BenefitsLink
Retirement Plans
Newsletter

To BenefitsLink home page Fill your job openings fast on EmployeeBenefitsJobs.com!
Search Earlier Newsletters:

Sort by date
Sort by closest match

February 12, 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

(Click on company name or banner to learn more.)
Banner ad for ASPPA

The ASPPA 401(k) SUMMIT – Make your appointment Now!

Make an appointment for yourself March 22-24 to attend The ASPPA 401(k) SUMMIT. Join the experts in San Diego and attend sessions that will highlight:
  • Strategic Prospecting and Marketing
  • Best Practices for Growing Your Business
  • How Today’s Trends will Shape Your Future
  • News from Capitol Hill – The First 60 Days
  • Pending Legislation including Fee Disclosure
  • Servicing Your Clients in a New Market Environment
Two weeks left to receive early registration savings. Don’t delay, Register NOW and ensure success in 2009!

[Guidance Overview]
DOL Single-Employer Plan Model Funding Notice (PDF)

6 pages. (American Benefits Council)


[Guidance Overview]
DOL Multiemployer Plan Model Funding Notice (PDF)

5 pages. (U.S. Department of Labor via American Benefits Council)


[Guidance Overview]
DOL Issues Model Funding Notice for Defined Benefit Plans (PDF)

Excerpt: "The funding notice replaces the old summary annual report (SAR) for defined benefit plans (defined contribution and welfare plans must still distribute SARs). However, as FAB 2009-1 makes clear, there are a number of differences between the old SAR and the new funding notice." (Seyfarth Shaw LLP)


[Guidance Overview]
DOL Guidance on Defined Benefit Pension Plan Funding Notices

Excerpt: "PPA amended the Employee Retirement Income Security Act of 1974 (ERISA) to impose the notice requirement on plan administrators of all employee benefit plans that are defined benefit plans subject to ERISA's plan termination insurance provisions. The funding notices must be provided to the Pension Benefit Guaranty Corporation (PBGC), as well as to participants and beneficiaries under the plan. When applicable, labor organizations representing participants must also be provided with the annual funding notices." (Faegre & Benson)


[Guidance Overview]
DOL's Guidance and Model PPA Annual Funding Notice for Defined Benefit Plans (PDF)

2 pages. Excerpt: "The DOL has just issued Field Assistance Bulletin (FAB) 2009-01, which provides limited guidance and a model notice for defined benefit plans that will constitute good faith compliance with the annual funding notice requirements of ERISA Section 101(f) as amended by the Pension Protection Act of 2006 (PPA)." (Buck Consultants)


[Guidance Overview]
DOL's ERISA Fiduciary Guidance for Madoff Investments

Excerpt: "The guidance released by the DOL instructs plan fiduciaries to: 1. request disclosures from investment managers, fund managers and other investment intermediaries regarding the plan's potential exposure to Madoff-related losses; 2. seek advice regarding the likelihood of losses due to investments with Madoff-risk; 3. make appropriate disclosures to other plan fiduciaries, participants, and beneficiaries; and 4. consider whether the plan has any claims that should be asserted." (Ballard Spahr Andrews & Ingersoll, LLP)


[Guidance Overview]
Supreme Court Says ERISA Plan Language Trumps Ex-Spouse's Waiver of Benefits

Excerpt: "The Supreme Court based its decision on the 'plan document rule,' holding that because plan administrators are required by ERISA to adhere to plan documents, the plan administrator may ignore a purported waiver if the waiver is executed in a manner inconsistent with the plan documents. See Section 404(a)(10)(D) of ERISA. The Court found that honoring the Kennedys' divorce decree would be inconsistent with the plan documents because the plan's 'qualified disclaimer' procedure had not been satisfied. In short, the Court has held that plan administrators should follow the terms of the plan in paying benefits." (McGuireWoods LLP)


[Guidance Overview]
Subprime Lending Crisis not a Trigger to Investigate Company Stock Offering

