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| February 10, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is National Institute of Pension Administrators (NIPA)
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| Register Today for the 2009 NIPA Annual Forum & Expo (2009NAFE) |
| From industry trends to day-to-day tasks, from impacts of recent or forthcoming legislation to practical tools for helping you advance your pension administration knowledge, NIPA helps you see the Big Picture at its annual event designed by retirement plan professionals, for retirement plan professionals. |
[Official Guidance]
Text of IRS Notice 2009-16: Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates (PDF)
4 pages. Excerpt: "This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for February 2009, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for January 2009." (Internal Revenue Service)
[Guidance Overview]
2009 ERISA Compliance Calendar for DB/DC/403(b) Plans
Excerpt: "Note: Plan amendments for provisions of the Pension Protection Act of 2006 should be retroactively effective and will not violate anti-cutback rules if made on or before the last day of the plan year beginning on or after January 1, 2009 (or 2011 for governmental plans)." (PLANSPONSOR.com; free registration required)
[Guidance Overview]
DOL Proposes to Delay Final Investment Advice Regulations, Requests Comments on Delay and Content of Rules
Excerpt: "EBIA Comment: The DOL notice does not explain which of the OMB factors triggered its decision to propose an extension, but there have been numerous reports of Congressional opposition to the PTE, so the DOL's willingness to consider an extension is not too surprising (notwithstanding its staunch defense of the PTE in the preamble to the regulations). As the DOL points out in the notice, the prohibited transaction relief 'would serve little purpose' if the DOL were to amend or withdraw the regulations after plans and fiduciary advisers had implemented them." (Employee Benefits Institute of America)
DOL's Employee Benefits Security Administration Announces Online 5500 Walk-Through
Excerpt: "Plan sponsors will get a walk-through of the 2009 Form 5500 reports and a new electronic filing Web site from a scheduled February 19 Webinar from the Department of Labor's Employee Benefits Security Administration (EBSA). . . . The Webcast will take place from noon to 2 p.m. E.S.T., the agency said. More information will be available at http://www.dol.gov/ebsa or by contacting Patricia Humphlett at 202-693-8660." (PLANSPONSOR.com; free registration required)
Pension Shortfalls Put Pressure on Strained University Budgets (PDF)
Excerpt: "With the stock market in decline, college pension plans are losing money, and administrators are scrambling to cover the shortfall. At some institutions, defined-benefit pension plans are at their lowest levels in decades. Many plans now hold less than three-quarters of the money they will need to pay retiree benefits, says Olivia S. Mitchell, a professor of insurance and risk management at the Wharton School of the University of Pennsylvania." (The Chronicle of Higher Education)
Think Fannie Mae and Freddie Mac Were a Politicized Financial Disaster? Just Wait Until Pension Funds Implode
Excerpt: "State, local, and private pension plans covering millions of government employees and union workers with 'defined benefit' accounts are teetering on the brink of implosion, victims of both a sinking stock market and investment strategies influenced by political considerations. From January to October 2008, defined benefit funds -- those promising a predetermined amount of retirement money to the payee -- averaged losses of 26 percent, according to Northern Trust Investment Risk and Analytical Services, making it the worst year on record for corporate and public pension funds." (Reason Magazine)
Conservative Groups Declared War on Governmental Defined Benefit Plans More Than a Decade Ago Saying Defined Contribution Plans Are Better for Taxpayers
Excerpt: "DB plan proponents, however, argue that those plans are actually cheaper for taxpayers. If a state wants to spend tax dollars efficiently, a DB plan buys a better benefit per dollar spent than a DC plan, says Richard Ferlauto, Director of Corporate Governance and Pension Investments at the American Federation of State, County and Municipal Employees in Washington. A report by the National Institute on Retirement Security (NIRS) asserts that DB plans can provide the same level of benefit at roughly one-half the cost . . . ." (PLANSPONSOR.com; free registration required)
Target Date Funds' Investment Performance Disappoints
Excerpt: "Target-date retirement funds were supposed to be the greatest thing since sliced bread. Then 2008 happened. And all of the 264 target-date funds sold by the 39 mutual fund firms that market them performed poorly and contrary to expectations." (Seeking Alpha)
A Proposal to Shore Up Banks With Pension Funds
Excerpt: "[Representative Gary L.] Ackerman, Democrat of New York, is sponsoring legislation that would allow public pension funds to pool some of their money and use it to create a sole-purpose entity that would buy $50 billion to $250 billion worth of preferred stock in America's banks. That would strengthen the banks' balance sheets and, Mr. Ackerman hopes, get them lending again." (The New York Times; free registration required)
Despite Slump, Some Small Firms Add 401(k)s
Excerpt: "Even as the recession is taking its toll, some small-business owners are adopting 401(k)s for their employees. They see the plans as a way to retain valued workers and get people who otherwise wouldn't save for retirement to do so. But to be able to afford the plans, some companies are having to make some trade-offs, including delaying employer matches or offering the matches in lieu of raises." (The Wall Street Journal)
Any Upside for Employers to Encourage 401(k) Saving?
Excerpt: "Employees know why they are -- or should be -- saving for retirement. Some want to travel. Some want time to sail, golf, garden or hang out with their grandchildren. In short, they want time to enjoy what used to be called the golden years. But what's in it for employers? That's one of the main issues with the 401(k) system. There are no real incentives for employers to ensure that their employees are saving enough for retirement, experts say. While employers in years past used pensions and other 'welfare benefits' to stave off unions or weaken their influence, that's less of a problem now, given the weakness of unions in the private sector." (Workforce Management; free registration required)
Service and Investment Choice Top Factors in 403(b) Vendor Selection, According to Survey
Excerpt: "While one might think that cost is the prevailing factor for school districts selecting vendors for their 403(b) plans, a survey conducted in 2008 reveals employee service and choice of investment funds are more important. The July 2008 survey conducted by LIMRA among its members, in collaboration with the Association of School Business Officials International (ASBO), found 56% of the more than 4,000 school districts polled selected employee service as the important factor in vendor selection. Half of respondents said choice of investment funds is important." (PLANSPONSOR.com; free registration required)
Industry and Salary Level Affect 401(k) Plan Participation Rates, According to Report
Excerpt: "Charles Schwab's 401(k) plan benchmarking data shows employee participation and savings rates vary according to employer industry and employee salary level. According to a press release, the data reveals a 67% overall participation rate and a 7.63% overall participant savings rate. However, participation rates range from a low of 54% in the retail industry to 77% in the technology industry." (PLANSPONSOR.com; free registration required)
BLAZE SSI Corp. (Sponsor)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
Treasury Department Releases New Executive Compensation Guidelines Under TARP
Excerpt: "On February 4, 2009, the Treasury Department issued a new set of executive compensation guidelines for financial institutions and other companies participating in the Troubled Asset Relief Program (TARP). The guidelines impose substantial new restrictions on executive compensation programs for both senior and lower level executives of such institutions. In general, the new requirements apply prospectively only although certain certification requirements will apply to institutions that are currently participating in TARP. The new guidelines leave many questions unanswered, including their effect on advance TARP guidance previously issued by Treasury in the final days of the Bush administration, which has neither been formally published nor withdrawn and remains subject to an Obama administration hold order." (McGuireWoods LLP)
Senate Finance Committee Summary of Senate Stimulus Package (PDF)
11 pages. Excerpt: "American Recovery and Reinvestment Act of 2009: Summary of Finance Provisions as Amended on the Floor through 2/7, Plus Expected Elements of the Collins-Nelson Amendment" (Senate Finance Committee via American Benefits Council)
Income of the Population 55 or Older, 2006
Excerpt: "This report provides a broad income picture of a cross section of the population aged 55 or older, with special emphasis on income of the population aged 65 or older. The tabulations focus on the major sources and amounts of income in 2006, both separately and combined, for those age groups." (U.S. Social Security Administration)
Underwater Options Exchange Should Exclude Executives, Maintain Value
Excerpt: "A new analysis from Aon Consulting's Radford Surveys + Consulting found exclusion of board and named executive officers (NEOs) and a value-neutral exchange rate were design features of underwater stock option exchange proposals that figured most prominently in gaining approval." (PLANSPONSOR.com; free registration required)
Newly Posted Events
2009 Form 5500 and Electronic Filing Webcast
Nationwide on February 19, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Automatic Enrollment
Nationwide on June 4, 2009
presented by McKay Hochman Co.
