Retirement Plans Newsletter |
|
|
| August 12, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
SunGard’s Relius Education – Educational Resources for Employee Benefits Professionals (Advert.)
2009 Chicago Advanced Pension Conference Early bird discount extended to August 14. 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. Register today. |
[Guidance Overview]
SEC's Proposed Pay-to-Play Rules for Investment Advisers (PDF)
6 pages. Excerpt: "On July 22, 2009, the Securities and Exchange Commission (SEC) voted unanimously to propose a rule designed to curb 'pay-to-play' practices by investment advisers who seek to manage money for state and local governments. Proposed Rule 206(4)-5 under the Investment Advisers Act of 1940 ('Advisers Act') would provide that an investment adviser who makes political contributions to an elected official who is in a position to influence the selection of the adviser to provide advisory services to a government entity would be barred for two years from providing advisory services for compensation to that government entity. The rule would apply to the investment adviser as well as certain executives and employees of the adviser." (Thompson Hine LLP)
[Guidance Overview]
Valuing Retirement Plan Investments: The Roles of Plan Sponsors, Record Keepers, Investment Providers & Auditors (PDF)
11 pages. Excerpt: "If you are going through a retirement plan audit, the difficulties of valuing plan investments under Statement of Financial Accounting Standards 157 ('FAS 157' or the 'Standard') have probably become all too apparent to you. There are practical difficulties for just about everyone involved, including plan sponsors, record keepers, investment providers and auditors, even though volumes have been written about the technicalities of FAS 157. The vast majority of the problems stem from each of the parties having differing views of their roles and responsibilities and uncertainty regarding how the Standards apply to retirement plan investments. This white paper: 1. identifies the most significant practical problems; 2. reviews the Standard and guidance that relates to retirement plan investments; and 3. summarizes the general roles and responsibilities and what can reasonably be expected from retirement plan record keepers with respect to FAS 157 in the audit process." (The SPARK Institute)
[Guidance Overview]
Plan Committee Correctly Denied Disability Retirement Benefit Application Received After Participant's Death
Excerpt: "EBIA Comment: This case starkly illustrates how a seemingly small procedural slip-up can derail a participant's benefits application. It also shows that courts will defer to a plan's benefit application procedures when they are properly established and adequately communicated. " (Employee Benefits Institute of America)
An ESOP Is a Very Attractive Retirement Plan in the Right Circumstances
Excerpt: "In the appropriate circumstances, an ESOP offers a multitude of economically superior ways to accomplish numerous important objectives. These objectives might be desired by a company's owners, management team and other employees, and include, among others: Selling either the entire company or partial ownership of it. Rewarding and incentivizing employees. Facilitating a business divorce. Financing business expansion. Tax deferred diversification of all or a portion of concentrated and illiquid share ownership in the company into a portfolio of publicly traded stock and debt securities. Charitable giving objectives." (Holland & Hart LLP)
Bank of America Settles with Countrywide 401(k) Plan Participants for $55M
Excerpt: "Bank of America Corp., which acquired Countrywide Financial Corp. in 2008, will pay $55 million to settle a class-action lawsuit by employees who were enrolled in Countrywide's 401(k) plan prior to the acquisition. Bloomberg reports that lawyers for the employees said in April that an agreement in principle had been reached in the 2007 class action, alleging violations of the Employee Retirement Income Security Act (ERISA). A request for preliminary approval was filed in federal court in Los Angeles, and a hearing on the request is scheduled for August 31." (PLANSPONSOR.com; free registration required)
David Strauss to Chair PBGC Advisory Committee
Excerpt: "President Obama has appointed David M. Strauss as chairman of the Advisory Committee of the Pension Benefit Guaranty Corporation (PBGC). [Strauss] served as executive director of the nation's private pension insurer from 1997 to 2001. 'During this crucial time for the agency, we are pleased that once again the PBGC will have the benefit of David's experience,' said Vince Snowbarger, acting director of the PBGC. . . . The PBGC Advisory Committee carries out several specific responsibilities outlined by ERISA, including advising on PBGC investment policies and procedures, the trusteeship of terminated plans, and other matters as determined by the PBGC. Strauss will represent the interests of the general public on the Advisory Committee . . . ." (PLANSPONSOR.com; free registration required)
National Save for Retirement Week, October 18-24, 2009
You may download Retirement Week resource materials at http://www.nagdca.org/content.cfm/id/ns4rw_resource_center. (National Association of Government Defined Contribution Administrators, Inc.)
Attorneys Want FBAR Clarification from IRS
Excerpt: "Groom Law Group plans to ask the IRS to clarify a recent announcement postponing until at least June 30, 2010, a requirement for pension plans to report for the first time investments in offshore hedge funds and private equity firms, said Jennifer Eller, an ERISA attorney for the firm. The agency said the filing extension for the Treasury Department's Report of Foreign Bank and Financial Accounts form, or FBAR, applied to some offshore investments made by plans but not by plans holding securities owned through a foreign custody account, Ms. Eller said in an interview." (Pensions & Investments)
Colonial BancGroup Inc. Faces Lawsuit Over 401(k) Investments
Excerpt: "Pennsylvania-based Howard G. Smith has announced that it is investigating the Montgomery-based banking company regarding its 401(K) Savings Plan, which had investments in its common stock that is now considered a 'penny stock.' The firm is investigating whether administrators of the savings plan 'breached their fiduciary duties to the Plan's participants in violation of the Employee Retirement Income Security Act of 1974,' according to a written statement. The investigation concerns whether Colonial BancGroup and other administrators of the plan 'failed to prudently and loyally manage the plan's investments in Colonial BancGroup stock by continuing to offer company stock when the stock was no longer a prudent investment for participants' retirement savings.'" (Birmingham Business Journal via bizjournals.com; free registration required)
[Opinion]
American Academy of Actuaries Comments on GASB Pension Accounting and Financial Reporting (PDF)
42 pages. Excerpt: "[T]wo very different perspectives have emerged on public pension plan valuation. . . . One focus of pension actuarial techniques is how to finance the pension benefits to be paid to participants. . . . This approach assumes that although asset returns are volatile in the short term, they are relatively predictable in the long term. . . . Another approach takes a market-based focus . . . In this approach, if market obligations that are similar enough to pension obligations can be identified, then the continually updated price-setting done by the markets for those obligations can be applied to pension commitments. As a result, the consequences of risk are reflected immediately, rather than spread over time." (American Academy of Actuaries)
DATAIR Employee Benefit Systems, Inc. (Advert.)
DATAIR’s DB Valuation System DB Administration, Discrimination Testing and Proposal software with Multiple Plan and Cash Balance Plan handling. PPA’06 Pension Funding. * Funding Target and Target Normal Cost with 3-rate segments * 404(o) Cushion; 430 minimum and 404(o) maximum contributions * Funding Target Attainment Percentages (FTAPs) Schedule SB reports and links to our 5500/PBGC System, and our FAS 158 and Termination Calculation reporting systems. sales@datair.com or call 1-888-328-2474 |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS Filing Extension for the Report of Foreign Bank and Financial Accounts (PDF)
2 pages. Excerpt: "On August 7, 2009, the Internal Revenue Service issued Notice 2009-62, extending the filing deadline for Form TD F 90-22. (commonly referred to as 'FBAR') for calendar year 2008 and prior years, from June 30, 2009 to June 30, 2010, for (i) persons with signature or other authority over, but no financial interest in, a foreign financial account, and (ii) persons with a financial interest in, or signature or other authority over, a foreign commingled fund (such as foreign investment entities) . . . . According to the notice, the IRS intends to issue formal guidance before June 2010 regarding the scope of the FBAR filing requirement for such persons." (Paul, Hastings, Janofsky & Walker LLP)
[Guidance Overview]
Wisconsin Requires Professional Employer Organizations to Register and Maintain $100,000 in Working Capital
Excerpt: "Effective July 1, 2009, professional employer organizations ('PEOs') must register with the State of Wisconsin and maintain $100,000 in working capital as demonstrated by audited financial statements prepared in accordance with generally accepted accounting principles ('GAAP'). PEOs are required to register within 180 days of July 1, 2009." (Michael Best & Friedrich LLP)
[Guidance Overview]
EEOC Technical Assistance Regarding Waivers and Releases of Discrimination Claims in Severance Agreements (PDF)
Pages 3-4 of 6 pages. Excerpt: "Can an employer validly require an employee to sign an agreement waiving his or her right to sue the employer under federal employment discrimination laws in exchange for severance benefits? Technical guidance issued by the Equal Employment Opportunity Commission ('EEOC') on July 15, 2009 timely answers this question -- with a qualified 'yes' -- and discusses the legal requirements governing release agreements for terminated employees. Laid out in an employee-friendly question and answer format and containing a checklist and a sample release, the technical guidance highlights essential elements of valid waivers while clarifying for employees their rights under federal employment law." (Trucker Huss)
[Guidance Overview]
Electronic Delivery of Plan Information (PDF)
Excerpt: "DOL regulations govern electronic delivery of certain information, including Summary Plan Descriptions and Summaries of Material Modifications. IRS regulations govern electronic delivery of other information, including loan documentation, distribution option notices, rollover notices, and beneficiary designations. In general, the IRS electronic disclosure regulations are less stringent than the DOL electronic disclosure regulations with respect to affirmative consent requirements imposed on potential recipients." (Trucker Huss)
[Guidance Overview]
On a Scholarly Overview of Split Among Circuits on What It Means to Be a 'Prevailing Party:' It Depends on What the Meaning of the Word Prevail Is
Excerpt: "In this opinion . . ., Judge Young gives a scholarly overview of the split among the circuits on what it means to be a 'prevailing party' entitled to recover attorneys' fees in an ERISA case. The particular issue before him was whether a participant who does not recover benefits, but instead attains a remand to the administrator for further review has prevailed, for purposes of ERISA's attorney fee shifting provision. The court's conclusion, after surveying the cases throughout the country, is: (1) maybe; and (2) sometimes. I am being a bit flippant, but the truth is it is an excellent analysis of an issue you don't see that often and the court's conclusion, in a nutshell, is that you have to look and see if the plaintiff, beyond just getting that relief, accomplished some significant goal of the suit; if so, then the plaintiff is a prevailing party entitled to an award of attorney's fees." (Stephen Rosenberg of The McCormack Firm, LLC)
Milliman's Monthly Benefit News and Developments, August 2009 (PDF)
2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits. (Milliman)
Webcasts and Conferences
Planning for Open Enrollment: Compliance Solutions for Cafeteria Plans and Component BenefitsNationwide on September 10, 2009
presented by EBIA / Thomson Reuters
Voluntary Fiduciary Correction Program Workshop
in California on September 23, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
(Click to post your webcast or conference)
Press Releases
President Names David Strauss to Chair PBGC Advisory CommitteePension Benefit Guaranty Corporation (PBGC)
PBGC Moves to Protect Pensions at Proliance International Inc.
Pension Benefit Guaranty Corporation (PBGC)
Milliman Analysis Indicates Continued Pension Funding Declines Despite Asset Gains
Milliman USA
The NTSAA 403(b) Compliance Resolution Summit Final Report Released
National Tax Sheltered Accounts Association
SEI Roundtable Research: Financial Executives Look For Answers To Critical Pension Questions
SEI
The SPARK Institute Releases White Paper on Roles and Responsibilities in Valuing Plan Investment Under FAS 157
The SPARK Institute
IFLC Looks Into BrightScope, Inc.
Investment Fiduciary Leadership Council (IFLC)
RelayHealth Teams with Identity Force to Help Hospitals Meet Red Flags Rule Compliance
RelayHealth
(Click to post your press release)
Employee Benefits Jobs
TPA - Third Party Administratorfor Integrated Retirement Solutions, LLC
in FL
(Click to post your job opening | View all jobs |
RSS feed of all jobs )
EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
| Where the best employers find the best candidates! |
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
David Rhett Baker, J.D., Editor
Copyright 2009 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.
Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/
Other useful links: