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| February 24, 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.)
| 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! |
[Official Guidance]
Text of Final IRS Regulations on Automatic Contribution Arrangements (Federal Register reprint) (PDF)
15 pages. Revises the proposed regulations issued on November 8, 2007. Rules applicable to Qualified Automatic Contribution Arrangements apply to plan years beginning on or after January 1, 2008. Rules applicable to Eligible Automatic Contribution Arrangements apply to plan years beginning on or after January 1, 2010. Makes several changes; also takes into account the Worker, Retiree and Employee Recovery Act of 2008 (WRERA). (Internal Revenue Service)
[Guidance Overview]
'Heartland Disaster Tax Relief Act of 2008' Affects Retirement Plan Administration (PDF)
Excerpt: "On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008 (EESA). In addition to its basic economic stabilization provisions, EESA includes a provision titled the 'Heartland Disaster Tax Relief Act of 2008.' This provision gives individuals who were directly affected by severe storms, tornadoes and flooding in federally-declared Midwestern disaster areas between May 20, 2008, and August 1, 2008, additional access to their retirement savings to alleviate hardships caused by these natural disasters. It also lessens the tax burdens related to these special distributions." (Prudential Retirement)
[Guidance Overview]
FAQs on the 415 Amendment: What If I Haven't Adopted It Yet?
Excerpt: "Numerous individuals have called SunGard recently stating that they, or the employers they served, have not yet adopted an amendment to comply with the final 415 regulations. These FAQs are designed as a resource to those individuals and their advisors." (SunGard)
[Guidance Overview]
Another Question is Answered in the 401(k) Plans Q&A Column
The Pension Protection Act of 2006 allowed plans to provide for qualified reservist distributions for those called to active duty before December 31, 2007. Has this been extended? (BenefitsLink.com)
Public School Employees' Retirement Benefits Outshine Private Sector
Excerpt: "Analysis of data from the U.S. Department of Labor shows that employer contributions to retirement benefits for public school teachers in 2008 were substantially higher than for private professionals, including lawyers, physicians, financial managers, engineers, computer programmers, and others. Economists Robert Costrell of the University of Arkansas and Michael Podgursky from the University of Missouri-Columbia, found that employer contributions to teacher pensions grew from under 12% of earnings in 2004 to well over 14% in 2008, while pension costs for private sector professionals remained essentially unchanged at just over 10%." (PLANSPONSOR.com; free registration required)
Pension Funded Status Remained at 75% Despite Continued Asset Value Erosion
Excerpt: "The funded status of pension plans sponsored by Standard & Poor's 1500 companies remained at 75% in January 2009, virtually unchanged from December 2008, according to estimates from Mercer. However, the value of both pension assets and liabilities declined during the month, which reduced the dollar amount of the estimated aggregate deficit to $380 billion at the end of January 2009, from $409 billion at the end of December 2008." (Wolters Kluwer)
Retirement Investors Sit Tight as Flaws in 401(k) Plans Exposed
Excerpt: "Fidelity Investments, Charles Schwab Corp. and other 401(k) account managers say most clients rode out the worst months of the stock market slump without changing weekly contributions or moving to more conservative money-market or bond funds. At Schwab, less than 1 percent of assets held by 1.4 million retirement customers was shifted in September and October, when the Standard & Poor's 500 Index fell 9 percent and 17 percent, according to the company." (Bloomberg L.P.)
Target-Date Funds to Be a Subject at Congressional Hearing
Excerpt: "The U.S. Senate Special Committee on Aging is scheduled to hold a hearing on February 25 to examine, among other things, target-date funds. According to the Washington Post, the Committee is expected to ask the Department of Labor February 24 to establish regulations governing the composition and advertising of target funds and is also planning to request that the Securities and Exchange Commission look into similar concerns. On this same day the U.S. House Education and Labor Committee will hold the first in a set of hearings to examine 'the shortcomings of our nation's retirement system.'" (PLANSPONSOR.com; free registration required)
2009 ERISA Compliance Calendar for DB/DC/403(b) Plans
This check list for 2009 has key dates and deadlines. (planadvisor)
6 Answers to Key 401(k) Questions on Loans, Frozen Matches, and Bankrup.tcy
Excerpt: "A Towers Perrin survey taken at the end of 2008 reported that 82 percent of U.S. workers have been personally affected by the economic downturn. A whopping 91 percent said their company has been affected, and that the situation worsened dramatically by year's end. An August poll showed 14 percent of respondents planned to retire within the next two years. In December, the number dropped to just 9 percent, and the situation and market economy have hardly improved since then. [This article contains] a few tips for dealing with some of the less savory trends in the new financial reality . . . ." (U.S. News & World Report)
Retirement Plans for Small Law Firms
Excerpt: "Many small firm lawyers are intimidated by the prospect of planning for retirement. Because establishing a retirement plan for your law firm can be a daunting task, here are some tips and traps from a few experts. . . . The first question to ask is whether your firm is ready to implement a retirement plan. Small firms just starting out often get ahead of themselves, said Michael Brodsky, Vice President of Wealth Management and a Financial Advisor with the Brodsky-Paynter Group at Citigroup Smith Barney in Winter Park, Fla. 'You should be past the start-up point where the practice is already up and running' before establishing a retirement plan, he said." (Wisconsin Law Journal)
[Opinion]
Actuarial/Consultant Firm Comment Letters to Congress Regarding Pension Funding Issues (PDF)
24 pages. Excerpt: "We understand that questions have been raised regarding the need for additional funding relief to address the challenges facing defined benefit plan sponsors. One of the specific questions is whether companies can simply address their funding burdens without the use of cash, i.e., through the use of credit balances technically, 'prefunding balances' and 'funding standard carryover balances'). In this letter we address that issue. As described below, in the case of calendar year plans, the credit balances available at January 1, 2008 will generally be greatly diminished as of January 1, 2009; only a much reduced amount will be available for ameliorating the required 2009 contributions. Furthermore, even if remaining credit balances are waived to improve funded status, as measured for the purpose of determining the requirement to impose benefit restrictions on participants, a great number of plans will still be required to impose these restrictions." (Actuarial/Consultant Firms via American Benefits Council)
DATAIR Employee Benefit Systems, Inc. (Sponsor)
(Click on company name or banner to learn more.)
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Links to Items on Executive Comp, Benefits in General
Planning for Benefits During a Divestiture
Excerpt: "A divestiture can have a silver lining for the company shedding assets: an opportunity to re-examine an existing benefits program to renegotiate coverage for a newly downsized workforce or, in some cases, look for a different provider, according to the experts." (Workforce Management; free registration required)
Establishing an Investment Trust for OPEB Only Makes Sense with Accumulated Assets (PDF)
3 pages. This white paper is directed at government employers considering trusts for other post-employment benefits. (Milliman)
IRS Releases New Withholding Tables
Excerpt: "The IRS on Monday released withholding tables that reflect a new tax credit, dubbed the making work pay credit, created by the stimulus package. . . . The IRS emphasizes that employees do not have to fill out a new W-4 withholding form to have the making work pay credit reflected in their take-home pay; employers should automatically adjust their withholding, based on the new tables. The new withholding tables can be downloaded from the IRS at www.irs.gov/pub/irs-pdf/n1036.pdf." (Journal of Accountancy)
Newly Posted Events
2010 Business Management Conference
in Arizona on January 9, 2010
presented by National Institute of Pension Administrators
403(b) Myth Busting and the Latest IRS Guidance on the Coming Regulations - Webcast
Nationwide on March 3, 2009
presented by National Institute of Pension Administrators
Compensation: Client Consulting Regarding DC Plan Interim Amendments - What You Need to Know About the Treatment of Post-Severance Pay - Webcast
Nationwide on March 10, 2009
presented by National Institute of Pension Administrators
Effective Open Enrollment (60-Minute Power Series) Webcast
Nationwide on March 10, 2009
presented by International Foundation of Employee Benefit Plans
Form 5500 Update - Webcast
Nationwide on March 9, 2009
presented by National Institute of Pension Administrators
Impact of Same-Sex Marriages and Domestic Partnerships on Employee Benefit Plans - Webcast
Nationwide on February 26, 2009
presented by West LegalEdcenter
The Grand Irony of ERISA?: Intersectionality of ERISA Preemption and Remedial Issues Symposium
in New York on March 13, 2009
presented by Hofstra Labor & Employment Law Journal
The Latest on EGTRRA Restatements and Plan Termination Review - Webcast
Nationwide on March 18, 2009
presented by National Institute of Pension Administrators
Newly Posted Press Releases
Analysis Estimates Impact of Market Losses on 401(k) Account Balances
Employee Benefit Research Institute (EBRI)
Volatile Market Causes Investors to Make Changes in Their Retirement Plans
NAVA
EPIC Advisors, Inc. Partners with West Coast Firm to Support Business
EPIC Advisors, Inc.
Pension Analytix Inc. Announces The Integration Of Its Proprietary Plan Sponsor Database With Salesforce.com
Pension Analytix Inc.
Newly Posted or Renewed Job Openings
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Retirement Plan Sales
for Sentinel Financial Group
in MA
Pension Administrator
for Western Michigan CPA Firm
in MI
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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