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April 22, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
ASC and the ASC Institute (Advert.)
The Document Generation & Management (DGEM) System is an absolute time saver! "We’ve finished restating 2,400 plan documents – stress free!" DGEM Client: Michelle C. Carlson, J.D., LL.M, Director of ERISA Consulting at JULY BUSINESS SERVICES Over 20,000 plans are already on the System. Join the many practitioners who are already using ASCi’s highly acclaimed DGEM system to more easily and efficiently prepare new and restated documents. Click here to see a 2 min DGEM video or contact us at asci@asc-net.com |
SEC to Consider Rules to Restrict Pension Pay-to-Play
Excerpt: "The U.S. Securities and Exchange Commission is considering rules to restrict money managers from paying to win state business as regulators ratchet up inquiries into kickbacks paid to a New York political adviser. The agency is re-evaluating a 1999 proposal that would have barred investment advisers from managing state pension funds if they donated to elected officials involved in awarding adviser contracts, SEC Chairman Mary Schapiro said today in an interview. Schapiro said the SEC is 'looking at everything related to municipal markets' as it considers new rules." (Bloomberg L.P.)
Corrected Link: 2008 Deloitte 401(k) Benchmarking Survey
Excerpt: "The Annual 401(k) Benchmarking Survey was conducted jointly by Deloitte Consulting LLP, the International Foundation and the International Society for Certified Employee Benefits Specialists. A total of 830 responses was received, representing the full spectrum of industries, geographic regions and company sizes. Respondents answered questions about their plans, as well as, for the first time, a series of inquiries about other rewards programs. The result is a highly granular snapshot of plan characteristics, policies and trends." (Deloitte, IFEBP, ISCEBS)
Hearing: 401(k) Fair Disclosure for Retirement Security Act of 2009
Excerpt: "The Health, Employment, Labor, and Pensions Subcommittee of the House Education and Labor Committee will hold a hearing on Wednesday, April 22 on legislation that will provide American workers with clear and complete information about Wall Street fees taken from their 401(k)-style accounts. The 401(k) Fair Disclosure for Retirement Security Act of 2009 will help workers shop around for the best retirement options by requiring simple fee disclosure on the investment options contained in their employer's 401(k) plan. Current law does not require all fees workers pay to be disclosed; and even for information that is available, it can be difficult for workers to find and evaluate. The bill is expected to be introduced on Tuesday by Rep. George Miller (D-CA), chairman of the full committee, and Rep. Rob Andrews (D-NJ), chairman of the subcommittee." (U.S. House of Representatives Committee on Education and Labor)
2009 Wilshire Consulting Report on Corporate Pension Funding Levels (PDF)
Excerpt: "The financial health of corporate pension plans experienced a substantial setback in 2008. Defined benefit pension assets for S&P 500 Index companies declined by $310.2 billion, from $1294.3 billion to $984.1 billion, while liabilities increased $21.9 billion, from $1199.7 billion to $1221.6 billion. As a result, the aggregate funding ratio (assets divided by liabilities) for all plans combined decreased from 107.9% to 80.6% and a $94.6 billion surplus at the beginning of the year became a -$237.5 billion deficit." (Wilshire Consulting)
Sidestep Tax Whammy on Retirement Funds: Buy Life Insurance
Excerpt: "If you die with most of your retirement funds intact, your family could get walloped by estate tax on top of a hefty income tax bill for required plan distributions. Strategy: Use retirement plan funds to buy life insurance. When you die, the life insurance benefits are tax-free to the beneficiaries. They can use the cash to pay off their tax bills and pocket the rest." (Business Management Daily)
The Center for Due Diligence (CFDD) (Advert.)
CFDD October 5-7, 2009 Advisor Conference ADAPT, SURVIVE & PROSPER: A Bull Market In BOR Changes The CFDD’s Advisor Conference is an all business event designed to help retirement plan advisors adapt to unprecedented challenges. Distinguished by accomplished advisor attendance and rich content, the advisor-centric conference has become the industry’s premier networking and educational event. To benefit from unbiased guidance, generate NEW business now, IMPROVE investment returns and LIMIT liability, register at a discount NOW! Click HERE for more information. |
Links to Items on Executive Comp, Benefits in General
[Official Guidance]IRS Revision of Employer's Tax Guide to Comply With ARRA
Excerpt: "The Internal Revenue Service (IRS) on April 13, 2009, posted to its Web site 'major changes' to 2009 Publication 15 (Circular E) Employer's Tax Guide. The modifications include new tables for withholding and advance earned income credit (EIC) payments to comply with changes made by the American Recovery and Reinvestment Act of 2009 (ARRA) (P.L. 111-5) for wages paid through December 2009 and the treatment of employee business expenses. [The guide is at http://www.irs.gov/pub/irs-pdf/p15.pdf.]" (Hewitt Consulting)
[Guidance Overview]
Office of Labor Management Standards Delays and Withdraws Regulations on LM-2 and LM-3 Forms
Excerpt: "The Department of Labor's Office of Labor Management Standards (OLMS) delays the effective date and proposes to withdraw new rules on LM2/LM3 financial disclosure forms. Comments on the proposed rule must be received on or before May 21, 2009." (International Foundation of Employee Benefit Plans)
[Guidance Overview]
One More Year to Protect Certain Executive Compensation Plans from Tax Penalties (PDF)
2 pages. Excerpt: "Worry has resulted due to Section 409A's potential penalties on nonqualified deferred compensation arrangements that do not satisfy strict election and payment timing rules: current taxation for deferred income, a 20 percent penalty, and interest payments. . . . It's not, however, too late to correct many of the more common compliance mistakes under Section 409A. The first step is to identify any plans or agreements that were signed in one year but will pay compensation in a future year. Section 409A may well apply to any arrangements that fit that description and should be evaluated with that in mind. Such plans could include employment agreements, severance agreements, change in control agreements, expense reimbursement plans, and equity compensation plans in addition to traditional nonqualified plans, such as non-ERISA retirement plans." (Porter Wright Morris & Arthur LLP)
Improving Executive Compensation Disclosure: Why the SEC Rules Don't Fit in a Down Market
Excerpt: "Changes to the executive compensation disclosure rules made during Christopher Cox's tenure as chairman of the Securities and Exchange Commission (SEC) vastly improved disclosures, particularly in the enhanced Compensation Discussion and Analysis (CD&A) section. However, in reviewing the 2008 stock price performance of our clients, we have found the reporting rules require these companies to significantly overstate the value of executive compensation earned. The overstatement will make the inevitable criticism of executive pay practices that arises each proxy season far worse than it should be. In an effort to blunt the critics, companies might shift from shareholder-friendly equity compensation programs to less effective cash-based programs." (Watson Wyatt Worldwide)
A Risk-Sensitized Executive Pay Governance Process (PDF)
6 pages. Excerpt: "This InsightOut is the first of a two-part analysis of Compensation Committees and Corporate Governance and the links between a global view of risk and a workable framework for a risk-sensitized executive pay governance process." (Buck Consultants)
Furloughed: Suddenly Millions of Workers Have Time Off
Excerpt: "Generally, if you are furloughed, whatever health and other benefits you have with your employer stay intact. But unless you are in a union that has a firm contract with the employer, just about anything and everything is fair game." (AARP)
Economic Crisis Brings Job Losses, Delayed Retirement, Benefit Reductions and Stagnant Pay
Excerpt: "[T]he statistics and news reports reflect only part of the picture. Many of those still working are receiving little or no increase in overall benefits and salary. In private industry, overall benefits and salary increased by 2.4 percent in 2008 -- a 20 percent decline from the increase in overall benefits and salary in 2007, and a 40 percent drop from the increase in 2003. Expectations for benefits and pay increases are even less optimistic for 2009. This is the first time in more than 50 years that the labor market has contracted so sharply and total compensation has been almost stagnant." (Watson Wyatt Worldwide)
Benefits Communication Techniques Similar Among Employers
Excerpt: "There was widespread adoption of similar employee benefits communications techniques among employers responding to a recent survey. A United Benefit Advisors, LLC (UBA) news release about its 2009 UBA Employer Benefit Perspectives report, said 91% of responding employers use employee meetings, 85% use nonpersonalized handouts, and 40% use personalized materials." (PLANSPONSOR.com; free registration required)
Webcasts and Conferences
(Click to post your webcast or conference)Form 5500 for Health and Welfare Plans: A Guided Tour for Employers, Form 5500 Preparers, and Advisors
Nationwide on May 21, 2009
presented by EBIA / Thomson Reuters
Employee Benefits Jobs
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ERISA Research Attorney
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EmployeeBenefitsJobs.com (Sponsor)
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Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
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