Excerpt: "The U.S. District Court for the Southern District of Ohio has determined that Huntington Bancshares Inc. did not breach its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by continuing to offer company stock as a retirement plan investment during a period when the company was experiencing a financial downturn due to the subprime mortgage crisis." (PLANSPONSOR.com; free registration required)


Communication Issues When Curtailing 401(k) Retirement Account Matches
Excerpt: "Some companies -- although still a minority -- have begun cutting or stopping matches for 401(k) retirement accounts as a way to cope with the current economic climate. It's a difficult decision to make, say experts, and if cuts are made, the rationale should be communicated clearly and quickly." (Human Resource Executive Online)


401(k) Participants May See Plain-English Summary Prospectus Under New SEC Rule
Excerpt: "Mutual funds may give investors a plain-English summary prospectus, rather than a full prospectus, under a final SEC rule effective March 31, 2009. The rule ultimately may change the form and content of fund information passed through to participants in many 401(k), 403(b) and 457 plans. Once summary prospectuses become available, plan sponsors will need to re-evaluate 'pass-through' disclosure obligations under ERISA." (Mercer LLC)


Public Retirement System Sues Over Mortgage Security Offering
Excerpt: "A pension fund has filed a federal court lawsuit against Goldman Sachs and other defendants with charges they filed false or misleading securities registration documents about a mortgage-backed securities offering. A news release from the New York law firm of Bernstein Litowitz Berger & Grossmann said the Mississippi Public Employees Retirement System filed the suit on behalf of purchasers of GS Mortgage Securities Corp. Mortgage Pass-Through Certificates or Asset-Backed Certificates." (PLANSPONSOR.com; free registration required)


DC Plan Fee Disclosure Bill Introduced in U.S. Senate
Excerpt: "Senator Tom Harkin (D-Iowa) and Senator Herb Kohl (D-Wisconsin), Chairman of the U.S. Senate Special Committee on Aging, on Thursday introduced legislation that would require defined contribution plan sponsors to disclose plan fees to participants so they can make fully informed investment decisions." (PLANSPONSOR.com; free registration required)


Providence, Rhode Island, Shuts Door on Short-Timer Pensions
Excerpt: "From now on, all city employees will be required to work at least 10 years before qualifying for a city pension, under an ordinance amendment approved by the City Council. The original ordinance allowed city employees to retire with a pension at age 55, regardless of length of service. But it applied to relatively few, because all union contracts stipulate 10-year vesting periods." (The Providence Journal)


Court Says Credit Crisis Not Reason to Investigate Company Stock Offering
Excerpt: "A court said Huntington Bancshares Inc. did not violate the Employee Retirement Income Security Act (ERISA) by continuing to offer company stock while suffering because of the subprime mortgage crisis. The U.S. District Court for the Southern District of Ohio has determined that Huntington Bancshares did not breach its fiduciary duties under ERISA offering company stock as a retirement plan investment during a period when the company was experiencing a financial downturn due to the credit crisis." (planadvisor)



DATAIR Employee Benefit Systems, Inc. (Sponsor)

(Click on company name or banner to learn more.)
Banner ad for DATAIR Employee Benefit Systems, Inc.

DATAIR’s TWO for ONE sale*

*The Best TPA Software *The Best Support *The Best Price
CHOOSE THE SYSTEMS YOU NEED:
  • DC/401(k) Administration
  • DB Administration
  • 5500 series, 5300 series, 1099Rs
  • Documents – DC, DB plans plus Cash Balance, 403(b) and Cafeteria
  • Cafeteria and HRA Administration
*Limited time offer: 2 DATAIR systems for 1 license fee…plus 0% financing. Restrictions apply, contact DATAIR’s sales department:
sales@datair.com   (888) 328-2474   www.DATAIR.com


Links to Items on Executive Comp, Benefits in General



[Guidance Overview]
Section 409A Correction Opportunities in 2009 (PDF)

