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[Guidance Overview] [Guidance Overview] Major Victory for Deere & Company in Nationwide 401(k) Fee and Expense ERISA Class Action (PDF) 3 pages. Excerpt: "Like several of the other pending fee and expense cases, the complaint against Deere amounted to a frontal assault on the investment management and administrative structure of its 401(k) plans. The claims alleged the following: The fiduciaries breached their duties by failing to disclose revenue sharing between the fund investment manager and the trustee; The fiduciaries breached their duties by offering funds that charged excessive fees; The fiduciaries overpaid various service providers because they did not take into account the revenue sharing provided by mutual fund managers or securities lending commissions and brokerage commission rebates that were available to the plans." (Morgan, Lewis & Bockius LLP) [Guidance Overview] Summary of Recent Legislative Changes Affecting Individual Retirement Arrangements Excerpt: "Recent developments have spawned a variety of targeted legislative changes to the rules that govern individual retirement arrangements ('IRAs'). Specifically, the Heroes Earnings Assistance and Relief Tax Act of 2008 ('HEART Act') enacted a number of changes designed to benefit those in military service, and the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 ('TEAMTRA') (which was enacted as part of the Fall 2008 economic stimulus package) and the Worker, Retiree, and Employer Recovery Act of 2008 ('WRERA') contained several provisions designed to assist those affected by the economic downturn. The [target page] is a brief summary of these legislative changes." (K&L Gates LLP) [Guidance Overview] DOL's Model Annual Funding Notices Excerpt: "The DOL does not require a plan administrator to use one of the model notices. However, the DOL will consider a plan administrator that uses a model notice as satisfying the notice requirements. Comment: Defined benefit plans subject to the annual funding notice do not need to provide summary annual reports (SARs). Many commentators have indicated that all defined benefit plans are exempt from the SAR requirement. However, only defined benefit plans subject to PBGC are exempt." (SunGard) Governmental Plans: Comments Requested on Pilot Governmental Plan Questionnaire Excerpt: "In April 2008, Employee Plans launched the Governmental Plans Initiative, consisting of education, outreach, guidance and compliance for the governmental plan community. Our goal is to provide governmental plans with tools, assistance and programs to help plans comply with federal pension law. The Initiative will also provide us with valuable information on how governmental plans comply with the Internal Revenue Code. The first step in this phase of the Governmental Plans Initiative was the mailing of a questionnaire to a pilot group of governmental plans. Simultaneous with the mailing of the questionnaire, we have posted it on the link below and are requesting comments from the governmental plan community before a final questionnaire is sent to a larger group of governmental plans at a later date. Comments should be submitted to governmentalplansdialogue@irs.gov by May 19, 2009." (Internal Revenue Service) Is an Independent Audit on 401(k) Plans Necessary? Excerpt: "'As a plan sponsor, are we required to perform an independent audit on our 401(k) Plan?' This is one of the most common questions we receive from clients and potential clients. The quick answer is, plans with over 100 participants at the beginning of the plan year are subject to an audit, which must be attached to the 5500 form that is to be filed each year." (The Precept Employee Benefits Blog) America Saves Week 2009 Excerpt: "The third annual America Saves Week is scheduled for February 22-March 1, 2009, and early reports indicate that the Week will have more participation and a broader reach than ever before. Activities for America Saves Week 2009 are being coordinated by the America Saves campaign and by the American Savings Education Council, who are working with a large coalition to promote the savings message and foster better savings behavior. Among the many companies, agencies and organizations committed to participating are the Cooperative Extension Service, WorldatWork and the Department of Defense." (America Saves) The U.S. Retirement Market, Third Quarter 2008 Findings (PDF) 27 pages. Excerpt: "U.S. retirement assets totaled $15.9 trillion as of September 30, 2008, down from $16.9 trillion on June 30, 2008. Retirement savings accounted for 35 percent of all household financial assets in the United States." (Investment Company Institute) PBGC Issues Disaster Relief for California and Hawaii Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) has announced relief from certain deadlines and penalties in connection with the Form 5500 series for 'designated persons' adversely affected by: Wildfires that occurred in mid-November 2008 in California. Severe storms and flooding that occurred on December 10, 2008 in Hawaii." (Wolters Kluwer) [Opinion] Implications of the Deere Decision Excerpt: "I won't discuss this decision in granular detail, but I would like to address three major implications of the Deere decision. The first is the broad immunization that 404(c) was deemed by the courts to offer the Deere fiduciaries. Second, is the court's heavy reliance on access to lower-cost funds through a brokerage window, in defeating claims of excessive investment fees within the core options of the investment menu. Finally, the courts took the view that fee disclosure, and particularly disclosure of revenue-sharing payments, is completely irrelevant to the investment decisions of participants." (Ryan Alfred via BrightScope Inc.) ASPPA (Sponsor) (Click on company name or banner to learn more.)
Links to Items on Executive Comp, Benefits in General[Guidance Overview] Besides COBRA: What Does the Stimulus Package Contain of Interest to Employers Excerpt: "While most of the media and commentary has been focused on the COBRA subsidy in the American Recovery and Reinvestment Act of 2009 (ARRA or 'the Act') signed by President Obama on February 17, there are additional provisions that employers should be aware of including, new tax credits, changes in unemployment benefits, limits on executive compensation and limits on the availability of HB-1 visas." (Littler Mendelson P.C.) [Guidance Overview] Executive Compensation Limitations & Corporate Governance Standards in Stimulus Bill (PDF) 3 pages. Excerpt: "The Secretary [of the Treasury] will review bonuses, retention awards and other compensation paid to the senior executive officers and the next 20 most highly compensated employees of each entity receiving TARP assistance before the date of enactment of the Stimulus Bill to determine whether any such payments were inconsistent with the purposes of the TARP or otherwise contrary to public interest. If the Secretary determines that any bonus or payment was inconsistent, then the Secretary will negotiate with the TARP recipient and employee for appropriate reimbursements to the federal government respecting the compensation or bonus." (Venable LLP) UAW Chief Gettelfinger Says Workers' Cost Just 10% to Build Car Excerpt: "Critics of unionized workers who say they are the core of the U.S. automakers' problems don't have a grasp of the facts, the head of the United Auto Workers contends. The labor expense to assemble a vehicle at a Ford, General Motors or Chrysler plant is about 10 percent of the total cost, said Ron Gettelfinger, president of the UAW. . . . Gettelfinger believes it makes no sense to blame all of the industry's problems on a group that accounts for such a small percentage of car costs. 'Some of the foreign brands operating in this country pay (workers) very close to what American firms pay,' he said." (Memphis Commercial Appeal) Workplace Stress Research Promotes Employee Benefits Excerpt: "Two University of Michigan business law professors who examined Fortune magazine's annual list of the nation's 'best companies to work for' conclude that generous 'complementary alternative benefits' can help alleviate workplace stress and violence. But it appears the key for maximizing value from voluntary benefits might be to not let employees labor too long over their choices. 'It seems that forcing benefit allocation and payment decisions down to employees would be more stressful for them and even serve as a distraction from their work,'. . . ." (Employee Benefit Adviser; Registration may be required) Benefits Administration Fees Drop Excerpt: "In a time of financial turmoil in world markets, it is encouraging to know that HR services clients are reaping the benefits of greater marketplace efficiencies. The clearest evidence is that benefits administration fees have dropped dramatically during the past four years. While the magnitude of decrease differs by benefit program -- 401(k), pension, or health and welfare -- in all cases, the cuts exceed 20 percent." (HRO Today) Newly Posted Events401(k) Plans After the Fall: What Now? in Illinois on March 19, 2009 presented by Katten Muchin Rosenman LLP American Recovery and Reinvestment Act of 2009 - Smartcast Nationwide on February 25, 2009 presented by FutureOffice Network Economic Stimulus and Children's Health Acts Require Immediate Action for Health Plans Nationwide on March 12, 2009 presented by ABA Joint Committee on Employee Benefits Executive Compensation Disclosure Update – 2009 Proxy Season, Part 2 Webcast Nationwide on February 26, 2009 presented by BNA, Inc. Midwest Business Group on Health’s 29th Annual Conference: Health Benefits and the Game of Life in Illinois on May 7, 2009 presented by Midwest Business Group on Health Stimulus Bill Changes HIPAA Privacy and Security - Are You Prepared? Webcast Nationwide on March 3, 2009 presented by International Foundation of Employee Benefit Plans Understanding the Redesigned Form 990 in Colorado on February 25, 2009 presented by Denver Compensation & Benefits, LLC Your 2009 Survival Kit: Managing Benefit and Retirement Issues - Challenging Economic Times Demand Creative Solutions in Pennsylvania on February 24, 2009 presented by PEBA --Penjerdel Employee Benefits & Compensation Assn. Newly Posted Press ReleasesHealth Care Benefit Cost Increases to Remain at 6% in 2009 Watson Wyatt Employers Taking a Close Look At Who Is Covered Under Their Health Plan International Foundation of Employee Benefit Plans ASPPA Celebrates America Saves Week American Society of Pension Professionals & Actuaries (ASPPA) CUNA Mutual Selects Synapses for Comprehensive 401(k) Analysis Synapses Inc. ASPPA & NTSAA Announce New Credential Program ASPPA and NTSAA Newly Posted or Renewed Job Openings(Post a Job | View All Jobs | RSS Feed ) Manager, Retirement Plans for Hudson (Retained Search) in IL, WI Employee Benefits Service Manager II for The Standard in WA Benefits Analyst II for Milliman in WA Senior Client Consultant, Emerging Corporate for Prudential Financial in IA Handy Links:
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