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| July 8, 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.
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| PPA’06 Defined Benefit Software from DATAIR |
| DATAIR’s Defined Benefit System for Valuations, Discrimination Testing, and Proposals. Includes 412(e)(3) insured plans, Cash Balance Plans, DB/DC combos and Sole Proprietors. Live, expert support.
DATAIR’s PPA’06 DB System includes
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[Guidance Overview] IRS Proposed Regulations Would Encourage Generosity in Cash Balance Conversions (PDF)
Excerpt: "The IRS has issued proposed regulations that would clarify how defined benefit plans, especially hybrid plans, that provide a benefit calculated as the greatest of benefits under separate formulas would satisfy the ERISA anti-backloading rules. Generally, the proposed regulations would permit such 'greater-of' plans to satisfy a backloading test by testing each formula separately. This is the same relief offered in Revenue Ruling 2008-7 and is generally helpful to employers who want to convert to cash balance designs while providing more than the required transitional benefits to older employees." (Buck Consultants)
[Guidance Overview] IRS Formally Approves 'Greater of' Plan Conversions
Excerpt: "The IRS has proposed regulations confirming that 'greater of' conversions do not violate the accrual rules. The proposed rules resolve a controversy that arose during the IRS determination letter process, when the IRS challenged cash balance plans that used a greater-of conversion method to transition from a traditional defined benefit plan." (Watson Wyatt Worldwide)
Candidates Diverge on How to Save Social Security
Excerpt: "Sens. Barack Obama and John McCain are both proposing dramatic changes to Social Security, taking on the financially fragile 'third rail of American politics' that Congress and recent presidents have been unable to repair." (The Washington Post; free registration required)
Senators Seek Probe of PBGC Benefit Calculations
Excerpt: "The group -- which includes Sen. Barack Obama, D-Illinois, the presumptive Democratic candidate for president -- asked the Government Accountability Office to investigate how the PBGC initially estimates benefits due and why there have been, in some cases, lengthy delays in final benefit determinations. In addition, they want the GAO to examine the extent to which benefits calculations change between the initial and final determinations." (Workforce Management; free registration required)
Administration Sets Deadline for Final Regulations
Excerpt: "The November 1 deadline will not affect pending regulations regarding 401(k) automatic enrollment, 'greater of' cash balance conversion formulas and the PPA's new funding requirements and benefit restrictions, although U.S. Treasury Department officials hope to finalize these regulations this year." (Watson Wyatt Worldwide)
Reforming German Civil Servant Pensions: Funding Policy, Investment Strategy, and Intertemporal Risk Budgeting
Excerpt: "We analyze the risks and rewards of moving from an unfunded defined benefit pension system to a funded plan for civil servants in Germany, allowing for alternative portfolio mixes using a Monte Carlo framework and a Conditional Value at Risk metric." (Pension Research Council; registration required to download fulltext of paper)
P&I Round Table Predicts Any Improvement in Credit Markets Still a Long Way Off
Excerpt: "A mostly gloomy panel warned there will be further carnage in both fixed-income and equity markets, and that pension fund executives expecting average annual returns of 8% for the foreseeable future are likely to be disappointed." (Pensions & Investments)
Tapping Into 401(k) Early Can Have Long-Term Consequences
Excerpt: "Most financial experts discourage people from tapping into their 401(k) plans and advise doing so only as a last resort. 'You're borrowing against your future,' said Chris Lombardo, credit counselor and area director of ClearPoint Financial Solution's Northwest region. 'You're borrowing money from your retirement account and you're giving up the interest you would have been earning. Over the long haul, that's going to have a significant impact on your final 401(k) balance.'" (Seattle Post-Intelligencer)
Court Denies Interest on Benefit Paid 12 Years After Death
Excerpt: "The U.S. District Court for the District of Delaware has denied a request by a deceased pension plan participant's ex-wife for interest on surviving spouse benefits paid to her 12 years after her ex-husband's death." (PLANSPONSOR.com; free registration required)
Mercer Asks Court to Drop Charges in Milwaukee Pension Suit
Excerpt: "Mercer has filed a motion for summary judgment asking a district court to dismiss all claims against it in a lawsuit claiming the firm was negligent in its role as actuary to the Milwaukee County pension plan. The county, the Milwaukee County Employees' Retirement System, and its governing Pension Board, sued Mercer for its alleged role in the enactment of a BackDROP provision." (Mercer LLC)
Report Says Weak Markets, Credit Crunch Have Drained $280 Billion from Plans of Largest U.S. Companies
Excerpt: "Since the credit crunch hit last fall, pension plans funded by S&P 1500 companies have lost about $280 billion in assets, according to an actuary at Mercer, a human resources consulting firm." (CNNMoney.com)
[Opinion] 'Fashionable' in Some Quarters to Bash Workplace Retirement Savings Plans - Particularly, the 401(k)
Excerpt: "What all too often gets lost in our criticisms of the current system is just how often it works well. Perhaps only three-of-four eligible to participate in such programs choose to do so, but on an employer-by-employer basis, participation rates north of 90% are not impossible to find -- and that's before the adoption of mechanisms like automatic enrollment." (PLANSPONSOR.com; free registration required)
[Opinion] The Choice on Whether to Contribute to a Regular 401(k) or a Roth 401(k)
Excerpt: "Roth 401(k)s often are portrayed as the preferable choice over traditional 401(k)s. Not so fast, says our author. Roths rarely are the right choice except for the very wealthy, he contends. The reason: contributions are made at the highest marginal tax rate, but withdrawals are made at lower effective rates." (Financial Planning Association)
Sponsored by: ASPPA
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| 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] New York State Issues Guidelines Interpreting 'Blood Donation Leave' and 'Rights of Nursing Mothers' Legislation
Excerpt: "The New York Commissioner of Labor has recently issued guidelines for the implementation of two new provisions of the New York Labor Law. These guidelines deal with: (1) the provision of blood donation leave to employees; and (2) the right of nursing mothers to express breast milk at their place of employment. The guidelines address many of the concerns facing employers under these new laws, and provide several benchmarks for compliance." (Bond, Schoeneck & King, PLLC)
Benefits Attorney Donald R. Levy Dies
Excerpt: "He served as Vice President and Employee Benefit Consultant to Johnson & Higgins as Vice President-Human Resources and Director of Employee Benefits at UST (United States Tobacco Company), as Senior Consultant with William M. Mercer, Inc. His publishing activity developed in post retirement, after a few years with Prentice Hall and RIA. He continued with his own publishing business and authored many books, including the Pension Handbook. He taught at the University of Connecticut, served as a panelist for the Practicing Law Institute, and lectured before various professional groups." (The [Stamford CT] Advocate)
Fuel Prices Drive Tough Adjustments As Public, Private Sectors Eye Shorter Workweeks, Telecommuting, to Cut Costs
Excerpt: "[The symbolic gesture by Democratic Gov. Jennifer Granholm--pedaling a bike] a couple of days a week to the state Capitol in Lansing--is part of an evolving behavior shift by individuals, employers and governments struggling to adjust to the hard reality of gas at more than $4 a gallon, as well as higher energy costs overall." (Chicago Tribune via AARP)
American Academy of Actuaries Posts an 'Election 2008' Section
Excerpt: "A special election-year series from the Academy, offering short summaries of key issues from an actuarial perspective. [Key issues: Health care reform and Medicare reform; Social Security reform.]" (American Academy of Actuaries)
New Jersey Public Employee Benefits Battle May Get Bigger
Excerpt: "Senate Majority Leader Stephen Sweeney, an ironworkers union official, led the push for reform [two years ago]. But intense opposition from the powerful public unions including a Statehouse protest by thousands of workers halted the effort. In recent weeks, however, lawmakers led by Sweeney and Senate Budget Chairwoman Barbara Buono, D-Middlesex, managed to push through legislation to scale back future compensation for teachers and public employees, though milder than the 2006 proposals and less comprehensive than the changes they initially set out to make this year." (NJ.com)
McCain Says He Would Balance Budget by 2013
Excerpt: "In the economic white paper his campaign released yesterday, he acknowledges that 'the only way to keep the budget balanced is successful reform of the large spending pressures in Social Security, Medicare, and Medicaid.' But he did not offer details about how he would achieve those reforms." (The Washington Post; free registration required)
Informal Views of IRS and Treasury Officials on Automatic Contribution Arrangements, Determination Letters, and Other Issues
Excerpt: "The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has posted a report on the May 2008 Q&A session between JCEB representatives and IRS and Treasury officials. Highlights include the following informal, nonbinding remarks about automatic contribution arrangements (ACAs), late determination letter filings, and the definition of compensation under Code Section 415(c)." (Employee Benefits Institute of America)
Newly Posted Events
401(k) Automatic Deferrals and Default Investments: The Latest on ACAs, EACAs, QACAs and QDIAs
Nationwide on June 12, 2008
presented by Employee Benefits Institute of America (EBIA)/Thomson Tax & Accounting
61st Annual National Conference and Exhibition
in Tennessee on September 16, 2008
presented by Profit Sharing/401(k) Council of America (PSCA)
Are you ready for EGTRRA restatements?
Nationwide on July 9, 2008
presented by ftwilliam.com
ERISA's Abuse of Discretion Standard after MetLife v. Glenn: What's Changing, What's Not - Webcast
Nationwide on July 11, 2008
presented by West LegalEdcenter
How To Manage Smoker Healthcare Costs Legally And Effectively
Nationwide on July 23, 2008
presented by HRTrainingCenter.com
Learn how to use ftwilliam.com's plan document software
Nationwide on July 10, 2008
presented by ftwilliam.com
Newly Posted Press Releases
NIPA Announces Online Examinations and New Partnership with KRYTERION
National Institute of Pension Administrators
2009 NIPA Annual Forum & Expo Call for Speakers and Presentations
National Institute of Pension Administrators
Former CEO Of Airtrans Sentenced To 15 Months In Prison For Theft Of 401(k) Funds
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Treasury Will Consult on Baseline Survey of Adult Financial Literacy
U.S. Department of Treasury
Alliance Benefit Group Carolinas Closes on Acquisition of Elliott Davis Affiliate
Alliance Benefit Group Carolinas, LLC
Announcing the Availability of SmartPlan 401, the World's First Interactive Video 401(k) Engagement Engine
vWise Inc.
Newly Posted or Renewed Job Openings
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Retirement Plan Administrators
for Actuarial Consulting Group, Inc.
in VA
Pension Administrator
for The Nolan Company
in KS
Retirement Plan Consultant
for BB&T (Branch Banking & Trust)
in DC, MD, VA
Daily Valuation Administrator
for Pension Specialists, Inc.
in CA
Plan Administrator/ Account Manager
for Pension Specialists, Inc.
in CA
Recordkeeper Relationship Consultant
for Northern Trust Company
in IL
Client Data Management Administrator
for The Online 401(k)™
in CA
Director of Benefits
for AAA Mid-Atlantic
in DE
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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