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| January 21, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is ASC & The ASC Institute
(Click on company name or banner to learn more.)
| Create all your Safe Harbor notices in one day with the DGEM system |
| ASCi’s Automated Document System (DGEM) automatically finds all your Safe Harbor plans, then simultaneously produces the notices with their pre-populated cover letters, eliminating the hassle of mail merges! See how in this one minute video. |
[Official Guidance]
Final DOL Regs: Investment Advice to Pension Plan Participants and Beneficiaries (PDF)
33 pages. Effective date is March 23, 2009. (Employee Benefits Security Administration, U.S. Department of Labor)
[Guidance Overview]
Pension Bill Offers Some Relief in Light of Market Turmoil; Technical Corrections Enacted
Excerpt: "On December 23, 2008, President Bush signed the Worker, Retiree, and Employer Recovery Act of 2008 (the Act). In response to the recent market volatility, the Act provides some relief for companies that contribute to single-employer and multiemployer defined benefit plans, as well as for certain individual taxpayers. It also makes technical corrections to several provisions found in the Pension Protection Act of 2006 (PPA). In order to provide highlights of the Act, we are issuing this high-level summary now . . . ." (Morgan, Lewis & Bockius LLP)
[Guidance Overview]
Responding to Employee Benefits Provisions of the Worker, Retiree and Employer Recovery Act of 2008
Excerpt: "The recently passed Worker, Retiree and Employer Recovery Act of 2008 (the 'Act') contains important changes for qualified plans. These changes are intended to provide relief to plan sponsors and participants for plan funding shortfalls and account reductions caused by the economic downturn. This Benefits Alert describes some of the changes under the Act and what actions, if any, should be taken." (Holland & Hart LLP)
[Guidance Overview]
Final DOL Regulations on Assessing Civil Penalties for Failure to Provide Documents
Excerpt: "On December 31, 2008, the Department of Labor issued final regulations (74 Fed. Reg. 17; 29 C.F.R. § 2560) implementing procedures for assessing civil penalties on plan administrators for failure to provide certain documents to participants and other relevant parties. The plan administrator is defined by ERISA and is usually the employer sponsoring the plan. The regulations are effective as of March 3, 2008." (Dorsey & Whitney LLP)
10 Retirement Resolutions for 2008
Excerpt: "There's perhaps nowhere goals can be more measurable and attainable than in retirement planning. Here's a list of retirement resolutions for 2008 to keep your game plan on track." (U.S. News & World Report)
For Retirement Security: Get a Pension
Excerpt: "Simply finding a job in 2009 will be challenging for many people. 'But if you can, seek an employer offering a traditional pension,' advises Beth Almeida, executive director of the National Institute on Retirement Security. 'Pensions offer what Americans are looking for: the security and peace of mind of a regular monthly check that lasts as long as you do with payments continuing to your spouse even after you're gone. It's a much better solution than on your own retirement that is subject to the wild volatility of the financial markets and can run out.'" (U.S. News & World Report)
Your Annual Savings Goal; Helping Employees to Calculate the Number
Excerpt: "[How do you determine how much to save each year to meet a goal of a specific amount of money?] Here are a couple of ways. You can use a financial calculator. You can use the following formula, where 'F' is the future value of the amount you need to save ($626,860); 'r' is the assumed rate of return (6%); 'N' is the number of years of saving (25); and 'Pmt' is the amount of annual saving you're trying to determine. Pmt = F * [r/([1 + r]^N - 1) You can use an Excel spreadsheet." (Two Legged Stool)
Ten Things DC Plan Sponsors Need to Do for '09
Excerpt: "The HR consulting firm [Mercer] recently created a checklist of 10 resolutions DC plan sponsors should consider when managing their plans in 2009. . . . If you're interested in hearing more, download a podcast [linked from the target page] with Mercer's Amy Reynolds, who talks about why these 10 resolutions are worth doing." (Employee Benefit News; free registration required)
Optimal Consumption and Portfolio Choice for Retirees
Excerpt: "I show that a transition from the current pay-as-you-go Social Security system to a personal investment-based system benefits retirees with high fraction of pre-annuitized wealth the most because the flexibility of choosing the optimal equity-bond mix for one's annuity portfolio reduces the cost of over-annuitization." (Social Science Research Network)
ASPPA (Sponsor)
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| The ASPPA 401(k) SUMMIT, March 22- 24, 2009 |
| Register now and be a part of this unique forum for retirement sales and investment professionals in the 401(k) arena. Hear Arthur Laffer discuss the condition of our new global economy, participate in interactive networking activities and specialized education tracks, and listen to our industry’s leaders discuss where the trends are taking us and how to be prepared. Don’t miss out on the longest running event dedicated solely to the sales and investment segment of our industry, register now. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
Final FASB Disclosure of More Asset Classes Held in Pension and Postretirement Benefit Plans
Excerpt: "The Financial Accounting Standards Board (FASB) on December 30, 2008, finalized revisions to FASB Statement # 132, Employers' Disclosures about Pensions and Other Postretirement Benefits. The revisions are effective for fiscal years ending after December 15, 2009, and are found in FAS #132(R)-1, Employers' Disclosures about Postretirement Benefit Plan Assets." (Wolters Kluwer)
[Guidance Overview]
Executive's Disloyalty Causes Loss of SERP Benefits
2 pages. Excerpt: "Lesson. One generally prefers precision in deferred compensation agreements. But, for provisions intended to protect a company in the event an executive acts improperly, the flexibility afforded by using the term 'disloyalty' to describe an event resulting in a loss of entitlement to further compensation (or the need to return compensation already paid) may be useful." (National Association of Stock Plan Professionals via Utz, Miller, Kuhn & Eickman, LLC)
Returning Fairness to Executive Compensation
Excerpt: "The current waive of turmoil in the financial markets has cast attention on the problem of executive compensation. Companies that have failed or disappeared in shot-gun mergers have nonetheless paid exorbitant sums to officers who arguably played a substantial role in their demise. In response, Congress for the first time established federal standards for determining compensation, including clawbacks and limits on golden parachutes. . . . The paper provides some suggested reforms. The efficacy of the process must be improved. Most importantly, however, fairness needs to be returned to the analysis. Only with some obligation to show the fairness of the compensation decision with the interests of shareholder be adequately protected." (Social Science Research Network)
Information Resources on Labor, Employment and Workforce Development
The target page provides links to Federal and state Government and Congressional Sites, Legislative Resources and Information, publications, and Associations and Interest Groups. (National Conference o State Legislatures)
Class Action Workplace Litigation Hot Item in '08
Excerpt: "One of the most significant changes in 2008 was the increase in the collective amount of the 10 largest ERISA class action settlements. That figure hit $17.7 billion last year, up from $1.8 billion in 2007." (The National Law Journal via Law.com)
Newly Posted Press Releases
MassMutual Appoints Three New TPA Relationship Managers
MassMutual Retirement Services
Newly Posted or Renewed Job Openings
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Retirement Plan Administrator / Consultant
for Blue Chip Retirement Plans, Inc.
in WI
Manager/Retirement Plan Administrator
for Primark Benefits
in CA
Manager, Absence Management
for The Standard
in OR
Benefit Associate
for Allen, Gibbs & Houlik, L.C.
in KS
Compliance Analyst
for The Newport Group
in NC
Client Services Manager (CSM)
for TRI-AD
in CA
Client Service Consultant
for The Standard
in TX
Client Development Officer
for COUNTRY Financial
in IL
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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