Retirement Plans Newsletter |
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| June 1, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
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[Guidance Overview]
DB Plans Face Steep Increase In Variable-Rate Insurance Premium
Excerpt: "In 2008, the value of investments held by defined benefit (DB) pension plans dropped precipitously. Provisions of the Worker, Retiree and Employer Recovery Act (WRERA), judicious elections of valuation methods and the recent IRS announcement on the 'applicable month' will ameliorate the impact of the market decline on 2009 required contributions./1/ However, DB plan sponsors also face a steep increase in their variable-rate premium (VRP), which is paid to the Pension Benefit Guaranty Corporation (PBGC) to insure vested employee pension benefits. " (Watson Wyatt Worldwide; free registration required to access paper)
[Guidance Overview]
Debtor's Chapter 7 Bankrup.tcy Filing Was 'Presumptively Abusive'; 401k Loan Repayments Not 'Necessary Expense'
Excerpt: "Applying the 'means test' from the Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), the United States Court of Appeals for the 9th Circuit held (in an issue of first impression for the court) that the section 401(k) plan loan was not a 'secured debt' or a 'necessary expense' of the debtor." (PLANSPONSOR.com; free registration required)
[Guidance Overview]
Bureau of Labor Statistics Data on Employee Access to 'Other Types of Benefits,' 1979-2008
Excerpt: "Table 3 also shows the percent of workers with access to 'other benefits' in 2008. . . . The benefits with the highest rate of worker access were work-related education assistance (50 percent) and employee assistance programs (42 percent). Among the benefits with lower access rates, 2 percent of workers in private industry had access to employer-provided personal computers for home use, and 3 percent of workers had access to employer provided child-care funds." (U.S. Bureau of Labor Statistics)
[Guidance Overview]
Optional IRS Withholding Calculations Address ARRA Provisions Affecting Pensioners (PDF)
2 pages. Excerpt: "Employers may want to proactively communicate with pensioners regarding their withholding directions as well as advise them of the one-time $250 economic recovery payment under ARRA." (Buck Consultants)
Two-Thirds of Frozen Plans Not Being Changed, But Some Might Be Terminated
Excerpt: "More than one-fourth of the 48 companies with 'hard frozen' plans (those with no future accruals) surveyed by Aon Consulting are contemplating the termination of their plan. The top five reasons, in order, for terminating a nonunion hard frozen plan, or terminating or moving a 'soft frozen' plan (those with no new participants) to hard frozen status, were . . . ." (Wolters Kluwer)
Almost 700 Retired Public Educators in New York State Are in '6-Figure Club'
Excerpt: "The 690 school retirees join 899 state and local government workers in the six-figure state pension club." (TimesUnion.com)
Database Online of California State Pensioners Receiving More than $100,000 Annually
Excerpt: "The information below was obtained under the Freedom of Information Act from the California Public Employees Retirement System (CalPERS)." (California Foundation for Fiscal Responsibility)
401(k) Sponsors Eye Addition of Annuity Investment Option
Excerpt: "Given the stock market's volatility, a number of 401(k) plan sponsors are seriously discussing adding an annuity option to their 401(k) plans. " (Workforce.com)
Labor Secretary Asks PBGC to Halt Shift of Investments from Bonds to Equities
Excerpt: "Secretary of Labor Hilda Solis, chairwoman of the Pension Benefit Guaranty Corporation (PBGC), has urged its board to suspend a controversial investment strategy shifting assets of the $64 billion fund out of bonds and into stocks and alternatives, according to documents obtained by the Boston Globe." (PLANSPONSOR.com; free registration required)
Twelve Bogus Reasons Not to Do an ESOP (and Seven Good Ones)
NCEO Executive Director Corey Rosen discusses valid and invalid reasons why not to implement an employee stock ownership plan (ESOP). (National Center for Employee Ownership)
Employee Ownership Update for May 29, 2009
NCEO Executive Director Corey Rosen discusses the NCEO's 2009 Employee Ownership 100 list; the Australian government's withdrawal of a proposal to tax equity awards at the time of grant for higher-income taxpayers; German unions pressing for an equity stake in companies where they are taking concessions; and a new LinkedIn group from the NCEO. (National Center for Employee Ownership)
[Opinion]
Dumping of Defined-Benefit Plans By Governmental Employers Has a Cost, Too
Excerpt: "Accounting rules can require pension costs to accelerate in the wake of a freeze, and maintaining two plans is more costly than operating one. . . . Our research shows that pensions are the most fiscally responsible way to fund retirement. The economic efficiencies embedded in pensions enable them to deliver the same retirement benefit at half the cost of individual accounts." (National Institute on Retirement Security)
[Opinion]
The Case For 'Distributed Custodial Accounts' from Terminated 403(b) Plans
Excerpt: "One of the biggest disappointments arising from the issuance of the 403(b) regs has been the inability of employers to effectively terminate their plans. . . . The draconian position taken by the IRS in drawing a distinction between an individually owned annuity and a custodial account is hard to understand. From a strictly statutory view, it seems to have little support." (Business of Benefits Blog)
EmployeeBenefitsJobs.com (Advert.)
EmployeeBenefitsJobs.com is where the best employers find the best candidates!
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Links to Items on Executive Comp, Benefits in General
Mandatory Employee Sick Leave Legislation Introduced in House of Representatives (PDF)2 pages. Excerpt: "The current bill would require employers with at least 15 employees to allow workers to earn at least 1 hour of paid sick leave, to be used for specific purposes, for every 30 hours worked . . . . Notably, then-Senator Obama supported the Healthy Families Act during the 110th Congress, which increases the likelihood that the current version of the bill will receive serious consideration. Rumors from Capitol Hill are that there seems to be momentum on this issue, which is likely to increase if health reform efforts stall." (Miller Chevalier)
Webcasts and Conferences
Protecting Plan Assets In Bankruptcy Workshopin North Carolina on June 18, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
The New HIPAA Privacy and Security Rules: Getting Ready for Important Changes
Nationwide on May 28, 2009
presented by EBIA / Thomson Reuters
Voluntary Fiduciary Correction Program, EBSA Investigations and COBRA Provisions in the ARRA Workshop
in North Carolina on June 17, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
(Click to post your webcast or conference)
Press Releases
Principal Releases New Retirement Educational MaterialPrincipal Financial Group
Transamerica Launches New Plan Administration Support Service
Transamerica Retirement Services
Three Out Of Four Public Employers Consider Increasing Employee Deductibles, Copays or Premiums
International Foundation of Employee Benefit Plans
(Click to post your press release)
Employee Benefits Jobs
Senior Pension Sales Consultantfor Executive Benefit Design Group
in ANY STATE
Defined Benefit Analyst
for Boyce & Associates, Inc.
in AZ
401(k) Plan Sales
for Ingham Retirement Group
in FL
(Click to post your job opening | View all jobs |
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EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
| Where the best employers find the best candidates! |
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