BenefitsLink |
 |
 |
| January 8, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is ASPPA and IRS
(Click on company name or banner to learn more.)
| Los Angeles Benefits Conference - January 29-30 - Los Angeles, CA |
| Pension Legislation just passed, why not kick-off 2009 by staying current! Get the latest news by attending the Washington Update. Ask questions directly to the IRS and DOL and hear about fee and participant disclosure from the nations most prominent speakers. Don't wait, register NOW, discounts apply! |
[Guidance Overview]
Funding Relief for Single-Employer Pension Plans Under Worker, Retiree and Employer Recovery Act (PDF)
2 pages. Brief (2-page) summary of the Act's changes to the PPA funding provisions; includes an example scenario. (Deloitte)
[Guidance Overview]
Final Regulations Adopted on ERISA Civil Penalties for PPA Disclosure Violations (PDF)
2 pages. Excerpt: "Under the final regulations, DOL is authorized to assess civil penalties not to exceed $1,000 per day for violations . . . ." (Sutherland)
[Guidance Overview]
Worker, Retiree, and Employer Recovery Act of 2008 Retirement Plan Relief Provisions (PDF)
5 pages. Excerpt: "The Worker, Retiree, and Employer Recovery Act of 2008 (the 'Act') was signed into law by President Bush on December 23, 2008. The Act includes technical corrections to the Pension Protection Act of 2006 (the 'PPA'), some of which may be viewed as more than what would normally be thought of as 'technical corrections.' The Act also provides relief to plan participants and pension plan sponsors impacted by the current economic crisis by suspending the requirement to receive minimum distributions for 2009. It also provides limited relief from the defined benefit plan funding rules enacted by the PPA for both single-employer defined benefit pension plans and multi-employer plans." (Pillsbury Winthrop Shaw Pittman LLP)
[Guidance Overview]
Layoffs May Trigger 100% Vesting in Retirement Plans
Excerpt: "Employers working to stay afloat in these challenging economic times have one more thing to think about: layoffs and other employee terminations may result in a 'partial termination' of the employer's 401(k) plan or other retirement plan. An amendment to exclude an employee group from the plan could also trigger a partial termination. If a partial termination occurs, the plan must 100% vest the accounts of all affected participants. In essence, the plan is treated as terminated with respect to those participants. A partial termination also requires an allocation of any unallocated accounts (e.g., forfeitures) that the plan may be holding." (Holland & Hart LLP)
[Guidance Overview]
The 2008 Cumulative List of Changes in Plan Qualification Requirements
Excerpt: "The 2008 Cumulative List reflects changes required under the following laws: Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), including technical changes made by the Job Creation and Worker Assistance Act of 2002 (JCWAA), Pension Funding Equity Act of 2004 (PFEA), American Jobs Creation Act of 2004 (AJCA), Katrina Emergency Tax Relief Act of 2005 (KETRA), Gulf Opportunity Zone Act of 2005 (GOZA), Pension Protection Act of 2006 (PPA'06), and U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007." (The Segal Group, Inc.)
[Guidance Overview]
PBGC's Updated Table for Pension Plans Subject to Partial Lump Sum Restrictions
Excerpt: "The PBGC has published a table that defined benefit pension plans need to administer partial restrictions on 2009 lump sums and other accelerated distributions. For plans at least 60% but less than 80% funded, PPA limits lump sums (or other accelerated distributions) to the lesser of (i) 50% of the present value of the benefit otherwise payable or (ii) the present value of the participant's PBGC maximum guarantee. Plans subject to the restrictions must use the 2009 Present Value of PBGC Maximum Guarantee table for participants with annuity starting dates in 2009, regardless of the plan year." (Mercer LLC)
Lump-Sum Distributions at Job Change (PDF)
12 pages. Excerpt: "This article uses 2006 data (the latest available) from the Census Bureau's Survey of Income and Program Participation (SIPP) to analyze the decisions made by workers at job change when they receive a lump-sum payment from an employment-based retirement plan." (Employee Benefit Research Institute)
Many Taxpayers Stand to Gain from New Laws Affecting Retirement Plan Contributions
Excerpt: "The maximum amount that savers can contribute to a 401(k) plan increased. Many high-income taxpayers will benefit from changes affecting personal exemptions and certain deductions. And many Americans who live and work in other countries will be able to exclude more of their pay from U.S. tax collectors." (The Wall Street Journal)
Analysis of Target-Date Fund Adoption
Excerpt: "Driving the growth rate of target-date funds has been their increased use in defined contribution (DC) retirement plans. Their use in DC plans is likely to expand given their designation by the U.S. Department of Labor as one of three qualified default investment alternatives (QDIAs) -- along with balanced funds and managed accounts -- under the Pension Protection Act of 2006. In this report, we assess the impact of target-date funds on DC plans using recordkeeping data drawn from more than 2,200 DC plans and nearly 3.2 million participant accounts record kept by Vanguard." (IndexUniverse.com)
Ensuring Retirement Income
Excerpt: "Faced with low account balances and little help from other sources, participants in defined contribution plans confront a real challenge in trying to draw a steady income from their portfolios. Their woes, however, could represent an opportunity for another group: insurance companies, which are now rushing to offer annuities for the 401(k) channel. Genworth Financial, Hartford Financial Services Group, MetLife and Prudential Retirement are among those that have recently launched annuities targeted at the defined contribution marketplace, and more firms are expected to follow." (Institutional Investor)
401(k) Balances and Changes Due to Market Volatility: Data to January 07, 2009
Excerpt: "The Employee Benefit Research Institute and the Investment Company Institute have been collaborating since 1996 to develop the most comprehensive database on 401(k) plan participants yet assembled. Participant data include demographic, contribution, asset allocation, and loan and withdrawal activity information." (Employee Benefit Research Institute)
PBGC Hangs Hat on Investment Policy as Strategy to Survive Market Turmoil
See Items of Interest List on target site. Excerpt: "The PBGC's investment policy that was adopted in 2008 was intended to diversify asset investments to improve their returns, Charles E.F. Millard, told BNA Dec. 16. He said he considers the policy the agency's 'best opportunity' to meet its financial obligations without a congressional bailout." (Keightley & Ashner LLP)
Planning Ahead for Retirement Has Gotten Riskier, According to Consumer Reports Survey
Excerpt: "More than half (51%) of retired readers of Consumer Reports and 55% of those just short of retirement are facing investment losses of at least 20% in the past 12 months. The Consumer Reports 2008 Retirement Survey also found that while consumers who planned ahead were more satisfied with their retirement prospects, pre-retirees who had done more planning reported worse losses, on average, than those who have not planned, according to a press release." (PLANSPONSOR.com; free registration required)
Pension Expense for S&P 1500 Companies Will Soar by $60 Billion in 2009, a Mercer Study Predicts
Excerpt: "[T]he overall pension expense of the 772 corporations in the S&P index that sponsor traditional plans is likely to increase from $10 billion in 2008 to $70 billion in 2009, according to projections released by Mercer, a big pension-consulting firm." (CFO.com)
[Opinion]
American Benefits Council Comment Letter on Notice of Right to Defer Receipt of Distribution (PDF)
3 pages. Excerpt: "While the Council understands the need to provide relevant information to plan participants considering a pre-normal retirement age distribution, the Council believes it is possible to meet this need by including more generic information and references to outside documents, including summary plan descriptions, as well as directions to contact call centers for more information. For example, the proposed regulations require a plan to include information regarding any provision of a plan maintained by the employer that could reasonably be expected to materially affect a participant's decision to defer receipt. The notice could state that 'your company may have accident, health or long-term disability benefits that may be effected if you fail to defer' and suggest that the participant review the health and/or disability plan summary plan descriptions. Alternatively, the generic statement could be followed by a direction to contact the call center or human resources for more information." (American Benefits Council)
DATAIR Employee Benefit Systems, Inc. (Sponsor)
(Click on company name or banner to learn more.)
| DATAIR’s TWO for ONE sale* |
| *The Best TPA Software *The Best Support *The Best Price
CHOOSE THE SYSTEMS YOU NEED:
sales@datair.com (888) 328-2474 www.DATAIR.com |
Links to Items on Executive Comp, Benefits in General
[Official Guidance]
Text of Employer's Tax Guide to Fringe Benefits for Use in 2009 (PDF)
32 pages. Excerpt: "This publication supplements Publication 15 (Circular E), Employer's Tax Guide, and Publication 15-A, Employer's Supplemental Tax Guide. It contains information for employers on the employment tax treatment of fringe benefits." (Internal Revenue Service)
[Guidance Overview]
Employment and ERISA Law Considerations When Reducing Workforce or Laying Off Employees
Excerpt: "Some of the laws that should be taken into consideration include the Family Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), the Uniformed Services Employment and Reemployment Rights Act (USERRA), the Older Workers Benefit Protection Act (OWBPA), the Employee Retirement Income Security Act (ERISA), Equal Employment Opportunity (EEO) laws and the Consolidated Omnibus Budget Reconciliation Act (COBRA)." (Aiken & Aiken)
Forces Align Against Big Executive Pay
Excerpt: "After rising unchecked for years, CEO pay may be headed for a fall. Compensation experts say the severe downturn, a shift in the political winds and shareholder outrage could finally combine to pressure companies to limit raises or, in some cases, even cut executive salaries." (Workforce Management; free registration required)
FAS 123(R) Option Assumptions: Analysis of the 2007 Results
Excerpt: "Watson Wyatt recently completed its second annual analysis of stock option valuation assumptions and results under Statement of Financial Account Standards (SFAS) 123(R).1 From 2006 to 2007, the percentage of companies disclosing option fair values decreased from 74 percent to 73 percent, and the number disclosing stock compensation expense increased from 93 percent to 94 percent. Median stock compensation expense increased by 9 percent in 2007." (Watson Wyatt Worldwide)
Google Cuts Temporary Workers; Also Curbs Fringe Benefits
Excerpt: "Google Inc. has jettisoned a substantial number of temporary workers in a recent austerity drive spurred by the recession . . . . To help shore up profits, Google's management has curbed some of the generous employee perquisites that have been a company hallmark for the past decade. It has closed some company cafeterias that serve free meals and last month withheld a $1,000 holiday gift that's traditionally distributed to all employees. Instead, the company handed out free cell phones that run on Google software -- a gift that management valued at about $400." (AP via The New York Times; free registration required)
Obama Promises Bid to Overhaul Retiree Entitlement Spending
Excerpt: "President-elect Barack Obama said Wednesday that overhauling Social Security and Medicare would be 'a central part' of his administration's efforts to contain federal spending, signaling for the first time that he would wade into the thorny politics of entitlement programs." (The New York Times; free registration required)
Newly Posted Events
Executive Compensation Challenges in Not For Profits - Webcast
Nationwide on January 14, 2009
presented by Buck Consultants, an ACS Company
January 2009 Monthly Luncheon - Fee Audits for Defined Contribution Plans
in Colorado on January 13, 2009
presented by Western Pension and Benefits Conference-Denver Chapter
Newly Posted Press Releases
U.S. Department Of Labor Recovers More Than $750,000 For Georgia Plumbers Trade Association Health Planu
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
U.S. Labor Department Sues To Protect 401(k) Assets Of Defunct Piping Company In St. Amant, Louisiana
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Millennium Trust Named Custodian on Neuberger Berman 403(b)'s
Millennium Trust Company, LLC
Summit Retirement Plan Services, Inc. Hires of Industry Veteran to Strengthen Management Team
Summit Retirement Plan Services, Inc.
Asparity Makes Consumer Behavior Data Available to Health Plans
Asparity Decision Solutions
401(k) Recordkeeper to Increase Workforce, Sees Positive Outlook for 2009
EPIC Advisors, Inc.
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs |
RSS Feed )
Retirement Counselor-Pension
for 1199SEIU Benefit and Pension Funds
in NY
DC/401(k) Plan Administrator
for Benefit Planning, Inc.
in CA
Deputy Regional Director
for U.S. Department of Labor, Employee Benefits Security Administration
in KY
Retirement Sales Wholesaler - Inside Sales
for ExpertPlan, Inc.
in NJ
Voluntary Sales Rep-CTA
for The Standard
in CA
Internal Sales Consultant -- Northeast Region
for Transamerica Life Insurance Co.
in MA, NJ, NY, PA
Operations Director
for Prudential Financial
in IA
401k Sales Person
for Katz Zlotnick Associates, Inc.
in NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
This newsletter is sent to you each workday except federal holidays.
This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
David Rhett Baker, J.D., Editor
Copyright 2009 BenefitsLink.com, 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: https://benefitslink.com/newsletter/
Other useful links: