Retirement Plans Newsletter |
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| September 4, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
ASPPA (Advert.)
Attention all Retirement Plan Professionals! The 2009 ASPPA Annual Conference (November 1 – 4) is bigger and better than ever. Join 1,600 of your peers at the exquisite Gaylord National Resort and Conference Center on the historic Potomac River. Take advantage of over 60 interactive workshops presented by nationally renowned experts and top practitioners from all facets of the retirement plan industry, including representatives from the IRS and DOL. Advance your knowledge. Enhance your credibility. Expand your network of like-minded professionals! This is the industry’s top venue for all retirement plan professionals - - with up to 24 hours of ASPPA CE credit, ERPA CPE credit and core/non-core JBEA credit hours for Enrolled Actuaries, including professionalism credits. In this rapidly changing environment, it’s never been more important to attend. Register today and stay at the top of your game! |
[Official Guidance]
Listing of IRS Published Guidance for January-August 2009
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements." (Internal Revenue Service)
[Official Guidance]
Typeset Version in Federal Register: DOL (EBSA) Proposed Regs on Civil Penalty Rules for Multiemployer Defined Benefit Pension Plans That Fail to Take Corrective Funding Action (PDF)
5 pages. Excerpt: "This document contains a proposed regulation that, upon adoption, would establish procedures relating to the assessment of civil penalties by the Department of Labor under section 502(c)(8) of the Employee Retirement Income Security Act of 1974 (ERISA or the Act). Under section 502(c)(8) of ERISA, which was added by the Pension Protection Act of 2006, the Secretary of Labor is granted authority to assess civil penalties not to exceed $1,100 per day against any plan sponsor of a multiemployer plan for certain violations of section 305 of ERISA. The regulation would affect multiemployer plans that are in either endangered or critical status." (Employee Benefits Security Administration, U.S. Department of Labor)
[Guidance Overview]
Company Officer Not Liable As Fiduciary for Company's Failure to Remit 401(k) Plan Contributions
Excerpt: "The principal of a company that failed to remit 401(k) and other plan contributions to a multiemployer fund was not a fiduciary subject to personal liability for the missed contributions because the plan administrator did not provide evidence establishing that the officer actually exercised discretionary authority or control over the management of plan assets, the U.S. Court of Appeals in New York (CA-2) has ruled in Finkel v. Romanowicz." (Wolters Kluwer)
Index Funds Gain Ground with Plan Sponsors
Excerpt: "Though it might seem just a response to the pressures of turbulent markets, experts at Vanguard say there is more to the trend than meets the eye. 'At Vanguard, we've certainly been seeing plan sponsors and consultants showing an increased interest in index funds,' said Principal Mike Lucci of Vanguard Institutional Sales. 'And we think this is great news for retirement plan participants, no matter what the market environment is.' While some plans are offering additional passive investment options, others are replacing active funds with an exclusive lineup of broadly diversified, low-cost index funds, Mr. Lucci said." (The Vanguard Group, Inc.)
Issue Brochure: Building Plan Participant Confidence in a Challenging Market Environment (PDF)
4 pages. Excerpt: "Proper plan design and appropriate investment options are the long-term solution to participants' retirement needs. To keep participants focused on the long term, communicating early and often is essential. In this publication, NAGDCA will share some thoughts on the following questions to help you build or fine-tune a communication and education strategy: What should plan sponsors know? What are the participant behaviors to watch for? What messages are helpful? Where can you turn for resources to meet the challenge?" (National Association of Government Defined Contribution Administrators, Inc.)
Issue Brochure: Basic Plan Sponsor Communications for Retirees (PDF)
8 pages. Excerpt: "Plan sponsors often design communication and education efforts to be applicable to a broad range of active participants. However, as participants near retirement or enter into retirement, their needs and interests change and they are often uninformed or misinformed about plan features and options. Therefore, plan sponsors should consider tailoring their communications to meet the changing needs of this segment of participants. Plan sponsors should communicate these typical policies and features . . . ." (National Association of Government Defined Contribution Administrators, Inc.)
Review of the ESOP Promotion and Improvement Act of 2009 (PDF)
3 pages. Excerpt: "The proposed Act would amend the Internal Revenue Code (the Code) to improve the operations of ESOPs as follows: The 10% penalty on early distributions from qualified retirement plans would no longer apply to distributions made by an S corporation, to the extent the distributions are paid in cash to the participants in the ESOP or are paid to the ESOP and distributed in cash to the participants in the ESOP. Dividends paid by C corporations on stock held by an ESOP would no longer be a preference item in calculating the corporate alternative minimum tax. This amendment would apply to taxable years beginning after December 31, 1989." (Morgan, Lewis & Bockius LLP)
The Economic Crisis: What Can DC Plan Sponsors Do Now? (PDF)
Pages 1-3 of 8 pages. (Milliman)
Shrinking Retirement Funds Put Pressure on Missouri to Find Alternatives
Excerpt: "A guaranteed monthly pension check -- with annual increases -- is a dream in the private sector. But it's a given in state government. Taxpayers will spend more than $375 million this year for Missouri's two main state retirement systems. The tab will grow next year -- by up to $85 million, according to one estimate -- because more public money will be needed to offset losses in stock market investments held by the pension plans. Scrutiny of government pension systems has mounted in Missouri, Illinois and across the country as private sector workers lose pensions or see their 401(k)s shrink. Many states, grappling with budget shortfalls caused by the recession, are rolling back benefits or requiring workers to contribute more to their pensions." (St. Louis Post-Dispatch)
ERISA Company Stock Suit Against Schering-Plough Plans Dismissed
Excerpt: "A federal judge dismissed a class-action lawsuit that claimed Schering-Plough Corp., Kenilworth, N.J., breached its fiduciary duties under ERISA by including company stock as an investment option in its two 401(k) plans. Judge Dennis Cavanaugh of U.S. District Court in Newark, N.J., on Monday dismissed the lawsuit, filed on behalf of participants in Schering-Plough's $1.7 billion Employees' Savings Plan and its $22.4 million Puerto Rico Employees' Retirement Savings Plan, 'without prejudice' and granted the plaintiffs 30 days to file an amended complaint." (Pensions & Investments)
Congress Wants to Shed Light on 401(k) Fees: It's About Time
Excerpt: "Unfortunately for the millions of Americans who are counting on such accounts to fund their retirements, 401(k) plan fees are often absurdly high and next to impossible to uncover. Buried in plan literature are kickback schemes (in which fund firms pass on a portion of fees collected to the plan administrator in exchange for shelf space), custodial, advisory and record-keeping fees, transaction costs and innumerable other charges that few participants have any clue they're shouldering--or, in many cases, any ability to uncover." (Forbes.com)
Determining the Cost Basis of S Corporation Shares in an ESOP
Nancy Dittmer discusses why the cost basis of ESOP shares is important and how it is determined, with emphasis on S corporations. (National Center for Employee Ownership)
University Conference Services (Advert.)
Are You On Top of Your Game as a Plan Sponsor? Managing your organization’s retirement plans has never been more challenging than in today’s economic and political environment. How do you create a win-win situation for yourself as a fiduciary and for your plan participants? The Chicago Mid-Sized Retirement & Pension Plan Management Conference, October 4–7, will help you get well conditioned and on top of the plan management game. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]FASB's New Accounting Standards Codification: All Preexisting Non-SEC Accounting Standards Are Superseded (PDF)
Excerpt: "The purpose of this letter is to alert compensation professionals to a significant development in the reorganization of U.S. generally accepted accounting principles (GAAP). Beginning with interim and annual periods ending after September 15, 2009, all financial statements will make reference to the Financial Accounting Standards Board's (FASB) new Accounting Standards Codification (ASC or Codification) rather than previously existing accounting standards such as FASB Statement No. 123R. The reorganization does not create new accounting standards or guidance, but the structure of the Codification is significantly different than that of previous accounting standards. This letter provides a brief overview of the Codification and identifies citations that are relevant to executive compensation." (Frederic W. Cook & Co., Inc.)
Towers Perrin and Watson Wyatt File Form S-4 as Part of Next Step in Creation of Towers Watson & Co.
Excerpt: "Towers, Perrin, Forster & Crosby, Inc. and Watson Wyatt Worldwide, Inc. . . . announced that Jupiter Saturn Holding Company ('Jupiter Saturn'), the new entity formed as part of the merger process between Towers Perrin and Watson Wyatt, filed a registration statement on Form S-4 with the Securities and Exchange Commission. The Form S-4 filing is one of several steps in the merger process that must be completed before obtaining each company's shareholder approval of the Towers Perrin and Watson Wyatt merger. After the merger becomes effective, Jupiter Saturn will change its name to Towers Watson & Co." (Business Wire)
The Aging Workforce: How to Fight the Risks
Excerpt: "The workforce is aging fast, and stakeholders -- companies, governments, and others -- have a narrow window of time to adapt. So says the World Economic Forum, which Wednesday issued an 80-page report outlining strategic options to address how stakeholders can strengthen financial sustainability, quality of retirement, and health-care provisioning in a rapidly aging world. The report emphasizes that companies and governments must work cooperatively for meaningful action to occur -- a dubious scenario in today's light, with the two sides rarely in agreement on how health care and retirement should be paid for. For CFOs, however, the concern is whether retirement and health-care funding should be a priority right now." (CFO.com)
Vermont Solar Firm Offers New Workplace Benefit
Excerpt: "A White River Junction, Vermont, solar power company is offering a workplace benefit program in which employers can contribute part of the cost when employees add solar power to their homes. A news release from groSolar said its Employee Green Benefits program offers group discounts on solar power systems for employees." (PLANSPONSOR.com; free registration required)
Webcasts and Conferences
2009 Fall Tour: Advanced IRAs: Compliance Issuesin Massachusetts on October 9, 2009
presented by Ascensus
2009 Fall Tour: Advanced IRAs: Compliance Issues
in Texas on October 16, 2009
presented by Ascensus
2009 Fall Tour: Advanced IRAs: Compliance Issues
in Virginia on October 28, 2009
presented by Ascensus
2009 Fall Tour: Advanced IRAs: Compliance Issues
in Maryland on October 30, 2009
presented by Ascensus
2009 Fall Tour: Advanced IRAs: Compliance Issues
in Kansas on November 4, 2009
presented by Ascensus
2009 Fall Tour: Advanced IRAs: Compliance Issues
in Georgia on November 6, 2009
presented by Ascensus
2009 Fall Tour: Advanced IRAs: Compliance Issues
in California on December 9, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Pennsylvania on October 6, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Pennsylvania on October 7, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Massachusetts on October 8, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Oklahoma on October 13, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Wisconsin on October 13, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Texas on October 14, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Wisconsin on October 14, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Texas on October 15, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Oregon on October 20, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Oregon on October 21, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Virginia on October 27, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Maryland on October 29, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Kansas on November 3, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Georgia on November 5, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Ohio on November 17, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Louisiana on December 8, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in California on December 8, 2009
presented by Ascensus
2009 Fall Tour: IRA Essentials
in Florida on December 9, 2009
presented by Ascensus
Broker of Record Consolidation Series Part I: Why BOR Consolidation - Archived
Nationwide on September 4, 2009
presented by Center for Due Diligence
Understanding Retirement Plan Fees
Nationwide on September 23, 2009
presented by Spectrum Pension Consultants, Inc.
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Press Releases
2010 Segal Health Plan Cost Trend Survey ReleasedThe Segal Company
Conference To Explore Ways To Make Savings Last A Lifetime
American Council of Life Insurers
Nurses and Retirement Security: A Looming Crisis?
Women’s Institute for a Secure Retirement (WISER)
Justice Department Announces Largest Health Care Fraud Settlement in Its History
U.S. Department of Justice
(Click to post your press release)
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