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| December 13, 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
(None today.)
(b) News
(c) Summaries of Guidance; Filed Comments
(d) Trends, Surveys, Research
(e) Policy, Opinion, Advocacy
Opinion: Consolidation of Recordkeepers is Troublesome for Investment Advisors and Plan Sponsors
Excerpt: "WHILE INDUSTRY EXPERTS sit back and try to predict which record keeper will be the next to sell, the result of what many predict will be massive consolidation will not be good for anyone in the 401(k) market other than the surviving providers. The winners will not only have massive market share and great profit margins but they will have more power to raise prices and less reason to upgrade service. The losers will leave clients and advisors that recommended them holding the bag." (401kExchange)
Transparency Urged for 401(k) Fees: Labor Dept. Regulation Would Put Plans' Costs in Writing
Excerpt: "Companies selling 401(k) services should be forced to disclose in writing all the fees and expenses that can drain money from workers' retirement plans before businesses trust them with their employees' money, the Bush administration proposed yesterday." (AP via The Washington Post; free registration required)
401(k) Disclosure Regs Floated
Excerpt: "The new rule is intended to help fiduciaries determine the reasonableness of the fees paid to service providers and is also intended to pinpoint if there's a conflict of interest that may affect a service provider's performance under a service contract. " (Investment News; free registration required)
American Academy of Actuaries Comments on the Proposed Regulations under Sections 430(f) and 436 (PDF)
12 pages. Excerpt: "The most pressing concern that we have with the proposed regulations revolves around the process and timing of benefit restrictions and certifications. In particular, plan sponsors and enrolled actuaries need to be able to apply the rules in a reasonable, practical manner and have confidence that their approaches are in compliance." (American Academy of Actuaries)
Text of Proposed ERISA Class Exemption for Fiduciaries Entering Into Contracts with Service-Providers (PDF)
Excerpt: "The exemption would apply to a plan fiduciary who enters into (or extends or renews) a written contract or arrangement for the provision of services to an employee benefit plan by a service provider to the plan when the resulting contract or arrangement between the plan and the service provider fails to constitute a ''reasonable contract or arrangement'' due to the service provider's failure to comply with its contractual obligation to disclose certain information as required by 29 CFR § 2550.408b–2(c)(1), as amended . . . ." (U.S. Department of Labor, Employee Benefits Security Administration)
Text of Proposed DOL Reg on Disclosure of Fee Arrangements by ERISA Plan Service-Providers (PDF)
19 pages. Excerpt: "This document contains a proposed regulation under [ERISA] that, upon adoption, would require that contracts and arrangements between employee benefit plans and certain providers of services to such plans include provisions that will ensure the disclosure of information to assist plan fiduciaries in assessing the reasonableness of the compensation or fees paid for services that are rendered to the plan and the potential for conflicts of interest that may affect a service provider's performance of services. The proposed regulation will redefine what constitutes a 'reasonable contract or arrangement' for purposes of the statutory exemption from certain prohibited transaction provisions of ERISA." (U.S. Department of Labor, Employee Benefits Security Administration)
Segal Position Paper on the Enduring Importance and Appeal of Multiemployer Defined Benefit Plans (PDF)
24 pages. Excerpt: "The Viewpoint begins with a brief overview of the history of multiemployer plans. It then examines factors behind the contraction in the number of corporate defined benefit plans and explains why circumstances are fundamentally different for multiemployer defined benefit plans. The enduring importance and appeal of multiemployer pension plans -- to the employers and unions that sponsor them, as well as to participants -- is explored in some detail." (The Segal Group, Inc.)
2008 Sample Compliance Calendar
Excerpt: "Note: This calendar provides general key retirement plan compliance requirements common to most calendar year plans." (ERISAdiagnostics Inc.)
Overview of House Approval of Tax and Retirement Benefits for Military Reservists
Excerpt: "The House has approved legislation to grant tax relief to members of the U.S. armed forces. The Heroes Earnings Assistance and Tax Relief Act (Heroes Act) addresses retirement plan benefits, differential pay and other tax issues for workers who are called to active military duty. The Senate has not yet acted, but the legislation has broad support, and military tax relief seems likely to be enacted soon. Some of the provisions in the Heroes Act would be retroactive to the beginning of 2007." (Watson Wyatt Worldwide)
Podcast: Social Security Reform Abroad -- What Lessons for the U.S.?
Excerpt: "What are other nations doing to keep their Social Security systems solvent and make sure benefits are adequate? Partial privatization, individual accounts, benefit cuts, tax increases, automatic trigger mechanisms: are these working? What can the U.S. learn from these efforts? Is the climate right for reform in Washington?" (Urban Institute)
NWA, Pilots Seek Court Approval for Restructured Pension
Excerpt: "Northwest Airlines, supported by the Air Line Pilots Association, has filed in federal court a lawsuit seeking approval of a restructured pension plan for its pilots. The new plan, proposed by ALPA and accepted by the NWA, is designed to provide an equitable distribution of retirement income for the airline's approximately 4,500 pilots, according to a press release." (PLANSPONSOR.com; free registration required)
Struggle to Keep Up Replaces Retirement Savings Worry, According to Survey
Excerpt: "For the first time since 2004, respondents to the Mercer Workplace Survey said they are more worried about keeping up with monthly expenses than saving for retirement." (PLANSPONSOR.com; free registration required)
DOL 'Fact Sheet' on Proposed Reg on Disclosure of Fees Received by Plan Service-Providers (PDF)
2 pages. Excerpt: "The proposed regulation focuses on disclosure of the direct and indirect compensation received by service providers and potential conflicts that may affect their objectivity. The proposed regulation affects only certain service providers whose contracts or arrangements are most likely to raise concerns about the receipt of indirect compensation, the fiduciary nature of the services to be provided, or conflicts of interest that might affect the provision of services. In addition, the Department is proposing a class exemption that would provide relief to a plan fiduciary who enters into a contract that is not 'reasonable' because, unknown to the plan fiduciary, the service provider failed to comply with its disclosure obligations under the proposed regulation." (U.S. Department of Labor, Employee Benefits Security Administration)
CORRECTED LINK: House Bill Extends Pilots' Retirement Age
Excerpt: "The House voted unanimously Tuesday to extend the retirement age for commercial pilots to 65, changing a 1960 Federal Aviation Administration regulation forcing pilots to leave the cockpit at age 60." (AP via Washington Post; free registration required)
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Links to Items on Executive Comp, Benefits in General
Executive Compensation and Equity Compensation Plans Year-End Checklist (PDF)
3 pages. Excerpt: "The . . . checklist describes 2007 year-end action items with respect to executive compensation and equity compensation plans. This list is not exhaustive but is intended to provide a reminder of the general set of issues facing us at year end." (Morgan, Lewis & Bockius LLP)
2008 HR Trend Book -- Special Supplement to HR Magazine
Excerpt: "[T]his 2008 HR Trendbook, a supplement to HR Magazine, takes a step back to compile a big-picture look at significant HR trends and surveyfindings. We've combined new reporting with highlights from recent SHRM Online news coverage and statistical insights from the SHRM Research Department. For example, a mere four years from now, one of every three U.S. workers will be over age 50. Do you know how employers are preparing for that evolution in their staffs?" (Society for Human Resource Management)
Employee Benefits Developments, December 2007
A brief look at developments in employee benefits law from October and November 2007, including cases, rulings, and opinions. (Hodgson Russ LLP)
Overview: Public Safety Officers' Retirement Distributions May Pay for Self-Insured Health Coverage (PDF)
Excerpt: "The IRS has issued guidance clarifying that, under PPA, certain distributions from eligible governmental retirement plans may be used to pay premiums to self-insured health plans for retired public safety officers." (Buck Consultants)
Newly Posted Events
HIPAA Privacy and Security Training for Rookies: Basic Training for Individuals Handling Group Health Plan PHI
Nationwide on December 6, 2007
presented by Employee Benefits Institute of America (EBIA)/Thomson Tax & Accounting
Newly Posted Press Releases
Pension Funds Had Banner Year, Watson Wyatt's Pension Risk Index Finds
Watson Wyatt
PBGC Negotiates Pension Protection With Electrolux Home Products
Pension Benefit Guaranty Corporation (PBGC)
U.S. Labor Department Proposes Regulations To Increase Disclosure Of Fees And Conflict Of Interests Affecting 401(k) And Other Employee Benefit Plans
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Resolve To Save And Invest In 2008: Alliance For Investor Education Highlights 13 Best Resources For Consumers
Alliance for Investor Education
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs |
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Account Executive
for MetLife
in NJ
Institutional Relationship Manager
for PlanMember Financial Corporation
in CA
Manager of 401(k) Internal New Business Development and Implementation
for ADP TotalSource
in FL, GA
Defined Benefit Plan Senior Administrator/Consultant
for Tegra Financial Partners
in GA
Pension Paralegal/Specialist
for New York Pension Class Action Law Firm
in NY
Client Data Management Administrator
for The Online 401(k) (aka Decimal, Inc.)
in CA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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