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| November 29, 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
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(a) New Guidance Documents
IRS Notice 2007-94: 2007 Cumulative List of Changes in Plan Qualification Requirements (PDF)
Excerpt: "The 2007 Cumulative List is to be used primarily by plan sponsors of individually designed plans that are in Cycle C. An individually designed plan is in Cycle C if it is a single employer plan where the last digit of the employer identification number of the plan sponsor is 3 or 8, or it is a § 414(d) governmental plan (including a governmental multiemployer plan or governmental multiple employer plan)." (Internal Revenue Service)
PBGC Technical Update 07-2: Funding-Related Determinations for Reporting Under Parts 4010 and 4043; Effect of the PPA
Excerpt: "PBGC interprets PPA 2006 to provide that new annual employer reporting rules apply to information years beginning after 2007. In general, this Technical Update provides that for purposes of the annual employer reporting and reportable events regulations, a plan's UVBs and vested benefits amounts (for the transition plan years covered by this Technical Update) are determined as of the relevant year-end 'testing date' using the rules for determining the VRP under the law in effect before PPA 2006. The guidance in this Technical Update generally applies (1) under the annual employer reporting regulation, to information years that begin before 2008 and (2) under the reportable events regulation, to event years that begin in 2008." (Pension Benefits Guaranty Corporation)
(b) News
House Passes Tax Bill with Pension Provisions Benefiting Military Personnel
Excerpt: "The House has passed a package of military tax breaks for active and retired military service members with a host of provisions affecting qualified plans and IRAs. The Heroes Earnings Assistance and Relief Tax Bill of 2007 (H.R. 3997) was passed on a vote of 410 to 0. As we go to press, the Senate was expected to take up the measure. . . . The bill would make permanent the rules allowing active duty reservists to make penalty-free withdrawals from retirement plans and IRAs." (CCH Pension and Benefits)
SEC Votes to Limit Shareholder Rights; Pension Fund Trustees Disappointed
Excerpt: "Companies will be able to scuttle investor attempts to nominate board members under a plan adopted by a bitterly divided Securities and Exchange Commission yesterday. The move drew an outcry from key lawmakers, unions and major retirement funds . . ." (Washington Post; free registration required)
New 'Pension Inspector' Free Online Resource Helps 50-Plus Seniors Monitor Retirement Plans
Excerpt: "With the PENSION INSPECTOR, the consumer is empowered to dial up key financial and funding information about their -- or any -- qualified Plan that files a required IRS.DOL Form 5500. It is estimated that more than 30% of Defined Benefit Plans are underfunded, based upon standards developed by the IRS and Department of Labor." (California Newswire)
(c) Summaries of Guidance; Filed Comments
Overview: IRS Publishes 403(b) Model Plan, Orphan Contract Guidance (PDF)
4-page summary. (Sutherland Asbill & Brennan LLP)
Text of ASPPA Comments on Proposed IRS Regs on Benefit Restrictions from Underfunded Pension Plans (PDF)
13 pages; 20 specific recommendations. (American Society of Pension Professionals and Actuaries (ASPPA))
Pension Protection Act Provisions (And Other Changes) That Become Effective In 2008
Excerpt: "While many of the changes imposed by the PPA are effective as of the plan year beginning on or after January 1, 2008, conforming plan amendments are generally not required to be adopted prior to the plan year beginning on or after January 1, 2009. Accordingly, where applicable, plans should be operated in compliance with the requirements described below as of the first day of the plan year beginning on or after January 1, 2008." (Proskauer Rose LLP via Metropolitan Corporate Counsel)
(d) Trends, Surveys, Research
Investment Returns Lower for Self-Directed Accounts When Participants Don't Ask for Help
Excerpt: "Many 401(k) retirement plans offer investors access to online or over-the-phone chats with someone who can answer investment questions, and it appears that those who don't ask for help can end up with less money in their portfolios. A new Charles Schwab examination of the 401(k) plans it oversees found that investors who rely on some professional advice for investment decisions enjoy greater returns than those who go it alone." (AP via Washington Post (free registration required))
Can Your Employer's Pension Plan Afford to Provide Cost-of-Living-Adjustments?
