Retirement Plans Newsletter |
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| September 28, 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]
Text of Sept. 25, 2009 Issue of IRS 'Employee Plan News'; Discusses 2010 Interest Rates for DB Plan Funding (PDF)
3 pages. Excerpt: "This Special Edition of Employee Plans News contains the following articles: [1] 'Upcoming Funding Regulations' states that the IRS and the Department of Treasury expect to issue final regulations in the near future that will cover measurement of assets and liabilities under §430, and the application of benefit restrictions of §436 for single-employer defined benefit plans. It also provides assistance to actuaries in issuing the adjusted funding target attainment percentage (AFTAP) for 2009. [2] 'Additional Guidance on 2009 Waiver of Required Minimum Distributions' explains key provisions of Notice 2009-82, issued on September 24, 2009, that provides guidance, transitional relief, sample plan amendments and answers to questions related to the waiver of 2009 required minimum distributions." (Internal Revenue Service)
[Official Guidance]
Disaster Relief Relating to PBGC Deadlines in Response to Severe Storms and Flooding in New York
Excerpt: "Pension Benefit Guaranty Corporation ('PBGC') is waiving certain penalties and extending certain deadlines in response to the severe storms and flooding that occurred on August 8, 2009, in New York." (Pension Benefit Guaranty Corporation)
[Official Guidance]
Disaster Relief Relating to PBGC Deadlines in Response to Severe Storms, Flooding and Straight-Line Winds in Kentucky
Excerpt: "Pension Benefit Guaranty Corporation ('PBGC') is waiving certain penalties and extending certain deadlines in response to the severe storms, flooding and straight-line winds that occurred on August 4, 2009, in Kentucky." (Pension Benefit Guaranty Corporation)
[Guidance Overview]
IRS Issues Guidance on 2010 Interest Rates for Defined Benefit Plan Funding (PDF)
1 page. Excerpt: "The IRS [on Friday, September 25] issued a special edition Employee Plans News newsletter providing important guidance needed by many plan sponsors to make decisions regarding assumptions to be used in the determination of their plans' 2009 minimum funding and Adjusted Funding Target Attainment Percentage (AFTAP). Importantly, the IRS indicated that automatic approval will be granted for 2010 plan years to switch to any permissible choice of interest rates under forthcoming final regulations. In addition, the final regulations will not permit the use of any lookback month for plans electing to use the full yield curve beginning with 2010 plan years." (Buck Consultants)
[Guidance Overview]
IRS Provides Guidance, Transition Relief, and Sample Amendments on 2009 RMD Waivers Under Recovery Act
Excerpt: "Sponsors may adopt the sample amendments, with appropriate modifications to conform to their plan's terms and administrative procedures, without concern that the amendment will adversely affect their plan's favorable opinion, advisory, or determination letter, and more importantly, without concern that a conflict between plan practices and plan operation in 2009 through November 30 will create a qualification issue. . . . Participants will benefit from the limited-time opportunity to roll over amounts they may have thought did not qualify." (Employee Benefits Institute of America)
ETFs Challenge Mutual Funds Supremacy
Excerpt: "Exchange-traded funds pose a growing threat to the entrenched supremacy of mutual funds as more investors are drawn to these low-cost, passively managed vehicles, analysts say." (The Wall Street Journal)
GAO Suggests Change to 401(k) Hardship Withdrawal Rule
Excerpt: "To enable employees to replenish their 401(k) plan account balances more quickly after they take hardship withdrawals, Congress should consider changing current law that bars plan participants from making new contributions until six months after a hardship withdrawal, the Government Accountability Office suggests." (Workforce.com)
Recent Policy Actions And The Outlook for U.S. Inflation
Excerpt: "The prospect of high inflation has some investors worried, given the aggressive monetary and fiscal steps taken to combat the financial crisis. What is reasonable to expect? Our simulations indicate that inflation could trend near 3%. But important risks exist." (Vanguard)
Pumped-up Pensions Squeezing Atlanta
Excerpt: "In 2001 and 2005, the Atlanta City Council approved substantial increases in pension benefits for city workers -- but didn't figure out how to pay for them. Those decisions are not only hobbling city finances now, they threaten to cripple the city budget for years to come." (The Atlanta Journal-Constitution)
No Government Immunity for Detroit Pension Fund Trustees, Court Says
Excerpt: "A class action suit seeking to hold the Detroit General Retirement pension fund (DGR) trustees accountable for their investment decisions has been approved in what is said to be a precedent setting case. " (Global Pensions)
Implementing a 401(k) Automatic Enrollment Arrangement
Excerpt: "The primary decision points for adoption and implementation of such an arrangement are the following: 1. Which employees will be subject to automatic enrollment: Any employee who does not have an affirmative election on file, or only new employees hired after the arrangement is first adopted? 2. What is the appropriate default contribution rate(s)? 3. Where should default contributions be invested until the employee exercises investment control? 4. What are the initial set-up and ongoing administrative costs?" (Ivins, Phillips & Barker)
401(k) Plans: Policy Changes Could Reduce the Long-term Effects of Leakage on Workers' Retirement Savings (GAO Report)
52 pages. Excerpt: "The incidence and amount of the principal forms of leakage from 401(k) plans -- that is, cashouts of account balances at job separation that are not rolled over into another retirement account, hardship withdrawals, and loans -- have remained relatively steady, with cashouts having the greatest ultimate impact on participants' retirement preparedness. . . . [A] provision requiring plans to suspend contributions to participant accounts for 6 months following a hardship withdrawal may exacerbate the long-term effect of leakage by barring otherwise able participants from contributing to their accounts. GAO also found that some plans are not following current hardship rules, which may result in unnecessary leakage.' A 'highlights' report is online at http://www.gao.gov/highlights/d09715high.pdf (U.S. Government Accountability Office)
TIAA-CREF (Advert.)
