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| January 28, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
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[Official Guidance]
Text of U.S. Supreme Court Decision Affirming Payment of Death Benefit from Pension Plan to Surviving Ex-Spouse Designated as Beneficiary, Despite Terms of Later Divorce Decree (PDF)
22 pages. Excerpt (from the opinion's syllabus): 'Under the terms of the plan, if there is no surviving spouse or designated beneficiary at the time of death, distribution is made as directed by the estate's executor or administrator. Upon their marriage, William designated Liv Kennedy his SIP beneficiary and named no contingent beneficiary. Their subsequent divorce decree divested Liv of her interest in the SIP benefits, but William did not execute a document removing Liv as the SIP beneficiary. On William's death, petitioner Kari Kennedy, his daughter and the executrix of his Estate, asked for the SIP funds to be distributed to the Estate, but the plan administrator relied on William's designation form and paid them to Liv." (U.S. Supreme Court via American Benefits Council)
[Guidance Overview]
Supreme Court Upholds Distribution to Former Spouse Despite Divorce Decree
Excerpt: "In ruling for the plan administrator, the Court resolved conflicting opinions from the lower courts and stressed the need for plan administrators to be able to rely on the plan's own administrative procedures in determining who is entitled to a deceased participant's benefit, and not to be required to interpret other documents that might contradict the participant's beneficiary designation on file with the plan. The participant in this case, the Court held, had ample opportunity to change his beneficiary designation and had failed to do so." (Seyfarth Shaw LLP)
[Guidance Overview]
Planning a Standard Termination: A Checklist for Practitioners
5 pages. Click on the link under 'Items of Interest' on the target page. (Keightley & Ashner LLP)
[Guidance Overview]
Procedures for Assessing Civil Penalties under ERISA Sec.502(c)(4)
Excerpt: "Effective March 3, 2009, procedures go into effect by which the Secretary of Labor can assess civil penalties against a plan administrator for the failure to provide certain PPA-required notices. Penalties are based on the 'degree or willfulness' of the failure, but may not exceed $1,000 per day for each violation. Administrators should be aware that, if served notice of assessment, they have a fixed 30-day period to show 'reasonable cause' and explain why the penalty should be reduced. Failure to respond within the 30-day period will foreclose further proceedings and cause the notice to become final and binding." (Deloitte LLP via BenefitsLink.com)
Public Pension Battles Loom Across The U.S.
Excerpt: "While employees of most companies have watched their 401(k) plans, and their retirement hopes, shrivel in the bear market, public employees have been smiling. They've been promised lucrative pensions, which have increased over the years as cities and states negotiated labor contracts. Now those public employees are about to find out they are not immune from the ravages of the stock market." (TheStreet.com)
Public Pension War Coming to Chicago Taxpayers
Excerpt: "Pension wars are coming to Chicago. In the near future, they will pit the taxpayers against the city workers who provide services ranging from police and fire protection to snow removal and public school education. It won't be a pretty fight." (Chicago Sun-Times)
Americans Lost Over a Quarter of 401(k) Savings in 2008
Excerpt: "The average 401(k) balance went from $69,200 in 2007 to $50,200 last year because of dramatic market declines, the [Fidelity Investments] study found. " (Washington Post; free registration required)
New Website Offers 401(k) Advice From Registered Investment Advisers
Excerpt: "A Registered Investment Advisor will develop a recommendation that includes the correct Asset Allocation, Fund Diversification and 'Best of the Best' funds for you." (ReviewMy401k.com)
The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Boomers
Excerpt: "This paper uses the Model of Income in the Near Term to simulate the impact of an accelerated transition from DB to DC pensions on the distribution of retirement income among boomers." (Working Paper published by the Center for Retirement Research)
Double Your Money in 347 Years!
Excerpt: "[L]ook at the going rates on savings accounts at some of the biggest banks out there. . . . At 0.2% interest, it will take 347 years before your money doubles . . . ." (Motley Fool)
As Revenue Goes Down for Local Governments, Pension Costs Go Up
Excerpt: "When the economy sours, as it has been doing lately, it not only slashes revenue for state and local governments but also adversely affects pension fund earnings, and already-strapped state and local governments must increase payments to maintain benefits." (Monterey Herald)
The 5 Corporate Pension Plans With The Steepest Losses
Excerpt: "If you thought your 401(k) statement was painful to look at, your pension plan (if you're lucky enough to still have one) is probably doing even worse." (U.S. News & World Report)
Republic Bank Boosts 401(k) Kick-In: Kentucky Bank Will Match 100% of a Worker's Total Contribution
Excerpt: "Republic Bank is bucking the current trend of companies suspending their 401(k) defined contribution matches by increasing its match and shortening the vesting period for its 750-person work force effective Jan. 1, 2009. This runs counter to what companies such as Motorola Inc. and Starbucks Corp. have all done -- suspended their respective 401(k) employer matches, citing the difficult economic environment." (Pensions & Investments via Financial Week)
Retirement Incentive Plan Would Encourage Teacher Retirement in Michigan
Excerpt: "The plan, to be announced Wednesday by a bipartisan group of lawmakers, would save schools statewide nearly $411 million next year and $1.7 billion over 10 years, according to the Michigan Education Association. It would encourage an estimated 9,000 teachers and other school workers who are eligible for full pensions to retire with a one-time bump in their monthly benefits." (Detroit Free Press)
[Opinion]
Change in U.S. Retirement System Is Anticipated in 2009
Excerpt: "'Change' was the watchword of the presidential election, and change, whether intended or not, is likely to come to the retirement benefits industry in 2009 as a result of the ongoing crisis in the financial markets. Given this turmoil, and the control Democrats will have in the Senate, House, and 1600 Pennsylvania Avenue, the pathway to implementing change should be easier. We survey some of the possibilities [in the target article]." (PLANSPONSOR.com; free registration required)
DATAIR Employee Benefit Systems, Inc. (Sponsor)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
Focus on Employee Benefits, January 23, 2009 Edition (PDF)
11 pages. Excerpt: "[Miller & Chevalier has summarized some of the developments expected] to require attention in 2009. These are broken down by four areas -- retirement plans, health and welfare plans, executive compensation, and payroll tax and fringe benefits." (Miller & Chevalier Chartered)
Trends in Executive Compensation over the Twentieth Century
Excerpt: "In recent years, a large academic debate has tried to explain the rapid rise in CEO pay experienced over the past three decades. In this article, I review the main proposed theories, which span views of compensation as the result of a competitive labor market for executives to theories based on excess of managerial power. Some of these hypotheses have found support in cross-sectional evidence, but it has proven more difficult to determine which factors have caused the observed changes in pay over time." (Social Science Research Network)
Newly Posted Press Releases
Adoption of Personalized Medicine May Yield Significant ROI; Time to Achieve Benefit Varies Among U.S. Health Care Stakeholders
Deloitte
CAPTRUST Deepens Presence in the Midwest
CAPTRUST Financial Advisors
Newly Posted or Renewed Job Openings
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401(k) Plan Administrator
for Southern Pension Services
in FL
Retirement Plan Administrators
for Pension Specialists, Inc.
in CA
Regional Executive Benefits Specialist
for CUNA Mutual Group
in CA
Retirement Specialist
for CUNA Mutual Group
in WI
Retirement Education Specialist
for CUNA Mutual Group
in WI
Employee Benefits Account Manager
for Westchester Risk Management/Benefits Advisory Firm
in NY
401(k)/DC Admin Manager, ESG
for CUNA Mutual Group
in WI
Pension Administrator
for Full Service TPA
in PA
Trust Analyst - Retirement Plans
for Kibble & Prentice
in WA
Customer Service Representative
for Midsouth Consulting Group
in TN
Sr. Actuarial Associate
for Prudential Financial
in NJ
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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