BenefitsLink |
 |
 |
| December 10, 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) SUMMIT |
| Join over 1,400 retirement sales and investment professional at the retirement industry's longest running conference, The ASPPA
401(k) SUMMIT. Attend advisor centered workshops, general sessions with internationally known speakers, secure insurance and other CE credits, network with your peers and more in Orlando, Florida, February 10-12, 2008. Don't miss your opportunity to join the best of the best. Early bird savings apply so register NOW. |
(a) New Guidance Documents
(None today.)
(b) News
ASPPA Requests Members to Contact Congressional Representatives to Seek Delay in 2008 PPA Funding Rules; Non-Members Can Participate
In a letter emailed to members on Thursday, December 6, ASPPA included a link to a page on its Web site containing an online form using technology that automatically sends an emailed letter to the appropriate politicians. Membership in ASPPA is not required in order to use the online form, however. Excerpt: "Under the law, Treasury has no authority to delay the effective date of these PPA provisions. However, there is a possibility that Congress will delay for a year some or all of the PPA provisions affecting DB plans." (American Society of Pension Professionals and Actuaries (ASPPA))
Pension Plan Funding Plummets in November
Excerpt: "The funded status of an average U.S. pension plan declined by 7% in November, according to numbers out today from BNY Mellon Asset Management. For the year to date, the funded status of a typical plan has fallen 2.7%." (Financial Week; free registration required)
South Carolina Pension Fund Bets on Mortgages
Excerpt: "South Carolina's pension plan has committed $100 million to a fund that aims to invest in risky mortgage debt, looking to benefit from a sell-off in distressed subprime-related investments." (The Charlotte Observer)
Court Throws Out Fund Fee Case
Excerpt: "A federal judge in New York has shot down claims by Investors in nine Salomon Smith Barney mutual funds that the funds' fees were too high. U.S. District Judge Paul A. Crotty of the U.S. District Court for the Southern District of New York dismissed with prejudice investors' suits that claimed excessive fees charged by the funds' advisers and distributors ended up costing the funds millions of dollars in losses." (PLANSPONSOR.com; free registration required)
GA County Goes from DC to Hybrid Pension Setup
Excerpt: "Government officials in Fayette County, Georgia, have decided to convert the defined contribution plan for county employees into a hybrid plan design.' (PLANSPONSOR.com; free registration required)
(c) Summaries of Guidance; Filed Comments
Overview: 2007 Cumulative List of Changes in Plan Qualification Requirements for Cycle C Plans
Excerpt: "The IRS publishes an annual cumulative list to identify statutory, regulatory, and guidance changes that plan sponsors must take into account in their submissions for opinion, advisory, and determination letters of plans whose remedial amendment period begins on the February 1 following issuance of the cumulative list. The IRS has now released the 2007 Cumulative List, which will be used primarily by plan sponsors of individually designed plans that are in Cycle C of the remedial amendment cycle. (Generally, a plan is in Cycle C if the last digit of the plan sponsor's EIN is 3 or 8; certain governmental plans also are in Cycle C.)" (Employee Benefits Institute of America)
Overview: DOL Final Regulation on Qualified Default Investment Alternatives (PDF)
Pages 1-6 of 9 pages. Excerpt: "The DOL was given authority by the PPA to issue regulations setting standards that automatic contributions arrangements would be required to satisfy in order for the preemption rule to apply, but preemption was not addressed in the proposed QDIA regulations. The final QDIA regulation does cover preemption and takes a broad approach to ERISA preemption as to automatic contribution plans." (Trucker Huss APC)
Overview: Plan Sponsor Considerations for the New Year
Excerpt: "[Plan sponsors should have a list] to consider - the list of changes to plans effective for the new year. This issue of Fast Focus is a summary list of key provisions from the Pension Protection Act of 2006 (PPA) and other laws affecting defined contribution plans and defined benefit plans." (Chang Ruthenberg and Long PC)
(d) Trends, Surveys, Research
Defined Contribution Designs: A Growing Interest by Plan Sponsors in Focusing on Service Elements
Excerpt: "[M]ost striking in the survey results was that more than half of employers that had adopted the design say they did so because their organization 'wanted to be more proactive in helping employees save' -- dominating all other factors." (PLANSPONSOR.com; free registration required)
Rules for Retirement Savings Have Changed Dramatically Over the Past 15 to 20 Years, Experts Say
Excerpt: "Fewer and fewer companies provide pensions for their workers, leaving employees to take up the lion's share of the responsibility for their own retirement savings, experts say. Also, Social Security faces an uncertain future and health-care costs continue to increase, while life expectancies are on the rise. That leaves retirees with more years to live off their savings." (El Paso Times)
Frequently Asked Questions About Money Market Funds
Excerpt: "A money market fund is a type of mutual fund that invests in high-quality, short-term securities that present minimal credit risk. These funds also pay dividends that generally reflect short-term interest rates. Although the net asset value (NAV) per share of a traditional mutual fund changes daily in response to market factors, money market funds are structured to avoid these changes by seeking to maintain a stable NAV of $1.00 per share." (Investment Company Institute)
Short List of Companies That Have Changed Their Defined Benefit Pension Plans
Excerpt: "Changes include plan terminations, plan freezes for new and/or current employees, and changes to the formula by which pension benefits are calculated." (Pension Rights Center)
Retirement Income Seen As Great Opportunity for Insurers
Excerpt: "In the next 3 to 5 years, annuity sales will double to $300 billion from $150 billion, said John Walters, co-chief operating officer and president of the U.S. wealth management division of Hartford Life Inc., Simsbury, Conn. There is more than $9 trillion of money in motion, he added." (The National Underwriter Company; free registration or paid subscription required)
The Pitfalls of a Poorly Structured Annuity
Excerpt: "Incorrectly structured annuities can be a time bomb for your clients. There are different types of annuities offered today, and the differences can have significant impact depending on the ownership structure. If your clients own existing annuities or you are recommending one, you need to understand the type of annuity and the implications of inappropriate ownership to prevent unintended consequences down the road." (Morningstar)
The Three A's of Calculating Investment Returns
Excerpt: "Your investment clients are confused. They might not realize it, but many of them do not really understand the most basic measures of investment performance. Teach them the three A's of investor math so they can stop comparing apples to applesauce." (Morningstar)
(e) Policy, Opinion, Advocacy
Opinion: Public Pension Benefits Are Haywire
Excerpt: "In most communities, a typical retirement benefit will be equal to 90 percent of the highest three years of compensation. This explains why there is a reasonable effort to clock a lot of overtime toward the end of a civil service career. Beyond this base benefit, the dollar amount will be subject to cost-of-living increases. That makes sense. It's expensive though, because if we remember the early 1980s, we know that inflation can roar at double-digit annual rates." (Contra Costa Times)
Interview with Dallas Salisbury of EBRI Offers Fascinating Historical Perspective on Today's Retirement Security Challenges
Excerpt: "Salisbury offers both a fascinating historical perspective as well as a vision for the future that contains views that may surprise some who work on contemporary retirement income solutions. He's a font of knowledge, experience and keen judgment, a voice for change, motivation and action designed to address America's retirement security challenges." (David A. Macchia)
Sponsored by: University Conference Services
(Click on company name or banner to learn more.)
| Is Your Plan Management Textbook Outdated? |
| Comprehensive legislative changes, increased regulatory scrutiny, mounting litigation and unprepared participants have created whole new chapters on plan management. With all of these changes, you need to update your textbook today. The Mid-Sized Retirement & Pension Plan Management Conference, January 27-30, 2008, at the Hilton in the Walt Disney World®, Orlando, Florida is your chance to study with the best. Keynote speaker Ann Combs, former Assistant Secretary of Labor and head of the Employee Benefits Security Administration, headlines an outstanding lineup of speakers in 40+sessions. Make plans now to attend and move to the head of the plan management class.
