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| September 19, 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.)
| 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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[Official Guidance] Text of IRS 'Employee Plans News': Relief for September 30 AFTAP Actuarial Certification for DB Plans (PDF)
Excerpt: "Sponsors of defined benefit pension plans that are subject to Code §436 and have calendar plan years are reminded of the importance of having an actuarial certification of the plan's adjusted funded target attainment percentage (AFTAP) for 2008 before October 1, 2008. . . . [A]ctuaries for small plans with end-of-year valuation dates will have difficulty in timely certifying the AFTAP for the plan year that begins in 2008. In such cases, the Service will not challenge an actuary's certification of the AFTAP for the plan year beginning in 2008 merely because the certification was based on a date other than the end-of-year valuation date under §430 for that plan year, provided that the AFTAP is subsequently certified based upon the end-of-year valuation date and the subsequent certification does not result in a material change as defined under the proposed regulations." (Internal Revenue Service)
[Guidance Overview] In Jeopardy: The Future Role of an Advisor after PPA and 408(b)(2)
Excerpt: "[This powerpoint presentation highlights] the challenges the future holds for advisers in the retirement industry." (Fiduciary Risk Assessment LLC)
[Guidance Overview] Summary of Amendments and Due Dates for Defined Contribution Plans, 9/18/2008 (PDF)
6 pages. The chart also includes 457(b) and 403(b) plans and covers EGTRRA to the HEART Act. (Fort William LLC)
[Guidance Overview] Hewitt Federal Legislation Quick Guide Updated September 17, 2008, for Retirement Plans (PDF)
4 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding retirement plans. (Hewitt Associates)
[Guidance Overview] Global Retirement Update, September 2008 (PDF)
Excerpt: "Our Global Retirement Update summarizes recent legislative developments and trends related to retirement and financial management and highlights recently passed and pending legislation that may require employers to take action to comply with new rules or review existing plans. It is published monthly in PDF format." (Hewitt Associates)
Federal Pensions: Judicial Survivors' Annuities System Costs (PDF)
21 pages. Excerpt: "Pursuant to the Federal Courts Administration Act of 1992 (Pub. L. No. 102-572), GAO is required to review JSAS costs every 3 years and determine whether the judges' contributions fund at least 50 percent of the plan's costs during the 3-year period. If the contributions fund less than 50 percent of these costs, GAO is to determine what adjustments to the contribution rates would be needed to achieve the 50 percent ratio." (U.S. Government Accountability Office)
IRS Official Warns 403(b) Plans on 2009 Deadline for Compliance with Final Regs
Excerpt: "IRS Tax Exempt and Government Entities Senior Tax Law Specialist Robert Architect urged benefits professionals to start making sure in earnest that employee plans of schools and tax-exempt entities under Code Sec. 403(b) are in compliance with the final regulations that were released in July 2007 . . . ." (Wolters Kluwer)
Letter from AIG Retirement to Plan Participants (PDF)
Excerpt: "AIG Retirement responds to questions they have received from retirement plans and participants regarding their parent company, AIG." (AIG Retirement)
Study Reveals Attitudes Play a Key Role in Participants' Deferral Rate Choices
Excerpt: "A recent study by the Spectrem Group revealed some very interesting points about participant decision-making on deferral rates. . . . Although the sample size from the study wasn't particularly large (just over 400 people) it does provide some useful insights . . . ." (TRI-AD)
University of California Regents Revive Pension Contribution
Excerpt: "Facing dramatic pension shortfalls in the future, the University of California Regents voted yesterday to restart employee and university pension contributions for the first time in nearly 20 years. . . . Since 1990, the university system and its employees have financed more than $1 billion a year in pension payments to more than 50,000 retirees from enviable earnings on its $42 billion pension fund. As a result, about 80 percent of 114,000 UC employees who participate in the pension plan have never paid into it, though they do make regular mandatory contributions to separate personal retirement accounts." (San Diego Union-Tribune)
AIG Board Accused of Mismanagement by Pension Fund
Excerpt: "A public pension fund has sued the chief executive and board of American International Group Inc , accusing them of mismanagement and 'grossly imprudent risk taking' that led to the insurer's $85 billion government rescue this week. The lawsuit was brought by the City of New Orleans Employees' Retirement System, an AIG shareholder, in Delaware Chancery Court, where many shareholder disputes are filed." (Reuters via The New York Times; free registration required)
How to 'Sell' the Savings Habit to Americans
Excerpt: "[C]ompanies in the financial-services sector - specifically banks, insurers, mutual fund firms and the like - have failed to create the cues to get Americans to develop the saving habit or break the spending habit. So the question arises: What lessons, if any, can financial firms learn from those firms so skilled at manufacturing habits? What are the cues needed to create the savings habit?" (The Wall Street Journal)
Is Your 401(k) Plan Protected?
Excerpt: "Q: What safety measures are in place to protect the money I have invested in my company's 401(k) account? A: The federal government has established rules for the people running your 401(k) plan, whether it's company officials - common in small companies - or a provider working with your company to administer the retirement plan. The Employee Benefits Security Administration, a division of the U.S. Department of Labor, is responsible for protecting pensions, health plans and other employee benefits held by about 150 million workers." (Forbes.com LLC)
The Benefits of Beneficiary Reviews
Excerpt: "Your clients' retirement accounts are often their single largest non-real-estate asset. Yet these assets can be at risk because about 80% of beneficiary forms on individual retirement accounts, defined benefit pension plans and insurance policies are either blank, outdated or not properly filled in. Mistakes made when designating beneficiaries can be costly and even tragic because they impair the ability of your clients to protect, preserve and pass on assets to their heirs." (Investment News; free registration required)
Pension Benefit Guaranty Corporation: Some Steps Have Been Taken to Improve Contracting, but a More Strategic Approach Is Needed (PDF)
45 pages. Excerpt: "In response to growing workloads, PBGC has come to rely heavily on contractors to conduct its work. GAO was asked to report on (1) the role that contracting plays in PBGC's efforts to accomplish its mission, (2) the steps PBGC has taken to improve its acquisition infrastructure and develop a strategic approach to guide its contracting activities, and (3) the steps PBGC has taken to improve its contract oversight processes to ensure accountability." (U.S. Government Accountability Office)
[Opinion] Vanguard Comment Letter to the DOL in Support of Fee Transparency
Excerpt: "Vanguard has always been strongly committed to the principle of straightforward, useful disclosure of plan fees and expenses to participants. This fee comment letter reflects that commitment by supporting the DOL's proposal to require fiduciaries to disclose fees, returns, and other relevant information in a format that enables participants to easily compare fee and expense information." (The Vanguard Group)
[Opinion] ASPPA/CIKR Comments to Senate HELP Committee's Hearing: '401(k) Fee Disclosure: Helping Workers Save for Retirement (PDF)
8 pages. Excerpt: "While the DOL's proposed ERISA §408(b)(2) rules (relating to whether a contract or arrangement is reasonable between a service provider and plan fiduciary) would require enhanced disclosures for service providers to 401(k) plan fiduciaries, the proposed regulation would require only an aggregate disclosure of compensation and fees from bundled service providers, with narrow exceptions, and would not require a separate, uniform disclosure of the fees attributable to each part of the bundled service arrangement. While we appreciate the DOL's interest in addressing fee disclosure, we do not believe that any requirement that benefits a specific business model is in the best interests of plan sponsors and participants." (American Society of Pension Professionals & Actuaries/Council of Independent 401(k) Recordkeepers)
Sponsored by: Ascensus
(Click on company name or banner to learn more.)
| Ascensus Recruitment Open House |
| At Ascensus, people matter… Our clients, who depend on us to get it right... and our skilled associates, who do get it right.
We are the nation's largest independent administrator and solutions provider for micro to large retirement plans.
We are seeking talented people from the Retirement Services Industry.
Recruitment Open House. For driving directions, please visit us at www.ascensus.com, click on Contact Us. |
| (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] Hewitt Federal Legislation Quick Guide Updated September 17, 2008, on Human Resources & Employment Law (PDF)
5 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding human resources and employment law. (Hewitt Associates)
[Guidance Overview] Year End 409A Deadlines (PDF)
1 page. Excerpt: "In recent years, we have written to you at about this time with news that the deadline for adopting Code §409A amendments to deferred compensation plans had been extended for another year. That is not our current message, as it appears that this year the 409A deadline will not be extended again and the final 409A amendments will actually have to be finalized and signed by December 31, 2008." (Kelly, Hannaford & Battles P.A.)
[Guidance Overview] Qualification of Bonuses as 'Performance-Based Compensation' for Purposes of Section 409A Should be Reviewed Before Year-End (PDF)
Pages 1-3 of 7 pages. Excerpt: "Employers who have allowed deferral elections to be made with respect to bonus compensation in reliance on the six-month rule in Internal Revenue Code (Code) section 409A(a)(4)(B)(iii) should review their decisions in light of the changes made to the definition of performance-based compensation in the final regulations, the upcoming end of 'transition' under section 409A, and the January 1, 2009, effective date of the final regulations." (Miller & Chevalier Chartered)
Eleventh Circuit Panel Holds That Glenn Overrules Prior Precedent
Excerpt: "According to the [Eleventh Circuit opinion in Doyle v. Liberty Life], 'Glenn implicitly overrules and conflicts with our precedent requiring courts to review under the heightened standard . . ' The panel substituted a new opinion for its prior opinion in the case, holding that 'heightened scrutiny' and burdenshifting requirements no longer apply. This note is cross-posted to ERISABoard.com where the opinion is attached." (Health Plan Law blog by Attorney Roy F. Harmon III)
Newly Posted Events
DB Topics: Current Trends and Plan Administration
in Massachusetts on September 25, 2008
presented by ASPPA Benefits Council (ABC) of New England
Newly Posted Press Releases
PBGC Protects Pensions Of Rand McNally & Co.
Pension Benefit Guaranty Corporation (PBGC)
PBGC Protects Pensions Of Consumers Distributing Inc.
Pension Benefit Guaranty Corporation (PBGC)
U.S. Labor Department Web Site Assists Hurricane Victims In Locating Employee Benefit Plan Sponsors
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
U.S. Labor Department Takes Legal Action Against Trustee Of AE Seven LLC 401(k) Plan For Failure To Administer Employee Assets
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Ascensus, LPL Financial and 401(k) Advisors Partner to Deliver a New Retirement Plan Offering with Fiduciary Protection
Ascensus
U.S. Retirement Partners Acquires Fourth Firm
U.S. Retirement Partners
Newly Posted or Renewed Job Openings
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Retirement Plan Administration Specialist
for Consulting Actuaries Incorporated
in NJ
Defined Contribution-Senior Client Service Officer
for AllianceBernstein
in NY
Benefits Assistant
for Benefits Administrators & Consultants
in CO
Employee Benefits Attorney
for Hill, Chesson & Woody
in NC
Sr. Retirement Annuity Business Development Coordinator
for Pacific Life Insurance Company
in CA
Assistant 401(k) Administrator
for Pollard & Associates, Inc.
in MD
401(k) Plan Administrator
for Pollard & Associates, Inc.
in MD
Retirement Senior Consultant/Business Developer
for Towers Perrin
in DC, GA, MA, NC, NY, PA
Retirement Consultant
for Towers Perrin
in CT, DC, MA, NJ, NY, PA
Retirement Associate
for Towers Perrin
in CT, DC, MA, NJ, NY, PA
Defined Benefit Administration Programmer
for Winklevoss Technologies
in CT
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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