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 20, 2009

Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy.


Today's sponsor is www.ftwilliam.com

(Click on company name or banner to learn more.)
Banner ad for www.ftwilliam.com

Whether you have 5 plans or 50,000 plans, ftwilliam.com can make your life easier.

Our features are designed to help customers of any size:

1.) Exchange specifications, documents and forms between the ftwilliam.com servers and your systems in real time via ftwLink. 2.) Batch print all required amendments. 3.) Batch print Combined Annual Notices (e.g., Safe Harbor, QACA, EACA, TACA and QDIA) for ALL DC plans in one step. 4.) Other powerful batch and group printing features in the document and government forms software. 5.) Outstanding customer service. Talk to a real person the first time and don't wait hours for an answer. Or if you prefer, just send us an email.

Isn't it time you experienced a few benefits! Call us today 800.596.0714 or email sales@ftwilliam.com.


[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.)
Banner ad for ASPPA

The ERISA Outline Book – 2009 edition

Make sure you have the most up-to-date version available to provide you with the information you need on a daily basis. The 2009 edition is a six-volume asset that includes all the PPA guidance issued in 2008, revised EPCRS procedures, the latest ERISA litigation cases and all notices , rulings and other guidance from DOL, IRS and PBGC issued in 2008. The ERISA Outline Book also serves as recommended reading for the ERPA Exam! Order your 2009 edition NOW!


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 Events



401(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 Releases



Health 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



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 )

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:


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: