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May 6, 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 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! |
Creative Ways to Increase Low-Income Employee Participation in 401(k) Plans
Excerpt: "Research from the Retirement Security Project . . . indicates that low-income individuals can, and will, save given the right circumstances. So what exactly are the right circumstances? If you are thinking outside the box like Staples, you partner up with Progress Through Business, a nonprofit organization focusing on poverty alleviation issues, and H&R Block to offer discounted tax preparation to low-income employees of Staples, Inc. thorough a pilot program called Tax Break first rolled out in January 2007 and run again in January 2008. . . . What made Tax Break unique was the inclusion of opportunities for low income employees to enroll in both employer and government benefit programs in the tax preparation process." (Retirement Plan Blog)
Rep. Rob Andrews' Investment Advice Bill
Excerpt: "Pension and financial industry lobbyists say that the legislation, if enacted, would result in fewer DC plan participants receiving advice about their investment options." (Workforce Management; free registration required)
Advocating for Pension Funding Relief
Excerpt: "The business community has sought additional legislation and regulations to ease the contribution burden on plan sponsors. Proposals made by trade associations and supported by the plan sponsor community for additional relief have included: Delaying the amortization of 2008 asset losses until 2011; Expanding the asset corridor to allow additional smoothing; Using 2008 funded status to determine whether benefit restrictions will apply in 2009 and 2010; Extending the transition relief in WRERA to all plans (plans subject to the deficit reduction contribution in 2007 are currently not eligible for the transition relief); Clarifying that plan-related expenses do not include investment fees." (Watson Wyatt Worldwide)
Radical Retirement Initiative from Brookings in the Works
Excerpt: "Some top retirement gurus are in the process of developing proposals that could make annuity products a crucial part of millions of Americans' retirement plans. This movement, which is being led by retirement experts from the Brookings Institution in Washington, is still young. However, it is gaining steam in its bid to persuade lawmakers and employers that guaranteed-income products should be a critical component of the nation's 401(k) system--particularly as more than 75 million Americans are expected to stop working and search for sources of retirement incomes during the next two decades." (Investment Company Institute)
City of Detroit, Michigan, Employee Sues Trustees and Adviser over Risky Investments
Excerpt: "A City of Detroit employee is suing current and former trustees of Detroit's General Retirement pension fund, alleging they breached their fiduciary duties by investing retirement money in 'ill-advised and extremely risky' deals. The Detroit Free Press reports that lawyers for the Detroit Water and Sewerage employee, Coletta Estes, say they will ask that the case be declared a class action on behalf of all city workers and retirees covered by the general retirement fund, one of two public pension funds for the city." (PLANSPONSOR.com; free registration required)
Worker Furloughs May Complicate Administration for Savings Plans
Excerpt: "While health care coverage is the primary benefit affected when employers furlough employees, other benefits also may be changed, observers say. One of those areas is 401(k) plans, said Susan K. Hoffman, an attorney with Littler Mendelson P.C. in Philadelphia. 'If an employee has a scheduled amount per paycheck to reach a savings goal for the year, or a maximum for the year, they may have to readjust the future deductions to reach that goal, because (employees are) basically going to be missing a paycheck,' she said." (Business Insurance)
Industry-Wide Investigation to Examine Role of Placement Agents, Intermediaries and Middlemen in Public Pension Fund Investments (PDF)
5 pages. Excerpt: "Andrew Cuomo, the New York State Attorney General ('NYAG'), has announced that he and the attorneys general of 36 other states have formed a nationwide task force to share information about, and investigate, potential wrongdoing in the business of obtaining investments by state and local pension funds. As part of Mr. Cuomo's investigation into 'pay-to- play' practices, his office issued more than 100 subpoenas to investment management firms and funds that received investments from public pension funds in New York and to the so-called 'placement agents' or finders used by those firms to assist in obtaining the investments." (Paul, Hastings)
J. Mark Iwry Moves Into Spotlight As New Treasury Pension Adviser
Excerpt: "When federal policymakers consider major reforms to the nation's retirement rules over the coming years, J. Mark Iwry will lead the charge for the Obama administration's Treasury Department. On his plate: a possible overhaul of rules for private defined contribution plans; funding relief for defined benefit plans; a direct-deposit IRA program for employers that don't offer retirement plans; and expansion of the saver's tax credit. Mr. Iwry has played a hand in developing the latter two proposals, which already have been embraced by the administration." (Pensions & Investments)
Does America Need a New Retirement System?
Excerpt: "[P]ut the words '401(k)' and 'guaranteed income' in the same sentence, and you quickly get a hot debate going among any number of retirement experts and lawmakers along the political spectrum. Some says 401(k)s are being criticized unfairly in this unprecedented economic crisis, while others say the downturn proves that 401(k)s were never meant to be anyone's primary source of retirement savings. Should we be rethinking our retirement savings system?" (MSNBC.com)
Lawmakers Seeking Consensus on Social Security Overhaul
Excerpt: "Key lawmakers from both parties have held tentative talks about overhauling the Social Security system, and Congress could turn its attention to the federal retirement program as soon as this fall if a bipartisan consensus emerges, House Majority Leader Steny H. Hoyer said yesterday. . . . So far, Democrats have found a willing partner in the Senate, where Sen. Lindsey O. Graham (R-S.C.) has stated his desire to work with President Obama to make changes to keep Social Security solvent. Projections show that the system, which has brought in more money than it pays out, will begin to need at least small infusions of cash from the rest of the government within the next decade without changes to the benefit structure." (The Washington Post; free registration required)
Mutual Fund Executives Focus on Damage Control: Rebuilding Investor Confidence and Retirement-Plan Reform Top Industry Agenda
Excerpt: "The market crash since September hasn't just been bad news for investors -- the downturn has left mutual-fund companies dealing with record withdrawals, poor performance and disgruntled customers. It's under this shadow that the fund industry will get together in Washington, D.C. on Wednesday for the annual meeting of its trade group, the Investment Company Institute. Among the items on the agenda are dealing with the financial crisis, rebuilding investor confidence and the prospect of increased regulation." (MarketWatch)
Changes Coming for the 401(k) Plan as Democrats Target Fees and Enrollment
Excerpt: "Proposed legislation gaining momentum in the House and Senate would require the industry to break out 401(k) fees on investors' statements, and would essentially repeal Bush administration regulations allowing mutual-fund companies to offer personalized advice to 401(k) participants in the plans the companies manage. In another proposed change, President Obama's 2010 budget calls for the future establishment of a program in which all workers would be automatically enrolled in employers' retirement plans. Now, in most cases, they must opt in to participate. Also under the administration's plan, employers that don't offer a retirement plan would be required to enroll their employees in a direct-deposit individual retirement account. Employees would be able to opt out of either approach." (The Wall Street Journal)
Putnam CEO Urges Protection for Retiree Savings Suggesting Tougher New Rules and Guarantees
Excerpt: "With Americans increasingly anxious about their retirement savings, the head of one of Boston's best-known mutual fund companies wants the federal government to better protect plans such as the 401(k), going so far as to guarantee payments for retirees' golden years. Putnam Investments' chief executive, Robert L. Reynolds, said that with nest eggs decimated by the stock market's collapse, and companies cutting back or eliminating matching retirement contributions because of the recession, regulators and industry leaders need to step forward with new measures to safeguard 401(k) accounts and to help restore the savings in them." (The Boston Globe)
Is Chrysler the Next Pension Crisis?
Excerpt: "When the details of Chrysler's restructuring plan were announced on Apr. 30, few could have breathed a deeper sigh of relief than the managers of the Pension Benefit Guaranty Corp. . . . But for the PBGC, and for Chrysler employees, it's quite possible that all that's been done is to delay the inevitable. Chrysler's pension plans are $9.3 billion underfunded. The company likely won't have to make a contribution for about two years, because of the intricacies of pension funding rules, says Charles E.F. Millard, director of the PBGC until this past January. But once that respite is over, the company will have to hurry up to fill the gap, contributing as much as $1 billion a year." (BusinessWeek)
[Opinion]
So Much Public Pension Money Brings Big Temptations
Excerpt: "Regarding 'The Public Pension Shakedown' (Review & Outlook, April 20): It's no secret in the investment industry that the testing of ethical boundaries accelerates at a geometric rate when one moves from the highly regulated corporate pension-plan market to the loosely regulated state and local plan market, to the Wild West of union plans. (The federal Social Security system is, of course, in a different league with no real regulations, no funding 'lockbox,' and no prudent-man investment rules.)" (The Wall Street Journal)
DATAIR Employee Benefit Systems, Inc. (Advert.)
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Links to Items on Executive Comp, Benefits in General
California State Teachers' Retirement System Pressuring Companies to Create 'More Responsible' Executive Compensation PoliciesExcerpt: "A CalSTRS news release said it was calling on 300 of companies in its portfolio to develop comprehensive executive compensation policies and to allow shareholders advisory votes on those policies. 'The goal is to reward long-term thinking and improve pay-for-performance practices while deterring excessive risk taking,' the fund said in the announcement. This initiative includes the publication of executive compensation model policy guidelines, communication with targeted companies that stresses using those guidelines, and related principles." (PLANSPONSOR.com; free registration required)
More Small Companies Turning to Voluntary Benefits As Low-Cost Way to Bolster Business and Empower Employees
Excerpt: "Difficult economic times mean tough either/or choices for small-business owners. For many, adding voluntary benefits to compensate for cutbacks elsewhere in a benefits package or to enrich an existing core benefits plan--particularly one with a high deductible--makes more sense than making cuts in critical areas of a business, laying off key employees or losing them to a competitor with a richer benefits package. Instead of paying for disability insurance, life insurance, dental insurance and the like as core employee benefits, small-business owners have begun to see the wisdom of providing those kinds of benefits on a voluntary basis, a la carte-style, where employees can pick and choose among them and pay for the ones they want and can afford." (Entrepreneur.com, Inc. via MSNBC.com)
ERISA Litigation Study Gives ERISA Cases Systematic Analysis
Excerpt: "How often are ERISA cases disposed of by trial? Who wins more often on summary judgment motions? What is the relative number of ERISA cases on the docket among the federal Courts Of Appeal? These and many more interesting questions for ERISA practitioners may be found in this interesting study with the practical title 'ERISA Litigation Study'. . . . The paper provides a methodologically consistent evaluation of ERISA cases that yields considerable useful and just plain interesting information. The paper is available for download on SSRN as a part of the Working Paper Series." (Roy Harmon III via Health Plan Law)
Webcasts and Conferences
(Click to post your webcast or conference)403(b) Plan Workshop: Implementing Recent Guidance for Tax-Exempt and Governmental Employers
Nationwide on May 13, 2009
presented by ALI-ABA (American Law Institute-American Bar Association)
Getting It Right - Know Your Fiduciary Responsibilities Webcast Series – Part 1
Nationwide on May 12, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Getting It Right - Know Your Fiduciary Responsibilities Webcast Series – Part 2
Nationwide on May 13, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
HIPAA Privacy Guidelines Every Lawyer Needs To Know
Nationwide on June 9, 2009
presented by ALI-ABA (American Law Institute-American Bar Association)
Optimal Rating and Underwriting Strategy for Mid-size Health Insurance Groups Webinar
Nationwide on May 20, 2009
presented by Milliman USA
Press Releases
(Click to post your press release)Directors Believe Executive Pay Programs Need to Change, Watson Wyatt Survey Finds
Watson Wyatt
The NTSAA Has Released The Source 403(b) and 457(b) Plans - Second Edition
National Tax Sheltered Accounts Association
Actuarial Consultants, Inc. Welcomes Jay Luber As Senior Consultant
Actuarial Consultants, Inc.
Chrysler Salaried Retirees Prepare to Defend Their Benefits
Stahl Cowen Crowley LLC
New Health and Wellness Agency Carrot Helps Consumers Improve Their Health - and Employers Improve Their Bottom Line
Carrot
The Six Secrets of a Successful Worksite Wellness Program
Aegis Health Group
EmployeeBenefitsJobs.com (Sponsor)
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