Retirement Plans Newsletter |
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| August 27, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
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The §6707A Penalty Nightmare Application to Listed Transactions and Tax Avoidance (PDF)
Page 3 of 7 pages. Excerpt: "Currently, the Internal Revenue Service ('IRS') has the discretion to assess hundreds of thousands of dollars in penalties under §6707A of the Internal Revenue Code ('Code') in an attempt to curb tax avoidance shelters. This discretion can be applied regardless of the innocence of the taxpayer and was granted by Congress. It works so that if the IRS determines you have engaged in a listed transaction and failed to properly disclose it, you will be subject to a potentially draconian penalty regardless of any other facts and circumstances concerning the transaction. For some, this penalty has been assessed at almost a million dollars and for many it is the beginning of a long nightmare." (Reish & Reicher)
GASB Gathers Comments on Proposed Accounting Changes for State & Local Government Pensions
Excerpt: "After more than three years of deliberations, the board that sets the accounting rules for state and city governments is still far away from issuing a new standard for public pension funds. What may seem like tedious labors over technical matters can have a large impact on public employees, taxpayers and investors. Many municipalities around the country are grappling with serious shortfalls in their pension funds caused by the recession and other woes." (The New York Times; free registration required)
In 2010, IRS Could Cut 401(k) Contribution Limit to $16,000
Excerpt: "The IRS will announce 2010 contribution limits for 401(k) plans in October, based on a formula tied to the inflation rate in the third quarter vs. the year-ago quarter. For 2009, most workers can contribute up to $16,500 to their 401(k) plans, plus an additional $5,500 if they're 50 or older. Unless inflation picks up in August and September, the IRS could be forced to reduce the cutoff to $16,000 in 2010, according to an analysis by Mercer, a human resources consultant. The threshold for catch-up contributions could be reduced to $5,000. This would mark the first time the IRS has reduced 401(k) contribution limits." (USA Today)
Do Campaign Contributions Help Win Public Pension Fund Deals?
Excerpt: "More than two dozen firms that have surfaced in a broad corruption investigation of public pension funds gave at least $1.97 million in campaign contributions to officials with potential influence over the funds' investments, a USA TODAY analysis shows. The givers included private-equity giants such as the Blackstone Group, the Carlyle Group and the Quadrangle Group, the firm founded by Steven Rattner, who in July resigned as the White House point man for the auto industry rescue. The contributions are legal, and the firms haven't been accused of wrongdoing related to the giving. . . . The analysis of donations since 1998 showed the money flowed in 30 states to incumbents and candidates for governor, treasurer and other posts that influence billions of dollars in pension fund awards. Several of the firms won pension investment work after they, their executives or hired intermediaries gave contributions. The awards generate lucrative fees and lend prestige that could help lure new clients. [The article includes a state by state list of contributions to public officials.]" (USA Today)
Summary of New ERISA Section 111(a) in HR 2989, The 401(k) Fair Disclosure and Pension Security Act of 2009 (PDF)
As Reported by the House Committee on Education and Labor on June 24, 2009. 12 pages. Disclosures To Plan Sponsors. (Profit Sharing / 401k Council of America)
Options for Troubled Multiemployer Pension Plans in a Post-PPA World (PDF)
Excerpt: "Over the past two years, multiemployer pension plans have been challenged from two directions -- they have had to learn to function under a very different set of funding rules under the Pension Protection Act of 2006 (PPA)i while grappling with sharp investment losses and a severe economic slowdown. As a consequence, many trustees find themselves fighting an uphill battle to stabilize their multiemployer plans. This article focuses on the tools available to address the serious financial problems facing multiemployer pension plans now." (International Foundation of Employee Benefit Plans via Groom Law Group)
IRS Seeks Comments on Upcoming DB-K Plan Guidance
Excerpt: "The IRS has issued IRS Notice 2009-71 requesting comments on guidance that it plans to issue relating to eligible combined plans under Code Sec. 414(x). An eligible combined plan (also referred to as a DB-K plan) provides a vehicle through which an employer can maintain both a defined benefit plan and a defined contribution plan (which may include a 401(k) plan) on a combined basis, thus reducing the administrative burden and cost of maintaining separate plans." (Wolters Kluwer)
[Opinion]
Government Guarantee for 401(k) Returns Is a Bad Idea
Excerpt: "The New York Times recently ran an editorial on the problems they see with 401(k) plans, and suggested a solution to our retirement challenges would be some sort of government guaranteed return on our 401(k) plans. While it sounds nice, a guarantee would actually create more risk in the financial markets." (CBS Interactive Inc.)
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
California Court Challenge to Defense of Marriage Act Dismissed on TechnicalityExcerpt: "A federal judge on Monday dismissed on a technicality a challenge filed by a California couple to the so-called 'Defense of Marriage Act' (DOMA). DOMA bars the federal government from treating same-s.ex marriages as legal or granting federal benefits to same-s.ex spouses. The case became notorious earlier this year when the Obama administration filed a brief defending DOMA. In that first brief, the DOJ used anti-g.ay arguments that one LGBT advocate described as 'malicious and outrageous'. After the flurry of criticism of its initial brief, DOJ filed a second brief last week in which it said, 'This administration does not support DOMA as a matter of policy, believes that it is discriminatory, and supports its repeal.'" (lgbtQnews)
Webcasts and Conferences
An Ownership TaleNationwide on September 9, 2009
presented by National Center for Employee Ownership
Effective Boards of Directors: Best Practices in Governing an ESOP Company
in California on October 26, 2009
presented by National Center for Employee Ownership
Employee Benefits for Domestic Partners: Design, Taxation, and Administration
Nationwide on September 24, 2009
presented by EBIA / Thomson Reuters
Fiduciary Issues for Internal ESOP Trustees
in Georgia on October 27, 2009
presented by National Center for Employee Ownership
Fiduciary360 Hosts Free Webinar on Converging Worlds of Brokers and Advisors as Fiduciaries Under Regulatory Reform
Nationwide on September 3, 2009
presented by Fiduciary360 (fi360)
Get the Most Out of Your ESOP
in Pennsylvania on November 2, 2009
presented by National Center for Employee Ownership
Investment Advisers: The Changing Regulatory Landscape Webcast
Nationwide on September 21, 2009
presented by ALI-ABA (American Law Institute-American Bar Association)
(Click to post your webcast or conference)
Press Releases
U.S. Department of Labor Sues Defunct Atlanta-based Mortgage Loan Company to Protect Participants’ 401(k) AssetsU.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Pension Rights Center Mourns the Death of Senator Edward M. Kennedy
Pension Rights Center
MTS Allocations, LLC Has Launched an Asset Allocation Newsletter Service for 401k Investors
MTS Allocations, LLC
Law Firm Greensfelder Adds Janich to Chicago Employee Benefits Practice
Casey Communications, Inc.
New White Paper from Summit Health Helps Employers Choose the Right On-Site Wellness Provider
Summit Health, Inc.
(Click to post your press release)
Employee Benefits Jobs
DC / 401(k) Compliance Consultantfor The Savitz Organization
in DE, NJ, PA
Senior Director (Health Care Quality & Cost Management)
for 1199SEIU Family of Funds
in NY
Relationship Manager 1
for Wachovia/Wells Fargo
in NC
Project Manager
for ftwilliam.com
in WI
Benefits Analyst II
for Milliman
in WA
ERISA Attorney
for Gordon, Feinblatt
in MD
Research & Communications Specialist
for Northwestern Benefit Corporation of Georgia
in GA
Manager, Compliance Testing and Reporting
for Prudential Financial
in IA
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