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[Official Guidance] IRS Composite Corporate Bond Rate Table Updated for August 2008 Corporate Bond Weighted Average Interest Rate = 6.07 for August 2008 (Internal Revenue Service) [Guidance Overview] DOL Staff Members Provide Informal Views on ERISA 404(c) Plans, Fiduciary Liability, and Plan Expenses Excerpt: "The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has posted a report on the May 7, 2008 Q&A session between JCEB representatives and DOL staff members. Highlights include the following unofficial, nonbinding remarks about these 401(k) plan topics: ERISA 404(c) plans, fiduciary liability, and plan expenses." (Employee Benefits Institute of America (EBIA)) [Guidance Overview] DOL's Enforcement Guidelines for Gifts and Entertainment Provided to Plan Fiduciaries (PDF) 2 pages. Excerpt: "The Department of Labor has added to its enforcement manual a new section providing guidelines to its investigators with respect to gifts and entertainment provided to fiduciaries of plans regulated by ERISA. The new text is paragraph 12 of the Fiduciary Investigations Program section of the manual. The guidelines contemplate that a plan fiduciary's acceptance, from a party dealing with the plan, of meals, gifts, entertainment or expenses associated with educational conferences is a possible fiduciary violation." (Sutherland) [Guidance Overview] Recent Department of Labor ERISA Service Provider Fee Disclosure Initiatives (PDF) 6 pages. Excerpt: "In order to help our clients understand and comply with this regulatory flurry of activity, we set forth 'Action Items' below that highlight the steps plan fiduciaries and service providers should consider taking in light of these regulatory developments, followed by a brief overview of the proposed regulations under Sections 404(a), 404(c) and 408 (b)(2) and the changes to Form 5500." (Paul, Hastings, Janofsky & Walker LLP) [Guidance Overview] IRS's Final Regulations on Mortality Tables Under PPA (PDF) 3 pages. Excerpt: "The IRS has issued final regulations defining the mortality tables to be used for defined benefit plan funding under the Pension Protection Act of 2006 (including for determining current liability for multiemployer plans). These tables are to be used beginning with 2008 plan years. The final regulations also provide rules for the use of plan-specific tables." (Buck Consultants) [Guidance Overview] The DOL's Proposed 408(b)(2) Regulation: Impact on Independent Recordkeepers Excerpt: "That regulation will mandate disclosures of 'comprehensive, straight forward and helpful information concerning [a] service provider's compensation and possible conflicts of interest.' . . . Here, we discuss the impact on independent recordkeepers, that is, plan recordkeepers that do not offer proprietary investment products either directly or through an affiliate. For purposes of this discussion, we have also excluded recordkeepers that may provide investment advice through an affiliated entity." (Reish Luftman Reicher & Cohen) Treasury / IRS Say Pension Plan Liability Buyouts Illegal Excerpt: "However, the Treasury outlined a series of proposed guidelines developed with the Labor and Commerce departments as well as the Pension Benefit Guaranty Corp. for any federal legislation that would clear the way for buyouts of frozen plans." (Workforce Management; free registration required) DOL Web Site on Reasonable Contract or Arrangement Under Section 408(b)(2) Fee Disclosure In addition to a link to the proposed rule, the site contains the Requests to Testify, Hearing Testimony/Transcripts, and Supplemental Materials. (U.S. Department of Labor) Owners and Key Employees Can Defer the Maximum in 401(k) Contributions (PDF) 3 pages. Excerpt: "Adopt a 401(k) plan with a Safe Harbor election. With such an election, the company agrees to make modest employee contributions that may take several forms: a 3% of pay contribution, a basic matching contribution, or an enhanced matching contribution. In any of these scenarios, a 401(k) Safe Harbor contribution will allow all owners, their family members and Highly Compensated Employees to defer the maximum allowed ($15,500 in 2008), even if other employees don't participate." (MandMarblestone Group) A Collective Trust Fund Overview Excerpt: "The Cleveland based Victory Capital Management Inc., has produced a Collective Trust Fund Resource Guide for sponsors, advisors, and providers. This one page recap gives an overview of Collective Trust Funds (CTFs), outlines their advantages and discusses their recent growth in popularity." (401khelpcenter.com) Plan Changes for Sponsors in Benefits Offered to Returning National Guard Service Members and Their Beneficiaries Excerpt: "The Heroes Earning Assistance and Relief Tax (HEART) Act of 2008 includes a broad package of mandated benefits changes including substantive shifts in how employers determine death benefits for service members. The death benefit changes were contained in the Honoring Existing Retirement Obligations for Every Service Member (HEROES) Act that was part of the larger bill." (PLANSPONSOR.com; free registration required) Sustaining Income Through Retirement: Four Strategies for Retiring Clients 20 pages. Excerpt: "The objective of this paper is to potentially add to a financial professional's knowledge base by discussing and contrasting four strategies for turning retirement savings into a sustainable retirement income stream for their clients. To accomplish this, we will look specifically at the use of mutual funds with automated income payments, variable annuities with guaranteed minimum withdrawal benefits, income annuities, and combinations of mutual funds and income annuities." (The Principal Financial Group) Pentagon Study Recommends Complex Four-Part Retirement Plan Be Tested on Few Thousand Military Volunteers Excerpt: "The 'flexible' retirement plan . . . would apply both to active and reserve component members. All members would come under two of its features -- a defined annuity plan and a government-funded Thrift Savings Plan account -- with vesting after only 10 years of service." (Stars and Stripes) Senior Execs Increasingly Weigh In on 401(k) Plan Decisions Excerpt: "Significantly more senior executives are taking a direct role in decisions regarding their organizations' 401(k) plans than in the past, according to Cowden Associates, Inc.'s Second Annual Tri-State Defined Contribution Plan Sponsor Survey." (PLANSPONSOR.com; free registration required) [Opinion] Fiduciary Focus: The Department of Labor Didn't Say Anything, It Just Talked (PDF) 4 pages. Excerpt: "Advisors should understand that the essential problem with the Department of Labor's proposed rule is that it requires only basic (as opposed to complete) disclosure of investment and other costs impacting a plan participant's account balance. What's needed under this rule, instead, is full disclosure of the total economic impact that both 'visible' costs (e.g., the annual expense ratio of mutual funds) and 'invisible' costs (e.g., the bid-ask spreads of mutual funds) have on the accounts of participants in retirement plans." (Prudent Investor Advisors, LLC) [Opinion] American Benefits Council / U.S. Chamber of Commerce Letter in Support of H.R. 5160 (PDF) 2 pages. Excerpt: "[W]e are writing with respect to your bill, H.R. 5160, the Small Businesses Add Value for their Employees Act of 2008 (the 'SAVE' Act), to tell you that we support the improvements to the retirement savings system that your bill proposes. Your bill will increase overall retirement savings plan coverage -- a goal that we strongly support -- by making it easier for small businesses to sponsor a retirement arrangement." (American Benefits Council / U.S. Chamber of Commerce) Sponsored by: APSCREEN, Employee Locator (Click on company name or banner to learn more.)
Links to Items on Executive Comp, Benefits in General [Guidance Overview] Heroes Earnings Assistance and Relief Tax Act of 2008: Impact on Employee Benefit Plans (PDF) 4 pages. Excerpt: "[The Heroes Earnings Assistance and Relief Tax Act of 2008 (the 'HEART Act')] contains mandatory and optional provisions that impact retirement plan benefits and Health FSAs provided to employees performing 'qualified military service' (generally, military service that is covered by USERRA). These provisions are summarized [on the target page]." (Seyfarth Shaw LLP) [Guidance Overview] Milliman's Monthly Benefit News and Developments, August 2008 (PDF) 2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits. (Milliman) [Guidance Overview] Same-Sex Marriage Issues Complicate Employee Benefit Plan Administration (PDF) 4 pages. Excerpt: "California recently became the second state after Massachusetts to legalize same-sex marriage, but without a residency requirement. Last week, Massachusetts repealed a law that generally limited same-sex marriage to its residents, effectively opening the door for same-sex couples throughout the U.S. to marry on both coasts. This changing legal landscape is complicating plan administration for many employers across the country." (Buck Consultants) [Guidance Overview] The Heroes Earnings and Assistance Relief Tax Act (PDF) Excerpt: "This Regulatory Brief summarizes the key retirement plan provisions included in the Act, along with the relevant decision points for plan sponsors. It also provides a brief overview of the provisions in the Act applicable to cafeteria plans." (The Vanguard Group) [Guidance Overview] Letter From Employee's Attorney Is a Claim for Severance Benefits Excerpt: "The court noted that although the plan provided that the employee could 'make a claim in writing' to the plan administrator, it gave no guidance as to what type of writing qualified as a claim. The court reasoned that the letter identified an ERISA plan and asserted the employee's entitlement to plan benefits." (Employee Benefits Institute of America (EBIA)) [Opinion] Behavioral Economics: Lessons from Retirement Research for Health Care and Beyond (PDF) 14 pages. A Presentation by CBO Director Peter Orszag to the Retirement Research Consortium. Excerpt: "Research has increasingly shown that decisions are not made in a vacuum. Defaults matter. Perceptions of social norms matter. And policy designs need to account for those factors that, until recently, received little consideration in economic and policy analysis. Current pension policies are at the forefront of efforts to incorporate the lessons of behavioral economics. I hope that the same energy and care can be applied to research and policy development in the health care arena. The endeavor has the potential to yield great insight into how to better contain costs and improve people's health -- perhaps especially the health of those on the lower rungs of the socioeconomic ladder." (U.S. Congressional Budget Office) Newly Posted Events A Company of Entrepreneurs: Getting Employees Involved Nationwide on November 5, 2008 presented by National Center for Employee Ownership Acquisitions, Divestitures, and Second-Stage ESOP Transactions in Colorado on October 2, 2008 presented by National Center for Employee Ownership Advanced Valuation Issues Nationwide on September 18, 2008 presented by National Center for Employee Ownership Beyond Open-Book Management: Ways to Turn Employee Information Sharing into Employee Ideas Nationwide on September 3, 2008 presented by National Center for Employee Ownership Communicating Your ESOP Nationwide on September 25, 2008 presented by National Center for Employee Ownership Effective Boards of Directors: Best Practices in Governing an ESOP Company in Maryland on November 18, 2008 presented by National Center for Employee Ownership ESOP Feasibility in Washington on November 5, 2008 presented by National Center for Employee Ownership ESOPs as a Business Transition Tool Nationwide on September 4, 2008 presented by National Center for Employee Ownership Executive Compensation for ESOP Companies Nationwide on November 25, 2008 presented by National Center for Employee Ownership Fiduciary Issues of Stock Drop Lawsuits in ESOPs and 401(k) Plans Nationwide on October 7, 2008 presented by National Center for Employee Ownership Get the Most Out of Your ESOP Three-Day Conference on Best Practices for an Effective ESOP Culture in Minnesota on October 27, 2008 presented by National Center for Employee Ownership Handling the ESOP Repurchase Obligation Nationwide on December 16, 2008 presented by National Center for Employee Ownership Incentive Plans that Support Employee Ownership Nationwide on September 11, 2008 presented by National Center for Employee Ownership Is an ESOP Right for You? Finance, Valuation, and Culture Nationwide on December 11, 2008 presented by National Center for Employee Ownership Is an ESOP Right for You? The Basics Nationwide on December 9, 2008 presented by National Center for Employee Ownership Learn From Failures: The Dark Side of ESOPs Nationwide on September 9, 2008 presented by National Center for Employee Ownership Minimizing Cynicism in Employee-Owned Companies Nationwide on September 16, 2008 presented by National Center for Employee Ownership Navigating the 409A Deferred Compensation Plan Rules Nationwide on December 4, 2008 presented by National Center for Employee Ownership NCEO/Beyster Institute 2009 Employee Ownership Conference Nationwide on April 22, 2009 presented by National Center for Employee Ownership (NCEO) and the Beyster Institute Running an Effective Board Nationwide on October 15, 2008 presented by National Center for Employee Ownership S Corporation ESOPs Nationwide on November 18, 2008 presented by National Center for Employee Ownership The ESOP Company Symposium (3 day event) in Georgia on October 21, 2008 presented by National Center for Employee Ownership Using ESOPs as an Acquisition Strategy Nationwide on December 2, 2008 presented by National Center for Employee Ownership What They're Saying: An Overview of Public Pension Research Webcast Nationwide on September 10, 2008 presented by International Foundation of Employee Benefit Plans What You Need to Know as an Internal ESOP Fiduciary Nationwide on December 10, 2008 presented by National Center for Employee Ownership Newly Posted Press Releases Pension Rights Center Applauds Treasury Ruling Barring Pension Plan Buyouts Pension Rights Center Employee Benefit Plan Officials Are Sentenced U.S. Department of Justice More Senior Executives Taking a Role in Managing Employee 401(K) Plans Cowden Associates, Inc. PPC™ Designation Approved for Use by AIG Advisor Group Across AIG Network Financial Service Standards, LLC New Employee Wellness Program, The 7 Habits of Healthy People, Inspires Individuals to Improve Health, Reducing Employee Healthcare Costs FranklinCovey Newly Posted or Renewed Job Openings (Post a Job | View All Jobs | RSS Feed ) Defined Benefits Plan Conversion Specialist for Lynchval Systems Worldwide Inc. in TX Participant Service Center Conversion Project Specialist for New York Life Retirement Plan Services in MA Benefits/ERISA Paralegal for Reinhart Boerner Van Deuren s.c. in WI Benefits Specialist for The Urban Institute in DC Stock Option Plan / EPP VP & Relation Manager for New York City / Largest Financial Institution in NY WRS Relationship Manager I for Wachovia in MD Handy Links:
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