pension Administrator | for Ed Ferguson & Associates, Inc. in IN |
| REGIONAL ENROLLMENT MANAGERS | for Diversified Investment Advisors in CA, FL, GA, IL |
| 401(k) Administrator | for R-Tech Consultants, Inc. in CA |
| Employee Benefit Consultant | for Benefit Consulting Group, L.L.C. in NY |
| Benefits Professional | for Hunt Oil Company in TX |
| 401(k) Pension Administrator | for Benefits Integrity in CO |
| Training Specialist | for New York Life Benefit Services LLC in MA |
Newly Posted Conferences (Post Yours!)
| Fundamentals of Qualified Plans | in KS, MO on June 6, 2001 presented by SunGard Corbel |
| Regulatory Update and Form 5500 Workshop | in MA on May 7, 2001 presented by International Foundation of Employee Benefit Plans in conjunction with the U.S. Department of Labor |
| Regulatory Update and Form 5500 Workshop | in IL on June 25, 2001 presented by International Foundation of Employee Benefit Plans in conjunction with the U.S. Department of Labor |
| Regulatory Update and Form 5500 Workshop | in CA on May 17, 2001 presented by International Foundation of Employee Benefit Plans in conjunction with the U.S. Department of Labor |
| Form 5500 Workshop | in NC on June 18, 2001 presented by International Foundation of Employee Benefit Plans in conjunction with the U.S. Department of Labor |
| Form 5500 Workshop | in PA on June 20, 2001 presented by International Foundation of Employee Benefit Plans in conjunction with the U.S. Department of Labor |
| Form 5500 Workshop | in TX on June 22, 2001 presented by International Foundation of Employee Benefit Plans in conjunction with the U.S. Department of Labor |
| Form 5500 Workshop | in MN on June 28, 2001 presented by International Foundation of Employee Benefit Plans in conjunction with the U.S. Department of Labor |
| 14th Annual Cincinnati Employee Benefits Conference | in OH on June 7, 2001 presented by IRS, the Cincinnati Bar Association, and the Cincinnati Regional Office of the Department of Labor |
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