Back-to-Basic Series 1 - Qualified Plans Foundations eSeminar
Nationwide on March 19, 2009
presented by McKay Hochman Co.
Back-to-Basics
in Illinois on June 9, 2009
presented by McKay Hochman Co.
Back-to-Basics
in New York on September 22, 2009
presented by McKay Hochman Co.
Back-to-Basics Series 2 - 401(k) Plans
Nationwide on May 14, 2009
presented by McKay Hochman Co.
Back-to-Basics: The Combined Series
Nationwide on March 19, 2009
presented by McKay Hochman Co.
CODA Rules, Deferrals, Catch-ups and Matching
Nationwide on May 14, 2009
presented by McKay Hochman Co.
Controlled Groups
Nationwide on March 26, 2009
presented by McKay Hochman Co.
Defined Contribution Plan Design Alternatives for Small Employers
Nationwide on April 23, 2009
presented by McKay Hochman Co.
Form 5500 - Getting Ready for Plan Year 2009
Nationwide on April 2, 2009
presented by McKay Hochman Co.
Form 5500 Update
Nationwide on March 31, 2009
presented by McKay Hochman Co.
Fourth Quarter Update
Nationwide on November 17, 2009
presented by McKay Hochman Co.
Fourth Quarter Update
Nationwide on November 18, 2009
presented by McKay Hochman Co.
Overview of Types of Plans, Documents & Guidance
Nationwide on March 19, 2009
presented by McKay Hochman Co.
Retirement Plan Insights
in Pennsylvania on May 19, 2009
presented by McKay Hochman Co.
Retirement Plan Insights
in Illinois on June 9, 2009
presented by McKay Hochman Co.
Retirement Plan Insights
in Massachusetts on August 4, 2009
presented by McKay Hochman Co.
Retirement Plan Insights
in Nevada on November 10, 2009
presented by McKay Hochman Co.
Retirement Plan Insights
in Maryland on November 23, 2009
presented by McKay Hochman Co.
Second Quarter Update
Nationwide on May 5, 2009
presented by McKay Hochman Co.
Second Quarter Update
Nationwide on May 6, 2009
presented by McKay Hochman Co.
Third Quarter Update
Nationwide on August 18, 2009
presented by McKay Hochman Co.
Third Quarter Update
Nationwide on August 19, 2009
presented by McKay Hochman Co.
Top-Heavy Rules, Keys, Attributions, HCEs
Nationwide on April 16, 2009
presented by McKay Hochman Co.
Newly Posted Press Releases
The 2009 EBRI Lillywhite Award: Two Recognized for Lifetime Contributions to Economic Security
Employee Benefit Research Institute (EBRI)
Shareholders Demand Executive Exclusion, Value Neutrality in Underwater Stock Option Exchange Proposals, According to Aon Consulting's Radford Research
Aon Consulting
Senior Staff Promotions Announced at Millennium Trust
Millennium Trust Company, LLC
Webinars on IRAs, HSAs and Coverdell ESAs
Collin W. Fritz & Associates, Ltd.
The Online 401k Partners With Three New Payroll Companies
The Online 401(k)
Moran & Associates, Inc. / G. Russell Knobel & Associates, Inc. Is Certified To Industry Best Practices
Centre for Fiduciary Excellence (CEFEX)
Newly Posted or Renewed Job Openings
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DC Plan Administrator/Document Specialist
for National Actuarial Pension Services, Inc.
in TX
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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