| BenefitsLink Retirement Plans Newsletter |   |
April 19, 2007
Sponsored by: ASPPA and WP&BC
(Click on company name or banner to learn more.)
| The Western Benefits Conference - July 22-25, 2007 |
| Benefits by the Bay, the best of two in one! Jointly sponsored by WP&BC and ASPPA, this conference has been designed with all retirement professionals in mind. Seven industry specific targeted learning tracks, the latest market trends, compliance issues and networking opportunities await. Get early bird registration discounts and learn more at www.asppa.org/wbc or www.westernpension.org |
ASPPA Submits Revised 402(f) Notice; Text of Cover Letter and the Notice
Very useful to practitioners wishing to upgrade notices currently being provided to participants. Excerpt: "Treasury and IRS representatives indicated to ASPPA that the process of issuing an updated 402(f) would be facilitated if ASPPA were to make suggested changes to the current IRS model 402(f) notice. Accordingly, ASPPA hereby submits the attached 402(f) Notice." (American Society of Pension Professionals and Actuaries)
Court Says Challengers Must Prove Plan Loss for Fiduciary Breach in ESOP Merger
Excerpt: "The 3rd U.S. Circuit Court of Appeals ruled that because there was 'no loss' when a company merged two employee stock ownership plans (ESOPs) following a corporate merger, executives negotiating the deal did not breach their fiduciary obligations." (PLANSPONSOR.com; free registration required)
Opinion: How Does Plan Sponsor Determine They Are Paying Reasonable Fee for Competent Advice?
Excerpt: "There has been a lot of conversation about the fees paid by retirement plans. Most of that attention has been paid to the level of the fees. The implication seems to be that a high fee is bad and a low fee is good. That would be true if the service being delivered was exactly the same, but that is rarely--dare I say--never, the case." (Pension & Benefits Blog)
State Pensions Lift Economy, Study Says: Retiree Dollars Mean Annual $21 Billion in State
Excerpt: "Whether retirees are spending their pension dollars on rent or groceries, the money is fueling the growth of 139,000 new jobs a year with an annual payroll of $4.8 billion, researchers said in an economic impact report to be released today by California's giant public pension funds." (The Sacramento Bee; free registration required)
Text of Comments by U.S. Chamber of Commerce on In-Service Benefits to Participants at Age 62 (PDF)
7 pages. The Chamber urges the IRS to adopt regulations that do not restrict an employer's ability to provide a subsidized benefit to in-service participants at age 62, not just unsubsidized benefits. Several other comments are set forth. (U.S. Chamber of Commerce)
Text of Comments by U.S. Chamber of Commerce on Notice 2007-6 on Cash Balance Plans (PDF)
6 pages. The chamber requests clarification that whipsaw relief applies to all distributions after August 17, 2006 (the date prescribed in the Pension Protection Act) even if the corresponding benefits accrued before that date. Several other comments are set forth. (U.S. Chamber of Commerce)
Bill Shifts North Carolina Public Pension Control: Current Setup Criticized for Potential Conflicts
Excerpt: "The proposal is intended as a check on the power of the treasurer, an elected office that now has sole authority over investments. State Treasurer Richard Moore and his predecessors have drawn criticism for raising campaign money from Wall Street firms they hire to manage the pension fund -- an activity critics call a conflict of interest." (The Charlotte Observer)
Texas State Lawyer Says Divestment Bills are Unconstitutional
Excerpt: "David Mattax, chief of the attorney general's financial litigation division told lawmakers that initiatives such as requiring public funds to sell off investments connected to Sudan-linked companies would violate the requirement that pension administrators' actions must be for the workers' and retirees' benefit, according to an Austin American-Statesman news report." (PLANSPONSOR.com; free registration required)
WP: Demographic Influences on Saving-Investment Balances in Developing & Developed Economies
Excerpt: "This paper studies demographic differences between lower-income, less developed countries (the 'South') and higher-income developed countries (the 'North'). It analyzes the implications of heterogeneous demographic evolutions for aggregate saving-investment imbalances, exchange rates, and the resulting net capital flows between North and South." (Center for Retirement Research at Boston College)
Hewitt Federal Legislation Quick Guide Updated as of April 17, 2007, for Retirement Plans (PDF)
5 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding retirement plans. (Hewitt Associates)
Hope Dominates Reality in Retirement Planning, According to EBRI Survey
Excerpt: "Many American workers understand they may not be able to rely on Social Security to provide a comfortable retirement, as previous generations have done, but they are not acting upon that information, according to a recent poll. Few are thinking about preparing for the future." (Human Resource Executive Online; free registration required)
IRS Official Recommends Early Submissions of Determination Letters for Quicker Turnaround
Excerpt: "The Service is looking for ways to encourage employers and practitioners to submit determination letter requests earlier in each cycle because mini-spikes toward the end of submission periods could result in a longer response time for the issuance of determination letters . . . ." (Wolters Kluwer Law & Business)
Opinion: Longevity and Age of Retirement
Excerpt: "Financial gurus tell us no one has a crystal ball to know exactly how many years one will live in retirement. They suggest that actuarial tables can be used as a guideline. But many are quick to urge retirees to plan their finances as if they will live longer than the average retiree, perhaps to the age of 100 or more." (The Contra Costa Times; free registration required)
Investment Company Institute Comments on Cross-Trading Guidance
Excerpt: "ICI commended guidance issued by the U.S. Department of Labor concerning cross-trading exemptions, but recommends clarifications and additional guidance regarding its application to ICI member firms." (investment Company Institute)
Money Managers Get More Internal Crossing Involving Pension Funds
Excerpt: "New rules from the Department of Labor (DOL) could lead to more trades getting done within the walls of money management firms, rather than out in the marketplace. Beginning this month, money managers handling orders from some pension plans governed by the Employee Retirement Income Security Act (ERISA) can cross some of those orders internally." (Traders Magazine and SourceMedia, Inc.)
Larger Plans Move to Total Retirement Outsourcing
Excerpt: "Retirement industry trends usually move from large plans to small, but the reverse is proving true for total retirement outsourcing (TRO). Five years ago, total retirement outsourcing was essentially a mid-size plan phenomenon . . . . Now, however, it is not unusual to see requests for proposals from defined benefit plan sponsors with $100 million to $500 million in plan assets." (PLANSPONSOR.com; free registration required)
Employee Alleges Wal-Mart Held Down Plan Contributions with 'Time Shaving' Scheme
Excerpt: "A Wal-Mart employee in Philadelphia has filed a lawsuit against the giant retailer seeking class-action status , alleging it engaged in 'illegal underpayment and suppression of hourly employee wages' in order to also hold down the company's retirement plan contributions." (PLANSPONSOR.com; free registration required)
Links to Items on Executive Comp, Benefits in General
Claims Denials: Denial Letter Must Properly State Reason
Excerpt: "The district court concluded that Sun Life's determination that Wenner was no longer disabled was arbitrary and capricious. This decision was based upon the administrative record." (Health Plan Law blog by Attorney Roy F. Harmon III)
Overview of Final Nonqualified Deferred Compensation (409A) Regulations with a Focus on SERPs
Excerpt: "In this article we are going to focus only on the application of these new rules to retirement plans, which from now on we're just going to call SERPs. (SERP stands for supplemental executive retirement plan, and while, technically, there are a variety of nonqualified deferred compensation plans besides SERPs that provide retirement benefits, a lot of people use the term SERP to stand for any nonqualified retirement plan.)" (CCA Strategies)
Managing Benefit Changes Effectively: Why It Matters
Excerpt: "What gets less attention is the role benefits play in influencing employee views of the organization overall and the related issue of how changes in benefits affect employee behavior. While benefits don't necessarily drive engagement directly, the way benefit change is managed can make a difference. It can enhance, or undermine, the kind of trust that leading employers depend on to engage the workforce and build a performance-oriented culture." (Towers Perrin)
Hewitt Federal Legislation Quick Guide for April 17, 2007, on Human Resources & Employment Law (PDF)
12 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding human resources and employment law. (Hewitt Associates)
Overview: Final Code Section 409A Regs: What's New, What's Not Covered and What Do You Do Now? (PDF)
Excerpt: "The final regulations are generally applicable January 1, 2008, with delayed compliance dates for certain collectively bargained plans or arrangements." (Drinker Biddle & Reath LLP)
Overview: Key Changes, Surprises and Opportunities in the Final 409A Regulations
Excerpt: "Taxpayers have until December 31, 2007, to make any necessary amendments to plans to comply with the final regulations -- the IRS has stated that this deadline will not be extended." (McDermott Will & Emery)
Newly Posted Events
Employee Benefits Update
in Illinois on May 17, 2007
presented by McGladrey & Pullen, LLP
How To Cope With The Final 409A Regulations - eLunch
Nationwide on May 1, 2007
presented by Winston & Strawn
IRA Elements 2007 -- Essential Elements of Periodic Training - Advanced
in Texas on May 23, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Advanced
in Indiana on May 24, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Indiana on May 23, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Louisiana on May 24, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Texas on May 24, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training-Beginner
in Michigan on May 24, 2007
presented by Wolters Kluwer Financial Services
Navigating Form 5500 for Health & Welfare Plans -- A Guided Tour for Employers and TPAs
Nationwide on May 17, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Newly Posted Press Releases
ERIC Applauds Senate Holding the Line Against Drug Price Controls
ERIC (ERISA Industry Committee)
NCOA’s BenefitsCheckUp Wins World Wide Web Health Award
National Council on Aging (NCOA)
Buck Consultants Survey: 2007 Health Care Costs Will Continue to Outpace Inflation
Buck Consultants, an ACS Company
CalChamber-Sponsored Flexible Workweek Bill Would Give Employers and Employees Much Needed Flexibility
California Chamber of Commerce (CalChamber)
Trion(tm) Selects Benefits Consultant Marie J. Killian to Lead its Integrated Health and Productivity Management Team
Trion
Newly Posted or Renewed Job Openings
Defined Benefit Software Customer Support
for DATAIR Employee Benefit Systems, Inc.
in IL
Defined Contribution Software Customer Support
for DATAIR Employee Benefit Systems, Inc.
in IL
Business Development Manager
for SunGard ProNvest
in GA
Compliance Analyst
for Administaff
in TX
401(k) Administrator
for Tofias PC
in MA
Defined Benefit Specialist
for Lynchval Systems Worldwide Inc.
in VA
Senior Marketing Manager
for Transamerica
in CA
Relationship Manager - Defined Contribution Plans
for Vanguard
in AZ
Director of Retirement Sales
for Leading Financial Services Firm
in MA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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