TIAA-CREF Compliance Coordinator Is your plan operating in line with 403(b) regulations?
TIAA-CREF is dedicated to providing you specialized, consultative guidance to help you manage your plan in the most efficient way possible. Our online Compliance Coordinator helps you monitor employee loan and hardship withdrawals across multiple plans and investment providers. It’s easy to implement – no IT work required – and saves you time by simplifying data collection and by providing comprehensive reporting. |
Links to Items on Executive Comp, Benefits in General
[Official Guidance]From EBSA: 45 Frequently Asked Questions About the EFAST2 All-Electronic Filing System
Excerpt: "I heard that I will have to start filing the annual return/report (Form 5500 or Form 5500-SF) electronically. Can you tell me if that's true and when I would need to start? . . . How can I file my timely plan year 2008 annual return/report if it is due after January 1, 2010? . . . Short plan year 2009 annual returns/reports (Form 5500 or Form 5500-SF) may be due before EFAST2 can receive them in January 2010. How do I file these? . . . When can I register for EFAST2 electronic credentials to sign a Form 5500 or Form 5500-SF?" (Employee Benefits Security Administration, U.S. Department of Labor)
[Guidance Overview]
DOL Releases New FAQs on All-Electronic Form 5500 Filing Under EFAST2
Excerpt: "The DOL's EFAST website now contains 45 FAQs addressing EFAST2, the all-electronic filing system for Form 5500 that is scheduled to be available beginning January 2010. As background, final DOL regulations issued in 2007 require that all Form 5500s be filed electronically for plan years beginning on or after January 1, 2009. (Because Form 5500 is generally due by the end of the seventh month following the end of the plan year, the vast majority of plan filers will have until at least July 2010 to make the changes necessary to allow electronic filing (without extensions).)" (Employee Benefits Institute of America)
[Guidance Overview]
Get a Head Start on Compensation Plan Risk Assessment for 2010 Proxy Season
Excerpt: "The SEC is expected to publish final rules later this Fall, which will apply to companies' 2010 proxy statements, and require that every company: [1] Evaluate whether any of its compensation plans or practices, including non-executive officer compensation plans and practices, include risk-taking incentives that may have a material effect on the company, and [2] Disclose the results of that evaluation and any steps the company has taken to manage or mitigate those risk-taking incentives" (Winston & Strawn LLP)
Employer Costs for Employee Compensation in Metropolitan Areas, March 2009
Excerpt: "In March 2009, employer costs for employee compensation in private industry averaged $27.46 per hour nationwide. Among 15 metropolitan areas, however, the costs ranged from $25.42 in Miami to $38.28 in San Jose-San Francisco." (U.S. Bureau of Labor Statistics)
Webcasts and Conferences
"To Roth or Not To Roth" Web SeminarNationwide on October 21, 2009
presented by SunGard Relius
DB Plan Designs for 2009 and Later: Cash Balance and DB(k) Plans Webcast
Nationwide on October 20, 2009
presented by National Institute of Pension Administrators
Employee Benefits for Domestic Partners: Design, Taxation, and Administration
Nationwide on September 24, 2009
presented by EBIA / Thomson Reuters
What's Ahead for Health Plan Costs in 2010? Webcast
Nationwide on October 8, 2009
presented by International Foundation of Employee Benefit Plans
(Click to post your webcast or conference)
Press Releases
Hyas Group Adds Investment Research VeteranHyas Group
(Click to post your press release)
Employee Benefits Jobs
Sales Representativefor Employee Online
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401k/Benefit Plan Wholesaler
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in NY
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EmployeeBenefitsJobs.com (Sponsor)
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Handy Links:
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- Employee Benefits Library
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