[Guidance Overview] Second Circuit Finds Termination Premiums Not Dischargeable 'Claims' in Bankrup.tcy (PDF) Excerpt: "On April 8, 2009, the United States Court of Appeals for the Second Circuit found that 'termination premiums' due under Section 4006(a)(7) of the Employee Retirement Income Security Act ('ERISA') are not 'claims' under the Bankrup.tcy Code and are therefore not dischargeable in bankrup.tcy. This decision has a substantial impact on any company considering a Chapter 11 bankrup.tcy proceeding as a means to eliminate pension obligations." (Pillsbury Winthrop Shaw Pittman LLP) [Guidance Overview] 5500 Electronic Filing Procedures: EFAST2 - The Steps Excerpt: "Probably one of the most significant challenges under EFAST2 for 5500 preparers will be the actual electronic filing. The steps vary depending on whether the 5500 preparer is using IFILE or a third-party web-based system. [These] FAQs address the issues relating to the steps in filing electronically." (Sungard) Plan Sponsors Show Concern About Validity of Stable-Value Funds Excerpt: "Stable-value funds have long been thought to be the safest of financial investments. But now a number of 401(k) plan sponsors are discussing whether they should communicate more with participants about how these funds operate. In early April, The Wall Street Journal reported that Chrysler had terminated a stable-value fund offered in one of its nonqualified savings plans and that the fund paid out only 89 cents on the dollar, leaving many retirees and employees with huge losses." (Workforce Management; free registration required) 10th Annual Transamerica Retirement Survey: Strengthening Retirement Savings in a Weak Economy (PDF) 40 pages. Excerpt: "In light of the recent economic downturn, many workers are less confident in their ability to retire than they were twelve months ago and many now expect to work longer and retire later[.] However, the vast majority of workers (91 percent) value 401(k) and other employee-funded retirement plans as an important benefit - and they are continuing to save: Participation (78 percent) and contribution (7 percent) rates remain stable; Fewer than 10 percent reported taking a loan (6 percent) or hardship withdrawal (3 percent) in the last twelve months; Workers most frequently cite (42 percent) 401(k), 403(b), and IRAs as their expected primary source of income at retirement; The survey also demonstrates that there are important opportunities to help workers strengthen their retirement savings; Lastly, the survey found some notable differences between workers of small and large companies - which are highlighted in this document[.]" (Transamerica Center for Retirement Studies) Social Security and Marginal Returns to Work Near Retirement (PDF) 20 pages. Excerpt: "[T]his paper calculates the marginal return in Social Security benefits on the contributions paid during an additional year of employment at the end of an individual's work life. Although Social Security is roughly neutral with regard to the age at which individuals claim benefits, it is not so with regard to additional work at older ages. The paper finds that marginal returns on Social Security taxes paid near retirement are generally low." (U.S. Social Security Administration) New York State Pension Fund Deals Seen as Focus of Wide Inquiry Excerpt: "New York State prosecutors and the Securities and Exchange Commission are investigating whether the Carlyle Group, one of the nation's largest and most politically connected private equity firms, made millions of dollars in improper payments to intermediaries in exchange for investments from New York's state pension fund, according to two people with direct knowledge of the case. The inquiry, which is examining the activities of a number of investment companies, focuses on what has been a widespread practice among hedge funds and private equity firms -- paying so-called placement agents to gain business managing the pension funds run by states for public employees." (The New York Times; free registration required) Mutual Fund Pioneer Is Pushing for Overhaul of Retirement-Savings System Excerpt: "[Jack] Bogle's latest mission may be his most ambitious yet: to persuade regulators to overhaul the U.S. retirement-savings system by simplifying account options, clamping down on fees, and making risk more understandable. It also might be his last." (BusinessWeek) Inside the Structure of Defined Contribution/401(k) Plan Fees: A Study Assessing the Mechanics of What Drives the 'All-In' Fee (PDF) 33 pages. Excerpt: "As part of an ongoing comprehensive research program, the Investment Company Institute (ICI) engaged Deloitte to conduct a Survey of defined contribution plan sponsors and create this report to shed light on how fee structures work within the defined contribution plan market. Specifically, this report addresses: The mechanics of plan fee structures; Components of plan fees; and Primary and secondary factors that impact fees ('fee drivers')." (Investment Company Institute) Retirement Outlook Drops to Record Low Excerpt: "A long-running survey about Americans' plans for their later years shows that workers' and retirees' confidence about their retirement security has deteriorated sharply during the past two years, to record lows. In a sign of just how bleak the retirement landscape has become, the survey of 1,257 Americans found that the percentage of workers who say they are very confident about having enough money to retire comfortably has dropped to 13% this year. That's down from 18% in 2008 and from an all-time high of 27% in 2007." (The Wall Street Journal) City of Milwaukee Could Get Pension Obligation Bond Authority Excerpt: "Wisconsin Governor Jim Doyle has proposed allowing the city of Milwaukee to issue pension obligation bonds to cover its pension fund payments. A news report in the Journal Sentinel newspaper said Doyle included the pension bond provision in his budget to give the city the same 'flexibility in addressing pension funding issues' as Milwaukee county, said Linda Barth, spokeswoman for the state Department of Administration. However, the city officials said they didn't ask for the borrowing power and wouldn't want to use it unless federal tax laws are changed, according to the newspaper." (PLANSPONSOR.com; free registration required) Hewitt Says Employers Could Save $1500 Per Employee With 401(k) Match Cuts Excerpt: "With some employers suspending or cutting their 401(k) match to save money, a new Hewitt Associates study finds employers could save as much as $25 million by taking the step. A Hewitt news release claims that companies can save, on average, more than $1,500 per employee each year by suspending their 401(k) match, assuming an average employer match of $0.50 cents on the dollar, up to 6% of pay." (PLANSPONSOR.com; free registration required) The 2009 Retirement Confidence Survey (PDF) 24 pages. Excerpt: "The 19th wave of the Retirement Confidence Survey (RCS) finds that Americans' confidence in their ability to afford a comfortable retirement has dropped to its lowest level since the RCS first asked the question in 1993, reflecting worries about the economy and the cost of health care. In response, many workers /1/ are adjusting their expectations about retirement, and some are taking steps to improve their financial preparation. However, faulty assumptions and a lack of planning still hinder the ability of many Americans to realistically assess the preparations they need to take to ensure a financially secure retirement." (Employee Benefit Research Institute) Fact Sheets on the 2009 Retirement Confidence Survey Results Seven fact sheets. (Employee Benefit Research Institute) The Current State of Stable Value Funds Excerpt: "In this six-minute presentation, Sue Graef -- principal in Vanguard Fixed Income Group and portfolio manager of Vanguard Retirement Savings Trusts -- addresses the current market environment and its impact on our stable value funds." (The Vanguard Group, Inc.) Expense Ratios Were Flat in 2008 But Are Rising in 2009 Excerpt: "It's not that fund companies or their boards are moving to raise fees. It's that mutual fund management fees have set breakpoints that trigger cuts or hikes as assets in the fund rise or fall. For example, a management fee at a fund might be 70 basis points for the first $1 billion, 65 basis points for $1 billion to $5 billion, and 60 basis points for all sums above that. Thus, shifts in assets automatically trigger cuts or hikes in fees. The 2008 annual expense ratios understate the hike because they reflect what fundholders paid over the course of last year. Because assets today are down 30% to 60% from January 2008 at the typical equity fund, the 2008 expense ratio figures don't include the full effect of a fund's current fee structure." (Morningstar) More Taft-Hartley Funds Sue Over Madoff Losses Excerpt: "Two more civil complaints, both seeking class-action status, have been filed in U.S. District Court in New York against Austin Capital Management in connection with losses from the firm's investment in a hedge fund that was involved in the Madoff Ponzi scheme. The most recent suit was filed April 8 on behalf of two Las Vegas Taft-Hartley retirement plans: the $335 million Construction Industry and Laborers Joint Pension Trust/Laborers Union Local 872, and the $138 million Plumbers and Pipefitters Union Local 525." (Pensions & Investments)
Webcasts and Conferences(Click to post your webcast or conference)Stayin' Alive Through Change in Minnesota on July 29, 2009 presented by Employers Council on Flexible Compensation (ECFC) Press Releases(Click to post your press release)19th Annual Retirement Confidence Survey: As Worker Expectations for Comfortable Retirement Plummet, Many Expect to Work Longer Before Leaving Their Jobs Employee Benefit Research Institute (EBRI) Most Employers Underestimate Full Costs of Employee Health on Productivity National Pharmaceutical Council NextStep Defined Contribution, Inc. Purchases Assets of BenefitStreet NextStep Retirement Plan TPAs Gaining Market Share Retirement Research, Inc. Employee Benefits Jobs(Click to post your job opening | View all jobs | RSS feed of all jobs )Pension Administrator for Retirement Benefit Solutions, LLC in VA EmployeeBenefitsJobs.com (Sponsor) (Click on banner to learn more.)
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