| BenefitsLink Retirement Plans Newsletter |   |
March 27, 2007
Sponsored by: Employee Benefits Institute of America Inc. (EBIA)
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Judge Tosses ERISA Cash Balance Discrimination Claim
Excerpt: "Employees suing a Houston energy company over age discrimination allegations regarding its cash balance plan won one issue but lost another in a ruling by a federal judge in Colorado." (PLANSPONSOR.com; free registration required)
Overview: DOL's Interpretive Guidance Regarding Investment Advice Arrangements
Excerpt: "In the FAB, the DOL addressed the status of its prior guidance regarding investment advice arrangements and the scope of the statutory exemption under the PPA. Some of the more important provisions of the FAB are discussed [in the target document.]" (Bond, Schoeneck & King, PLLC)
Chart: Comparison Summary of Litigation Claims Related to 401(k) Plan Fees (PDF)
9 pages. (American Benefits Council)
SEC to Review Use of 12(b)-1 Fees by Mutual Funds
Excerpt: "A review of 12b-1 fees is a 'high priority' for the commission this year . . . . The reason: It appears the purpose of 12b-1 fees has 'shifted' from being fees intended to help no-load funds pay for distribution, to being a substitute for a sales fee . . . ." (Investment News; free registration required)
Watson Wyatt Says Lifecycle Funds Better for QDIA Than Balanced Funds
Excerpt: "Lifecycle funds came out ahead of balanced funds, according to a recent comparison of the two by Watson Wyatt Worldwide, because the lifecycle funds do a reasonable job of creating retirement wealth and a better job of mitigating the downside risk." (PLANSPONSOR.com; free registration required)
Overview: IRS Guidance on New Distribution Rules (PDF)
8 pages. Excerpt: "This guidance applies to sponsors of and participants in qualified defined benefit and defined contribution plans, including multiemployer plans, governmental plans, and church plans that do not elect to be covered by ERISA ('non-electing church plans'). It also applies to section 403(b) arrangements, section 457(b) plans and section 409A nonqualified deferred compensation plans." (Prudential)
Overview: IRS Guidance on Plan Deduction Limitations Under PPA
Excerpt: "The PPA modified the deduction permitted for defined benefit plans under Code Sec. 404(a)(1) and the combined limit for deductions to defined benefit plans and defined contribution plans with overlapping coverage under Code Sec. 404(a)(7)." (Wolters Kluwer Law & Business)
Overview: ASPPA Proposes Improvements in IRS's Correction Program for Retirement Plans
Excerpt: "from Spencer's Benefits Reports: The American Society of Pension Professionals & Actuaries (ASPPA) has recommended certain improvements to the IRS's Employee Plans Compliance Resolution System (EPCRS). The EPCRS allows retirement plan sponsors to voluntarily correct failures under their plans and avoid disqualification." (Wolters Kluwer Law & Business)
The Future of Defined Benefit Plans (PDF)
Pages 1, 4-6 of 8 pages. Excerpt: "This is excerpted from a keynote speech delivered by Ron Gebhardtsbauer, the Academy's senior pension fellow, at a Dec. 6 Plan Sponsor conference in Washington on the future of defined benefit (DB) plans." (American Academy of Actuaries)
Commentary: Are Corporate Retirement Plans a Bad Deal?
Excerpt: "This is my first post in a new series which will analyze the retirement planning industry. I will cover 401(k), 403(b), and other (less popular) vehicles in my discussions. My hope is to unravel to some extent the cost structure of these plans and help corporate executives, business developers, and plan participants to gain a stronger understanding of how their retirement funds are being handled." (Russell Bailyn's Financial Planning Blog)
NBER Working Paper Abstract: Are You Sure You're Saving Enough for Retirement?
Excerpt: "Many observers believe current aging baby boomers are woefully unprepared for retirement. Others raise the prospect that Americans are saving too much for retirement. This paper attempts to reconcile these contrasting views using a simple life cycle model and a more sophisticated retirement program, ESPlanner, with special reference to retirement prospects for economists." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full-text)
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Links to Items on Executive Comp, Benefits in General
Another Accounting Standard Impact Benefit Plan Advisors
Excerpt: "The standard is currently effective for publicly traded companies and will apply to private enterprises for year beginning on or after December 15, 2006. However, the standard does effectively apply to positions taken on returns that are currently in process, as the liability assessment is based upon all open years, not just the current year." (Pension & Benefits Blog)
Trends Clash for Aging Employees
Excerpt: "Studies show the U.S. workforce is getting older, but will a retirement wave affect your business? It often depends on the industry sector, but a little organizational research should help HR leaders find out and prepare for the future." (Human Resource Executive Online; free registration required)
Erroneous Personalized Enrollment Worksheet Is Not Enforceable
Excerpt: "EBIA Comment: While the court refused to enforce the worksheet, this case nevertheless highlights the risks of providing inaccurate information and the importance of being extra careful with individualized statements." (Employee Benefits Institute of America Inc.)
Stock Bonuses for Executives at American Airlines Anger Pilots
Excerpt: "It may look like chicken feed in this era of mammoth executive pay packages, but a combined $21 million in stock payouts to five top executives at American Airlines is looming large in labor talks with pilots still angry about pay concessions made four years ago." (The New York Times; free registration required)
No Relief Available to Employee for Employer's Breach of Fiduciary Duty
Excerpt: "EBIA Comment: Despite determinations that the employer was a fiduciary and had breached its fiduciary duty, the employee came up empty-handed. The Supreme Court's 2002 Knudson decision . . . is the source of the narrow interpretation of 'appropriate equitable relief,' which has led to many cases of a wrong without a remedy." (Employee Benefits Institute of America Inc.)
National Employee Benefits Day - Free Promotional Materials
The target page also lists many free informational resources. (International Foundation of Employee Benefit Plans)
Newly Posted Events
New Leadership on Health Care: A Presidential Forum - Webcast
Nationwide on March 28, 2007
presented by KaiserNetwork.org
Newly Posted Press Releases
U.S. Labor Department Obtains Consent Order Shutting Down ‘Sham’ Health Care Fund Based In California
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
U.S. Labor Department Seeks Independent Fiduciary To Manage Denver 401(k) Plan, Recovery Of Employee Contributions
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Council Supports Bipartisan Senate Approach To Achieve Mental Health Parity
American Benefits Council
ftwilliam.com Announces the Release of Their Batch 5558 and Batch SAR
ftwilliam.com
The National Managed Care Leadership 2007 Directory
Healthcare Web Summit
Newly Posted or Renewed Job Openings
401(k)/Defined Contribution Valuation Processor
for National Retirement Services, Inc.
in CA, NC
Benefit Consultant (Sales Agent)
for Corporate Synergies Group, Inc.
in NJ
Technical Research Consultant
for Diversified Investment Advisors
in NY
Senior Benefits Analyst
for Watson Wyatt Worldwide
in VA
Senior Account Manager
for Strategic Employee Benefit Services of New York, Inc.
in NY
Benefits Administration - Domain Effectiveness Manager/Organizational Effectiveness
for Mercer HR Services
in IL, MA, TX
401k Administrator
for Vanguard
in PA
Client Relationship Administrator
for Vanguard
in PA
Benefits Analyst
for Vanguard
in PA
Pension Consultant DB/DC
for Geller Group LLC
in NY
Employee Benefits Sales Professional
for Standard Insurance Company
in CT
Plan Compliance Manager
for Flexible Benefits Systems, Inc.
in OH
Client Relationship Manager - Los Angeles, CA
for Transamerica Retirement Services
in CA
Sr. Employee Benefit Specialist
for The Principal Financial Group
in MD
Pension Actuarial Manager
for Deloitte Consulting LLP
in MI, NY, TX
Benefits Call Center Manager
for Ceridian
in NC
Installation Administrator - Los Angeles, CA
for Transamerica Retirement Services
in CA
Relationship Manager / Senior Pension Analyst
for Boyce & Associates, Inc.
in AZ
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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