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| March 4, 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
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| 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]
Joyce Kahn, IRS Voluntary Compliance Manager, Wants Comments -- Good or Bad -- from Practitioners and Employers on the Self-Correction Program; Short Survey Request
March 20 is the last day to take the survey. Excerpt: "We are looking for feedback on the Employee Plans Compliance Resolution System. IRS Employee Plans is conducting a short, voluntary, and anonymous survey designed to gauge the relevance and usefulness of the Self-Correction Program (SCP). Your participation in this survey will greatly assist us in making our programs more responsive to the needs of plan sponsors, employees, and beneficiaries of the retirement plan system. The anonymous survey should takes less five minutes to complete. We thank you in advance for your participation and look forward to future improvements that work for you!" (Internal Revenue Service)
[Guidance Overview]
Bringing Elective Deferral Plans Into Compliance with Final 401(k) Auto-Enrollment Regulations
Excerpt: "Given the current economic climate it is unlikely there will be a rush to implement new QACAs or EACAs for the 2010 plan year. However, the issuance of final regulations will provide greater certainty for plan sponsors choosing to do so. For QACAs already in existence, plan sponsors and administrator will want to bring the features in line with the final regulations as soon as possible given the retroactive effective date. In particular, they will want to: . . . ." (Deloitte)
[Guidance Overview]
403(b) Plan's Written Document Requirement: The Need for Legal Counsel Review
Excerpt: "On December 11, 2008, IRS Notice 2009-3 extended the deadline for 403(b) plan sponsors to adopt new written plans or amend existing plans to satisfy the requirement of the final 403(b) regulations because of difficulties expressed by numerous plan administrators in meeting the original deadline of January 1, 2009. This extension gave 403(b) plan sponsors an additional year in which to put their 403(b) plan documents in place." (Seyfarth Shaw LLP)
[Guidance Overview]
Circuit Court Ruling Provides Major Boost to Employers Accused of Allowing Excessive Investment Fund Fees
Excerpt: "The 7th U.S. Circuit Court of Appeals decision comes as a blow to at least 20 similar excessive fee class actions around the country and a blow to Department of Labor efforts to hold companies to the fire to find the lowest cost investment funds for employees. The 7th Circuit dismissed the allegations against Deere & Co. and Fidelity Management Trust Co. that Deere breached its fiduciary duties to employees by overpaying for services and by failing to disclose revenue sharing between Fidelity's management and trustee arms. " (The National Law Journal)
[Guidance Overview]
2009 Compliance Issues Related to Pension Funding (PDF)
Pages 3-5 of 7 pages. Excerpt: "Companies with plans that were funded at the lower percentages last year may have already developed strategies to deal with this year's funding-based limits, but the end-of-year downturn in the markets may cause many other plans, unexpectedly, to be subject to at least the partial restrictions on accelerated payments. Companies should plan now whether they will take steps to avoid these restrictions or, in the alternative, how the restrictions will be communicated to participants." (Miller & Chevalier Chartered)
[Guidance Overview]
Appellate Court Backs IRS 403(b) FICA Ruling
Excerpt: "The University of Chicago has lost another round in its ongoing legal battle over whether a 403(b) plan sponsor is required to collect FICA taxes on deferrals withheld per an employee salary reduction agreement. The 7th U.S. Circuit Court of Appeals upheld a trial judge's decision rejecting the university's argument that Internal Revenue Service (IRS) rules requiring the withholding from deferrals made as part of a salary reduction agreement should not apply because the university required employees to contribute to the 403(b) and sign a salary reduction agreement." (PLANSPONSOR.com; free registration required)
[Guidance Overview]
Court Finds No Support for Fiduciary Breach Claim Against Fifth Third
Excerpt: "The U.S. District Court for the Southern District of Ohio ruled that retirement plan participants did not prove that Fifth Third Bancorp breached its fiduciary duties by continuing to offer company stock as an investment choice. The court found that the plan document required that company stock be offered as an investment option in the plan, giving plaintiffs the 'assumption of reasonableness,' and the defendants did not prove that a reasonable fiduciary in the same circumstances would have made different investment decisions. 'Allegations that Fifth Third was 'a complete and total mess' and that members of the Profit Sharing Committee 'conceded that they knew about these problems throughout the entire Class Period -- but did not think they warranted any action' are insufficient as a matter of law to establish a basis in the facts that a reasonable fiduciary in the same or similar circumstances would have made different investment decisions,' U.S. Magistrate Judge Timothy S. Black said in his opinion." (planadvisor)
Drive for New Pension Funding Relief Faces Hurdles
Excerpt: "While there is some support in Congress for granting longer amortization periods and relief from potential restrictions on workers' benefits, senior Democratic members -- backed by union and participant groups -- are strongly considering tying any new relief to a requirement that sponsors not freeze their plans." (Mercer LLC)
Obama Budget Calls for 'Automatic' Retirement Savings
Excerpt: "Employers with no retirement plans would have to withhold a portion of each employee's pay and forward it by direct deposit to an individual retirement account. Employees could opt out if they choose." (Mercer LLC)
CalPERS, Other Pensions: Overstated Return Estimates and Understated Costs?
Excerpt: "Bloomberg.com [ran a] story that contends many public pensions are overstating expected returns and understating their future costs. The story includes references to CalPERS . . . . CalPERS' spokeswoman Pat Macht [responds.]" (The Sacramento Bee)
Exxon Mobil Plans $4.6 Billion Pension Contribution; Big Increase Over Last Year
Excerpt: "Exxon Mobil Corp. is expecting to contribute $4.6 billion to its worldwide pension plans in 2009, the company said Friday, February 27. The Irving, Texas-based company will contribute $3 billion to its U.S. plans and $1.6 billion to non-U.S. plans, according to its annual report, filed Friday with the Securities and Exchange Commission. Last year, Exxon Mobil contributed $52 million to its U.S. plans and $956 million to its non-U.S. plans." (Workforce Management; free registration required)
DATAIR Employee Benefit Systems, Inc. (Sponsor)
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| Software for Retirement and Cafeteria Plan Documents |
| DATAIR EGTRRA sale! License our Plan Document System before 5/1/09 for a $500 discount. Choose your documents: Retirement Plans: 401(k)/Profit Sharing, 403(b), DB, Cash Balance Cafeteria Plans: 125, HSA, HRA Choose your formats:
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
New Executive Compensation and Governance Standards for Recipients of Federal Financial Support and SEC Guidance on Say-on-Pay Requirements
Excerpt: "For any company receiving TARP funds, the stimulus package effectively: Prohibits all termination pay for the top ten executives. Prohibits any bonuses, retention awards and incentive compensation for up to 25 top executives, except for limited amounts of restricted stock. Expands both the scope and the depth of required clawback provisions. Prohibits compensation that encourages earnings manipulation. Requires companies to have a policy on luxury and excessive expenditures. Requires companies to permit non-binding shareholder say-on-pay votes. Imposes new compensation committee requirements. Requires annual certifications of compliance from both CEOs and CFOs. The stimulus package also shortens the period during which TARP recipients must comply with these standards and gives TARP recipients added flexibility to repay the assistance received and exit TARP. A table comparing EESA's requirements to the new requirements appears at the end of this alert." (Sonnenschein Nath & Rosenthal LLP)
[Guidance Overview]
Stimulus Act Expands Executive Compensation Restrictions for TARP Recipients
Excerpt: "Compliance Certification. The CEO and CFO of each TARP Recipient must provide written certification that the TARP Recipient has complied with the restrictions listed . . . . Publicly traded companies must provide such certification in their annual filing, and private companies must provide such certification to the Treasury Secretary. The SEC stated that its view is that TARP recipients do not have to comply with this requirement until the Treasury Secretary establishes the 'executive compensation and corporate governance standards' to which the certification applies." (Katten Muchin Rosenman LLP)
[Guidance Overview]
PowerPoint Presentation: Consequences of Violating 409A
14 slides. The presentation was made before the Employee Benefits Committee of the American Bar Association, Labor and Employment Section, Charleston, South Carolina, on February 20, 2009. (Janich Law Group)
Practical Approaches to Executive Incentives in Challenging Economic Times
Excerpt: "Now is the time to ensure that your executive incentive plans are designed to effectively drive performance. Performance metrics: What types? Which ones? Measured how? An organization needs appropriate measures or indicators of how it is doing, but it's more important to identify and implement the right kind. Keep the following in mind when choosing performance metrics to be used in determining executive incentive payments." (Watson Wyatt Worldwide)
National Employee Benefits Day is April 2
Excerpt: "The International Foundation of Employee Benefit Plans (IFEBP) is encouraging benefits professionals to use National Employee Benefits Day as an opportunity to educate themselves and their participants on the importance of retirement security. . . . [T]he Foundation will be offering two free video presentations featuring Dallas Salisbury, president of EBRI, and Brett Hammond, chief investment strategist with TIAA - CREF, reflecting on what the current economy means for benefit plan sponsors and the future of retirement security. The video presentations will be available at www.ifebp.org/benefitsday, the National Employee Benefits Day Web site." (PLANSPONSOR.com; free registration required)
Newly Posted Events
A Case Study: Instilling a Culture of Wellness Webcast
Nationwide on March 19, 2009
presented by International Foundation of Employee Benefit Plans
Claims Procedures for Self-Funded Health Plans, Health FSAs and HRAs: What to Do, What to Avoid, and How to Monitor Claims Administration
Nationwide on February 26, 2009
presented by EBIA / Thomson Reuters
Effective Communications: What Your Participants Need to Know (60-Minute Power Series)
Nationwide on March 17, 2009
presented by International Foundation of Employee Benefit Plans
Newly Posted Press Releases
PSCA Says President Obama's Budget is an Affirmation of 401(k) Plans But Careful Analysis is Required
Profit Sharing/401(k) Council of America (PSCA)
U.S. Department of Labor Publishes Information to Help Employers, Workers and Families Understand the COBRA Stimulus Provisions
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
National Employee Benefits Day To Be Celebrated on April 2, 2009
International Foundation of Employee Benefit Plans
Newly Posted or Renewed Job Openings
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Attorney, Part Time - EGTRRA
for Howard Simon & Associates
in IL
Client Presentation and RFP Coordinator
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in NY
EmployeeBenefitsJobs.com (Sponsor)
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