3 pages. Excerpt: "As employers come to grips with the new inflexibility of fully implemented section 409A requirements, potential section 409A violations and resulting adverse tax consequences are becoming a reality. Even so, there are some tools available for addressing section 409A compliance failures that can limit, and in some cases eliminate, the adverse tax consequences associated with an inadvertent failure to follow the rules under section 409A. In Notice 2008-113, the IRS provided lengthy and detailed guidance for operational failures that are fixed within certain limited periods following the occurrence of the failure. It is important to note however, that Notice 2008-113 generally does not offer relief with respect to a failure to satisfy the documentary requirements of section 409A. In addition . . . a special opportunity for correction during 2009 is provided, but the opportunity requires action in 2009." (Morgan, Lewis & Bockius LLP)


[Guidance Overview]
Bringing Underwater Stock Options Back to the Surface (PDF)

4 pages. Excerpt: "Many companies saw their stock price significantly decline in 2008. As the result of these declines, employees of these companies may now hold stock options that are severely underwater -- that is, the exercise price of the stock option exceeds the fair market value of the underlying stock. . . . This update briefly describes underwater stock option exchanges as well as some of the hurdles that companies will face in implementing these exchanges." (Dechert LLP)


[Guidance Overview]
Rules of Conduct for the New World of Deferred Compensation

Excerpt: "The end of 2008 was also the end of the good faith reliance period for bringing deferred compensation plans into operational and documentary compliance with Code section 409A. It also ended the transitional guidance that permitted certain changes to existing plans without violating section 409A. This means that options are limited for correcting noncompliance, as well as for amending existing arrangements or designing new arrangements. This article offers some suggestions for operating under the new regime." (Chang, Ruthenberg & Long PC)


Milliman's Monthly Benefit News and Developments, February 2009 (PDF)
2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits. (Milliman)


IASB Moves Toward Immediate Recognition of Changes in Retirement Plan Funded Status
Excerpt: "The IASB tentatively decided to separate key proposals in its March 2008 discussion paper, Preliminary Views on Amendments to IAS 19 Employee Benefits, into two categories: (i) recognition and presentation and (ii) contribution-based promises. An exposure draft on the first category, expected to be issued by year-end, will require immediate recognition of changes in defined benefit (including retiree medical) plan funded status. Accounting for contribution-based promises will be on a slower track and may ultimately become part of a comprehensive review of pension accounting issues." (Mercer LLC)


Employees of Bankrupt Companies Have Employee Benefits Homework
Excerpt: "While unemployment can be stressful, employees laid off due to the bankrup.tcy of their employer's firm should be prepared for some additional homework. In particular, employees receiving pension or health benefits must investigate how those benefits may be affected. Most firms will either file a bankrup.tcy under Chapter 11 of the Bankrup.tcy Code (a 'reorganization' plan), or liquidation under Chapter 7, also referred to as 'straight bankruptcy'. In a Chapter 11 bankrup.tcy, an employee's health or pension plan may or may not be affected. In a Chapter 7 bankrup.tcy, both plans are likely to be terminated." (Credit.com)


New Book: Advanced Topics in Equity Compensation Accounting
The NCEO presents excerpts from its new book, Advanced Topics in Equity Compensation Accounting. The book presents a selective and detailed treatment of some of the most crucial topics in accounting for stock options and other equity compensation plans. The author is noted expert Takis Makridis. (National Center for Employee Ownership)




Newly Posted Press Releases



SouthWest Benefits Association Announces its 2009 Plan Administration Skills Workshops in Oklahoma and Texas
SouthWest Benefits Association

Reliance Trust Company Unveils New 401k Plan
Reliance Financial Corporation



We're one of the top 350 employment sites on the web!

Newly Posted or Renewed Job Openings


(Post a Job | View All Jobs | RSS feed for jobs RSS Feed )

401(k) Wholesaler
for Howard Simon & Associates, Inc.
in IL

Senior Account Manager
for Employee Benefits Broker
in NY

Pension Analyst
for Milliman
in TX

Manager of Administrative Services
for Northwestern Benefit Corporation of Georgia
in GA




Handy Links:


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: