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| November 8, 2007 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
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(a) New Guidance Documents
Text of IRS 'Employee Plans News' (Nov. 7) Describing Automatic Enrollment Proposed Regs (PDF)
3 pages. (Internal Revenue Service)
Federal Register Version: Proposed IRS Regs on Automatic Deferrals (Contributions) Under 401(k), 403(b), 457 Plans (PDF)
12 pages. (Internal Revenue Service)
Text of IRS-Issued Corrections to Proposed Regs on Benefit Payment Restrictions from Underfunded Single-Employer DB Plans (PDF)
7 pages. Excerpt: "The correction notice that is the subject of this document is under sections 430(f) and 436 of the Internal Revenue Code." (Internal Revenue Service)
(b) News
Salem, Massachusetts Retirement Board Votes to Merge with State Pension Funds
Excerpt: "The retirement board voted unanimously yesterday to transfer its $96 million pension fund to the state system, hoping the takeover would help ease the soaring cost of retirement benefits." (The Salem News)
Bethlehem Steel Retirees Hear Why Pension Payments Shifted
Excerpt: "Most of the overpayments were made in 2003, when Bethlehem's retirement plan was terminated and the federal agency took it over. To ensure that there was no gap between checks, PBGC made initial estimates of what retirees were owed and paid them accordingly until the agency was able to tally more accurate payments. Federal law requires the PBGC to recoup any overpayments." (The Baltimore Sun; free registration required)
Senators Urged to Overturn Social Security Provisions Affecting Federal Retirees
Excerpt: "Several witnesses once again made the trek to Capitol Hill Tuesday to make the case that two provisions of Social Security law treat federal employees unfairly and should be repealed. At a hearing before the Senate Finance Social Security, Pensions and Family Policy subcommittee, witnesses called attention to the impact of two provisions in Social Security law -- the Government Pension Offset and the Windfall Elimination Provision -- on the retirement incomes of many public employees." (GovExec.com)
(c) Summaries of Guidance; Filed Comments
Overview: Section 204(h) and Lump Sum Guidance Issued for Defined Benefit Plans (PDF)
Excerpt: "On November 6, 2007, the Internal Revenue Service addressed (through a posting on its website) whether an ERISA section 204(h) notice is required in 2007 for certain defined benefit plan amendments required by the Pension Protection Act of 2006. The Service also issued a revenue ruling providing guidance on the calculation of 2008 lump-sum distributions from defined benefit plans." (Sutherland Asbill & Brennan LLP)
Overview: IRS Releases Mortality Table, Information on Applicable Interest Rate for Plan Distributions
Excerpt: "[T]he IRS has ruled that, although Code Sec. 411(d)(6)(A) generally prohibits a plan amendment that decreases a participant's accrued benefit, an amendment that implements the new interest rates and mortality table under Code Sec. 417(e)(3) and, thereby, causes a reduction in accrued benefits, will not violate this general prohibition in most circumstances." (CCH Incorporated)
Overview: Auto Enrollment Guidance
Excerpt: "The Treasury Department and the Internal Revenue Service (IRS) issued proposed regulations implementing new rules that facilitate the adoption of automatic contribution arrangements in 401(k), 403(b), and 457 plans." (planadvisor)
Overview: Maximum Deferral and Threshold Limits for 2007 and 2008 (PDF)
4 pages. Excerpt: "The Internal Revenue Code specifies limits on retirement plan benefits and contributions that must be met for a plan to remain tax-qualified. This research memo describes certain key limits for 2008 and compares them with the limits applicable in 2007." (Gabriel Roeder Smith & Company)
A Closer Look at the DOL's Final Regulations on QDIAs
Excerpt: "[E]ven though ERISA ยง 404(c)(5) was created with automatic enrollment arrangements in mind, it applies to other situations in which default investment allocations may be made. The preamble to the final regulations provides the following examples of these 'other' situations: 'The failure of a participant or beneficiary to provide investment direction following the elimination of an investment alternative or a change in service provider, the failure of a participant or beneficiary to provide investment instruction following a rollover from another plan, and any other failure of a participant to provide investment instruction.'" (Deloitte via BenefitsLink.com)
(d) Trends, Surveys, Research
(None today.)
(e) Policy, Opinion, Advocacy
Chamber Letter/Statement for the Record, October 17, Hearing on The 401(k) Fair Disclosure for Retirement Security Act of 2007 (PDF)
9 pages. Excerpt: "Enforcement and Review by the DOL (Sec. 5) -- The Chamber is concerned about the proposed enforcement scheme as it includes the public dissemination of information and the provision of information to other agencies with a notice, hearing, or appeal procedure. Enforcement provisions are important but they must also be fair and provide opportunities to correct mistakes by any party." (U.S. Chamber of Commerce)
Retirement Made Simpler Web Site: Helping You Automate Your 401(k) Step-by-Step
Excerpt: "Three different organizations, three different missions. Why are we all committed to automatic 401(k)s? Because we know that Americans are not saving enough for retirement -- and we can help. By combining our resources and expertise, AARP, the Financial Industry Regulatory Authority (FINRA), and the Retirement Security Project (RSP) pool our varied strengths to help employers and their employees save more effectively." (Retirement Made Simpler)
Building Futures: A Report on Corporate Defined Contribution Plans (PDF)
164 pages. The report starts with the president's letter. Excerpt: Building Futures is Fidelity's annual report on the state of the defined contribution industry. Volume VIII highlights the emergence of real strategies that can help employers create a more robust workplace savings system. The study, which analyzed the data of more than 10 million participants in nearly 13,000 Fidelity-administered plans representing $674 billion in assets, found that automatic plan features are already working in moving the needle -- resulting in dramatically improved participation rates, greater savings rates, and much more appropriate asset allocation.'" (Fidelity Investments)
Retirement Plan Fee Disclosure Reviewed
Excerpt: "The Ways and Means Committee held its first hearing on fee disclosure on Tuesday, Oct. 30, 2007. Although there have been other hearings to date on fee disclosure, this is the first hearing in the committee that has jurisdiction over governmental 457 plans . . . . Three themes emerged in the testimony . . . ." (ICMA-RC)
Testimony: Social Security Issues Regarding the Coverage of Public Employees (PDF)
16 pages. Excerpt: "GAO has previously recommended that the Congress consider giving the Internal Revenue Service the authority to collect the information that the Social Security Administration needs on government pension income to administer the GPO and WEP provisions accurately and fairly. GAO continues to believe that this important issue warrants further consideration by the Congress." (U.S. Government Accountability Office)
Council Testimony at Hearing on 'Securing Retirement Coverage for Future Generations' on November 8, 2007 (PDF)
9 pages. Excerpt: "In 2004, the Council released a long-term public policy strategic plan, Safe and Sound: A Ten-Year Plan for Promoting Personal Financial Security, which is attached to this testimony. It assembles in one document a comprehensive analysis of the dimensions of the health, retirement and demographic challenges facing our nation. The report sets forth very specific measurable goals for the retirement (and health benefits) system to be achieved by the year 2014." (American Benefits Council)
Statement on Behalf of ASPPA at Hearing on Pension Parity, October 24, 2007 (PDF)
5 pages. Statement by Sal Tripodi, Principal of Tri Pension Services, on behalf of ASPPA; Comments Presented to the Committee on Small Business, Subcommittee on Finance and Tax, United States House of Representatives Hearing on Pension Parity: Addressing the Inequities between Retirement Plan Options for Small and Large Businesses, October 24, 2007 (American Society of Pension Professionals & Actuaries)
Newly Posted Events
403(b) Plan Workshops
in Georgia on December 5, 2007
presented by SunGard Corbel
403(b) Plan Workshops
in Massachusetts on December 6, 2007
presented by SunGard Relius
403(b) Plan Workshops
in Illinois on December 6, 2007
presented by SunGard Relius
EGTRRA Pre-Approved Plan Workshops
in Georgia on December 4, 2007
presented by SunGard Relius
Newly Posted Press Releases
ERIC Presents New Benefits Platform for Life Security to Congress
ERIC (ERISA Industry Committee)
'Safe and Sound' Retirement Goals Include Raising Financial Literacy, Expanding Coverage
American Benefits Council
Treasury, IRS Issue Additional Pension Protection Act Guidance
U.S. Treasury Department and Internal Revenue Service
The Retirement Security Project to Testify on Automatic IRA Legislation Before House Education and Labor Subcommittee
Retirement Security Project
Journal Article Provides Graphic Method for Retirees to Determine How Much to Withdraw
Financial Planning Association
Newly Posted or Renewed Job Openings
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Reporting & Testing Analyst
for Boston Financial Data Services
in MA
Business Systems Analyst
for Transamerica Retirement Services
in CA
Health and Welfare Consultant
for Towers Perrin
in GA, NJ, NY, TX
Retirement Consultant
for Towers Perrin
in CT, DC, MA, NJ, NY, PA
Senior Retirement Consultant
for Towers Perrin
in DC, MA, PA
Retirement Associate
for Towers Perrin
in CT, DC, MA, NY, PA
Health and Welfare Associate
for Towers Perrin
in NJ, NY, PA
Associate Consultant
for Fidelity Investments
in MA
Benefit Administration Team Associate
for Towers Perrin
in PA
Health and Welfare Actuarial Consultant
for Towers Perrin
in CT, NJ, NY
Pension Asset Liability Modeling Specialist
for Bank of America - Global Wealth and Investment Management
in MA
Relius Expert Needed
for Benesystems
in AZ
Business Systems Analyst
for Transamerica Retirement Services
in CA
Sr. Business Systems Analyst
for Transamerica Retirement Services
in CA
Executive Director - SVEF/SVEIF
for Silicon Valley Employers Forum
in CA
Senior Compliance Testing Consultant
for Vanguard
in PA
Retirement Compliance Testing Manager
for Vanguard
in PA
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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