Excerpt: "If your pension plan is overfunded -- that is, its assets (the amount in the plan) are greater than its obligations (the amount it must pay in pension benefits), your plan may be able to afford a COLA. You can find out whether your plan has surplus assets by looking at the financial forms . . . ." (Pension Rights Center)
(e) Policy, Opinion, Advocacy
(None today.)
Sponsored by: ERISAdiagnostics, Inc.
(Click on company name or banner to learn more.)
| Introducing An ERISAdiagnostic(tm) - Self audit guide for 401(k) plans! |
The ERISAdiagnosticTM can help you:
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| (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
Specified Employee Status Under Code Section 409A
Excerpt: "This article examines the six-month delayed payment rule for 'specified employees' under Section 409A. It is extremely important that specified employees be properly identified, and this article -- together with the attached Specified Employees Checklist -- provides practical guidance to help you comply with this rule." (Faegre & Benson)
Separation Pay Options Under Code Section 409A
Excerpt: "This article examines methods for providing separation pay consistent with Section 409A, including use of the short-term deferral and safe harbor exceptions, 'stacking,' and integrating a release of claims. The attached chart provides analysis and options under various sets of circumstances related to separation pay under Section 409A." (Faegre & Benson)
Modified Work Arrangements for Employees Under Code Section 409A
Excerpt: "This article examines the application of Section 409A to modified work arrangements -- on-call or reduced time work arrangements, consulting arrangements, leaves of absence, rehire situations and other employment-related changes." (Faegre & Benson)
The Impact of Disability on Non-Qualified Deferred Compensation Under Code Section 409A
Excerpt: "This article examines the interrelationship between disability and the rules of Section 409A and discusses potential pitfalls that may be avoided with proper examination and drafting of a plan's disability definitions and procedures." (Faegre & Benson)
Newly Posted Events
1099-R from Soup to Nuts Web Seminar
Nationwide on December 19, 2007
presented by SunGard Relius
Newly Posted Press Releases
Investments in Private Equity Still Worth Considering for Institutional Investors
Watson Wyatt
Patricia Kelly Named Chief Financial Officer At The PBGC
Pension Benefit Guaranty Corporation (PBGC)
New Schwab Data Indicates Use of Advice and Professionally-Managed Portfolios Results in Higher Rate of Return for 401(k) Participants; Younger Participants Have the Most to Gain
Charles Schwab & Co., Inc.
Defined Contribution Plan Fee Disclosure Rules Must Follow Key Principles To Reduce Costs, Confusion
American Benefits Council
Employers' Goal: A Transparent 401(k) System That Provides Meaningful Benefits At A Fair Price
American Benefits Council
National Coalition on Business Launched To Preserve ERISA Standard For Health, Retirement Benefit Plans
American Benefits Council
Prudential Financial Expands Its Retirement Business
Prudential Financial, Inc.
Wachovia Retirement Services Earns Top Ranking in Client Loyalty
Wachovia Corporation
Council of Institutional Investors Deplores SEC Move to Curb Investor Rights
Council of Institutional Investors
Groundbreaking Study Reveals How Consumers Shop For Health Care Research Finds People Want Information On Cost And Quality
Regence
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs |
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Manager Quality Control testing & 5500
for Retirement Alliance, Inc.
in NH
Pension Administrator
for Retirement Alliance, Inc.
in NH
Sr compliance, testing and design specialist
for Retirement Alliance, Inc.
in NH
Retirement Plan Specialist
for Diversified Investment Advisors
in NJ
Retirement Plan Manager
for Merrill Lynch
in WA
Client Services Representative
for Midsouth Pension Consultants or Midsouth Consulting Group
in TN
Qualified Plan Administrator
for Small TPA Firm
in CO
Participant Communication Consultant
for Vanguard
in PA
Corporate Benefits Analyst
for Phillips-Van Heusen Corporation
in NJ
Defined Benefit Actuary I
for Standard Retirement Services
in OR
Retirement Plan Consultant
for Plante & Moran, PLLC
in MI
Senior ERISA Consultant
for Tofias PC
in MA
401(k) Plan Administrator
for Tofias PC
in MA
Investment Analyst/Investment Consultant
for Alerus Investment Advisors
in MN
ARS Call Center
for Alerus Retirement Solutions
in MN
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- Using the Web for Employee Benefits Research (hypertext article)
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