Retirement Plans

To BenefitsLink home page Fill your job openings fast on!
Search Earlier Newsletters:

Sort by date
Sort by closest match

July 29, 2008

Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy.

Today's sponsor is ASPPA

(Click on company name or banner to learn more.)
Banner ad for ASPPA

ASPPA Annual Conference

How do the elections this fall affect you as a pension professional?
Attend the ASPPA Annual Conference in Washington, DC October 19-22 and find out. Network with over 1600 pension professionals, attend more than 60 interactive workshops and hear the latest election talk from our Keynote Speakers James Carville and Mary Matalin. Don't wait, register now and be a part of it all with ASPPA.

[Official Guidance] Proposed IRS Regs: Transfer of Stock Acquired Through Options Granted Under Section 423 Employee Stock Purchase Plans (PDF)
16 pages. Excerpt: "These proposed regulations would provide a comprehensive set of rules governing stock options issued under an employee stock purchase plan and would incorporate substantially all of the rules contained in the existing regulations . . . These proposed regulations would . . . update the existing regulations to provide additional guidance in certain areas [and] update the existing regulations to remove obsolete rules." (Internal Revenue Service)

[Official Guidance] Final IRS Regs: Converting Non-Roth IRA Annuity to a Roth IRA (PDF)
11 pages; effective July 29, 2009. Excerpt: "Like the proposed regulations, these final regulations clarify that when a non-Roth individual retirement annuity is converted to a Roth IRA, the amount that is treated as distributed is the fair market value of the annuity contract on the date the annuity contract is converted. Similarly, when a non-Roth individual retirement account holds an annuity contract as an account asset and the account is converted to a Roth IRA, the amount that is treated as distributed with respect to the annuity contract is the fair market value of the annuity contract on the date the annuity contract is converted (that is distributed or treated as distributed from the non-Roth IRA)." (Internal Revenue Service)

[Guidance Overview] DOL's Proposed New Fee Disclosure Requirements for Participant-Directed Individual Account Plans (PDF)
5 pages. Excerpt: "DOL has requested written comments on the proposed regulations by September 8, 2008." (Morgan, Lewis & Bockius LLP)

[Guidance Overview] Transfers from a Qualified Plan to a Foreign Trust - IRS Guidance and Relief
Excerpt: "IRS recently ruled that a transfer from a plan qualified under IRC 401(a) to a nonqualified foreign trust constitutes a taxable distribution. However, the administrator of a plan created in Puerto Rico is permitted to make an election under ERISA 1022(i)(2) to have Title II apply (i.e., to apply the requirements for minimum participation, vesting, funding, etc.). If such an election is made, the plan is considered qualified and transfers to the plan will not be treated as a distribution even though the trust continues to be classified as a foreign trust. Revenue Ruling 2008-40." (Deloitte via

Top 10 Myths About Liability-Driven Investment
Excerpt: "Mercer has launched a new series, iRFM interConnections, to address issues related to the management of financial risk in pension plans. Our first issue focuses on LDI (liability-driven investment), which has become a buzzword in the marketplace and covers a wide variety of approaches and practices. This article addresses the top 10 myths of an LDI approach and the 'truth' behind each myth." (Mercer LLC)

Insuring 401(k) Success via Annuities
Excerpt: "[Michael] Salley likes to use a group annuity when it comes to a 401(k) plan. 'I use the variable annuity quite extensively with retirement plan assets because it is the only thing I can show my clients that has a guarantee against market risk,' he says. Even though the annuity is seen as a tax deferral vehicle, Salley doesn't see any problem using a product with a tax deferral within a tax-deferred program." (Investment Advisor)

Rethinking 401(k) Rollovers - 7 Things to Consider Before You Move Your Nest Egg Into an IRA
Excerpt: "Conventional retirement wisdom tells us that when you leave a job, you should roll over your 401(k) to an IRA. Rollovers allow you to continue delaying taxes on your nest egg as it accumulates and avoid an early-withdrawal penalty. But if you have an especially good 401(k) with your old company, it may be better to leave your retirement money there or roll it over into your new company's 401(k)." (U.S. News & World Report)

SEC, Labor Dept. to Sign Agreement Strengthening Collaboration on Retirement Plans
Excerpt: "The Labor Department and Securities and Exchange Commission plan to work more closely together in their roles overseeing private-sector employees' retirement plans. The heads of the two agencies on Tuesday are expected to announce the signing of a so-called memorandum of understanding, according to government officials who spoke on condition of anonymity because the formal announcement hadn't been made." (

[Opinion] American Benefits Council Amicus Brief in Young et al v. General Motors Investment Management Corp. (PDF)
34 pages. Excerpt: "[Under the rule proposed by Plaintiffs-Appellants and the Secretary of Labor, the three-year statute of limitations under the Employee Retirement Income Security Act of 1974, as amended ('ERISA'), would effectively be repealed with respect to claims regarding the prudence of an investment option. This is because, under their proposed rule, the statute of limitations could never run on a fiduciary breach claim based on investment options currently offered, regardless of when the decisions regarding those options were made and communicated to participants and beneficiaries. Such a rule would clearly have a very adverse effect on the entire defined contribution plan system." (American Benefits Council)

[Opinion] Pension Governance: Risk Management Gone Awry!
Excerpt: "Risk management is a cornerstone of sound pension governance yet very few pension funds understand what proper risk management actually entails. I will discuss some important risk management concepts below, highlighting the strengths and weaknesses of risk management using some clear examples." (Leo Kolivakis at Pension Pulse)

Sponsored by:

(Click on company name or banner to learn more.)
Banner ad for

Make Your 401(k) Education a Takeaway Rather than a Throwaway!!

Are you a 401(k) plan sponsor who is looking for a cost-effective way to get your employees to appreciate their plan and save more? "Its Your Money" information sheets are now available as e-mailable newsletters sent to your employees at the same time that they receive their quarterly 401(k) statements. They can now be customized with your company logo, a valuable retention tool!

(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 HEART Act Affects Benefit Plans
Excerpt: "Compliance with the HEART Act will require plan amendments to many retirement plans by Dec. 31, 2010 (for calendar year plans). In addition, any employer that wants to add qualified reservist distributions to a cafeteria plan must amend the plan and distribute a revised summary plan description or summary of material modification by the appropriate deadlines for the effective date the employer chooses for implementation of the change." (Faegre & Benson LLP)

[Guidance Overview] Employee Benefits Update, July 2008 (PDF)
5 pages. The newsletter covers select compliance deadlines, retirement plan developments, and health and welfare plan developments. (Reinhart Boerner Van Deuren s.c.)

[Guidance Overview] Required Changes to Deferred Compensation Plans (PDF)
4 pages. Excerpt: "IRS regulations regarding Section 409A of the Internal Revenue Code will become effective on January 1, 2009. By that date, all plans providing for compensation governed by 409A's new statutory and regulatory restrictions will need to be made compliant, both in form and in operation, with Section 409A's strict rules." (Patterson Belknap Webb & Tyler LLP)

[Guidance Overview] Are You Ready for the Section 409A Compliance Deadline? (PDF)
3 pages. Excerpt: "All nonqualified deferred compensation arrangements must satisfy, or be exempt from, the requirements of Section 409A of the Internal Revenue Code by December 31, 2008." (Holme Roberts & Owen LLP)

[Guidance Overview] IRS Proposed Regs on Reporting Requirements for Statutory Stock Options Under IRC Sec. 6039
Excerpt: "The Internal Revenue Service has issued proposed regulations governing the return and information statement requirements under IRC Sec. 6039 that reflect changes to that section made by the Tax Relief and Health Care Act of 2006. The proposed regulations, which relate to statutory stock options, appeared in the July 17 Federal Register." (Wolters Kluwer)

[Guidance Overview] American Benefits Council Summary of IRS Proposed Regs on Options Granted under an ESPP (PDF)
3 pages. Excerpt: "On July 28, the Internal Revenue Service and the U.S. Treasury Department released proposed regulations relating to options granted under an employee stock purchase plan (ESPP) as defined in Section 423 of the Internal Revenue Code (Code). The regulations provide guidance on complying with Section 423 and also amend regulations under Code Sections 421 and 422." (American Benefits Council)

Familiarity with USERRA Regulations Doesn't Always Guarantee That an Employer Will Be in Full Compliance
Excerpt: "As of July 11, according to [the Pentagon's office of the Employer Support of the Guard and Reserve], more than 9,200 contacts were made to the organization through e-mail, phone or its Web site form this year -- of which more than 2,000 were determined to be employer-violation cases that required mediation through an ombudsman affiliated with ESGR." (Human Resource Executive Online)

Newly Posted Events
(Post Yours!)

Benefit Plan Audits- What You and Your Clients Need to Know!
Nationwide on August 6, 2008
presented by ASPPA (American Society of Pension Professionals & Actuaries)

Defined Benefit Concepts for DC People
Nationwide on August 13, 2008
presented by ASPPA (American Society of Pension Professionals & Actuaries)

Learn how to use the 409A Plan Document Software
Nationwide on July 30, 2008
presented by

Newly Posted Press Releases
(Post Yours!)

U.S. Labor Department Obtains Order Restoring $125,000 In Pension Assets To Employees Of Defunct Phoenix Company
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

New University of Pennsylvania Study Finds S ESOPs Yield Billions in New Benefits for U.S. Workers and the Economy
Employee Owned S Corporations of America

Registered Investment Adviser Offers Unique Service
OneFiduciary Group, LLC

We're one of the top 350 employment sites on the web!Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs | RSS feed for jobs RSS Feed )

Senior Consultant / Client Services Manager
for Boyce & Associates, Inc.
in AZ

Project Manager Health & Welfare Vendor Management
for Discover Financial Services
in IL

Client Services Retirement Expert
for Kravitz - Louis Kravitz & Associates
in CA

Pension Administrator - Senior
for Pension Planners, Inc.
in FL

Benefits Consultant
for Northwestern Benefit Corporation of Georgia
in GA

Retirement Sales Wholesaler - Inside Sales
for ExpertPlan, Inc.
in NJ

Executive Compensation Associate
for Trucker Huss, A Prof. Corp.
in CA

Qualified Plan Administrator
for Benefit Solutions Corp
in WI

Regional Sales Director, Southwest
for DailyAccess Corporation
in AZ, NM, TX

Chief Operations Officer (COO)
for Summit Retirement Plan Services, Inc.
in OH

Pension Plan Design Specialist
for American National Insurance
in TX

Total Absence and Disability Management Associate
for Towers Perrin
in IL

Senior Claim Audit Manager
for Towers Perrin
in CA

Manager, Defined Contribution Client Management
for Prudential Financial
in PA

Pension Administrator
for The Senex Group
in CA

Pension Design Specialist
for American National Insurance Company
in TX

Consulting/Marketing Manager
for Associated Pension Consultants
in CA

Defined Benefits Professional
for Vanguard
in PA

Handy Links:

Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!

Sign-up form is at (free).

This newsletter is sent to you each workday except federal holidays.

This email has been published by:, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151

David Rhett Baker, J.D., Editor

Copyright 2008, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.

Anyone can receive these emails; just have them sign up at this web page:

Other useful links: