Retirement Plans Newsletter |
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| July 15, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
SunGard's Relius Education (Advert.)
2009 Chicago Advance Pension Conference Chicago, IL, September 2-4. With a new administration in Washington, and a tough economy, change is the only constant for retirement plan practitioners. Attend this conference and stay current. Our agenda reflects the latest updates, including EFAST2, 403(b) plans, plan design issues, DOL/IRS corrections, restatement pitfalls and perspectives, automatic enrollment under the new rules, and more. Plus, "Ask the Experts" workshop, concurrent sessions, and over 900 minutes of CE credits. Registration is now open. |
[Guidance Overview]
IRS Issues Electronic/Magnetic Media Specifications for 1099s
Excerpt: "The IRS has released specifications for filing 2009 Forms 1098, 1099, 5498, and W-2G electronically through the IRS FIRE System. These specifications, which will be reprinted as the next revision of IRS Publication 1220, must be used for the preparation of 2009 tax year information returns and information returns for tax years prior to 2009 that will be filed beginning January 1, 2010." (Wolters Kluwer)
Economic Fears Keep Older Workers in Job Market
Excerpt: "In March 2001, before the first signs of the collapse of the Internet stock bubble, 32.8 percent of Americans above the age of 55 considered themselves part of the labor force -- either working or seeking work. Today the comparable rate is 40.2 percent." (AARP)
Watchdogs Criticize Ability of County Employees to Load Up on Overtime Nearing Retirement
Excerpt: "Call it overtime for life, courtesy of Broward County taxpayers. Taxpayer watchdogs and the county's auditor warn that government pension policies encourage workers to load up on overtime as they near retirement." (South Florida Sun-Sentinel)
SEC Upsets Some as It Tries to Sharpen Teeth
Excerpt: "The commission has launched 224 formal investigations, more than double the number at this time last year and nearly as many as in any full year since at least 2004, according to SEC data. The number of emergency actions taken to stop fraud has more than doubled since the same period last year." (Washington Post)
Pension Costs for Local Governments in New York State Might Triple
Excerpt: "The analysis predicts that counties will have to contribute an amount equal to nearly one-third of their civilian payrolls to the state pension system and more than 40 percent of their payrolls for police and fire departments. County leaders fear that the soaring contributions will put heavy pressure on their budgets . . . . " (New York Times)
CalPERS Sues Over Ratings of Securities
Excerpt: "The nation's largest public pension fund has filed suit in California state court in connection with $1 billion in losses that it says were caused by 'wildly inaccurate' credit ratings from the three leading ratings agencies." (New York Times)
Number of Retirees Worried About Finances Has More Than Doubled
Excerpt: "A full 49% of retirees are insecure about their financial future, up from only 20% who were afraid a year ago, a survey conducted by LIMRA, the Society of Actuaries and the International Foundation for Retirement Education found." (American Banker via On Wall Street)
Advisors Rethinking Traditional Asset Allocation
Excerpt: "[S]ome money managers are now treating U.S., emerging markets and international stocks not as separate categories but as one in the same. They are also treating commodities as more closely aligned to stocks than to inflation." (American Banker via On Wall Street)
Results of EBRI and ICI Study: What Investment Results Does Consistent Participation in 401(k) Plans Generate? (PDF)
Excerpt: "[O]ver the eight-year period from 1999 to 2007: The average 401(k) account balance increased at an annual growth rate of 9.5 percent over the period, to $137,430 at year-end 2007; [and the] median 401(k) account balance (half above, half below) increased at an annual growth rate of 15.2 percent over the period, to $76,946 at year-end 2007. Analysis of a consistent group of 401(k) participants highlights the accumulation potential of 401(k) plans." (Employee Benefit Research Institute and Investment Company Institute)
Employees Jump at Duke University Early Retirement Offer
Excerpt: "Nearly 300 Duke employees have grabbed an early retirement offer, the university's first attempt to slash payroll without laying off workers. Duke offered the deal to 825 employees and 292 accepted, a 35 percent yield that's far higher than the 10 to 20 percent officials had targeted, said Kyle Cavanaugh, Duke's vice president for human resources. The incentive plan's success doesn't guarantee that Duke won't have to lay off workers at some point. Duke eventually wants to trim its total payroll by about 1,000 workers in an effort to cut $125 million from its annual operating budget." (The News & Observer Publishing Company)
All You Need to Know About ERISA Audits
Excerpt: "It's ERISA audit time again. Now that the regular tax season is over, accountants soon will be turning their attention to ERISA plan audits. If your retirement plan is subject to the audit requirements, here are the basics you should know - including how not to hire an auditor." (Employee Benefit News; free registration required)
[Opinion]
Court's Decision Allowing Further Access to California Pension Records is Victory for Taxpayers
Excerpt: "At issue was a taxpayer group's attempt to learn the names and amounts of Contra Costa pensioners who receive more than $100,000 a year. Before the Contra Costa County Employees' Retirement Association provided the data, it sent out a notice to its pensioners. Retired Contra Costa Sheriff's Capt. Donna Irwin asked the court to block release of the information." (Contra Costa Times)
The Center for Due Diligence (CFDD) (Advert.)
CFDD October 5-7, 2009 Advisor Conference ADAPT, SURVIVE & PROSPER: A Bull Market In Broker of Record 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, LIMIT liability, IMPROVE investment returns, generate NEW business, PARTICIPATE in broker of record consolidation and CUSTOMIZE your own QDIA Asset Allocation Solutions, register at a discount NOW! Click HERE for more information. |
Links to Items on Executive Comp, Benefits in General
Former General Motors Chief to Receive Retirement Package Worth $10 MillionExcerpt: "The benefits are worth about half the $22.1 million value that the company placed on Wagoner's retirement package at the end of 2008. The severance package is also far smaller than those afforded to many other large-company CEOs in the past . . . ." (AP via New York Times)
Employee Incentive Strategies for Private Venture-Backed Companies
Excerpt: "Summarized below are various strategies to motivate and to retain key individuals-- other than granting additional stock options -- for founders and VCs to consider implementing. These strategies include addressing underwater stock options and implementing retention, carve-out, and other bonus arrangements. " (Morgan, Lewis & Bockius LLP)
SEC Proposes Proxy Disclosure and Corporate Governance Revisions (PDF)
Excerpt: "On July 10th, the [SEC] issued a proposed set of rule revisions intended to improve the disclosure provided to shareholders of public companies regarding compensation and corporate governance matters. New disclosures under the revisions are designed to enhance the information included in proxy and information statements and would include information about: 1) the relationship of a company's overall compensation policies to risk; 2) company leadership structure; 3) the qualifications of directors and nominees; and 4) potential conflicts of interests of compensation consultants. In addition, the revisions would change the reporting of annual stock and option awards to company executives and directors, as well as require quicker reporting of voting results. Importantly, the proposed rules are subject to a 60-day comment period and may change based on comments received during this period." (Frederic W. Cook & Co., Inc.)
Employee Ownership Update for July 14, 2009
NCEO Executive Director Corey Rosen discusses how India and Australia are lowering barriers to employee ownership; data showing a 27% drop in the median sale price of closely held businesses in 2008; a warning against paying a percentage of the transaction as a fee to set up an ESOP; and an Ownership Thinking meeting in September. (National Center for Employee Ownership)
Webcasts and Conferences
At a Crossroads: The Financing and Future of Health Benefits for State and Local Government Retirees WebcastNationwide on July 15, 2009
presented by Center for State and Local Government Excellence
New 403(b) Plans Best Practice Webcast
Nationwide on August 6, 2009
presented by The SPARK Institute
New Reporting Rules Under the Medicare Secondary Payer Law Webcast
Nationwide on August 6, 2009
presented by International Foundation of Employee Benefit Plans
Stress Testing Your Systems Before Medicare Open Enrollment
Nationwide on August 26, 2009
presented by MCOL
(Click to post your webcast or conference)
Press Releases
Bipartisan Effort Needed to Craft Balanced, Enduring Health Care System Reform LegislationAmerican Benefits Council
Milliman Analysis Reveals Significant June Decline in Pension Funding
Milliman USA
Fidelity's 401(K) Data Show Auto Enrollment Has Biggest Impact On Younger, Lower-Paid Workers
Fidelity Investments
House Democrats Introduce Bill to Provide Quality, Affordable Health Care for All Americans
U.S. House Education and Labor Committee
(Click to post your press release)
EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
| Where the best employers find the best candidates! |
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