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| February 5, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
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[Guidance Overview]
DOL Suggests Advice Rule Delay
Excerpt: "The U.S. Department of Labor (DoL) has proposed putting off for 60 days the implementation of its recently released final mandate on making more accessible 401(k) and IRA participant advice. The DoL proposal, published Wednesday in the Federal Register, calls not only for public comment about the proposed rule implementation delay from March 23 to May 22, 2009, but about the policy issues in the rule itself. According to the DoL's latest publication, the department will accept public comments until February 18, 2009." (PLANSPONSOR.com; free registration required)
[Guidance Overview]
PBGC's Final Plan Termination Disclosure Rules (PDF)
2 pages. Excerpt: "On November 18, 2008, the Pension Benefit Guaranty Corporation (PBGC) issued final rules on the new plan termination disclosure requirements for single-employer defined benefit pension plans in the case of distress terminations or terminations initiated by PBGC ('involuntary terminations'). These new disclosure requirements apply to plan terminations initiated on or after August 17, 2006, but only to requests for information made on or after December 18, 2008." (Prudential Retirement)
[Guidance Overview]
Listing of IRS Published Guidance for January 2009
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)
[Guidance Overview]
Lessons for Fiduciaries from an Employer Stock Divestment Case
Excerpt: "The bulk of [stock-drop] cases have involved situations where the stock has plummeted in value due to various circumstances and the fiduciaries have been accused of violating their fiduciary duty for allowing the plan to hold on to the stock or for continuing to offer the stock as an investment of the plan. The case of Bunch v. W.R. Grace & Co. Savings and Investment Plan, an employer stock case recently decided by the First Circuit in favor of the fiduciaries, involves an interesting variation on this theme: the plaintiffs are complaining because the fiduciaries did not hold on to the stock. The stock was sold after it declined in value, but right before there was an upturn in value due to a third party who wanted to purchase the stock." (Attorney B. Janell Grenier via Benefitsblog.com)
The Confusion Over Required Withdrawals from Retirement Accounts
Excerpt: "For 2009 only, there will not be the usual required minimum distributions from retirement plans such as 401(k)s, Roth 401(k)s, 403(b)s and certain 457(b)s. The distribution rules also apply to traditional individual retirement arrangements and accounts and IRA-based plans such as Simple IRAs and SEPs (simplified employee pension plans), which provide employers with an easy method to make contributions toward their employees' retirement or the self-employed an easy way to contribute to their own." (The Washington Post; free registration required)
Merrill Pays $1 Million to Settle SEC Charges It Misled Pension Funds
Excerpt: "Merrill Lynch has agreed to pay $1 million to settle regulatory charges that a Florida office misled municipal employee pension funds by referring them to a short list of questionable investment advisors that included one who had a personal relationship with a Merrill manager." (Workforce Management; free registration required)
Bill Would Restore Pension Credits for Returning Federal Workers
Excerpt: "Legislation introduced on Wednesday in the House would give employees who return to civil service from the private sector the ability to recoup their full retirement annuity without losing credit for previous years of federal service. Under the Federal Employees Retirement System, workers who leave the government can cash out their annuity or roll it into a private savings account, a decision that erases their pension credits. If they rejoin the government, they are not allowed to redeposit those funds and restore their pensions. The bill (H.R. 828), introduced by Rep. James Moran, D-Va., would provide former FERS employees who decide to reenter the government workforce after a stint in the private sector the ability to redeposit the full amount plus interest of the annuity they cashed out or rolled over, and to retain their years of service in the calculation of future annuity payments." (GovernmentExecutive.com)
Report on Hard to Value Assets and Target Date Funds
Excerpt: "The 2008 ERISA Advisory Council formed a working group on Hard To Value Assets and Target Date Funds (hereinafter referred to as the 'Working Group') to study issues involving two topics concerning: first, plan assets invested in Hard To Value Assets, or alternative investments, and second, plan assets which allow participants to invest in Target Date Funds." (U.S. Employee Benefits Security Administration)
Report on the Spend Down of Defined Contribution Assets at Retirement
Excerpt: "The 2008 [ERISA Advisory] Council assigned a Working Group to examine and review the Spend Down of Defined Contribution Assets at Retirement to assess the issues and barriers facing: plan fiduciaries who wish to add plan design / investment options for DC plans which provide lifetime income / periodic payments at retirement, plan sponsors who wish to offer periodic income options as a DC plan's default distribution option, and DC plan participants as they attempt to evaluate the tradeoffs between the traditional accumulation / lump sum distribution model vs. alternative approaches that guarantee periodic income levels at retirement." (U.S. Employee Benefits Security Administration)
PBGC's 'My PAA' Now Ready to Accept 2009 Premium Filings
Excerpt: "My Plan Administration Account (My PAA), the PBGC's premium e-filing application, is now ready to accept premium filings for plan years beginning in 2009, the PBGC has stated on its website. Information about how to e-file via My PAA (e.g., FAQs and Demos) is on the Online premium filing (My PAA) page of the PBGC'S website." (Wolters Kluwer)
Federal Thrift Savings Plan Topples CalPERS As Nation's Largest Plan
Excerpt: "Federal Thrift Savings Plan, Washington, bypassed the California Public Employees' Retirement System, Sacramento, as the nation's largest retirement plan in terms of asset size. The Federal Thrift, a defined contribution plan, had $197.3 billion in assets as of Jan. 31, according to Tom Trabucco, a spokesman for the Federal Retirement Thrift Investment Board, which oversees the plan. CalPERS' assets were valued at $173.9 billion as of Monday, according to CalPERS' website." (Pensions & Investments)
[Opinion]
A New Perspective on 'Saving' for Retirement (PDF)
12 pages. Excerpt: "Personal saving remains the foundation of the acquisition of personal wealth, on which asset appreciation can build. The report concludes that it is time to consider new policies to increase saving, including an enhanced Saver's Credit, an auto-IRA, and some type of consumption tax, such as a value-added or progressive consumption tax, not as a substitute for but in addition to the income tax, to encourage more personal saving." (AARP)
[Opinion]
Shining a Bright Light on a Dark 401(k) Secret
Excerpt: "The existing 401(k) system is a scam far greater than anything Bernie Madoff could have conceived. His $50 billion Ponzi scheme is dwarfed by the $12 trillion 401(k) rip-off imposed on plan participants by their employers, and the mutual fund and insurance industries." (Dan Solin via The Huffington Post)
DATAIR Employee Benefit Systems, Inc. (Sponsor)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
Presentation: Dealing With Underwater Options: Option Repricings, Option Exchanges, Option Buy-Outs Webcast (PDF)
28 pages. Excerpt: "Three techniques for dealing with underwater options: 1. Option Repricing: The underwater option is cancelled and replaced with an at-the-money option 2. Option Exchange: The underwater option is exchanged for a restricted stock unit award 3. Option Buyout: The option is purchased by the issuer for cash" (Morgan, Lewis & Bockius LLP)
Along with Compensation, Scrutiny of Bankers' Perks Will Grow, Too
Excerpt: "Country club dues, gym memberships and personal assistants. Home security systems, chauffeur service and parking. And, of course, all those private jets to ensure the comfort and safety of the boss. Top executives at banks enjoy all sorts of shiny perquisites. Yet despite being propped up by taxpayer bailout money, many banks are not yet ready to give them up." (The New York Times; free registration required)
Obama Outlines Limits on Executive Pay with Goal to Inspire Dedication to Long-Term Health of Firms
Excerpt: "The administration imposed a $500,000 pay cap on senior officers at companies that need special government assistance. But perhaps more significant is a new rule that bans those firms from offering additional compensation except in the form of company stock that can be redeemed only after the government investment is repaid. The idea is to motivate executives to work for the long-term health of their companies, administration officials said." (The Washington Post; free registration required)
Keeping Work/Life Programs
Excerpt: "Employers are not as quick now, as they were in the recession of 2001, to cut work/life programs. In fact, some employers are actually adding more workplace-flexibility programs as a way to reduce costs, one expert says." (Human Resource Executive Online)
Court Rules Forfeiture of Incentive Does not Violate State Wage Law
Excerpt: "Massachusetts' Supreme Judicial Court has determined that the forfeiture provision of a Capital Accumulation Plan (CAP) does not violate the state's weekly wage act. According to the court opinion, another statute specifically excludes from coverage under the state weekly wage act 'certain types of deductions from wages made by an employer at an employee's request, including, among other things, deductions of amounts used to purchase company stock pursuant to an employee stock purchase plan.' Using this statute, the court determined the forfeiture of the stock purchased at participants' direction in the payroll program of the CAP did not violate the wage act." (PLANSPONSOR.com; free registration required)
Newly Posted Events
Adapting to Proposed Fee Disclosure Regulations
in Florida on February 17, 2009
presented by ING Group
Benefits Boot Camp 2009
in Georgia on April 30, 2009
presented by WEB (Worldwide Employee Benefit Network) Atlanta Chapter
Compliance Assistance Seminar For Retirement Plan Fiduciaries - Free
in New York on February 12, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Investor Choices and Financial Literacy: Evidence from Mutual Fund Choice Experiments Congressional Briefing
in District of Columbia on February 9, 2009
presented by RAND Corporation
Mid-Sized Retirement & Pension Plan Management Conference
in Massachusetts on May 5, 2009
presented by University Conference Services
Pension Focus 2009 Conference
in Missouri on May 14, 2009
presented by Pension Consultants, Inc.
Workshop with Sal Tripodi on Nondiscrimination Testing, EPCRS and Other Recent Developments
in California on February 19, 2009
presented by National Institute of Pension Administrators - San Francisco Bay Area Chapter
Newly Posted Press Releases
MassMutual RetireSmart Academy Makes Debut
MassMutual Retirement Services
UBA Announces the Opening of the 2009 UBA Employer Benefit Perspectives, a Survey of Employer Opinions
United Benefit Advisors
Fiduciary360 Appoints Judy Stormer Director of Finance And George Stark Application Systems Manager
Fiduciary360 (fi360)
Newly Posted or Renewed Job Openings
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Client Relations Representative
for Decimal, Inc. (www.theonline401k.com)
in CA
Retirement Plan Administrator
for REDW, The Rogoff Firm
in NM
Defined Benefit Plan Technician
for Rosenfeld/Tortu Retirement Planning Co., Inc.
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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