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| January 6, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is IRS and AIRE, LLC
(Click on company name or banner to learn more.)
| ERPA Exam Registration Deadline Extended to January 9! |
| It's not too late! You can still be one of the first to obtain the ERPA designation from the IRS. Registration has been extended to January 9 for the first exam window and you can take until February 17 to sit for the exam. You've got nothing to lose and a lot to gain including CE. Study Guides and Review Courses are currently available at www.airellc.org to supplement your study program in 2009. Don't wait, and register now at www.erpaexam.org ! |
[Official Guidance]
Text of Technical Update 08-4: Minimum Lump Sum Assumptions for Single-Employer Plans that Terminate in a Plan Year Beginning On or After January 1, 2008
Excerpt: "This Technical Update expands guidance provided in Technical Update 07-3 on lump sum valuation issues for single-employer plans that terminate in a standard termination pursuant to ERISA section 4041. This Technical Update applies to plans that terminate on or after the effective date of certain amendments to the law as enacted by the Pension Protection Act of 2006 ('PPA 2006'). It provides guidance on how to apply the PPA 2006 changes in the interest rate and mortality table used in calculating minimum lump sum amounts." (Pension Benefit Guaranty Corporation)
[Guidance Overview]
Worker, Retiree, and Employer Recovery Act: Minimum Required Distribution and Pension Funding Relief (PDF)
3 pages. Excerpt: "The Act contains minimum required distribution relief for seniors, defined benefit plan funding relief, and technical corrections to the Pension Protection Act of 2006 ('PPA'). This Legal Alert summarizes the key provisions of the Act." (Sutherland)
[Guidance Overview]
Temporary Funding Relief for Multiemployer Plans (PDF)
2 pages. (Milliman)
PSCA's 2008 Survey on Sec. 403(b) Tax-Sheltered Annuities
Excerpt: "According to the survey, 25.2% of the respondents have an annuity group custodial agreement (GCA) and 19.5% of plans have a nonannuity GCA. Plans with large assets ($100 million or more) tend to have nonannuity GCAs (60.0% of plans), while plans with the lowest plan assets ($2 million or less) tend to have annuity GCAs (28.2% of plans) or nonannuity individual custodial agreements (14.1% of plans)." (Wolters Kluwer)
Final Regulations Governing Assessment of Civil Penalties for Violations of PPA Disclosure Provisions
Excerpt: "The Pension Protection Act of 2006 established new disclosure provisions relating to funding-based limits on benefit accruals and certain forms of benefit distributions, plan actuarial and financial reports, withdrawal liability of contributing employers, and participants' rights and obligations under automatic contribution arrangements. The PPA gave the DOL authority to assess civil monetary penalties of up to $1,000 per day per violation against plan administrators for violations of the new disclosure requirements. The DOL has now issued final regulation setting forth the administrative procedures for assessing and contesting such penalties, but the new regulations do not address the substantive provisions of the new disclosure requirements." (Attorney B. Janell Grenier via Benefitsblog.com)
Registration Deadline Extended to Friday, January 9 for Enrolled Retirement Plan Agent Designation Exams
Examinations are now being offered for retirement plan practitioners who are not eligible to act as clients' agents pursuant to IRS Form 2848 and who seek the new IRS-blessed Enrolled Retirement Agent Designation. The examinations are being offered during 'window' periods; the first window has opened and will remain open (i.e., the exam can be taken) through a date in mid-February. Registration to take the exam during this initial window period now can be made as late as Friday, January 9, according to an announcement on January 5 (the original deadline was January 6). As of Tuesday morning the text of the ERPA web site had not been updated to reflect the extension but practitioners can follow our hypertext link for immediate registration and more information. (American Institute of Retirement Education, a Partnership of ASPPA & NIPA)
Litigating over Retirement Savings Investment Returns
Excerpt: "The free-falling retirement investments of many employees may lead to lawsuits being filed against plan administrators. Although the causes of action are narrow, fiduciaries would be wise to review investment strategies and keep the lines of communication wide open with plan participants." (Human Resource Executive Online)
FASB Staff Position No. FAS 132(R)-1: Employers' Disclosures about Postretirement Benefit Plan Assets (PDF)
29 pages. Excerpt: "1. This FASB Staff Position (FSP) amends FASB Statement No. 132 (revised 2003), Employers' Disclosures about Pensions and Other Postretirement Benefits, to provide guidance on an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan. 2. This FSP also includes a technical amendment to Statement 132(R) that requires a nonpublic entity to disclose net periodic benefit cost for each annual period for which a statement of income is presented." (Financial Accounting Standards Board)
[Opinion]
American Benefits Council Talking Points on Legislation Needed to Address Funding Crisis (PDF)
4 pages. Excerpt: "What should be done? Most importantly, the 10% limit on smoothing should be increased to 30% for 2009 and 20% for 2010, then return to 10% thereafter. This proposal would go a long way towards making 2009 contributions manageable for most plans. Companies should be given the right to elect asset smoothing for 2009 without regard to whether the company used fair market value in 2008. It would be quite unfair not to allow such elections since asset smoothing did not exist in 2008." (American Benefits Council)
[Opinion]
Disclosure of Information: Where Securities Law and ERISA Diverge
Excerpt: "Cool, what a nice treat to me for the first real workday of the New Year. I have always wanted a reason to link to the Harvard Law School Corporate Governance blog because, well, it just sounds so impressive (that plus it's a really good read on all things corporate), and one of their contributors handed me the opportunity over the weekend. In a post addressing SEC requirements for online posting of public company proxy materials, the author - a Gibson Dunn partner and visiting professor at Georgetown - points out how these requirements differ from the notice requirements under ERISA . . . ." (Stephen Rosenberg of The McCormack Firm, LLC)
DATAIR Employee Benefit Systems, Inc. (Sponsor)
(Click on company name or banner to learn more.)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
Preparing for the Upcoming Annual Report and Proxy Season (PDF)
17 pages. Excerpt: "This issue highlights some of the considerations your company will need to focus on this annual meeting season. . . . Within this issue, we begin with a brief discussion on executive compensation disclosure rules as they remain an important topic for this annual meeting season in light of the recent economic crisis and the SEC's well-published messages that it will continue to focus on Compensation Discussion and Analysis ('CD&A'). We will also discuss how recent market and economic conditions will affect your disclosure in your Annual Report on Form 10-K." (Snell & Wilmer)
[Guidance Overview]
2009 Reporting & Disclosure Calendar for Benefit Plans (PDF)
27 pages. Interactive version is at http://www.sibson.com/publications-and-resources/rd-calendar/. (The Segal Group, Inc.)
Bankrupt WorldCom Wants Court to Let It Make Enhanced Payouts To 19 Top Officials Who Had Been Terminated
Excerpt: "WorldCom Inc. is seeking bankrup.tcy court approval to pay remaining severance benefits to employees it laid off or gave notice before it filed for bankrup.tcy. The company had sought authority to pay severance obligations only up to $4,650 per dismissed employee, according to a motion filed late Tuesday. The U.S. Bankrup.tcy Court in Manhattan on July 22 authorized the company to pay about $22 million. WorldCom, based in Clinton, Miss., now owes roughly $36 million in severance payments to about 4,143 dismissed employees, the filing said." (AP via The Baltimore Sun)
U.S. Considers Costly Switch to International Accounting Rules
Excerpt: "In a regulatory sea change that could cost billions of dollars, thousands of U.S. companies -- plus foreign corporations that do business here -- will adopt global financial reporting rules within five years if regulators have their way. The impact is likely to surpass that of the Sarbanes-Oxley Act of 2002, the tough anti-corporate fraud law of the Enron era that cost individual businesses millions of dollars in accounting fees. Whether U.S. companies like it or not, the new era of global accounting appears unstoppable, and businesses that ignore the International Financial Reporting Standards (IFRS) will fall behind." (USA TODAY)
Company Bankruptcy: What Happens to My Benefit Plans?
Excerpt: "[T]he US Department of Labor released a Fact Sheet called Your Employers Bankrup.tcy: How Will it Affect Your Employee Benefits? Workers should find out as much information as possible about their health plans and retirement benefits as soon as they learn of possible bankrup.tcy filing. What's in the guidance? The DOL fact sheet [at http://www.dol.gov/ebsa/newsroom/fsbankrup.tcy.html] explains the types of bankrup.tcy, Chapter 7 and Chapter 11, and how they can affect workers health and pension plans." (9news.com)
Employee Ownership Update for January 5, 2009
NCEO Executive Director Corey Rosen discusses a wave of stock option repricings; IRS statements to ESOP advisors that they are putting on hold approving plan provisions that segregate ESOP accounts at termination until the IRS comes up with a position on this; enhanced employee ownership opportunities in Germany; an employee ownership proposal at Change.org; and an invitation to submit stories about how your employee ownership company is dealing with the downturn. (National Center for Employee Ownership)
[Opinion]
One Prediction for Next Year: Human Resource Executives Will Be at Center of Storm in 2009
Excerpt: "One thing is certain about the coming year: It probably won't turn out as forecasted. This year certainly didn't! Benefits-related items on the agenda include health reform and issues affecting retirement savings. With money tight, however, proposals will likely be less expansive than once anticipated." (Dallas Salisbury via Human Resource Executive Online)
Newly Posted Events
2009 RMD Waiver and the Impact to You
Nationwide on January 8, 2009
presented by Wolters Kluwer Financial Services
2009 RMD Waiver and the Impact to You
Nationwide on January 13, 2009
presented by Wolters Kluwer Financial Services
Form 5500 Reporting Update
Nationwide on March 10, 2009
presented by Lorman Education Services
Fundamentals of Employee Benefits
in Minnesota on February 5, 2009
presented by Employers Association, Inc.
Same-Gender Marriage Rulings: Impacts on Employee Benefit Plans Across the Nation
Nationwide on March 4, 2009
presented by Lorman Education Services
Succession Planning for a TPA Business Webcast
Nationwide on February 5, 2009
presented by National Institute of Pension Administrators
Newly Posted Press Releases
PBGC Negotiates $55 Million In Pension Protection With Visteon Corp.
Pension Benefit Guaranty Corporation (PBGC)
EBRI Relaunches, Updates Website
Employee Benefit Research Institute (EBRI)
Obesity Comes With a Price Tag
Humana
WisdomTree Names Ernst & Young as New Independent Auditor
WisdomTree Investments, Inc.
Consumer Reports Retirement Survey: Planning Ahead May Be Just As Risky As Rewarding
Consumer Reports
Ascensus Acquires Baden Retirement Plan Services
Ascensus
Newly Posted or Renewed Job Openings
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Employee Benefits/ERISA Attorney
for Keating Muething & Klekamp PLL
in OH
Account Manager, Retirement Plans
for Cammack LaRhette Consulting
in NY
Client Service Representative
for Swerdlin and Company
in GA
401K Administrator
for Qualified Retirement Plan Administrators- Nationally
in AZ, CA, CT, IA, IN, NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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