Retirement Plans Newsletter |
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| August 24, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
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[Guidance Overview]
Update on Confusion Over FBAR Filing Requirement Continues
Excerpt: "Despite repeated requests from numerous groups to the Internal Revenue Service (IRS) for clarification, it is still unclear as to whether or not public pension plans and their employees could be required to file a 'Report of Foreign Bank and Financial Accounts' (Form TD F 90-22.1), commonly referred to as 'FBAR.' While the issue is being sorted out, the IRS has extended until June 30, 2010, the FBAR filing deadlines for the 2008 and earlier calendar years for certain persons. The issue of whether or not foreign hedge funds or foreign private equity accounts constitute a financial account subject to FBAR reporting obligations is also still unclear, at least in the minds of some." (National Council on Teacher Retirement)
[Guidance Overview]
Court Keeps 404(c) Shield in Place for Trustee
Excerpt: "A court said a retirement plan trustee did not actively conceal information about wrongful activities by the plan's investment adviser. The trustee was entitled to invoke safe-harbor protection against fiduciary breach allegations leveled by two 401(k) participants in connection with charges against the adviser. U.S. District Judge David A. Katz of the U.S. District Court for the Northern District of Ohio ruled that UMB Bank had met the legal requirements for Section 404(c) under the Employee Retirement Income Security Act (ERISA)." (planadvisor)
IRS Requests Guidance on Defined Benefit/401(k) Plans with Jan. 1, 2010, Effective Date Approaching
Excerpt: "The Treasury Department and the Internal Revenue Service have announced their intent to issue guidance relating to eligible combined plans under IRC Sec. 414(x), which was added to the Tax Code by the Pension Protection Act of 2006. In Notice 2009-71, the agencies request comments on Sec. 414(x) to assist them in developing guidance." (Wolters Kluwer)
Dynamics of Participant Plan Contributions, 2006-2008
Excerpt: "A new Vanguard Center for Retirement Research study reveals that participants' inertia continues to work to their benefit, so most didn't overreact to the 2008 market downturn. Discover how participants' tendency to take no action affected their plan deferral rates over a three-year period." (The Vanguard Group, Inc.)
Public Sector Offers Strong Response to GASB on Possible Accounting Rules Changes
Excerpt: "A wide range of public sector officials, including scores of fiduciaries, administrators, and participants of NCTR member systems, filed comments with the Governmental Accounting Standards Board (GASB) in response to its Invitation to Comment (ITC) on possible revisions to GASB Statements 25 and 27. GASB is considering whether changes to its standards for accounting and reporting on the pension benefits that governments provide to their employees are needed, and had asked for comments on a number of issues related to such possible revisions by July 31, 2009. In addition to pension plans and their board members, state officials and national organizations representing a large majority of users of public pension financial reports also weighed in, stating their strong opposition to the so-called 'Market Valuation of Liabilities' method, or MVL. GASB is also holding a public hearing later in August to discuss the ITC, at which public pension representatives will also testify, as will proponents of MVL." (National Council on Teacher Retirement)
NCTR and NASRA Clarify Position on Normal Retirement Age Regulations with Treasury and IRS
Excerpt: "Following a meeting with Mark Iwry, the new Treasury Deputy Assistant Secretary for Tax Policy for Retirement and Health Policy, and IRS officials earlier in the year, at which NCTR and NASRA reiterated their concerns with the problems raised for State and local governments by the IRS' final Normal Retirement Age regulations, a proposal has been submitted that suggests a way in which to deal with the situation. While there has been no response to the suggested solution to governmental plans' issues with the IRS regulations, a meeting with Mr. Iwry is scheduled for September, at which this and other public plan issues will again be discussed." (National Council on Teacher Retirement)
Public Pensions are Increasingly the Focus of SEC Activity
Excerpt: "Several recent actions taken by the Securities and Exchange Commission SEC) indicate that there is increasing attention being paid to public pensions - and not just in their role as institutional investors. While the SEC's proposed restrictions on so-called 'pay to play' activities of investment advisors was not a surprise, an 'informal inquiry' into certain public pension fund activities initiated by the SEC's Division of Enforcement, and the recent announcement of the creation of a new 'Municipal Securities/Public Pension Unit' to look into unfunded and underfunded pension liabilities, among other things, are sounding alarm bells. Even the SEC's acting chief accountant has gotten into the act, expressing concerns with pension plan smoothing activities." (National Council on Teacher Retirement)
[Opinion]
Considering Changes to 401(k) Plans
Excerpt: "As a result of risks and mistakes, most American workers who are relying on 401(k)'s fail to amass anywhere near what they will need for a secure retirement. That is not to say that the 401(k) system must be dismantled. But reforms that once seemed far-reaching -- like automatically enrolling employees in 401(k)'s unless they opt out -- now seem quaint. A more thorough revamping is needed. Tax incentives must be changed. Under current law, high-income employees receive the biggest tax subsidies, and low-income employees the smallest. Replacing the current tax deduction for contributions with a tax credit would still give everyone a tax break, but would shift the benefit down the income scale, presumably boosting the savings of low-income workers." (The New York Times; free registration required)
SIFMA (Securities Industry and Financial Markets Association) (Advert.)
SIFMA's Savings & Retirement Conference- Washington DC September 16-17, 2009 - The Fairmont - Washington, D.C. The conference draws retirement professionals in the financial services industry, including retirement plan specialists working in the field, to the executives who market, manage the product, or are responsible for legal and compliance. The sessions are designed to highlight policy and business developments that will enhance your firm's efforts to help investors save for and live comfortably in retirement. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]Proposed Amendments to SEC Compensation and Corporate Governance Disclosures
Excerpt: "Comments may be submitted to the Securities and Exchange Commission on or before September 15, 2009 with respect to the Commission's proposed amendments to its rules, to further enhance compensation and corporate governance disclosures." (Bond, Schoeneck & King, PLLC)
More Employers Seeking Labor Department Approval to Fund Benefits Through Captives
Excerpt: "Midland, Mich.-based Dow Coring Corp., a joint venture of Dow Chemical Corp. and Corning Inc. and a manufacturer and supplier of silicone-based chemicals, wants to use its Devonshire Underwriters Ltd. captive to fund life and long-term disability benefits. Dow Corning uses Devonshire to fund a variety of risks, including workers compensation, automobile liability and general liability risks." (Business Insurance)
Moving from Financial Planning to Financial Life Planning (PDF)
10 pages. Excerpt: "Financial life planning is one of the labels used to describe a more integrated and humanistic approach that has emerged over the past decade to address personal financial issues. It signals an evolution of planners from product vendors to trusted advisors who recognize that individuals do not behave rationally regarding decisions involving money, but are instead emotional, conflicted and inconsistent. In addition, they have unique dreams, beliefs, values and challenges. Financial life planners help individuals focus on their values and motivations, determine the goals and objectives they have, and then use these values, motivations, goals and objectives to guide the planning process and provide a framework for making decisions that have financial and non-financial implications. Financial life planning is a holistic process that applies traditional financial analysis within a framework of the individual's life and total resources." (TIAA-CREF Institute)
Detroit Mayor Targets Detroit City Workers' Perks
Excerpt: "As Mayor Dave Bing and city unions wage a high-stakes stare-down over pay cuts, administration officials are also taking aim at employee benefits they say have grown archaic and costly. Most workers get 17 sick days a year, a paid lunch hour, can keep children on their health insurance until age 25, draw a Christmas bonus of as much as $750 and have Viagra picked up by the city's prescription plan. And time off? The average staffer with 15 years on the job can take up to 42 days off a year for vacations, holidays and a host of other paid absences." (The Detroit News)
Webcasts and Conferences
"Cash Balance Plans for Defined Contribution Practitioners" - A 3-part Web SeminarNationwide on September 16, 2009
presented by SunGard Relius
"Testing 403(b) Plans in 2009" - A 2-part Web Seminar
Nationwide on September 24, 2009
presented by SunGard Relius
401(k) Plan Current Developments -- Archived Program
Nationwide on August 21, 2009
presented by SunGard Relius
403(b) Plans for 401(k) Practitioners - A Three-Part Web Seminar -- Archived Program
Nationwide on August 21, 2009
presented by SunGard Relius
Experience with PPA Benefit Restrictions
in Illinois on September 2, 2009
presented by ASPPA Benefits Council of Chicago
(Click to post your webcast or conference)
Press Releases
PBGC Negotiates Deal to Strengthen Pension Funding at Western UnionPension Benefit Guaranty Corporation (PBGC)
Fiduciary360's Blog Launches on InvestmentNews.com
Fiduciary360 (fi360)
McGraw Wentworth Growth Recognized - Named For Third Consecutive Year to Inc. 5000
McGraw Wentworth
Florida Retirement Plan Veteran Restructures Consulting Practice
Montgomery Retirement Plan Advisors, Inc.
Confusion About Financial Planning Designations Leads to New Website
The American College
Security Mutual Life Insurance Company of New York Releases New Retirement Plan Guide for Qualified Plan Advisors
Security Mutual Life Insurance Company
(Click to post your press release)
Employee Benefits Jobs
Retirement Plan Consultant and Plan Administratorfor Oklahoma City Third Party Administration Firm
in OK
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EmployeeBenefitsJobs.com (Sponsor)
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