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April 28, 2009


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

ASPPA (Advert.)

Western Benefits Conference, June 28 – July 1, 2009 (clickable image)

Western Benefits Conference, June 28 – July 1, 2009

Designed with all retirement and benefits professionals in mind, the Western Benefits Conference will cover it all in Denver, Colorado, June 28 – July 1. Over 50 workshops, seven specialty tracks, emerging compliance issues and several networking opportunities provide just a snapshot of the planned agenda. Register Now and Save!


[Guidance Overview]
Retirement Plan Loans and Reg Z

Excerpt: "Effective July 10, 2010, most plans that offer loans to participants will no longer be required to provide disclosures under the Truth in Lending Act (TILA). This change is a result of the Federal Reserve amending Regulation Z of the TILA to include an exemption for retirement plan loans. . . . In issuing this exemption, the Federal Reserve has acknowledged the difference between a commercial loan and a plan loan taken from a participant's account balance. A plan loan is secured by a participant's account balance, and both the principal and interest payments are reinvested into the participant's account. Plan loans also typically involve lower costs than a commercial loan." (McKay Hochman Co.)


[Guidance Overview]
Final Regulations on Automatic Enrollment Arrangements

Excerpt: "On November 7, 2007, the IRS released proposed regulations for automatic contribution arrangements that could be relied upon pending the issuance of final regulations. To the extent the final regulations are more restrictive, they will not be applied retroactively. On February 24, 2009, the Treasury issued final regulations. The QACA provisions are effective January 1, 2008. The EACA provisions are effective January 1, 2010, or later." (McKay Hochman Co.)


[Guidance Overview]
On the Trustee's Responsibility to Collect Employer Contributions

Excerpt: "Fiduciaries, particularly trustees, must understand that they can not rely on the plan's express language to avoid doing what the DOL considers to be a significant fiduciary duty. Note, that for plans that are self-trusteed, it is not clear exactly how the bulletin's guidance would be enforced." (McKay Hochman Co.)


[Guidance Overview]
Debate Over the Fiduciary Duty to Collect Delinquent Employer Contributions

Excerpt: "Conclusion: It is likely that there are quite a number of documents out there that will be found to have the same exculpatory language noted in the [Hilda Solis v. Plan Benefit Services, Inc.('PBS')] case. Trustees and fiduciaries of ERISA plans should review their plans and consult with their advisors as to whether such provisions should be removed and, if faced with the dilemma of delinquent employer contributions, determine what action is appropriate in light of the DOL's views expressed in its FAB as well as recent governing case law." (Attorney B. Janell Grenier via Benefitsblog.com)


[Guidance Overview]
Key Provisions in Draft Revenue Procedure for Prototype 403(b) Plans

Excerpt: "As expected, the IRS recently announced that it will be establishing a prototype program for 403(b) plans (IRS Announcement 2009-34). The Announcement also includes a draft Revenue Procedure setting forth the parameters of the 403(b) prototype program. The IRS is soliciting public input before finalizing the procedure [and the Listing of Required Modifications (LRMs) that were released in conjunction with the Announcement.]" (SunGard)


U.S. House Examines 401(k) Fees
Excerpt: "The House Education & Labor Committee last week proposed new rules for 401(k) disclosure that will give investors greater transparency into the fees they are paying, but some 401(k) advocates say the new rules are too aggressive and unnecessary. House Resolution 1984, also called the 401(k) Fair Disclosure for Retirement Security Act of 2009, aims to make it easier for employees to pick the best retirement options in their 401(k). Currently, the law does not require all fees to be disclosed, and it can be difficult for workers to find fee information that is already available." (Financial Planning)


2009 Investment Company Fact Book: A Review of Trends and Activity in the Investment Company Industry (PDF)
208 pages. Excerpt: "At year-end 2008, 9 percent of household financial assets were invested in 401(k) and other DC retirement plans, up from 6 percent in 1990. Mutual funds managed 44 percent of the assets in these plans. Households also have invested in mutual funds outside of DC plans. Individual retirement accounts (IRAs) made up 9 percent of household financial assets, and mutual funds managed 44 percent of IRA assets in 2008. Mutual funds also managed $3.6 trillion of assets that households held in taxable accounts." (Investment Company Institute)


Updated List of Companies That Have Changed or Temporarily Suspended 401(k) Matching Contributions
Excerpt: "[This] is a list of employers that have announced plans to change or stop making matching contributions to their employees' 401(k) and other defined contribution plan accounts since June 2008. . . . (Note: this is not a comprehensive list. The companies listed . . . are only the companies that we are aware of, based on corporate press releases, news reports and other sources.)" (Pension Rights Center)


