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| November 2, 2007 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is DATAIR Employee Benefit Systems, Inc.
(Click on company name or banner to learn more.)
| Software for 401(k), Pension and Flex Administration |
| Pick and choose the software modules you need:
DC/401(k) Proposals & Administration - DB Proposals & Administration - Retirement Plan Documents (Prototype and
Volume Submitters) - Government Forms (5500s, 1099-Rs, 5300s) - Cafeteria Plan Administration & Documents - Participant Termination Calculations - FAS 132 Reporting
Contact sales@datair.com or call 1-888-328-2474. |
(a) New Guidance Documents
(None today.)
(b) News
Maryland Lawmaker Wants Counties to Help Fund Teacher Pensions
Excerpt: "For some teachers, the state has been responsible for paying into the Maryland Teacher Pension Fund. But in light of the state deficit, there is currently talk of having local government pitch in. Maryland still has one of the worst teacher pension plans in the nation. Those with 30 years on the job can retire with about 54 percent of their salary." (wbaltv.com)
Fewer Employees Paying Into Georgia's Retirement System: Program Officials Say Benefits Might Need to Be Scaled Back
Excerpt: "The state's employee retirement system is facing a potential $16 billion shortfall in coming years as boomers continue to retire and may have to scale back the program for future state employees, the program's director told lawmakers . . . . Officials say they may have to change the program so it can continue paying full benefits in the future for the 70,000 state employees in the system and the 32,000 retirees already receiving benefits. The retirement system board approved a reduced cost-of-living increase last week." (The Atlanta Journal-Constitution)
State Should Cover Retirement Losses, Alaska's Sen. Elton Says
Excerpt: "Alaska state employees lost nearly $6 million from their retirement accounts last summer in a fund that was supposedly invested in conservative bonds." (Juneau Empire)
Forced Sale of Employer Stock no Fiduciary Breach
Excerpt: "The U.S. District Court for the District of New Jersey has ruled that plan fiduciaries did not breach their fiduciary duties under the Employee Retirement Income Security Act (ERISA) when they decided to force the sale of participant holdings in employer stock following the announcement of a corporate restructuring." (PLANSPONSOR.com; free registration required)
Court Says Defined Benefit Plan Participant Can't Sue for Excessive Fees
Excerpt: "The U.S. District Court for the Northern District of Iowa ruled that a defined benefit plan participant had no standing to sue the plan's fiduciaries for allegedly paying excessive investment fees because the plan was overfunded and he suffered no losses." (PLANSPONSOR.com; free registration required)
(c) Summaries of Guidance; Filed Comments
Overview: Final Regulations on Qualified Default Investments (PDF)
4 pages. Excerpt: "The basic framework is largely unchanged from the proposed regulations issued in 2006, but some adjustments were made. The regulations are effective December 24, 2007, but provide grandfather protection for certain default investments in capital preservation funds (e.g., stable value, money market) made prior to that date." (Buck Consultants)
FAQs: 403(b) Plan Written Plan Requirement
Excerpt: "Do the final regulations require a written plan document? Yes. The new regulations require a written plan. Although some IRS officials have indicated that the plan could be a collection written items, we doubt that approach will be sufficiently complete to comply with all of the requirements and provide the necessary language to coordinate the administration of the plan." (SunGard Corbel LLC)
SOP 94-4-1 Implementation Affects 2006 Audits of Employee Benefit Plans
Excerpt: "An unexpected challenge is determining just which contracts are 'fully benefit responsive.' Financial institutions and accountants are working to coordinate the information that must be shared to accommodate these new rules, but there's no best practice or standard reporting format developed just yet. However, it will alter the information that appears in the Statement of Net Assets Available for Benefits portion of the auditor's report." (form5500help.com)
(d) Trends, Surveys, Research
20/20 View on Managing Pension Liabilities
Excerpt: "The specter of increased risk brought about by stricter funding and reporting requirements is leading some companies to look more closely at integrated pension management, which takes traditional pension outsourcing one notable step further: instead of outsourcing just the management of their defined benefit plans, companies outsource a portion of the underlying liability as well." (CFO.com)
Retirement Accounts and the 5 Biggest Estate Tax Mistakes
Excerpt: "A will doesn't control one of a client's most significant assets -- retirement accounts. Instead, a veritable jungle of IRS regulations determine what your clients' beneficiaries will actually pocket from your clients' retirement accounts and when. The regulations are typically far too complex for clients to navigate on their own -- and even experienced financial advisors can overlook some of their subtleties. As a result, beneficiaries may get saddled with huge tax bills that could have been avoided." (On Wall Street)
(e) Policy, Opinion, Advocacy
Agency Officials Discuss Regulatory Projects at ASPPA Meeting
Excerpt: "From Spencer's Benefits Reports: The Treasury Department cannot defer the Jan. 1, 2008, effective date for the new funding rules under the Pension Protection Act of 2006 (PPA) because the date was set by Congress in the statute . . . ." (Wolters Kluwer Financial Services)
Industry Group Letter on Extending the Effective Date of the PPA Funding Rules (PDF)
Excerpt: "We are writing to you and to your lead co-sponsor, Congressman Eric Cantor, to express our appreciation for your leadership in introducing H.R. 3868 and to urge that you include this bill in the extenders package that is being considered by the Ways and Means Committee. H.R. 3868 would allow sponsors of defined benefit pension plans to transition to new funding rules only after final regulations are published. The issuance of final regulations is crucial for plan sponsors, service providers and actuaries to comply with tax laws governing their pension plans, to do so in an orderly manner and with reliance on sound, final guidance." (American Society of Pension Professionals & Actuaries)
U.S. Chamber Testimony on the Appropriateness of Retirement Plan Fees, October 30, 2007 (PDF)
Excerpt: "Administrative Burdens Will Negatively Impact Small Business Plan Sponsorship. Small business owners are very sensitive to administrative and costs increases. Due to their size and resources, small business owners often feel these burdens sooner and more deeply than their larger counterparts. Small business owners generally have fewer resources and, therefore, have greater concerns about taking on additional administrative responsibilities." (U.S. Chamber of Commerce)
Links to Items on Executive Comp, Benefits in General
Chart: Employment Costs in Private Industry, September 2007
Excerpt: "Wages and salaries for private industry workers increased 0.8 percent between June and September, the same as the previous quarter. Benefit costs for private industry also rose 0.8 percent, compared to 1.1 percent the previous quarter." (U.S. Bureau of Labor Statistics)
Summary of Tax and Supplemental Security Income Provisions Designed to Assist Military Families and Service Volunteers (PDF)
2 pages. Summary of provisions in The Heroes Earnings Assistance and Relief Tax Act of 2007. (American Benefits Council)
Employee Benefits Developments November 2007
Rulings, opinions, cases. (Hodgson Russ LLP)
2008 Benefit Plan Dollar Limitations -- In a Printable Brochure Form (PDF)
2 pages. (Gray Plant Mooty)
Overview: Mandatory Electronic Filing of Form 5500 Delayed to 2009 Plan Years
Excerpt: "On May 25, 2007, Joe Canary, deputy director, Office of Regulations and Interpretations for the Department of Labor's Employee Benefits Security Administration (EBSA), confirmed that the requirement to file Form 5500 electronically will be implemented for plan years beginning on or after January 1, 2009, rather than January 1, 2008, as previously announced. He acknowledged that many in the pension industry, including ASPPA, had asked for a delayed effective date because of the volume of changes that would be needed to information and recordkeeping systems, the time needed to train staff and, in general, getting the plan sponsor community on board with the new requirement." (form5500help.com)
Newly Posted Events
CQ Presidential Forum: From Sick Care to Well Care - Webcast
Nationwide on November 3, 2007
presented by KaiserNetwork.org
Regulatory Updates
in Connecticut on December 5, 2007
presented by National Institute of Pension Administrators-CT Chapter
Newly Posted Press Releases
2008 Steven H. Sandell Grant Program "Call for Proposals"
Center for Retirement Research at Boston College
TransitCenter Marks 20th Anniversary Of Commuter Benefits With 20 Reasons For Employers, Commuters To Participate
TransitCenter
Highmark Introduces New Healthcare Gift Card
Highmark Blue Cross Blue Shield
Newly Posted or Renewed Job Openings
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Labor Relations Sr. Manager
for 1199 Benefit and Pension Funds
in NY
Plan Administrator
for The Newport Group
in FL
Health and Welfare Benefits Analyst
for Omnicom Group
in CT
DC/401(k) Software Support Specialist
for Actuarial Systems Corporation
in ANY STATE
Defined Benefits Actuarial Consultant
for ERP Actuaries & Consultants
in NY
Qualified Consultant
for The Newport Group
in FL
Plan Administrator
for The Newport Group
in WI
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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