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| June 10, 2008 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is SunGard
(Click on company name or banner to learn more.)
| SunGard's Document Management Services |
| Do you have 500 or more defined contribution plans to restate for EGTRRA? Outsource them to us. SunGard’s expert Document Management Services (DMS) staff can work as your "invisible" back office resource to help you through the restatement process. Let us focus on your plan documents, so you can focus on growing your business. Contact Ellen Nasrallah at 800-326-7235, ext. 5968. |
[Guidance Overview] Court Asks SG's Views on ERISA Retirement Accumulation Case
Excerpt: "This is not the normal age discrimination issue we look at when analyzing cash balance plans, but asks whether it is consistent with ERISA and the IRC to pay a lump sum distribution and if so, how should that lump sum be calculated in the cash balance setting." (Workplace Prof Blog)
[Guidance Overview] PBGC Issues Final Premium Payment Guidance (PDF)
Excerpt: "These developments affect sponsors of qualified defined benefit plans that are subject to PBGC premium requirements, including cash balance plans and multiemployer plans. Governmental plans and plans sponsored by churches that do not elect to be covered by ERISA ('non-electing church plans') are not subject to these rules." (Prudential Retirement)
[Guidance Overview] United States v. Jackson: Imposing Criminal Liability for Failure to Fund a Company's Pension Plan (PDF)
Pages 6-7 of 8 pages. Excerpt: "Companies too often face financial distress. Chapters 7 and 11 of the Bankrup.tcy Code are premised on this, including the need to work out or forgive payments to various company creditors. The Fourth Circuit's decision in United States v. Jackson, 2008 WL 1903485 (4th Cir. May 1, 2008), reminds us, however, that there can be at least one class of creditor for whom you can go to jail for failure to payup: an ERISA plan." (Proskauer Rose LLP)
[Guidance Overview] Application of the Fiduciary Exception in ERISA Litigation (PDF)
Pages 5-6 of 8 pages. Excerpt: "The [attorney-client privilege] is not absolute; a 'fiduciary exception' to the attorney-client privilege has become well established. Rooted in English common law, and applied in various disciplines, courts routinely have applied the fiduciary exception in the appropriate circumstances in ERISA litigation." (Proskauer Rose LLP)
[Guidance Overview] Kirschbaum v. Reliant Energy - Fraud-Based Employer Stock Drop Claims (PDF)
Pages 2-3 of 8 pages. Excerpt: "In Kirschbaum v. Reliant Energy, Inc., 2008 WL 1838324 (5th Cir. Apr. 25, 2008), the Fifth Circuit addressed a fiduciary stock drop claim arising out of the energy trading scandals occurring between 1999 and 2001." (Proskauer Rose LLP)
[Guidance Overview] Recent Developments in Fee Litigation: Has a Tipping Point Been Reached? (PDF)
Pages 2-3 of 11 pages. Excerpt: "Unfortunately, however, the judicial caution in dismissing lawsuits at a preliminary stage is begetting further lawsuits, as illustrated by the fact that more experienced ERISA plaintiffs' counsel are investigating claims in this area and approximately 30 class action lawsuits have been filed to date. The U.S. Department of Labor has also weighed in on the appeal of the Hecker case, taking positions that would make dismissals at the preliminary stage difficult. In this environment, it is reasonable to assume there will be continued litigation, and that the safe practice is thus to work through and document the prudent processes followed in selecting and monitoring the plan providers and fund investment options offered." (Proskauer Rose LLP)
Trends in Elective Deferrals of Earnings from 1990–2001 in Social Security Administrative Data (PDF)
21 pages. Excerpt: "Trends in elective deferrals are potentially important in analyzing historical earnings data and in projecting future Social Security earnings." (U.S. Social Security Administration)
Pension Restructuring Cuts Deep Into Steelworkers' Pockets
Excerpt: "[A 55-year-old steelworker] wonders whether he will ever retire since learning in March that his monthly pension benefit will be cut by more than two-thirds to less than $300. He is an unintended victim of a steel company's reorganization after promising benefits it couldn't afford, and a federal policy that cheated him out of his 30-year pension by a matter of weeks." (Chicago Tribune)
HSBC Employee Pension Changes Plan
Excerpt: "Europe's biggest bank is planning changes to its pensions which could hit employees on the final salary scheme. A third of HSBC's UK workforce of 58,000 are on the final salary scheme and, under the plans, would be asked to pay a contribution from their salary." (BBC)
Proposed 401(k) Automatic Contribution Regs Need Clarification, Practitioners Tell IRS
Excerpt: "Proposed regulations issued by the IRS in November 2007 governing Eligible Automatic Contribution Arrangements (EACAs) (CCH Pension Plan Guide ¶20,262E) should be modified to specifically allow for mid-year elections, according to practitioner comments at a May 19, 2008 IRS hearing on the regulations." (Wolters Kluwer)
Audio: Book Examines Looming Pension Debts in America
Excerpt: "Business journalist Roger Lowenstein's new book, While America Aged, looks at how corporations and governments came to make pension and health care obligations to workers and what is happening as the bills come due. Host Renee Montagne talks about the book with Lowenstein." (Morning Edition via National Public Radio)
Colorado Governor Signs Bill Allowing Retirement Systems Merger
Excerpt: "Colorado Governor Bill Ritter on May 28 signed a bill establishing ground rules for a proposed merger of the Denver Public Schools Retirement System (DPSRS) into the Colorado Public Employees Retirement Association (PERA), the Denver Business Journal reported." (PLANSPONSOR.com; free registration required)
Are the Employer Stock Cases Laying the Groundwork for Claims beyond Employer Stock Funds? (PDF)
Pages 3-4 of 8 pages. Excerpt: "In light of the current litigation environment, where applicable, fiduciaries also should consider documenting why the plan is offering high risk/high return investment options, and educating participants on how these options are meant to work within, and to be only a part of, a participant's diversified portfolio of investments." (Proskauer Rose LLP)
Key Funding Rule Change at Stake in Legislation Aimed to Fix Pension Law Problems
Excerpt: "Federal legislation to correct dozens of technical errors in the Pension Protection Act of 2006 is mired on Capitol Hill as legislators fight over what kinds of additional provisions should be included." (Pensions & Investments)
Interest Earned on Savings During Retirement Is Critical
Excerpt: "What this means for workers today is to make sure their retirement plan is focused on long-term returns through diversified investments in the plan and not move money into conservative investments during down periods, which can increase the chances money is not invested during stock rallies. Employees with large balances should consider hiring a fee-only adviser to ensure proper diversification according to the time until retirement and again once in retirement." (SanLuisObispo.com)
The West Virginia Teacher Retirement Plan Lawsuit
Excerpt: "An attorney representing hundreds of teachers and school service workers in West Virginia says he has a database of those workers who can talk specifically about how they were duped into signing up with life insurance company VALIC. It happened back when the newer teacher retirement system, the defined contribution plan, was formed." (West Virginia MetroNews Network)
Supreme Court Rejects AT&T Appeal in Pension Case
Excerpt: "At issue in the case is whether a pension plan administered by Ameritech, a local phone company, improperly reduced retirement benefits paid to an employee in 1999." (AP via Forbes.com)
Top Kentucky Lawmakers Make Progress in Pension Talks
Excerpt: "Top Kentucky lawmakers meeting in private Monday neared a possible agreement that has eluded them in the past to begin shoring up the state's financially troubled pension system for public employees. House Speaker Jody Richards said House and Senate legislators made 'great progress' during negotiations spanning much of the day at the state Capitol. He said a plan could be unveiled Tuesday after rank-and-file lawmakers are briefed." (Kentucky.com)
Sponsored by: ASPPA
(Click on company name or banner to learn more.)
| The Western Benefits Conference, July 13-16, 2008, Seattle, Washington |
| It's the best of both worlds, and should not be missed. Join the Western Pension & Benefits Conference and ASPPA for this unique conference designed with all retirement, health, welfare and benefits professionals in mind. The Western Benefits Conference offers attendees seven separate professional learning tracks with over 50 individual sessions all led by nationally renowned speakers and both national and local government representatives. Network with your peers, private sector experts, and government officials at planned events throughout the conference. Be in Seattle with over 900 of your colleagues July 13-16, 2008 and experience this conference first hand. Register NOW and don't miss out. |
| (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
[Guidance Overview] Will Equitable Relief Be Redefined . . . Again? (PDF)
Pages 6-7 of 11 pages. Excerpt: "It remains to be seen whether the Supreme Court will grant certiorari in Amschwand v. Spherion Corp. If and when the Court reaches the Section 502(a)(3) issue, the one thing that is certain is that its decision will be of great import." (Proskauer Rose LLP)
Broadcom CFO and CEO Indicted - Indictment Reveals Litany of Alleged Backdating Schemes
Excerpt: "The former CFO and CEO of Broadcom Corporation have been indicted by a federal grand jury in California on securities fraud and conspiracy charges related to backdating stock options that caused the company to take a $2.2 billion write-down in 2007. The restatement is reported to be the largest accounting charge taken in connection with an options backdating case." (CFO.com)
Companies Promise CEOs Lavish Posthumous Paydays
Excerpt: "Dozens of . . . companies offer lush death-benefit packages to their top executives, according to a Wall Street Journal review of federal filings. Many companies accelerate unvested stock awards after a death, which by itself can amount to tens of millions of dollars. Some promise giant posthumous severance payouts, supercharged pensions or even a continuation of executives' salaries or bonuses for years after they're dead." (The Wall Street Journal)
Non-Qualified Deferred Compensation Plan Prevalance Remains High
Excerpt: "As of 2007, 95% of respondents to Clark Consulting's Executive Benefits survey offer some type of non-qualified deferred compensation (NQDC) plan to executives, up from 91% in 2005." (PLANSPONSOR.com; free registration required)
Workforce Protections Subcommittee Field Hearing: 'Family-Friendly Leave Policies: Improving How Workers Balance Home and Family'
Links to hearing testimony are provided. (U.S. House of Representatives Committee on Education and Labor)
A Quarter of U.S. Employees Care for an Older Adult
Excerpt: "One in four employees currently cares for an older or disabled adult. Of those employees, nearly half (44%) have missed work time to care for a loved one, finds a new national survey of working adults conducted by work-life benefits firm Workplace Options." (Employee Benefit News; free registration required)
Will Same-Sex Marriage Drive Workplace Litigation?
Excerpt: "'Same-sex marriage tends to be a very polarizing issue because people's views are so often colored by religious beliefs and strong personal convictions,' said workplace compliance expert Shanti Atkins, President & CEO of ELT. 'And because it's such a heated subject, it's very difficult (if nearly impossible) to have a civilized discussion on the topic, which can lead to some very uncomfortable and offensive situations in the workplace.'" (PRWeb via Yahoo! News)
Shareholders Try to Kill Yahoo Severance Plan
Excerpt: "A Yahoo (YHOO.O) employee severance plan meant to protect workers after a merger with Microsoft (MSFT.O) should be scrapped, according to a shareholder lawsuit against Yahoo and its directors, The New York Times reported on Tuesday." (Reuters via The Washington Post; free registration required)
Handy Resource Page for Joint Board for the Enrollment of Actuaries Is Published by IRS
Information available includes: News from the Joint Board; Enrolled Actuary Information; Joint Board Examination Program; and, Renewal of Enrollment. (Internal Revenue Service)
Vacations Are Good for You, Medically Speaking
Excerpt: "Using information from the Framingham Heart Study, which started in 1948, researchers looked at questionnaires women in the study had filled out over 20 years about how often they took vacations. Those women who took a vacation once every six years or less were almost eight times more likely to develop coronary heart disease or have a heart attack than those who took at least two vacations a year, said Elaine Eaker, a co-author of the study and president of Eaker Epidemiology Enterprises, a private research company." (The New York Times; free registration required)
Newly Posted Events
Planning for Open Enrollment: Compliance Solutions for Cafeteria Plans and Component Benefits
Nationwide on May 29, 2008
presented by Employee Benefits Institute of America (EBIA)/Thomson Tax & Accounting
Newly Posted Press Releases
Segal Expands Claims Audit Capabilities – Announces Agreement with Benefits Informatics
The Segal Company
Children’s Medical Center of Dallas and Alliance Coal in Tulsa Receive SouthWest Benefits Association’s Best of Class Benefits Solution Awards
SouthWest Benefits Association
Midwest Business Group on Health Leads Effort to Improve the Quality, Consistency and Reporting of Chicago’s Health Care Services
Midwest Business Group on Health
National Retirement Partners Closes Another Acquisition
National Retirement Partners, Inc.
Segal Expands Claims Audit Capabilities – Announces Agreement with Benefit Informatics
Benefit Informatics
Ascensus Improves Participant Website Offering
Ascensus
Paychex Offers Auto Enrollment Option for 401k Plans
Paychex
Go to Your Room! Survey Reveals Adult Children of Retired Parents Need More Discipline In Retirement Planning
NAVA
Newly Posted or Renewed Job Openings
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Defined Contribution/401(k) Administrator
for Boyce & Associates, Inc.
in AZ
Defined Benefit Consultant / Administrator
for Boyce & Associates, Inc.
in AZ
401(k) Senior Plan Administrator
for Matthews Benefit Group, Inc
in FL
Senior Consultant / Client Services Manager
for Boyce & Associates, Inc.
in AZ
Consulting Actuary
for Diversified Investment Advisors, Inc.
in CA
Actuarial Analyst
for New York Life Retirement Plan Services
in MA
Account Mgr II - SRS
for The Standard
in MA, OH, OR
Retirement Plan Specialist
for Diversified Investment Advisors
in MD
ERISA Tax Partner $500k+ portables
for Start-up national benefits practice
in DC
Pension Administrator
for Keystone Benefits Group, Inc.
in PA
Retirement Sales Wholesaler - Inside Sales
for ExpertPlan, Inc.
in NJ
Section 125 Compliance Analyst
for Administaff
in TX
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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