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March 27, 2009


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

The Center for Due Diligence (CFDD) (Advert.)

ADAPT, SURVIVE & PROSPER (clickable image)

ADAPT, SURVIVE & PROSPER

The CFDD’s Advisor Conference is an all business event designed to help advisors learn, network, stay relevant, identify trends, generate NEW business, IMPROVE investment returns, distinguish their value, AVOID litigation and ADAPT to unprecedented challenges. With more accomplished retirement plan advisors in attendance than any other event, the content rich conference sells out early. To benefit from unbiased guidance, direction and EXCLUSIVE new tools & resources that will be unveiled at the conference, register at a discount NOW!


[Official Guidance]
Text of IRS Notice 2009-31: Election and Notice Procedures for Multiemployer Plans under Sections 204 and 205 of WRERA (PDF)

Excerpt: "WRERA provides that a multiemployer plan sponsor may elect, notwithstanding the actuarial certification of the plan's section 432 status . . . for the plan year for which the election is made[,] . . . to temporarily freeze the plan's section 432 status so that it is the same as the plan's section 432 status for the plan year immediately prior to the election year . . . . Section 204(c)(2) of WRERA provides special notice rules that apply when an election . . . is made to freeze a plan's section 432 status and that modify the otherwise applicable notice requirements under section 432(b)(3)(D) of the Code." (Internal Revenue Service)


[Guidance Overview]
Relief for Funding and Benefit Restrictions in 2009 Expected Soon from Treasury (PDF)

2 pages. Excerpt: "The Treasury Department has indicated that guidance will be out soon that will provide substantial relief in 2009 to calendar year defined benefit plan sponsors in the areas of funding requirements, benefit restrictions and PBGC variable premiums. Although the guidance has not been issued yet and details are not known, it is expected to have significant implications for the potential April 1 application of benefit restrictions and on April 15 quarterly contributions. Plan sponsors must be prepared to act quickly once the guidance is issued and develop an action plan in case it is not issued by these dates." (Towers Perrin)


[Guidance Overview]
Managing an ESOP Company in Challenging Economic Times: Steps to Avoid Litigation & How to Proceed if Avoidance Fails Webcast (PDF)

The 24 page presentation covers the Legal Environment, Types of Claims, Best Practices to Avoid Litigation/Defend Claims, and When a Lawsuit is Filed. (Morgan, Lewis & Bockius LLP)


[Guidance Overview]
Early Distribution Penalty Applies to Homebuyer Distribution from Qualified Plan; Should Have Rolled Account Into IRA First

Excerpt: "This case confirms that the early distribution penalty exception for first time home buyers does not apply to retirement accounts, unless they are IRAs . . . . This issue could have been avoided, if the taxpayer had rolled over the amount to an IRA, and then made the withdrawal from the IRA." (RetirementDictionary.com)


[Guidance Overview]
Former NFL Player and His Financial Advisers Sued by DOL; ERISA Violations Alleged

Excerpt: "The U.S. Department of Labor (DoL) is suing former National Football League (NFL) player Michael Vick and his former financial advisers alleging violations of federal employee benefits law. The DoL's lawsuit, filed in federal district court, alleges that Vick and others violated federal employee benefits law by making a series of prohibited transfers from a pension plan sponsored by MV7, a celebrity marketing enterprise owned by Vick. Former Vick financial advisers Mary Wong and David Talbot were also named in the complaint for allegedly participating in some of the transfers. In addition, MV7 is charged with having a co-fiduciary liability for the actions of Vick and Talbot." (planadviser.com)


Future Pension Reform to Include DC Investment Advice Rules
Excerpt: "Rep. Rob Andrews, D-New Jersey, said Tuesday, March 24, that any pension reform legislation considered by the House Education and Labor Committee will include new guidelines for offering investment advice to defined-contribution plan participants." (Workforce Management; free registration required)


Analysis of Form 5500 Schedule C Reporting Survey Results (PDF)
11 pages. Excerpt: "[The target page] is a summary of the results and key findings [of a survey regarding certain Form 5500 Schedule C reporting issues]. A copy of the tabulated results is attached hereto. The survey was completed by member firms that collectively serve approximately 174,000 plans with nearly 34 million participants." (The Spark Institute)


Ten Ways to Wreck Your Retirement
Excerpt: "Personal retirement accounts are a valuable tool in building a retirement nest egg. The recent fall in the stock market has caused some savers to cash out their savings. This is unfortunate because the stock market has rebounded after every fall, and those who are not in the market at the bottom will lose out as it rises. There are other practices that can derail even the best laid retirement plans. This study addresses 10 of them." (National Center for Policy Analysis)


Mark-to-Market Valuation at a Crossroads? (PDF)
Pages 3 of 8 pages. Excerpt: "The move toward mark-to-market valuation for pension plans has seemed inexorable in recent years and has progressed across the entire pension landscape -- whether the terrain has been accounting or funding, private or public, national or international. Now, for the first time, we're seeing significant resistance. Will this moment be just a slowing down of a continued advance? A pause? A partial reversal?" (American Academy of Actuaries)


'Stable' Funds in Your 401(k) May Not Be: As Underlying Assets Drop, So Do Returns on Investments
Excerpt: "Stable-value funds, available only in 401(k)s and other tax-deferred savings plans, are designed to preserve capital and generate smooth, positive returns -- hence the name. Consider that last year, the average stable-value fund returned 4.7%, according to Hueler Cos., a firm that tracks the industry, compared to a 33.8% plunge in the Dow Jones Industrial Average. But now, stable-value funds are getting rattled by some of the same forces that have upended the broader financial system. These funds typically maintain a relatively steady 'crediting rate' -- essentially the yield investors receive -- by investing in diversified bond portfolios and then using contracts from banks and insurers to protect against sharp market swings." (The Wall Street Journal)


Allegheny County, PA Wants to Scrap Overtime Pay As Part of Calculation for Pensions
Excerpt: "The state House Finance Committee held a public hearing in Pittsburgh yesterday on a proposal by the Allegheny County Retirement Board to stop including overtime pay as a part of the calculation for pension benefits for new employees. Allegheny County Treasurer John Weinstein and county Controller Mark Patrick Flaherty told the committee that overtime payments need to be eliminated from pension calculations because they create inequity in the county's pension fund and they could jeopardize its solvency." (Pittsburgh Post-Gazette)


A Step Beyond ERISA Section 404(c): Improving on the Participant Directed 401(k) Investment Model
Excerpt: "The likelihood of investment success increases as the participant's involvement in investment decisions decreases. This article, therefore, proposes an alternative approach to the participant-directed 401(k) investment model in order to allow - as far as possible - the fulfillment of the primary objective of a 401(k) plan. Our proposal, which is the Non-Participant-Directed 401(k) Plan, helps satisfy two important objectives at once: Increase the odds that the retirement investment and savings needs of plan participants will be met. Reduce the fiduciary responsibility of fiduciaries." (Aspen Publishers, Inc. via Chang, Ruthenberg & Long PC)


[Opinion]
So Much for the 401(k); Now What? Experts Provide Their Opinions

Excerpt: "The huge loss of value in [401(k) plan] accounts, caused by the stock market decline, has imperiled retirements for older workers and caused younger workers to wonder whether they should have participated at all. Given the wipe-out of years of savings, are there ways to make retirement nest eggs safer? What might replace the 401(k) as the dominant savings vehicle? [Posted are comments by Alicia H. Munnell, Thomas R. Saving, Teresa Ghilarducci, David C. John and others.]" (The New York Times; free registration required)


[Opinion]
ASPPA College of Pension Actuaries Comment Letter on Reporting of Missed Quarterly Contributions (PDF)

4 pages. Excerpt: "The American Society of Pension Professionals & Actuaries (ASPPA) is writing to ask you to reconsider rescission of the waiver on reporting of missed quarterly contributions for small plans. Because the first filing would be due May 15, it is critical that this decision be revisited as soon as possible." (American Society of Pension Professionals & Actuaries)


[Opinion]
Vanguard's Comment Letter on DOL's Final Investment Advice Rule (PDF)

Excerpt: "The final regulations strike an appropriate balance: a clear roadmap for employers hiring advisors, and valuable safeguards for investors. Importantly, the guidelines provide a clear road map to help employers who want to provide high quality, cost-effective advice from a qualified advisor. That said, we are aware that there are some commentators who believe that the Department's final guidance does not provide sufficient safeguards against potential conflicts of interest. We disagree. The Department has promulgated a rigorous set of requirements." (The Vanguard Group, Inc.)



SunGard (Advert.)

EFAST2 – Are you ready to electronically file 5500 forms? (clickable image)

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]
W-4 Revisions May Be Needed to Work out Stimulus Credit

Excerpt: "In February, the Internal Revenue Service has released new withholding tables that incorporate the new 'Making Work Pay' credit - a provision of the American Recovery and Reinvestment Act of 2009. In its announcement, released with the tables, the IRS asked employers to start using the new withholding tables as soon as possible but not later than April 1, and said workers will not need to fill out a new W-4 withholding form to get the credit . . . . However, tax analysts at Thomson Reuters point out that IRS Publication 15-T included a notice for employers to distribute to employees concerning the changes in income tax withholding, and certain employees . . . are advised in the notice that they may need to file a new Form W-4 with their employer . . . ." (PLANSPONSOR.com; free registration required)


Stock Options Adjusted at Some Public Companies After Share Prices Fall
Excerpt: "Executives at dozens of public companies, including Starbucks, Google, Intel and smaller enterprises like Composite Technology, are taking steps to lower the prices that their employees would have to pay to convert options into stock. The moves are usually described as important for retaining employees, especially as stock options that vest over several years look utterly worthless in the current market. With prices plunging across a variety of industries, companies also often assert that stock price movements are not really a reflection of employee performance." (The New York Times; free registration required)


House Passes Bill Levying 90% Tax on Bonuses Handed Out by TARP Recipients: Similar Senate Bill Forthcoming
Excerpt: "The bill covers any bonuses that are retention payments, incentive payments, or other bonuses which are in addition to any amount payable to such individuals for services performed by such individuals at a regular hourly, daily, weekly, monthly, or similar periodic rate. The bill's taxation provisions apply to bonuses received on or after January 1, 2009. Bonuses will not be taxed at this rate once a TARP recipient has repaid TARP monies owed to the Treasury in excess of $5 billion. This House bill is designed to reclaim taxpayer money used to pay for bonuses at a dozen or so companies, including AIG, Fannie Mae, Freddie Mac, Citigroup, and Bank of America." (Baker & Hostetler LLP)


Annual Statistical Supplement to the Social Security Bulletin, 2008
Excerpt: "The Supplement is a major resource for data on our nation's social insurance and welfare programs. The majority of the statistical tables present information about programs administered by the Social Security Administration -- the Old-Age, Survivors, and Disability Insurance program, known collectively as Social Security, and the Supplemental Security Income program. In addition, data are presented on the major health care programs -- Medicare and Medicaid -- and social insurance programs, including workers' compensation, unemployment insurance, temporary disability insurance, Black Lung benefits, and veterans' benefits. The Supplement also includes program summaries and legislative histories that help users of the data understand these programs." (U.S. Social Security Administration)


Attorney Phyllis Borzi Nominated to Head Employee Benefits Security Administration
Excerpt: "Until January 1995, [Phyllis] Borzi served as pension and employee benefit counsel for the U.S. House of Representatives, Subcommittee on Labor-Management Relations of the Committee on Education and Labor. She was on the Committee staff for 16 years. . . . . Borzi has published numerous articles on ERISA, health care law and policy and retirement security issues and is a frequent speaker on programs sponsored by legal, professional, business, consumer and state and local governmental organizations. An active member of the American Bar Association, Borzi is the current chair of the ABA's Joint Committee on Employee Benefits . . . ." (The White House)



Webcasts and Conferences

(Click to post your webcast or conference)

"Found Money" in Your Health & Welfare Benefit Plans: What to Ask from Your Outsourced Benefits Administrator
Nationwide on April 16, 2009
presented by TRI-AD

Ponzi Schemes Are Out There: What's A Plan Fiduciary to Do?
in New York on April 16, 2009
presented by WEB (Worldwide Employee Benefits Network ), New York Chapter

Voluntary Fiduciary Correction Program Workshop
in New York on April 28, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)


Press Releases

(Click to post your press release)

Two Union Officers Indicted For Embezzling Over $300,000 In Union Funds
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Equity Compensation Panel Discussion to Focus on FAS 123R Best Practices for Private Companies
Two-Step Software, Inc.

Treasury Outlines Framework For Regulatory Reform
U.S. Department of Treasury

ftwilliam.com Announces The Release Of Software For The Annual Funding Notice
ftwilliam.com

Mercer Announces Expanded Distribution of Defined Contribution Administration Services
Mercer

Renaissance Life and Health Insurance Company of America Debuts Individual Dental Insurance for Retirees
Renaissance Life and Health Insurance Company of America

Shore Bancshares Applies to Repay TARP Funds
Shore Bancshares, Inc.


Employee Benefits Jobs

(Click to post your job opening | View all jobs | RSS feed for jobs RSS feed of all jobs )

Account Manager - Employee Benefits
for Hanna Global Solutions
in CA

Pension Administrator
for Jordan & Associates
in CA

Plan Document Specialist
for Nova 401(k) Associates
in TX



EmployeeBenefitsJobs.com (Sponsor)

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Where the best employers find the best candidates!


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