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| March 19, 2008 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is RELIUS® Education
(Click on company name or banner to learn more.)
| 2008 Form 5500 Workshop and 401(k) Plan Workshop |
| SunGard's Form 5500 Workshop gives you answers to the tough questions. Know what's new (and what's not). The 401(k) Plan Workshop helps you deal with the hot issues -- QDIAs, EACAs, ACAs, QACAs, final 415 regulations, EGTRRA restatements -- with a high level of broad, current, and in-depth information. Back-to-back programs with multiple program discount.
Relius Education by SunGard. |
[Official Guidance] Text of Proposed PBGC Regs on Withdrawal Liability Changes Under PPA '06 (PDF)
Excerpt: "This proposed rule amends PBGC's regulation on Allocating Unfunded Vested Benefits to Withdrawing Employers . . . to implement provisions of the Pension Protection Act of 2006 . . . that provide for changes in the allocation of unfunded vested benefits to withdrawing employers from a multiemployer pension plan, and that require adjustments in determining an employer's withdrawal liability when a multiemployer plan is in critical status. . . . [T]he proposed rule would also amend this regulation to provide additional modifications to the statutory methods for determining an employer's allocable share of unfunded vested benefits. In addition . . . this proposed rule would amend PBGC's regulation on Notice, Collection, and Redetermination of Withdrawal Liability . . . to improve the process of fully allocating a plan's total unfunded vested benefits among all liable employers in a mass withdrawal." (Pension Benefit Guaranty Corporation)
[Guidance Overview] The Required Beginning Date for Required Minimum Distributions
Excerpt: "What is the required beginning date (RBD) for required minimum distributions (RMDs)? The required beginning date (RBD) is the IRS term for the deadline to receive the first required minimum distribution. The answer to this question was actually quite clear before the Small Business Job Protection Act (SBJPA) of 1996 brought about a change. The revised RBD definition complicates plan design and adds complexity to tax planning for individuals when they reach age 70-1/2." (McKay Hochman Co., Inc.)
[Guidance Overview] Overview of Nonspouse Beneficiary Rollover Rules
Excerpt: "Guidance on this topic has evolved since the enactment of the Pension Protection Act of 2006 (PPA). The purpose of this article is to provide all the rules on nonspouse beneficiary rollovers in one place. To start, we provide a list of the guidance on this subject incorporated into this article." (McKay Hochman Co., Inc.)
[Guidance Overview] 403(b) Plan Document News
Excerpt: "The final 403(b) regulations require that there be a written plan document in place before 2009." (McKay Hochman Co., Inc.)
[Guidance Overview] Charts on Remedial Amendment Cycles
The two charts cover the SIX-YEAR CYCLE FOR PRE-APPROVED PLANS (Master and Prototype Plans and Volume Submitter Plans) and the FIVE-YEAR CYCLE FOR INDIVIDUALLY DESIGNED PLANS. (McKay Hochman Co., Inc.)
[Guidance Overview] Employee Benefits & Executive Compensation Webinar on PPA Compliance
Excerpt: "On March 6, Drinker Biddle and Watson Wyatt Worldwide presented a webinar on how plan sponsors will comply with the Pension Protection Act of 2006 (PPA), and how they will face the monumental task of implementing the PPA requirements in 2008. . . . [The target page has a link to view the presentation as well as hear the audio portion of this webinar.]" (Drinker Biddle & Reath LLP)
[Guidance Overview] 403(b) Final Regulations -- Plan and Contract Terms
Excerpt: "Final 403(b) regulations issued by the Internal Revenue Service require that all 403(b) programs have in place a written plan document and specify what must be included in the plan document. The regulations do allow for a plan document that is a compilation of vendor contracts and other plan communications as long as the result includes all the terms required by the IRS." (PLANSPONSOR.com; free registration required)
[Guidance Overview] High Court Lets Stand Decision on COLAs in Lump-Sum Calculations
Excerpt: "The U.S. Supreme Court let stand a 7th U.S. Circuit Court of Appeals decision that cost-of-living adjustments (COLAs) provided to defined benefit plan participants who choose to receive their distributions in the form of an annuity must also be included in the calculation of benefits for those who choose to receive a lump-sum distribution." (PLANSPONSOR.com; free registration required)
[Guidance Overview] A Big Question on 403(b)s Answered by Groom Law Group
Excerpt: "An adviser has some charter school clients that have been utilizing the DoL safe harbor in Labor Reg. § 2510.3-2(f). The adviser asks: If the point of the final 403(b) regulations is to have employers exercise more oversight/control of these plans, how far can they go in order to do that without stepping outside of the DoL safe harbor and becoming an ERISA-governed plan?" (PLANSPONSOR.com; free registration required)
[Guidance Overview] PBGC Proposed Regulations to Implement PPA Changes Regarding Actuarial Reporting Under ERISA § 4010
Excerpt: "To implement changes made by PPA, PBGC issued proposed regulations for determining the persons required to report under § 4010, providing a reporting waiver for controlled groups with $15 million or less in underfunding, modifying the standards for determining plans exempt from the actuarial information requirements, and revising the actuarial information requirements." (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS Issues Guidance on PPA Distribution Changes
Excerpt: "The IRS recently issued Notice 2008-30 to provide guidance regarding various PPA and other changes which affect distributions from qualified plans. In question and answer format, the Notice addressed modifications which allow rollovers to Roth IRAs from an expanded group of eligible retirement plans, require plans subject the QJSA requirements to provide a new qualified optional survivor annuity, change the determination of present value, and require a distribution of excess deferrals to be credited with gap period earnings." (Deloitte via BenefitsLink.com)
[Guidance Overview] House Passes PPA Technical Corrections Bill
Excerpt: "The U.S. House of Representatives late on March 12, 2008 passed a bill (H.R. 3361) to make a series of 'technical' corrections to the Pension Protection Act ('PPA') of 2006 (P.L. 109-280). The House-passed bill differs slightly from a PPA technical corrections bill (S. 1974) the Senate approved in December 2007. That means the House and Senate bills will need to be reconciled, a process expected to begin in April." (Deloitte via BenefitsLink.com)
Preparing for Their Future: A Look at the Financial State of Gen X and Gen Y
Excerpt: "Members of Generations X and Y, acknowledging that they need to pick up the slack when it comes to planning for their futures, are thinking about retirement and have defined financial goals according to a report released today by the American Savings Education Council (ASEC) and the Divided We Fail group (AARP, Business Roundtable, National Federation of Independent Business and the Service Employees International Union). [Detailed results of the survey are linked from the target page.]" (Employee Benefit Research Institute)
CRS Report Studies the Government Pension Offset
Excerpt: "A recent report by the Congressional Research Service (CRS) addresses the ongoing debate about retention of the Government Pension Offset (GPO) provision of the Social Security Act. Currently, five bills are pending in Congress to modify or repeal the GPO." (Wolters Kluwer)
Survey Finds 55% of Employers Believe Employees Favor Higher Salary Over Good Retirement Plan
Excerpt: "In 2007, more than half of the employers (55%) thought that potential employees would be interested in a higher-than-expected salary coupled with poor retirement benefits, as opposed to excellent retirement benefits coupled with only meeting the potential employee's minimum salary requirements." (Wolters Kluwer)
Text and Audio - New Hampshire Cities and Towns Push Retirement Plan Overhaul
Excerpt: "By a 4 to 1 majority the New Hampshire House has overwhelmingly passed reforms to the state retirement system. Supporters say the overhaul is needed to modernize the system and minimize costs to the cities and towns that pay into the retirement fund. Critics charge the changes go too far and aren't needed to bring long-term viability to the system." (New Hampshire Public Radio)
Pre-Retirees Plan to Work Longer to Prepare for Retirement Costs, According to Recent Survey
Excerpt: "Unexpected health care costs and inflation are top concerns for pre-retirees and retirees, according to a retirement survey recently commissioned by MFS Investment Management." (PLANSPONSOR.com; free registration required)
Bear Stearns and Employee Ownership
NCEO Executive Director Corey Rosen discusses the ESOP and other stock plans at Bear Stearns in the context of its recent troubles. (National Center for Employee Ownership)
Summary Report of Results from Segal Company's 2007 Survey of Withdrawal Liability Funded Ratios for the Multiemployer Market (PDF)
4 pages. Excerpt: "The survey found that the steady increase in the average withdrawal liability funded ratio of multiemployer pension plans, which began in 2005, has accelerated. It also found that a higher number of plans were 100 percent funded for their vested benefits." (The Segal Group, Inc.)
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| GTS - the George Taylor System for combined DB /DC Plan Proposals |
| GTS is a fast, easy-to-use MS Excel-based interactive system designed by George Taylor. It creates plan proposals, including combined DB Cash Balance and DC New Comparability plan designs. GTS performs combined plan IRC 401(a) non-discrimination testing and prepares client-ready reports. A GTS subscription includes system updates for government regulations and HelpLine Support. GTS is available exclusively from BLAZE SSI Corp. |
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview] CRS Report: Disability Benefits for Federal Employees, Including Retirement Due to Disability (PDF)
Excerpt: "Federal civilian employees earn 13 days of paid sick leave per year. Sick leave can be used because of the worker's own illness or injury or to care for an ill or injured family member. A worker's employing agency can advance up to 30 additional days of sick leave to an employee who has exhausted his or her accrued sick leave. A federal worker with a long-term disability can separate from service through a disability retirement. A federal employee who sustains a disabling injury on the job can receive benefits under the Federal Employees' Compensation Act (FECA). FECA benefits consist of cash compensation, payment of medical costs related to the injury, vocational rehabilitation assistance, the cost of attendant care services, and burial benefits. A disabled federal employee may not receive a disability retirement annuity and FECA benefits simultaneously." (Congressional Research Service, U.S. Library of Congress)
[Guidance Overview] Proposed FASB Staff Position to Amend FASB Statement No. 132 (revised 2003), Employers' Disclosures about Pensions and Other Postretirement Benefits (PDF)
19 pages. Excerpt: "This proposed FASB Staff Position (FSP) would amend FASB Statement No. 132 (revised 2003), Employers' Disclosures about Pensions and Other Postretirement Benefits, so as to improve a public and nonpublic employer's disclosures about postretirement benefit plan assets. Additionally, this proposed FSP includes a technical amendment to Statement 132(R) that would require a nonpublic entity to disclose net periodic benefit cost." (Financial Accounting Standards Board)
[Guidance Overview] IRS Regs on Diversification Requirements for Variable Annuity Contracts
Excerpt: "The IRS has issued final regulations concerning the diversification requirements of Code Sec. 817(h). Code Sec. 817(h)(1) provides that a variable contract that is based on a segregated asset account is not treated as an annuity, endowment, or life insurance contract unless the segregated asset account is adequately diversified in accordance with regulations." (Wolters Kluwer)
[Guidance Overview] A Couple More 162(m) Issues
Excerpt: "IRS representatives [have] indicated that only an amendment that applies to the performance-based components of a plan or agreement would void the transitional protection provided by Rev. Rul. 2008-13, not amendments of other, unrelated provisions." (Michael S. Melbinger via Winston & Strawn LLP)
Arizona Bill to Block State Benefits for Domestic Partners Dies
Excerpt: "A bill aimed at blocking a move to allow unmarried domestic partners to get coverage as dependents under state employee and retiree benefits is dead in the water at the Legislature." (Arizona Daily Sun)
High Court Declines to Review LTD and Pension Cases
Excerpt: "The U.S. Supreme Court has decided against hearing appeals of two decisions involving employee benefits issues. The court refused to take up an appeal in Rohm and Haas Pension vs. Williams. . . . The Supreme Court also declined to take up Graham vs. Hartford Life Insurance Company." (The National Underwriter Company; free registration or paid subscription required)
Smaller Companies at a Competitive Disadvantage with Larger Companies on Benefit Offerings
Excerpt: "The cost of employee benefits and the wherewithal to offer them are sizable problems for all small businesses, according to a survey by the Small Business Administration." (California Job Journal)
Delta to Offer Worker Buyouts
Excerpt: "One part of the program is for employees who are already eligible for retirement or for those whose ages and years of service add up to at least 60, with 10 or more years of service. The other part of the program is an offer for front-line employees -- such as flight attendants and gate and ticket agents -- with 10 or more years of service and for administrative and management employees with one or more years of service." (AP vis The Washington Post; free registration required)
Bear Stearns' Ills Draw Company Stock 'Investigation'
Excerpt: "The law firm of Stember Feinstein Doyle & Payne, LLC has announced it is investigating possible illegal conduct relating to the Bear Stearns Companies Inc. Employee Stock Ownership Plan, Profit Sharing Plan and Deferred Compensation Plan." (PLANSPONSOR.com; free registration required)
Aging of U.S. Workforce - Proposed Strategies to Meet the Challenges
Excerpt: "The concern about keeping older workers in the work place is generated at least in part by the fact so many high growth -- and strategic -- industries have such a large percentage of their workers at ages 45 or older." (Deloitte via BenefitsLink.com)
Newly Posted Events
Chicago WEB Chapter Breakfast Briefing: Dependent Eligibility Audits
in Illinois on March 26, 2008
presented by WEB - Chicago Downtown
Controlled Groups, 415 Limits, Deductions - Webcast
Nationwide on April 9, 2008
presented by Newkirk
Deductibility of Performance-Based Compensation under IRS Code Section 162(m) - Webcast
Nationwide on March 26, 2008
presented by West LegalEdcenter
Plan Reporting and Disclosure - Webcast
Nationwide on April 16, 2008
presented by Newkirk
Selecting and Monitoring Target Date Funds
in California on April 2, 2008
presented by International Society of Certified Employee Benefit Specialists - Orange County Chapter
Solving Problems with Form 5500 - Webcast
Nationwide on March 20, 2008
presented by Newkirk
Top Heavy Rules, Keys, Attribution, HCEs - Webcast
Nationwide on April 2, 2008
presented by Newkirk
Vesting, DC Contributions, Allocations - Webcast
Nationwide on March 26, 2008
presented by Newkirk
Wellness Programs in the Workplace: What's Allowed, What Isn't, and What Designs Work Best?
Nationwide on April 17, 2008
presented by Employee Benefits Institute of America (EBIA)/Thomson Tax & Accounting
Newly Posted Press Releases
Retirement Landscape Shifts for Gen X and Y
Employee Benefit Research Institute (EBRI)
Center for Health Innovation Identifies Key Trends In Value-based Health Design
Center for Health Value Innovation
401kDIRECT And EPIC Advisors Combine Marketing Strategies To Offer Services Whose Time Has Come Again
Venture (k) Corp.
Newly Posted or Renewed Job Openings
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Pension Consultants/Administrators
for Northern & Central NJ Mid-Size Pension Consulting Firm
in NJ
Defined Contribution Administrator
for Shore Tompkins Actuarial Resources
in IL
Defined Contribution Client Account Manager
for New York Life Retirement Plan Services
in NJ
409A Plan Administrator / 409A Senior Plan Administrator
for Pen-Cal Administrators
in CA
Technical Project Manager
for Citi
in MA
Defined Contribution Plan Administrator
for Employee Benefit Services, Inc.
in TN
Implementation Project Manager
for Great-West Corporate
in CO
Regulatory Support Specialist
for Mercer Outsourcing
in MA
Regional Director
for U.S. Department of Labor, Employee Benefits Security Administration
in CA
Third Party Administration (TPA) Accountant
for BKD, LLP
in AR
Data Processing Position
for Hancel Mccord Company, Inc.
in TX
Defined Benefits SPGA Pricing Director
for Babson Capital Management LLC
in MA
Retirement Plan Administrator
for Tax Sheltered Compensation, Inc.
in MN
Defined Contribution Plans Manager
for Unitrin, Inc.
in IL
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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