Retirement Plans Newsletter |
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| August 6, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
Employee Benefits Institute of America (EBIA) (Advert.)
EBIA’s 401(k) Plans Manuals and Seminars! Pension Protection Act implementation, fee disclosure proposals, complex correction programs, and more. A never ending stream of regulations and other guidance has been hitting 401(k) practitioners. Need some help keeping up? EBIA’s 401(k) Plans manual analyzes and explains the new developments, puts them in context, and offers practical guidance on how to deal with the constantly shifting environment for 401(k) plans. |
[Guidance Overview]
Index Annuities Are Securities, Says Circuit Court of Appeals
Excerpt: "We finally have the long-awaited decision (American Equity Investment Life Insurance Company, et al. v. Securities and Exchange Commission No. 09-1021, July 21, 2009) by the Circuit Court of Appeals for the District of Columbia Circuit. This decision relates to Rule 151A (the 'Rule') that was adopted by the SEC that determined that index annuities are 'securities' within the meaning of the Securities Act of 1933 (the 'Act'). This decision determined that the SEC did not abuse its authority in determining that index annuities were 'securities,' but that the SEC had not fulfilled its statutory duty in its consideration of the effect that the Rule would have on 'efficiency, competition and capital formation' as is required under the Administrative Procedures Act (the 'APA'). The court remanded the case back to the SEC for reconsideration. We do not yet know whether the SEC will reconsider the Rule and re-adopt it, or if it will decide to let the matter drop." (Morningstar, Inc.)
Former AA Capital Partners President Ordered to Pay $50M to Pension Funds
Excerpt: "The U.S. Department of Labor has obtained a consent judgment and order requiring the former president of Chicago-based AA Capital Partners Inc. to restore $50 million in losses to five Michigan pension funds as restitution for misuse of the plans' assets to benefit the investment firm and himself. According to the DOL news release, although John Orecchio has submitted proof of current inability to make restitution, the consent judgment requires him to submit annual financial statements to the Labor Department and to pay off the judgment as funds are received by him. The judgment also bars Orecchio from serving in a fiduciary or service provider capacity to any employee benefit plan governed by the Employee Retirement Income Security Act (ERISA)." (PLANSPONSOR.com; free registration required)
Retirement Plan Auto-Enrollment Has Biggest Impact on Young, Lower Paid Employees, According to Fidelity
Excerpt: "Fidelity data of auto enrolled participants showed that over half (52%) were between the ages 20 and 34. By comparison, only 13% of participants that were auto enrolled were between the ages of 50 and 64. The impact of auto enrollment on older participants is not as significant as many are either already participating or elect to enroll on their own." (Wolters Kluwer)
QVC Network Probes 401(k) Loan Problems
Excerpt: "The QVC home shopping network turned away workers at its Rocky Mount, North Carolina, distribution center as part of a probe into whether 401(k) hardship loans they've received were legitimate. Raleigh television station WRAL reports that dozens of workers were blocked Wednesday as they reported for work. An unidentified company spokeswoman said the employees' 401(k) loans were being scrutinized for possible irregularities." (PLANSPONSOR.com; free registration required)
DATAIR Employee Benefit Systems, Inc. (Advert.)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]Is Electronic Disclosure of Benefit Plan Documents an Option for You?
Excerpt: "Whether their goal is cost-cutting, educating employees, going green, accommodating tech-savvy employees or some combination of these, employers have been increasingly asking: Can we distribute benefit plan documents and other notices required by Title I of ERISA electronically? The short answer is, yes -- in some cases. The longer answer is that electronic disclosure is permitted as long as the employer uses a method reasonably calculated to ensure actual receipt of the information." (Warner Norcross & Judd LLP)
[Guidance Overview]
Focus on Employee Benefits Newsletter, August 5, 2009 (PDF)
6 pages. This edition covers the following issues: Play or Pay Proposals in Health Reform Legislation, Maintaining Plan Administrative Documents, Tax Treatment of Employment Settlements, and Discounted Options and Section 162(m). (Miller & Chevalier Chartered)
Some Employers Allowing Employees to Exchange Their Underwater Options for Cash, Restricted Stock or Repriced Options
Excerpt: "Seventy-one companies have executed stock options exchange programs so far this year, up from 50 that offered such programs in 2008, according to Underwaterexchange.com, a Web site created by San Jose, California-based Radford, an Aon Consulting company. On top of that, an additional 70 companies have made public their intentions to conduct such programs this year, says Brett Harsen, a vice president at Radford. 'We are tracking to triple the number of exchanges in 2009 than we saw in 2008,' Harsen says." (Workforce Management; free registration required)
National Football League Says Retirees Don't Face Benefits Cut
Excerpt: "The National Football League and the players union are a long way from agreeing on a new collective bargaining agreement. One problem: they cannot even agree on what will happen if there isn't one. For weeks, DeMaurice Smith, the executive director of the union, has said that if the league plays without a salary cap in 2010 -- which looks increasingly likely unless a deal is completed by March -- the benefits and pension payments that the owners make to retired players could be slashed. . . . The league added that Smith had never raised the issue in conversations with Commissioner Roger Goodell. 'Simply put, those claims have no basis in fact,' Goodell wrote. 'The facts are that since at least the fall of 2007, the owners have consistently agreed and planned that they will not reduce the funding for pension or disability benefits for retired players.'" (The New York Times; free registration required)
Webcasts and Conferences
A Full Day Seminar with Sal Tripodiin Pennsylvania on September 17, 2009
presented by ASPPA Benefits Council of Delaware Valley
(Click to post your webcast or conference)
Press Releases
Kaiser Updates Interactive Health Reform Comparison Tool To Reflect Latest Congressional ActionKaiser Family Foundation
PBGC Assumes Hurd Windows & Doors Inc. Pension Plans
Pension Benefit Guaranty Corporation (PBGC)
U.S. Labor Department Obtains Judgment Against Former President of Chicago Investment Firm to Restore $50 Million to Michigan Union Pension Plans
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
NBCH Calls for Cost Containment and System Transformation in Health Care Reform Legislation
National Business Coalition on Health
(Click to post your press release)
Employee Benefits Jobs
Plan Administrator for Retirement Plan & ERISA Specialistsfor Dana Consulting Group, Ltd.
in IL
Project Management Specialist
for Federal Retirement Thrift Investment Board (FRTIB)
in DC
Sales Representative
for Employee Online
in ANY STATE
Sr. Relius Business/System Analyst (Contract)
for Fiserv ISS
in CO
(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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