Presented by the University of North Carolina's Kenan-Flager Business School in conjunction with leading retirement plan providers and advisors |
| (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
Fact Sheet: Are Employers Willing to Hire and Retain Older Workers? (PDF)
6 pages. Excerpt: "Older adults' employment is attracting attention as many baby boomers approach traditional retirement ages. This fact sheet examines employers' current attitudes toward older workers and the likely future demand for their services." (Urban Institute)
Fact Sheet: Should People Work Longer, and Will They? (PDF)
7 pages. Excerpt: "Choosing when to retire is a crucial decision for workers. Working longer increases lifetime earnings, Social Security and employer-sponsored pension credits, and other savings, and shortens the period over which retirement savings must be spread." (Urban Institute)
Overview: European Benefit Developments (November 2007) (PDF)
4 pages. (Jones Day)
Overview: IRS Guidance on 2007 Tax Reporting and Withholding Requirements under Code Section 409A (PDF)
Pages 6-8 of 9 pages. Excerpt: "Section 409A(b) of the Code ('Section 409A(b)') prohibits: the transfer of assets to an offshore trust; the restriction of assets to protect benefits in connection with a change in a company's financial health; or the transfer of assets during a restricted period with respect to a single-employer defined benefit plan." (Trucker Huss APC)
Overview: SEC Rules Exempting Compensatory Employee Stock Options from Registration Under Section 12(g) of the Exchange Act (PDF)
4 pages. Excerpt: "Stock options, including those issued to employees under stock option plans, are treated as a separate class of security for purposes of the Exchange Act. Although Exchange Act Rule 12h-1(a) provides an exemption from registration for interests in 'stock bonus, stock purchase, profit-sharing, pension, retirement, incentive, thrift, savings or similar plans,' there was previously no exemption for compensatory employee stock options." (Seyfarth Shaw LLP)
Milliman's Monthly Benefit News and Developments, December 2007 (PDF)
2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits. (Milliman)
Summary of the Principal Financial Well-Being Index
Excerpt: "The Principal Financial Group commissioned Harris Interactive to conduct online research with employees of small and midsized U.S. businesses (firm size 10 - 1,000 employees) about their attitudes and perceptions regarding their financial well-being and their current employee benefits. To compare responses, Harris Interactive also interviewed a group of retirees." (Cypen & Cypen)
Recovering Executive Pay
Excerpt: "INVESTORS everywhere should applaud the deal struck last week by the UnitedHealth Group to recover nearly $1 billion in pay from former executives involved in the company's option backdating mess. Not only is the number big and round -- by far the largest giveback by corporate executives ever -- but the recovery sets a standard of behavior for other companies and boards when performance pay is later shown to have been based on ephemeral earnings." (The New York Times; free registration required)
Newly Posted Events
2008 Federal and State Legislative Update
in Maryland on January 10, 2008
presented by Worldwide Employee Benefits Network -- Baltimore chapter
Automatic Enrollment & Default Investments Workshop
Nationwide on January 10, 2008
presented by SunGard Relius
Participant Forms & Notices Workshop
Nationwide on January 10, 2008
presented by SunGard Relius
Newly Posted Press Releases
MassMutual Retirement Adds to TPA Sales Team
MassMutual Retirement Services
Employee Benefits Security Administration Provides Guidance on HIPAA Portability Rules Relating to Supplemental Coverage
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Prudential Retirement Selected to Manage $35 million Retirement Plan
Prudential Financial, Inc.
AIM Investments Launches New Retirement Marketing Tool
AIM Investments
FutureOffice Insurance Broker Network Introduces Its Innovative Steward(tm) Tool To FutureOffice Subscribers
Davidson Marketing Group -- FutureOffice Network
Thomson Tax Integrates Payroll Software with Online 401k
Thomson
Record-Breaking Financial Recovery Made in UnitedHealth Backdating Case
Connecticut State Attorney General's Office
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs |
RSS Feed )
ERISA Attorney
for Industry Leader in Financial Services
in PA
401k Administrator
for Vanguard
in PA
Relationship Manager-Retirement Services
for MassMutual Financial Group
in FL
Relationship Manager - Defined Contribution Plans
for Vanguard
in PA
401(k) Administrator
for TSP Associates, Inc.
in CA
401k Compliance Tester
for Benetemps
in MA
Defined Benefits Administrator
for JPMorgan Retirement Plan Services
in IL
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: