BenefitsLink |
 |
 |
March 17, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
ASPPA (Advert.)
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 IRS Notice 2009-22: Asset Valuation under Section 430(g)(3)(B) as Amended by WRERA (PDF)
12 pages. Excerpt: "This notice provides interim rules regarding asset valuation methods that are permitted to be used by single employer defined benefit pension plans for minimum funding purposes pursuant to changes made by the Worker, Retiree, and Employer Recovery Act of 2008, Public Law 110-458 (WRERA). This notice also provides automatic approval for a change in asset valuation method for plan years beginning during 2009 to adopt any permissible asset valuation method. . . . Part III of this notice describes the rules expected to be incorporated in future regulations for adjusting asset values for expected earnings, pursuant to § 430(g)(3)(B), as amended by WRERA, using an assumed rate of return. Taxpayers may rely on the rules described in Part III of this notice for plan years beginning during 2008 and 2009." (Internal Revenue Service)
[Guidance Overview]
Information for Plan Sponsors on the Mandatory Electronic Filing System, EFAST2
Excerpt: "Beginning with the 2009 plan year, the Department of Labor (DOL) will require retirement and welfare plans to file their annual reports (Form 5500) electronically (EFAST2). The transformation from paper filing to electronic filing will result in significant changes in procedures. To ease the transition, preparers need to familiarize themselves with the new electronic filing system. The following FAQs address how the DOL will implement EFAST2." (Sungard)
[Guidance Overview]
DOL's Funding Notice Guidance
Excerpt: "PPA requires that defined benefit plan administrators provide participants, labor organizations and the PBGC an annual funding notice, generally describing the funded status of the plan and providing a variety of other information. In this article, we review this requirement, and analyze the DOL's recently issued Field Assistance Bulletin that provides guidance on complying with the notice requirement." (JPMorgan Chase & Co.)
[Guidance Overview]
Excessive Fund Fees Case: Hecker v. Deere & Company
Excerpt: "This case was first filed in late 2006, and dismissed by a district court in Wisconsin in June of 2007. Over the course of the past several years there has been an increased interest in the topic of fee disclosure within qualified retirement plans, and similar cases exist which could be affected by the outcome of Hecker v. Deere & Company. The Department of Labor (DOL) had proposed new rules surrounding fee disclosure, which could lead to more fee transparency within the industry. The Court noted that as this was only proposed recently, it had not been required at the time covered by the suit." (McKay Hochman Co.)
[Guidance Overview]
Presentation: Fiduciary Implications of the Market Crisis (PDF)
23 slides. Excerpt: "Fiduciaries not judged by results, judged by process: Did the fiduciary act in a way that a prudent expert would have acted? Use of consultants; Hiring appropriate investment managers; Conducting due diligence; Monitoring delegates; DOL Boston office letter." (Morgan, Lewis & Bockius LLP)
[Guidance Overview]
Amended Regulation Z Under Truth-in-Lending Act Eliminates Disclosure Requirement for Most Retirement Plan Loans
Excerpt: "EBIA Comment: Elimination of the Truth-in-Lending disclosure obligation will be welcome news to sponsors of 401(k) and other retirement plans offering plan loans. The amended regulations raise some interpretive questions, though, which we hope the Board will answer before the effective date. Foremost is the question of interim compliance." (Employee Benefits Institute of America)
The Future of Defined Benefit Plan Funding under PPA, the Recovery Act and Relief Proposals (PDF)
5 pages. (Watson Wyatt Consulting via American Benefits Council)
Participants in 401(k) Plans See Safety in Company Stock or Have No Other Options for Match
Excerpt: "At a time of extreme market uncertainty, many 401(k) participants are making a risky move: loading up on the stock of their employers. In January, for the first time in more than seven years, a large group of 401(k) participants tracked by consulting firm Hewitt Associates plowed more money into company stock than any other type of investment. The workers poured $65 million into employer shares that month -- the most recent for which data are available -- even as they yanked money out of other stock investments and put smaller amounts into conservative holdings such as bond and stable-value funds." (The Wall Street Journal)
DOL Provision of ERISA Relief Facilitating Liquidity for Auction Rate Securities (PDF)
2 pages. Excerpt: "During the week of February 23, 2009, the Department of Labor continued to support the facilitation of liquidity for auction rate securities (ARS) held by retirement plans and IRAs through ERISA prohibited transaction exemptions." (Sutherland)
Baltimore, MD, Mayor and Public Safety Unions Agree to Scale Back Pension Plan
Excerpt: "Three Baltimore public safety unions have reached an agreement with the Dixon administration to scale back lucrative retirement payouts for police officers and firefighters who work longer than 20 years. The compromise, fueled in part by the down economy, would save the city an estimated $4 million to $7 million yearly while preserving elements of a popular pension selection known as the deferred retirement option plan, or DROP. Under the plan, public safety officials receive a large lump-sum payment if they continue working past their traditional retirement date." (The Baltimore Sun)
ERISA Survey Finds Many Sponsors Lacking in Fiduciary Details
Excerpt: " new survey finds less than a third of retirement plan fiduciaries report a clear chain of authority for their plan's governance committee. A news release said the survey found that 58% of plan sponsors maintain minutes of meetings (down from 79% last year), 27% use an independent party to analyze plan fees (down from 45% last year), and 29% reported that they had established a clear chain of authority for their plan's governance committee (down from 41% last year)." (planadvisor)
Meeting Your Fiduciary Responsibilities: Retirement Plan Survey 2009 (PDF)
24 pages. Excerpt: "The Grant Thornton LLP, in conjunction with Plan Sponsor Advisors and Drinker Biddle & Reath LLP recently released the results of the 2009 Retirement Plan Survey, the fifth annual survey of plan sponsors of qualified retirement plans. Results are analyzed from over 270 independent plan sponsors." (Grant Thornton LLP)
[Opinion]
Examples Highlighting Need for Additional Pension Funding Relief (PDF)
6 pages. (Hewitt Consulting via American Benefits Council)
SunGard (Advert.)
EFAST2 – Are you ready to electronically file 5500 forms? Form 5500 must be electronically filed, beginning January 2010. Modifying your existing procedures and routines and helping your clients understand how to collaborate with you electronically are essential to meet the new requirements of the EFAST2 system. SunGard’s Relius Government Forms 5500 Web Client provides you and your clients an efficient and easy way to gather all necessary information and electronically file 5500 forms and schedules. Contact John Latson at 800-326-7235, ext. 1100. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS Letters Explain Why Unused Transportation Plan Contributions Cannot Be Returned After Termination of Employment
Excerpt: "EBIA Comment: The transformation of ordinary taxable income into tax-free employee benefits is a bit of tax alchemy that can be hard for a layperson to understand. And it can be equally difficult to understand why that transformation must be irrevocable. But plan sponsors who want to avoid disputes with former employees over forfeitures may want to accept that challenge and take the time and effort to explain the rules to their plan participants. If employees understand that the basic tax principle of constructive receipt prevents an employer from allowing cash-outs, they may be more likely to take steps to avoid that result and more accepting of a forfeiture, should it occur." (Employee Benefits Institute of America)
[Guidance Overview]
Presentation: Executive Compensation: Section 409A and TARP
31 slides. (American Benefits Council)
American Benefits Council Calls for Changes in IRS's Rules on Income Inclusion Under Sec. 409A
Excerpt: "In comments submitted on March 9 to the Internal Revenue Service, the American Benefits Council expressed its concerns about 'inadvertent errors' that result in the imposition of tax under IRC Sec. 409A. As provided by Sec. 409A, unless the specified requirements are satisfied, all compensation deferred under a nonqualified deferred compensation plan for the taxable year and all preceding taxable years is includible in the participant's gross income for the taxable year, to the extent not subject to a substantial risk of forfeiture and not previously included in gross income." (Wolters Kluwer)
Corporate Cutting Now Extends to Severance Packages
Excerpt: "Concerned about cash flow and future layoffs, companies are shrinking severance packages, which usually include a mix of pay and health benefits. While there are no formal measures for severance packages and their historical trends, news that area firms are paring back such payouts has been gleaned through interviews with industry experts and specific examples of companies that have laid off workers in recent months." (Boston Business Journal via bizjournals.com; free registration required)
Financial Wellness: Thrifty Ideas for Turbulent Times (PDF)
9 pages. Excerpt: "In spite of all of the financial challenges confronting business leaders and employees, there is good news regarding what can be done at the worksite to reduce benefits costs for your business and to boost the financial well-being of your employees. First, I will address action that business leaders can take right now to save money on costly benefit plan options . . . ." (Wellness Council of America)
Communicating Benefit Information During Layoffs Can Be Tricky
Excerpt: "With tens of thousands of U.S. layoffs occurring each month, corporate leaders are trying to negotiate a delicate balance: How do they ensure that jettisoned employees pay attention to sometimes time-sensitive and complex decisions at an emotion-laden time? Even during a routine workday, understanding the various acronyms and terms involved can be daunting: COBRA, lump sum, 401(k) rollover and so on." (Workforce Management; free registration required)
Webcasts and Conferences
(Click to post your webcast or conference)2009 Benefits Forum & Expo
in Georgia on September 13, 2009
presented by Employee Benefit News
Defined Benefit Plan Funding: Update and Hot Topics
in California on March 26, 2009
presented by Western Pension & Benefits Conference - Orange County Chapter
Press Releases
(Click to post your press release)Companies Making Extensive Changes to Executive Pay, Watson Wyatt Survey Finds
Watson Wyatt
MassMutual Retirement Services to Launch Significant Enhancements to TPA Alliance Business Model
MassMutual Retirement Services
Helping Financial Professionals Ease Plan Sponsor Retirement Worries
Principal Financial Group
Fidelity Investments Survey Finds Majority Of Workers Believe Their Benefits Are Better Than Or As Good As What Most Companies Offer
Fidelity Investments
Six-in-Ten Workers Over the Age of Sixty Postponing Retirement Due to Economic Downturn, Finds CareerBuilder Survey
CareerBuilder.com
Workplace Wellness Programs Fare Well During Economic Downturn, Reveals Buck Consultants Survey
Buck Consultants, an ACS Company
Fiduciary Benchmarks And Fiduciary360 Announce Partnership
Fiduciary360 (fi360)
Benefit Informatics Introduces Executive Summary to Save Time and Resources for Health Plan Analysis and Reporting
Benefit Informatics
Recession Has No Effect on Mid-Income Retirement Hopes
COUNTRY Financial
Employee Benefits Jobs
(Click to post your job opening | View all jobs |
RSS feed of all jobs )
Junior Consultant/Senior Actuarial Analyst
for Swerdlin and Company
in GA
Qualified Plan Consultant
for The Newport Group
in FL
Pension Administrator
for Ben-X, LLC
in NV, UT, WA
Director of Benefits
for Arnold & Porter LLP
in DC
ERISA Attorney (Associate)
for Cades Schutte LLP
in HI
Retirement Plan Specialist
for Diversified Investment Advisors
in NY
EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
| Where the best employers find the best candidates! |
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
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: