BenefitsLink |
 |
 |
| November 28, 2007 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is ASPPA
(Click on company name or banner to learn more.)
| The ASPPA 401(k) Leadership Award |
| Do you know someone who has made a lasting impact within the 401(k) industry? If so, nominate them today for The ASPPA 401(k) Leadership Award. This new award, sponsored by Morningstar, will be given out at The ASPPA 401(k) SUMMIT in Orlando, Florida on Sunday, February 10th. Nominations are being accepted until midnight , Friday, November 30th. Don't let the opportunity pass to make known those who make a difference and are working for America's retirement today. |
(a) New Guidance Documents
Rev. Proc. 2007-71: Model 403(b) Plan Documents and Plan Amendments for Public School Sponsors (PDF)
31 pages. Excerpt: "This revenue procedure provides model plan language that may be used by public schools either to adopt a written plan to reflect the requirements of § 403(b) and the regulations thereunder or to amend its § 403(b) plan to reflect the requirements of § 403(b) and the regulations thereunder. This revenue procedure also provides rules for when plan amendments or a written plan are required to be adopted by public schools or other eligible employers to comply with the recently published final regulations under § 403(b) (72 FR 41128; TD 9340). This revenue procedure also provides guidance relating to the application of § 403(b) to certain contracts issued before 2009." (Internal Revenue Service)
(b) News
Saver's Credit 2008: The Time Is Now (PDF)
1-page detailed overview. Excerpt: "The Saver's Credit was made permanent in the Pension Protection Act of 2006, and it is important that plan sponsors let their participants know about this significant benefit." (Profit Sharing/401(k) Council of America)
Pension Funds Unhappy with SEC; Agency Poised to Refuse Proposal for Greater Ability by Large Shareholders to Affect Boards of Directors
Excerpt: "Federal securities regulators appear primed to allow companies to bar shareholders from access to ballots for board elections, a move that major pension funds and governance advocates say could make corporations less responsive to investors' interests. . . . That proposal would allow shareholders who together own at least 5 percent of a company's stock to propose changes to the company's bylaws on elections for directors. Proposed bylaw changes could then be voted on by all shareholders, giving stock holders the right to get their board candidates on ballots that have been paid for and distributed by companies." (Washington Post; free registration required)
(c) Summaries of Guidance; Filed Comments
Model 403(b) Plan Language Includes Automatic Enrollment Language
Excerpt: "Section 2.2(b) of the model plan language contains three paragraphs on automatic enrollment which are interesting in both their clarity and brevity. This Revenue Procedure is authored by Bob Architect, the IRS' authority on all things 403(b), so it is not surprising that the language on automatic enrollment is brief, clear and concise." (Pension Protection Act Blog)
Prudential Financial Describes QDIA Rules, Includes Link to 'Decision Tree' (PDF)
6 pages; see last page for link to a handy 2-page 'decision tree' document. Excerpt: "Plan sponsors should review these rules to determine whether a change to the plan's default investment is prudent. Plan sponsors are not required to comply with these rules, but may choose to comply to receive the additional fiduciary protection offered by the safe harbor. . . . Prudential Retirement has developed a QDIA Decision Tree to assist you with this decision-making process." (Prudential Financial)
Overview: DOL Proposes Expansion of Settlement Class Exemption (PDF)
Excerpt: "The proposed amendments to PTE 2003-39 would be effective upon publication in final form in the Federal Register. Comments on the proposal are due before January 22, 2008." (Sutherland Asbill & Brennan LLP)
(d) Trends, Surveys, Research
Research Shows Financial Illiteracy Impacts 401(k) Plan Participation Rates
Excerpt: "An individual with low literacy is 34% less likely to participate in a voluntary plan and 11% less likely to participate in a plan with automatic enrollment, according to the research paper [from the Center for Retirement Research at Boston College]." (PLANSPONSOR.com)
(e) Policy, Opinion, Advocacy
Law Professor Comments on LaRue ERISA Case Oral Argument -- ERISA 502(a)(1)(B) Was Wrong Approach
Excerpt: "Let's hope the Justices carefully think through the Section 502(a)(1)(B) approach and then jettison it in favor of a 'clean' opinion validating the Section 502(a)(2) claim and saving the more difficult issues surrounding equitable relief under Section 502(a)(3) for another day." (Workplace Prof Blog)
Issue Brief: State and Local Government Pensions Are Different From Private Plans
Excerpt: "The brief's key findings are . . . Public plans are primarily defined benefit, coverage is virtually universal, and only 70 percent of workers are in Social Security. . . . Private plans are mostly 401(k)s, less than half of the workforce is covered, and everyone participates in Social Security. . . . Public plans provide larger benefits, but rely more on employee contributions." (Center for State & Local Government Excellence)
Sponsored by: National Institute of Pension Administrators (NIPA)
(Click on company name or banner to learn more.)
| Register for the 2008 BMC by December 14 and Save! |
| Learn more about the only retirement industry conference focused on the business aspects of running a TPA company. The National Institute of Pension Administrators' 2008 Business Management Conference is an exclusive venue for leading executives and professionals from third party administration firms to garner and share information and insights on the most effective business methods. Register by December 14 and save $100! |
| (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) |
Links to Items on Executive Comp, Benefits in General
Practical Tips for Compliance with Section 409A
Excerpt: "[E]mployers should implement procedures to review drafts of all new benefit plans and agreements, or amendments to existing plans or agreements, to verify Section 409A compliance before adopting, or amending, them. Employers and other service recipients should also consider offering special training and other education for those personnel responsible for negotiating compensatory arrangements to ensure a basic understanding of all applicable documentation and operational requirements." (Perkins Coie)
Opinion: The Shame of the NFL Pension Dispute
Excerpt: "Gene Upshaw, the Hall-of-Fame offensive tackle and current head of the NFL Players Association, is under fire for his failure to assist former players in collecting on pension and health claims made to the union. . . . The crux of the problem is that voting by active players determines the amount of funding allocated to the pool for disability benefits." (Bleacher Report)
Newly Posted Events
401(k) & Corporate Retirement Plan Seminar - Minimize Fiduciary Risk and Maximize Employee Benefit
in Virginia on December 5, 2007
presented by AFS Financial Group
Automatic Enrollment: QDIA, EACA, QACA Web Seminar
Nationwide on December 3, 2007
presented by SunGard Relius
DOL Online Seminar for Employers and Fiduciaries: Know Your Fiduciary Responsibilities (Registration Required)
in Arizona on December 13, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Unequal Taxes on Equal Benefits: The Taxation of Domestic Partner Benefits
in District of Columbia on December 3, 2007
presented by Center for American Progress
Newly Posted Press Releases
AARP Supports CMS' Move Toward Pay-for-Performance
AARP
AARP Survey Reveals About Half of People 50-Plus Still Skipping Flu Shots
AARP
U.S. Labor Department Settlement Resolves Lawsuit Over Payment For Administrative Services By New Jersey Union Health Plan
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
IRS Announces 2008 Standard Mileage Rates; Rate for Business Miles Set at 50.5 Cents per Mile
Internal Revenue Service (IRS)
Standard Register Selects Financial Engines to Provide Managed Accounts
Financial Engines, Inc.
Stephens Funds Added to CPI Retirement Platform
CPI Qualified Plan Consultants, Inc.
Buck Consultants Survey: Health Care Costs Projected to Increase at Double-Digit Levels
Buck Consultants, an ACS Company
Legal Advantage, LLC Releases Latest Customer Service Web Portal to Further Solidify Position as Premier Provider of Legal Support and Patent Illustration Services
Legal Advantage, LLC
The Wilshire Group Launches New BENeLERT(tm) Process to Automate Health Insurance Policy Renewals and Ensure Clients Receive the Best Rates
Wilshire Group
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs |
RSS Feed )
Labor Relations Sr. Manager
for 1199 Benefit and Pension Funds
in NY
Human Resource Assistant Director
for 1199 Benefit & Pension Funds
in NY
Director Third Party Administrator Business Development
for MassMutual Financial Group
in MA
Sales Professional - Group Benefits
for Standard Insurance Company
in TX
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
This newsletter is sent to you each workday except federal holidays.
This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
David Rhett Baker, J.D., Editor
Copyright 2007 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.
Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/
Other useful links: