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| May 9, 2008 |
| 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.)
| 5500 / PBGC / 1099-R / 5300 / FAS 158 Software from DATAIR |
DATAIR Pension Reporter System. Easy to use and economical for electronic and paper filing with instant access to forms and instructions. Live, expert support included.
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[Guidance Overview] Retirement Plan Service Provider May Be Liable for Breach of ERISA Fiduciary Duty in Cross-Selling Rollover IRAs Invested in Proprietary Mutual Funds
Pages 1-2 of 7 pages. Excerpt: "A federal district court in Iowa allowed class action claims to proceed against a financial services company for alleged breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974, as amended ('ERISA'), resulting from the company encouraging retirement plan participants to roll over their 401(k) plan assets into IRAs invested in the company's proprietary mutual funds." (Goodwin Procter LLP)
[Guidance Overview] DOL FAB Addresses QDIA Issues
Excerpt: "The Department of Labor (DOL) has issued Field Assistance Bulletin (FAB) 2008-03 to respond to a number of questions practitioners have raised regarding the final regulations on qualified default investment alternatives (QDIAs) published in October 2007 and effective last December. The DOL also issued minor modifications to the final QDIA regulations." (SunGard Corbel LLC)
[Guidance Overview] Improving Returns on 401(k) Plans
Excerpt: "[I]s your 401(k) plan as effective as it can be in helping employees save for their retirement? Does it have auto-enrollment and other useful features that are available today from providers? These features can enhance the appeal of your employee savings programs and increase usage, making them even more effective." (Towers Perrin)
401(k) Disclosure Rule Would Affect Brokers
Excerpt: "Concerns mount about planned ERISA changes. Some say DOL's proposed changes to 408(b)(2) of ERISA -- especially those dealing with advance compensation disclosure and conflict of interest reporting aspects -- are overly burdensome and redundant. 'It switches the burden from the employer to the service provider to actually provide the information . . . .'" (Employee Benefit Adviser; free registration required)
Why Women Are at Greater Financial Risk in Retirement and How Annuities Can Help (PDF)
31 pages. Excerpt: "The Female Factor offers an analysis of women's economic position in retirement, laying out the factors that determine whether they will achieve financial security in their 'golden years.' This recently-updated report discusses lifetime annuities as an important retirement income security tool for women. When combined with Social Security and other retirement income, an annuity can help cover basic living expenses while addressing the risk of outliving assets." (Americans for Secure Retirement)
New York Attorney General Cuomo Sees Fraud in Some Lawyers' State Pensions
Excerpt: "Over the years, Mr. Cuomo said, the benefits have become a standard and expected perk for the lawyers, who often have political ties to the officials handing out the benefit. The system has proliferated, Mr. Cuomo suggested, because of New York's profusion of state, county and local governments." (The New York Times; free registration required)
Hispanic Americans and Retirement (PDF)
Excerpt: "While the following pages reveal the retirement attitudes and behaviors of Hispanic Americans, it is important to recognize that for some, the English language barrier is a cultural obstacle that has had a significant impact on their financial ambitions. Success -- as measured by earned income, financial assessment, and confidence in meeting retirement goals -- is greater among Hispanics who live in predominantly English-speaking households." (Prudential Retirement)
2008 Investment Company Fact Book
Excerpt: "The 2008 Investment Company Fact Book provides an entry point to our extensive body of research and statistics on retirement savings, as well as statistics on, and analysis of, all types of registered investment companies and their investors, collectively referred to as funds and fund investors." (Investment Company Institute)
PLANSPONSOR 2008 Ultimate Buyer's Guide: 403(b)
Excerpt: "Sponsors who decide to search for new plan vendors or a vendor that will take on the monitoring or recordkeeping function should look for providers that have 'best-in-class' investment choices . . . . Sponsors also should ask what services the providers offer and what fees they charge for the services. Finally, . . . sponsors should look for providers that are committed to the 403(b) business and the retirement readiness of participants." (PLANSPONSOR.com; free registration required)
Towers Perrin U.S. Legislative Tracking Charts -- Retirement -- Updated May 2, 2008 (PDF)
11 pages. These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors. (Towers Perrin)
Benefit Plan Reporting Can Aid Plan Sponsor Functions
Excerpt: "Scott C. Albert, Chief of EBSA's Division of Reporting Compliance, told the Webinar audience that employers can actually fend off a variety of problems by properly gathering the data necessary to complete the annual report, Form 5500. Among other benefits, Albert said, having good data management systems in place can help the plan sponsor properly monitor the investment returns of the plan's lineup options as well as to keep an eye on provider performance." (PLANSPONSOR.com; free registration required)
Connecticut State 401(k) Plan Proposal Dies As Legislative Session Ends
Excerpt: "A bill allowing the state of Connecticut to sponsor a 401(k) plan for small businesses apparently was a casualty of the last-minute scramble by lawmakers to end their current session Wednesday night." (PLANSPONSOR.com; free registration required)
EBSA Studying 403(b) Orphan Contract Problem
Excerpt: "A top Department of Labor (DOL) benefits regulator on Thursday revealed that the agency is studying ways to help 403(b) plan sponsors better deal with the difficult problem of getting an exact accounting of their orphan contracts." (PLANSPONSOR.com; free registration required)
Nest Egg Plan Hatched for Home Buying
Excerpt: "The federal government's slow response to the housing crisis has prompted one Long Islander to formulate a remedy of his own. Ed Mazoyer, a financial consultant at Vanderbilt Securities in Melville . . ., wants the government to allow homebuyers to take up to $100,000 from their retirement plans, either from a 401(k) or an Individual Retirement Account, with no penalty, if they use the funds to buy a house." (Long Island Business News)
Consolidating Retirement Funds
Excerpt: "Consolidating multiple retirement plans can help simplify life and gain control over qualified plan assets. For example, consolidating IRA and 401(k) assets with one institution may save both time and money. Assets can be transferred from one IRA provider to another without taxes or penalties." (The Republican Eagle)
Retirement Firms Consolidate
Excerpt: "The retirement services market has been consolidating quickly in the past two years. In addition to ING's deal for CitiStreet, MassMutual bought First Mercantile Trust's retirement plan business this year, and in December Hartford Financial Services Inc. bought Sun Life Financial Inc.'s U.S. defined contribution plan administration business; Princeton Retirement Group; and Top Noggin, which offers data management, administration, and benefit calculation tools for sponsors of defined benefit plans." (American Banker via On Wall Street)
[Opinion] Building on Social Security's Success - The Retirement Debate
Excerpt: "Social Security is an excellent tool to meet the economic risks working families face. Given its proven track record, wise policy will balance Social Security finances without cutting benefits and then seek to restore the adequacy of benefits." (Virginia P. Reno via The Wall Street Journal)
[Opinion] Big Questions from a Small Story on a (Relatively) Small Loss
Excerpt: "Here's a short newspaper story of a local municipal pension plan that suffered a $2.4 million loss to its pension fund, which is only about a $53 million fund, as a result of investments in subprime mortgage backed assets made either by State Street or in State Street funds . . . . This whole scenario raises an interesting question, aside from whether it is the plaintiff administrators or instead State Street that is right, because no matter which one is correct in their interpretation of the events at issue, you still end up in the same place, which is that the plans signing off on these investments just plain didn't know what they were buying." (Stephen Rosenberg of The McCormack Firm, LLC)
Sponsored by: ASPPA
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| ASPPA Spring Exam Window - Registration ends May 14, 2008 |
| Looking for a way to enhance your professional image and gain the knowledge you need to succeed in the retirement industry? ASPPA credentials provide that and more for the retirement professionals who have obtained the most sought after credentials in our industry. Comprehensive and practical, the ASPPA credentialing program has a path for you. The deadline for the spring exam window, May 14, is rapidly approaching. Don't wait another day to start your journey towards a professional ASPPA credential. Register Now. |
| (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
The Effect of Conflicts of Interest on the Scope of Discovery
Excerpt: "As discussed in a prior article, the federal judiciary has permitted limited discovery beyond the 'administrative record' as the inquiries may bear upon the question of a structural conflict of interest as, for example, where the administrator and the insurer are the same entity. Another level of conflict of interest may exist, namely, that of 'third parties', such as consultants, who review the record and advise the administrator." (Health Plan Law blog by Attorney Roy F. Harmon III)
Financial Experience & Behaviors Among Women
16 pages. Excerpt: "[This report is the fifth in a series]. Looking back at the data, it appears that there has been some progress in women's overall financial knowledge and confidence, they are more involved in these decisions and, in fact, some women are taking the leading role for their household. This year's study is designed to give a deeper look at some of the generational differences among women as it relates to their concerns, goals, and progress." (Prudential Retirement)
ExxonMobil Pilot Retirement Mandate Survives Legal Challenge
Excerpt: "A federal judge in Texas has dismissed an Equal Employment Opportunity Commission (EEOC) lawsuit alleging ExxonMobil violated the Age Discrimination in Employment Act (ADEA) by requiring its corporate pilots to retire at age 60." (PLANSPONSOR.com; free registration required)
New Resource for ERISA Attorneys
Excerpt: "[Rob] Hoskins, Esq. (legal counsel to the petitioner in LaRue v. DeWolff, Boberg) has put together a great resource for ERISA attorneys. The resource is called ERISABoard.com [http://www.erisaboard.com/] and, despite having been recently launched, already has substantial enrollment by some of the top practitioners in the field. The site is non-commercial - it serves as forum for the exchange of ideas by attorneys interested in ERISA issues." (Health Plan Law blog by Attorney Roy F. Harmon III)
Newly Posted Events
Retiree Medical Spending Accounts (RMSAs) and Other Innovative Retiree Medical Designs - Webcast
Nationwide on May 14, 2008
presented by Employers Council on Flexible Compensation (ECFC)
The 401k Service Training Program™ Accredited by Robert Morris University -- June 9-10, 2008
in Pennsylvania on June 9, 2008
presented by Financial Service Standards, LLC
Newly Posted Press Releases
BenefitStreet Restructuring Take First Two Steps
BenefitStreet, Inc.
CFDD Launches Strategic Marketing Service For Advisors
Center for Due Diligence
The 401k Service Training Program™ Accredited by Robert Morris University -- June 9-10, 2008
Financial Service Standards, LLC
DataPath and RelayHealth Announce Strategic Relationship to Streamline Payment Reimbursements from Employee Healthcare Accounts
RelayHealth
Newly Posted or Renewed Job Openings
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Defined Benefit Administrator / Actuarial Assistant
for Pacific Coast Actuaries, Inc.
in CA
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