Retirement Plans Newsletter |
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| September 1, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
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[Guidance Overview]
2009 Q&As: PBGC Meeting with ABA Joint Committee on Employee Benefits (PDF)
27 pages; May 6, 2009. Excerpt: "Each year, the Joint Committee on Employee Benefits (JCEB) of the American Bar Association meets with officials of federal agencies in Washington, D.C., to discuss issues of interest to employee benefits practitioners. . . . The question and answer transcripts . . . are based on these informal discussions between private sector representatives of the JCEB and agency officials." (American Bar Association)
[Guidance Overview]
Earned Income Percentage Conversion Chart
Excerpt: "Amazingly 25 years ago, in 1984, TEFRA (The Tax Equity and Fiscal Responsibility Act) brought a change in the calculation of a contribution for a self-employed. This is a complicated calculation. One part of the calculation involves using the definition of earned income instead of the net profits from Schedule C (or from the K-1 for a partner). For a self-employed individual the definition of earned income includes it having been reduced by the amount being contributed to the qualified plan for the self-employed. To do this, an algebraic formula must be used." (McKay Hochman Co., Inc.)
[Guidance Overview]
Eligible Rollover Distributions: List of Transactions Not Eligible for Rollover
Excerpt: "Unemployment Compensation Act of 1992 created Code Section 401(a)(31) which is about direct rollovers and 20% mandatory withholding. Generally, all distributions from qualified plans are eligible for rollover, and if an eligible rollover distribution is paid to a participant it is subject to 20% mandatory withholding. A list of distributions that are not eligible for rollover (and hence not subject to mandatory 20% withholding) was included in the law and has continued to evolve." (McKay Hochman Co., Inc.)
Chart: Frozen Defined Benefit Pension Plans in March 2008
Excerpt: "Many employers have opted to freeze their current defined benefit plan and provide an alternative. Data from the March 2008 National Compensation Survey on employee benefits indicate that a fifth of all private industry workers participating in a defined benefit plan are affected by a freeze." (U.S. Bureau of Labor Statistics)
After Latest Market Drop, Planners and Investors Trying to Figure Out What That Means for Their Retirement Plans
Excerpt: "Last year's meltdown was a sobering moment for 401(k) holders who were used to a market that only went up. Many of them thought of investing as risk free. When that bubble popped along with housing and credit, 401(k) plan sponsors and investors wondered just what would happen next. Kristi Mitchem, head of Barclays Global Investors' U.S. Defined Contribution business took some time to speak with Fortune about what is next for the 401(k) and how investors can get the most out of their retirement plans." (Fortune via CNNMoney.com)
The Tax-Deferral Trap?
See item #4 in the newsletter. Excerpt: "Novel advice on how to save for retirement: do not put any more money in your tax-deferred retirement savings! Such advise is heresy in a world where people hate taxes and it has been taken as gospel that you should defer them if you can. A commentary in Forbes magazine from William Baldwin admits that for two decades Forbes has been advising people to maximize their tax-deferred accounts, and, at the other end, to minimize withdrawals. 'Let your earnings compound tax free. Deferral is magic.' This advice is not necessarily true anymore. After a year of turmoil in Washington and on Wall Street, it may be time to rethink savings." (Cypen & Cypen)
Improving the Effectiveness of Investment Committees
7 pages. Excerpt: "Recent market volatility and uncertainty have put a renewed focus on the role, governance, and fiduciary responsibilities of investment committees. This paper offers insights on how to bring clarity, self-awareness, discipline, and perspective to the investment committee process." (The Vanguard Group, Inc.)
On the GAO Report on Alternative Approaches to Private Pensions (PDF)
3 pages. Excerpt: "The report is positioned as a survey of: Important risks faced by U.S. workers in accumulating and preserving pension benefits under the current system; Approaches used for employer-sponsored pension systems in other countries (specifically, the Netherlands, Switzerland and the United Kingdom) that could address those risks, as well as the trade-offs involved; and The risk mitigation and trade-offs offered by 'key' proposals for alternative pension designs in the United States." (Sutherland Asbill & Brennan LLP)
Pension Advisers for General Motors Are Part of Pay Czar's Review
Excerpt: "The G.M. pension fund has withstood the unforgiving financial markets of the last year or so better than many other funds, using a conservative strategy that is intended to minimize risk. But the government is looking closely at the pay of all top G.M. employees after bailing out the automaker. And that includes the unit that manages the pension fund, whose name was changed to Promark Global Advisors this year." (The New York Times; free registration required)
Employee Ownership Update for August 31, 2009
NCEO Executive Director Corey Rosen discusses the Congressional Budget Office's listing of the elimination of ESOP tax benefits as a way to save tax dollars; a new NCEO survey finding that smaller companies have more generous ESPPs and higher participation rates; and lawsuits that examine the class standing issue raised by the Supreme Court's LaRue decision. (National Center for Employee Ownership)
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Links to Items on Executive Comp, Benefits in General
[Guidance Overview]2009 Q&As: EEOC Meeting with ABA Joint Committee on Employee Benefits (PDF)
3 pages; May 6, 2009. Excerpt: "Each year, the Joint Committee on Employee Benefits (JCEB) of the American Bar Association meets with officials of federal agencies in Washington, D.C., to discuss issues of interest to employee benefits practitioners. . . . The question and answer transcripts . . . are based on these informal discussions between private sector representatives of the JCEB and agency officials." (American Bar Association)
[Guidance Overview]
2009 Q&As: DOL Meeting with ABA Joint Committee on Employee Benefits (PDF)
25 pages; May 7, 2009. Excerpt: "Each year, the Joint Committee on Employee Benefits (JCEB) of the American Bar Association meets with officials of federal agencies in Washington, D.C., to discuss issues of interest to employee benefits practitioners. . . . The question and answer transcripts . . . are based on these informal discussions between private sector representatives of the JCEB and agency officials." (American Bar Association)
[Guidance Overview]
Employee Benefits Developments, August 2009
Excerpt: "A brief look at developments in Employee Benefits law from July and August 2009, including cases, rulings, and opinions." (Hodgson Russ LLP)
[Guidance Overview]
Seventh Circuit Emphasizes Need to Assess the 'Gravity' of Any Conflict of Interest in Its Latest Post-Glenn Decision
Excerpt: "EBIA Comment: At this point, most of the federal circuit courts have weighed in on the impact of the Glenn case, which was decided over a year ago. This latest Seventh Circuit decision is notable among these post-Glenn decisions for its re-examination of the multifactor analysis and its attempt to make this standard 'more directive' for courts and plan administrators. One byproduct of this decision's emphasis on the gravity of a conflict of interest is that it may justify more discovery of information regarding the conflict -- an issue that has divided the courts post-Glenn." (Employee Benefits Institute of America)
Highlights of DOL Staff Members' Informal Views on Uncashed Checks, Plan Audits, and Class Action Lawsuits
Excerpt: "EBIA Comment: We chose these highlights from the report's 22 Q&As covering a variety of retirement and welfare plan issues (welfare plan topics will be covered in a future Weekly article). Other topics covered by the Q&As include fiduciary and QDRO questions and a valuation question (Q&A-21) that could be of great interest to companies that match contributions with employer stock. Even though the DOL staff members' responses 'do not necessarily represent the official position of the DOL,' the report provides helpful insight regarding the issues addressed." (Employee Benefits Institute of America)
Webcasts and Conferences
"Safe Harbor 401(k) Plan Workshop" - A 3-part Web SeminarNationwide on September 9, 2009
presented by SunGard Relius
2009 Silicon Valley Meeting at Cadence: "Health Care Reform, ERISA Litigation, And 401(k) Changes Making Your Head Spin? Help Is On The Way"
in California on September 16, 2009
presented by Western Pension & Benefits Conference, San Francisco Chapter
Fundamental Changes in How Prescription Drugs Are Priced - Actions Plan Sponsors Need to Take Before September 26th Webcast
Nationwide on September 10, 2009
presented by International Foundation of Employee Benefit Plans
Important Year-End Compliance Requirements-Don't Be Late!
in New York on September 23, 2009
presented by WEB (Worldwide Employee Benefits Network ), New York Chapter
Webcast: The Wage and Hour Laws – So Who Really Is Exempt?
Nationwide on September 22, 2009
presented by National Institute of Pension Administrators
Webinar: Produce Total Rewards Compensation & Benefit Statements On Your Own PC
Nationwide on September 9, 2009
presented by Benefit Software Inc.
(Click to post your webcast or conference)
Press Releases
Employees Satisfied With Retirement Plans Despite Economy, Watson Wyatt Survey FindsWatson Wyatt
PBGC Publishes Pension Insurance Data Book 2008
Pension Benefit Guaranty Corporation (PBGC)
U.S. Department of Labor Sues President of Defunct Western Pennsylvania Company to Recover 401(k) Retirement Contributions
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
TRI-AD and Paylocity Integrate their Payroll/HRIS and 401(k) Recordkeeping Services to Offer the Velocity 401(k)
TRI-AD
Levenfeld Pearlstein Boosts ESOP and Employee Benefits Groups With Addition of Megan Sandquist
Levenfeld Pearlstein, LLC
(Click to post your press release)
Employee Benefits Jobs
Retirement Plan & Benefits Analystfor Williams Kastner
in WA
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Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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