Audio and Text: Help! Billions Needed for Public Pension Plans
Excerpt: "Businesses and local governments are having to come up with billions of dollars in new and unanticipated pension fund contributions at the worst possible time. Steve Henn reports." (American Public Media)



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

CFDD October 5-7, 2009 Advisor Conference (clickable image)

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

[Guidance Overview]
Principles That Should Guide Employer's Actions When Making Job-Related Decisions Regarding Pregnant Employees

Excerpt: "Employers should be familiar with the Pregnancy Discrimination Act within Title VII of the Civil Rights Act of 1964. The PDA provides that women affected by pregnancy, childbirth or related medical conditions shall be treated the same for all employment-related purposes. An employer cannot change the terms of an employee's position because she is pregnant. An employer must base all decisions on the employee's objective ability to perform the job, not speculation that an employee may want to leave work, spend more time with children or be absent from work." (The Portland Press Herald/Maine Sunday Telegram)


[Guidance Overview]
Several States Expand Marriage Rights for Same-Sex Couples

Excerpt: "EBIA Comment: While we generally do not cover state-law developments, we thought it would be helpful to note the apparent state-law trend toward expansion of same-sex marriage rights and remind employers and plan administrators of some basic concepts that apply when benefits are provided to domestic partners, same-sex spouses, and individuals in similar relationships (e.g., civil unions). Most employer-sponsored benefit plans are not directly bound by state law (due to the operation of ERISA's preemption clause). And the federal Defense of Marriage Act (DOMA) (defining marriage as a union between a man and a woman) continues to control for federal law purposes (including federal taxation of benefits), even when state law has made same-sex marriage legal." (Employee Benefits Institute of America)


Tentative Pacts with U.S., Canadian Workers Are a Major Hurdle in Chrysler's Bid to Avert Bankrup.tcy
Excerpt: "Chrysler cleared a major hurdle in its bid to stave off bankrup.tcy by reaching key labor deals Sunday with its unions in the U.S. and Can.ada. A tentative pact with the United Auto Workers -- details were undisclosed -- came just hours after membership of the Canadian Auto Workers union ratified a deal late Sunday that could save Chrysler close to $200 million a year. . . . Sunday's UAW agreement 'provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U.S. Treasury Department,' said Al Iacobelli, the chief bargainer for Chrysler. 'As a result, Chrysler LLC can continue to pursue a partnership with Fiat.'" (Los Angeles Times)


Employers Underestimate How Much Employees Value Benefits
Excerpt: "Employee and employer perceptions of how benefits contribute to loyalty differ significantly, according to the 7th annual Study of Employee Benefits Trends conducted by MetLife." (Wolters Kluwer)


How Does the Red Flags Rule Impact Employee Benefit Plans?
Excerpt: "Regardless of what the FTC has to say about this, many practitioners would argue that plan fiduciaries generally have duties to protect participant information under ERISA's fiduciary rules. Thus, the FTC's rules might serve as a starting place for fiduciaries to assist in building some process and procedures into their current systems to protect plan participants and beneficiaries against identity theft." (Attorney B. Janell Grenier via Benefitsblog.com)



Webcasts and Conferences

(Click to post your webcast or conference)

COBRA and HIPAA Compliance Workshop
in New York on May 4, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

COBRA and HIPAA Compliance Workshop
in New York on May 28, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

COBRA Compliance Update: May 2009
Nationwide on May 20, 2009
presented by MCOL

Top 5 Myths and Misconceptions about SPDs Webcast
Nationwide on May 14, 2009
presented by International Foundation of Employee Benefit Plans


Press Releases

(Click to post your press release)

Profit Sharing/401k Council of America Makes Staff Changes
Profit Sharing/401(k) Council of America (PSCA)

PBGC, Daimler Agree on $600 Million Cash Infusion into Chrysler Pensions
Pension Benefit Guaranty Corporation (PBGC)

Schwab Makes Strategic Enhancements to Target Funds
Charles Schwab & Co., Inc.

Former Huntington Business Owner Pleads Guilty To Stealing From Employee Benefit Plans
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

U.S. Labor Department Seeks Public Comments On Mental Health And Addiction Law
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

ERIC Urges Comprehensive Rewrite of Miller Fee Disclosure Bill
ERIC (ERISA Industry Committee)

The SPARK Institute Supports 401(k) Fee Transparency but Remains Concerned About Proposed Legislation
SPARK Institute

Ascensus Expands Trade Platform
Ascensus


Employee Benefits Jobs

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

Pension Benefit Advisor
for Guardian Life Insurance Company
in TX

Associate Attorney - ERISA Litigation and Collection of Fringe Benefit Contributions
for Blitman & King LLP
in NY

Defined Contribution Administrator
for Growing TPA Firm
in OK



EmployeeBenefitsJobs.com (Sponsor)

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