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May 13, 2009 |
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[Official Guidance]
IRS Gives Multiemployer Plans More Time to Freeze their Funding Status
Excerpt: "Responding to requests from plan sponsors for more time to decide whether to freeze their multiemployer plan's funding status under IRC § 432, the Internal Revenue Service extended the election deadline from April 30 to June 30. Moreover, where the decision requires arbitration, the IRS will accept a timely contingent election that can be revoked later if the arbitration results in a decision not to freeze." (Deloitte via BenefitsLink.com)
[Guidance Overview]
Frequently Asked Questions about the Treasury's Temporary Guarantee Plan for Money Market Mutual Funds
Excerpt: "On September 29, 2008, the U.S. Department of the Treasury opened its Temporary Guarantee Program for Money Market Funds (Program), a plan to protect shareholders of participating money market funds from losses if their funds are unable to maintain a $1.00 net asset value (break the dollar). The plan was first announced on September 19, 2008, and will end on September 18, 2009. Treasury has posted investor and technical FAQs on the Program. The [questions and answers on the target page] address the Program's major features . . . ." (Investment Company Institute)
[Guidance Overview]
Extension of Election Date for Sponsors of Multiemployer Defined Benefit Plans That Are Significantly Underfunded
Excerpt: "Because some sponsors of multiemployer plans have identified a legitimate need for additional time to make these elections in particular situations, the IRS has extended the applicable date from April 30, 2009 to June 30, 2009. In addition, if: (1) as of the otherwise applicable deadline (i.e., the deadline for a plan as modified) for making an election under section 204 or 205, a plan sponsor has been unable to reach agreement as to whether to make the election, so that the decision must be resolved through an arbitration process; (2) the plan sponsor makes an election by the otherwise applicable deadline that is contingent on the resolution of the arbitration; and (3) the resolution is to not make an election, then the IRS will automatically approve a request to revoke the election." (Wolters Kluwer)
[Guidance Overview]
PBGC Termination Premium Not an Unsecured, Dischargeable Bankrup.tcy Claim
Excerpt: "An employer that terminated a defined benefit plan while undergoing a Chapter 11 bankrup.tcy reorganization could not avoid paying a termination premium to the PBGC by calling the termination premium an unsecured, pre-petition claim that was dischargeable under the Bankrup.tcy Code, the U.S. Court of Appeals in New York City (CA-2) has ruled in PBGC v. Oneida." (Wolters Kluwer)
[Guidance Overview]
PBGC Grants Small Plan Reporting Relief for Missed Quarterly Contributions
Excerpt: "On April 30, 2009, the PBGC issued Technical Update 09-3 to provide reporting relief for small plans where a required quarterly contribution for the 2009 plan year is not timely made and the failure is not motivated by financial inability. For plans with fewer than 25 participants for the prior year, the reporting requirement is waived. For plans with at least 25 but fewer than 100 participants for the prior year, only a single simplified notice must be filed with the PBGC for the 2009 plan year - by the time the first missed-quarterly reportable event report would otherwise be due." (Deloitte via BenefitsLink.com)
Ex-Wetherly Employee Pleads Guilty in New York State Pension Inquiry
Excerpt: "A politically connected California investment firm was drawn further into New York State's pension fund corruption investigation on Tuesday after a former employee pleaded guilty to a misdemeanor related to securities fraud. Julio Ramirez Jr., a former employee of the Wetherly Capital Group, based in Los Angeles, pleaded guilty to a violation of the Martin Act, a sweeping New York securities statute, said the office of Andrew M. Cuomo, the New York attorney general. Wetherly, run by Dan Weinstein, a prominent Democratic fund-raiser, has become enmeshed in parallel inquiries by Mr. Cuomo's office and the Securities and Exchange Commission, but so far has not been charged." (The New York Times; free registration required)
A Tidal Wave Postponed: The Economy and Public Sector Retirements (PDF)
4 pages. A survey of two groups of government managers reveals that the slumping economy is holding back retirements among state and local government employees. (Center for State and Local Government Excellence)
ETF Providers Target the 401(k) Market
Excerpt: "Until a few years ago exchange-traded funds were not a practical tool for retirement investors; since they could only be traded like stocks, each individual buy or sell entailed its own fee. 'That drove transaction costs through the roof,' . . . . Current technology allows exchange-traded funds to be traded in aggregate within a group plan. Also, more minor wrinkles have been ironed out, according to Barclays. For instance, fractional shares of ETFs can now be bought, so 401(k) investors who want to be fully invested at all times can be." (Financial Planning)
Helping Tomorrow's Retirees Better Prepare Today: A Defined Contribution Participant Survey (PDF)
Excerpt: "Current investor education efforts are coming up short. The respondents' collective view of educational materials supplied by 401(k) providers and their employers is that they are: Difficult to understand: 34% of respondents felt the materials included terms or concepts that they did not understand and were not adequately explained; A commodity product: 41% agreed that the materials do not contain information that could not be easily found elsewhere (19% disagreed); Ineffective: Fewer than 19% of respondents indicated that the educational resources led to changes in retirement planning behaviors or practices." (String Financial, LLC.)
Massachusetts Lawmakers Work to Pass Pension Reform Bill
Excerpt: "Governor Deval Patrick has pushed for reform in the state's pension system. Patrick has called on state workers to give up pension perks and loopholes that allow them to bolster their retirement payouts. One benefit that's being contested is known as Section 10. It's the option for lawmakers who decide not to run for re-election to start collecting on their pensions before they're 55. The Boston Globe reported that combined the state officials now collecting their pensions under the law could pocket up to 3 million dollars over their lifetime." (NECN and Use Labs)
Participants Could Accept 'Mortality-Contingent' Products, According to Retirement Study
Excerpt: "A new study by a Hartford-based retirement services firm asserted that service providers looking to help participants get ready for retirement should concentrate on improving investor education and providing mortality-contingent products. A news release from String Financial, LLC about its recent study claimed 30% of participants surveyed would definitely or likely be willing to trade the ability to have a portion of their portfolio set up to go to their heirs on their death if such a trade meant they could generate more lifetime income than would be possible otherwise. Some 40% said they possibly would consider such a move." (PLANSPONSOR.com; free registration required)
EBSA/SEC to Hold Target-Date Fund Hearing
Excerpt: "The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) and the Securities and Exchange Commission will jointly hold a one-day hearing on June 18, 2009, to explore issues relating to target-date funds and other similar investment options. 'As target date funds and similar investment options become increasingly popular, it is important that all investors, including 401(k) plan sponsors and participants, can adequately evaluate these investment options and safeguard their interests,' the EBSA said on its Web site. According to the agency the hearing will focus generally on issues facing investors in these types of products, and will explore topics such as portfolio composition, risk, and disclosure." (PLANSPONSOR.com; free registration required)
Pension Sponsors Ask Treasury to Allow New Yield Curve Elections in 2010
Excerpt: "Mercer and more than 200 other organizations have asked Treasury to let pension plan sponsors make new interest rate elections in 2010 and to set the effective date of final funding rules no earlier than 2010. This would greatly ease the cash crunch by allowing employers to elect the most favorable interest-rate option for any plan year beginning in 2009, without fear of being locked into that election for future years. The request follows recent IRS newsletter guidance allowing plan sponsors to make new interest rate elections in 2009 and to use the full yield curve for any applicable month." (Mercer LLC)
Pension Plan Change Irks NFL Coaches
Excerpt: "The plight of assistant coaches, angered by ownership's decision in March to allow teams to opt out of the N.F.L.'s generous pension plan, may not generate much sympathy from fans, many of whom aren't feeling too secure about their own retirement prospects right now. But the coaches' disappointment is understandable. Even though the N.F.L. has an estimated annual revenue of $7.5 billion, the assistants are caught in the same market conditions as the millions of American workers whose benefits have been slashed as defined benefit plans, which are enormously expensive to administer, have disappeared during the economic downturn. " (The New York Times; free registration required)
Altered Pension Plans Could Gut NFL Coaching Staffs
Excerpt: "With NFL owners voting in March to allow teams to opt out of a league-wide plan for coaches and front office employees, uncertainty persists. By law, pensions must be funded at least 80% of projected liabilities to pay full lump-sum payments. With new plans in play for some teams, funding levels could vary. 'This is predicated on the uncertainty of whether every club will fund their obligations to the 80% statutory level,' Polian said of Moore and Mudd. 'That is the unknown. We have told them that we're funded, but we can't speak for the other clubs that owe them money.' That's just one element of the changing landscape that has coaches in a tizzy. Nine teams have opted out -- Buffalo, Dallas, San Francisco, Atlanta, Houston, New Orleans, Arizona, Jacksonville and New England -- with more expected to follow." (USA Today)
Retirement 20/20: A Reference to Perfect 20/20 Vision and Our Desire to Bring an Uncertain Retirement Future into Focus
Excerpt: "Retirement 20/20 was born in an 'A-ha!' moment when we realized that we essentially live in a binary regulatory structure, as far as pension plans are concerned. Pension plans are either employer-sponsored DB or employer-sponsored DC; there are a few exceptions in the United States and Can.ada, but not many. The analogy that we drew was a world of two flavors of ice cream: vanilla and chocolate. For whatever reasons, many people decided that chocolate -- the DB plan -- wasn't what they wanted. If you don't want chocolate, and you only have two choices, vanilla becomes a very popular option. But it's not because you prefer vanilla over a range of other flavors -- if strawberry, butter pecan, rocky road, mocha and peppermint were offered, one of those might be more to your liking. Retirement 20/20 was born to explore the third (and fourth and fifth) way -- what else could we do to design a retirement plan that did a better job of protecting individuals from the risks of retirement without putting the risk of a long-term liability solely on the employer." (Society of Actuaries)
ASPPA (Advert.)
The ERISA Outline Book – 2009 edition Make sure you have the most up-to-date version available to provide you with the information you need on a daily basis. The 2009 edition is a six-volume asset that includes all the PPA guidance issued in 2008, revised EPCRS procedures, the latest ERISA litigation cases and all notices , rulings and other guidance from DOL, IRS and PBGC issued in 2008. The ERISA Outline Book also serves as recommended reading for the ERPA Exam! Order your 2009 edition NOW! |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS Revision of Self-Correction Procedures for Nonqualified Deferred Compensation Plans (PDF)
4 pages. Excerpt: "These correction procedures are available to plan sponsors of and participants in nonqualified defined benefit or defined contribution plans that provide for the deferral of compensation (section 409A plans), including section 457(f) plans." (Prudential Retirement)
The 2009 Social Security Trustees Report
Excerpt: "The 2009 OASDI Trustees Report, officially called 'The 2009 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds,' presents the current and projected financial status of the trust funds." (U.S. Social Security Administration)
A Summary of the 2009 Annual Reports from the Social Security and Medicare Boards of Trustees
Excerpt: "Each year the Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs. This message summarizes our 2009 Annual Reports." (U.S. Social Security Administration)
Recession Drains Social Security and Medicare
Excerpt: "[The administration said that] the Medicare fund that pays hospital bills for older Americans is expected to run out of money in 2017, two years sooner than projected last year. The Social Security trust fund will be exhausted in 2037, four years earlier than predicted, it said." (The New York Times; free registration required)
Milliman's Monthly Benefit News and Developments, May 2009 (PDF)
2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits. (Milliman)
Why Are Older Workers at Greater Risk of Displacement?
Excerpt: "This brief analyzes changes in the displacement of older and prime-age workers since the mid-1990s and the effect of three factors - tenure, educational attainment, and employment in manufacturing - identified as having a significant effect on displacement risk. The results show that all three factors contributed to the rising dislocation risk older workers face and their rising risk vis-à-vis prime-age workers." (Center for Retirement Research at Boston College)
Webcasts and Conferences
(Click to post your webcast or conference)Compliance Audits: The Biggest Mistakes Commonly Found Seminar
in Pennsylvania on June 11, 2009
presented by Trion
Financing Demographic Shifts: The Future of Retirement in a Rapidly Aging World Webcast
Nationwide on May 20, 2009
presented by Mercer
Four (4) Part Webcast Series: Defined Benefit Plan Administration under PPA: Understanding PPA and How to Communicate to Plan Sponsors
Nationwide on May 27, 2009
presented by ASPPA (American Society of Pension Professionals & Actuaries)
Fourth Annual Benefits Conference: Keys of Innovation
in Minnesota on June 17, 2009
presented by Employers Association, Inc.
Improving 401(k) Plan Document Generation Efficiencies
Nationwide on May 21, 2009
presented by ftwilliam.com
IRA Webinars Special Pre-Summer Pricing
Nationwide on May 13, 2009
presented by Collin W. Fritz & Associates, Ltd.
Mental Health Parity - Clinical and Administrative Impacts
in Florida on June 18, 2009
presented by International Society of Certified Employee Benefit Specialists - Orlando Chapter
SPDs for Health and Welfare Plans: A Step-by-Step Guide to Preparation and Distribution
Nationwide on June 11, 2009
presented by EBIA / Thomson Reuters
The American Recovery and Reinvestment Act of 2009
in California on June 4, 2009
presented by Executive Benefits Design Group
Press Releases
(Click to post your press release)PBGC Negotiates Agreement to Preserve Wyoming Valley Health Care Pension Plan
Pension Benefit Guaranty Corporation (PBGC)
Statement of U.S. Secretary of Labor Hilda L. Solis Following Social Security and Medicare Board of Trustees Meeting
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Six Months Later: Effects of the Financial Crisis Shake Employers into Action
International Foundation of Employee Benefit Plans
Actuaries: Trustees’ Reports Warn of Looming Financial Challenges Facing Retirement Programs
American Academy of Actuaries
Analysis Shows New Government Health Plan Likely to Lead to Erosion of Employer-Based Coverage
HR Policy Association
CPI Qualified Plan Consultants, Inc. and Gatekeeper Administration and Consulting, LLC Announce Merger of Operations
CPI Qualified Plan Consultants, Inc.
Economic Slump Pushing Public Sector Employees to Delay Retirement
Center for State and Local Government Excellence
Employee Benefits Jobs
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