Retirement Plans Newsletter |
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| October 2, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
SunGard Relius (Advert.)
Restatement deadlines are looming. Let SunGard help. EGTRRA Restatement Outsourcing Services – Deadlines are fast approaching. Don’t risk being non-compliant. Do you have 300 or more defined contribution plans to restate for EGTRRA? Outsource them to us. SunGard’s expert Document Management Services (DMS) staff can work as your "invisible" back office resource to help you through the restatement process. Already restated your plans? We offer all ongoing plan maintenance for an average cost of only $65 per plan, per year. Let us focus on your plan documents, so you can focus on growing your business. Contact Ellen Nasrallah at 800-326-7235, ext. 5968. |
[Guidance Overview]
Handling of One-Participant Plans Under EFAST2
Excerpt: "In our continuing series of FAQs on EFAST2, we are addressing the issues and procedures with which the 5500 preparers and plan sponsors will need to familiarize themselves to make the transition to electronic filing. [Question:] Has the DOL and the IRS changed the definition of one-participant plan for purposes of the 2009 5500 filing? [Answer:] Yes. The instructions for Form 5500 and Form 5500-SF reflect a new definition of one-participant plan for the 2009 plan year." (SunGard Relius)
[Guidance Overview]
Written Plan Requirement Defeats Breach of Fiduciary Duty Claims
Excerpt: "'[W]e held in Perreca that an oral statement purporting to alter the terms of an ERISA benefit plan was insufficient to give rise to a claim for promissory estoppel. Perreca, 295 F.3d at 225 [2d Circuit]. This logic applies with equal force to alleged breaches of fiduciary duty when the alleged breach is an oral representation that purports to change an ERISA benefit plan.' . . . . In this case, the plaintiffs alleged that the corporate defendant and its human resources director orally misrepresented the effect of a merger on their pension benefits." (Attorney Roy F Harmon III in the Health Plan Law blog)
House Lawmakers Hear DB Funding, Advice Bill Pleas
Excerpt: "Witnesses appearing before the U.S. House of Representatives Ways and Means Committee regarding the continuing debate of how retirement plan advice should be delivered to millions of workers had a simple message for lawmakers: Don't break the current system." (PLANSPONSOR.com)
Roth IRAs And 2010 Conversion Leave Some in The Dark
Excerpt: "[A]ccording to a Fidelity Investments study, many Americans are scratching their heads over a Roth IRA. While 56% of the study's participants report that they understood the benefits of a Roth IRA (an individual retirement account), the study proves otherwise." (Employee Benefit News; free registration required)
Goodyear to Phase Out Union Pension Plan, Set Up 401(k)
Excerpt: "Under the four-year agreement, nearly all USW-represented employees hired since October 2006 will not be offered the defined benefit plan. Instead, effective Jan. 1, 2010, Goodyear will set up a new 401(k) plan in which the tire and rubber giant will make automatic contributions equal to 3% of employees' pay." (Business Insurance)
Managing Pension Risk Through Dynamic Investment Policy
Excerpt: "In this three-part series, we provide a comprehensive overview of dynamic investment policies (dynamic IPs) for defined benefit plans. Part One covers the events that have contributed to the rise of dynamic investment policies, and Part Two reviews the basic mechanics of a dynamic investment policy. And finally, Part Three (available in October) will offer some additional practical considerations for plan sponsors." (Hewitt Associates)
Funding for DB Pension Plans in 2010 and 2011 Under Relief Proposals
Excerpt: "In this analysis, Watson Wyatt projects funded status and required contributions for single-employer DB plans using an updated version of its comprehensive and realistic model of plan funding. It considers five scenarios: (1) the law prior to Sept. 24, 2009, including the Pension Protection Act of 2006 (PPA), the Worker, Retiree and Employer Recovery Act of 2008 (WRERA) and the March 2009 IRS guidance; (2) current law, including the IRS guidance released on Sept. 25, 2009; (3) House Education and Labor Committee bill (H.R. 2989) introduced in June 2009; (4) the main provisions of Representative Earl Pomeroy's (D-N.D.) discussion draft released in August 2009; and (5) House Minority Leader John Boehner's (R-Ohio) bill (H.R. 2021) introduced in April 2009." (Watson Wyatt Worldwide)
Companies Make Plea to Congress for Pension Funding Relief
Excerpt: "Pension funding requirements put in place by a landmark reform law that took effect during the recession threaten job creation and investment, a CEO told Congress on Thursday, October 1." (Workforce.com)
Survey Results Have Glum View of Retirement Preparedness
Excerpt: "Thirty-eight percent of employers believe their employees have little knowledge of how much they'll need for retirement, and only 8 percent think their workers have a strong idea of how much will be needed. " (Workforce.com)
Building Participant Confidence In A Challenging Market Environment (PDF)
Excerpt: "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)
[Opinion]
Defined Benefit Pensions Needed for Poverty Reduction
Excerpt: "NIRS research finds that pension income plays a critical role in reducing the risk of poverty and hardship among older Americans, while also reducing public assistance expenditures. The Pension Factor shows that rates of poverty among older households lacking pension income were about six times greater than those with such income." (National Institute on Retirement Security)
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
[Guidance Overview]Mandatory Electronic Filing of 5500s to Begin in 2010
Excerpt: "The Department of Labor has taken another step toward requiring electronic filing and disclosure of all Form 5500 annual reports by announcing that paper filing will no longer be accepted for filings for the 2009 plan year. In a related development, sponsors of defined benefit pension plans who maintain an intranet website for communications with employees must post portions of the plan's Form 5500 on the website beginning with the 2008 annual report." (Seyfarth Shaw LLP)
Massachusetts Takes on Identity Theft; Get Ready for the New Data Security Requirements (PDF)
Excerpt: "On August 17, 2009, the Commonwealth of Massachusetts issued new data security rules that will affect employers with workers who live in Massachusetts and businesses that serve Massachusetts residents. The rules, which are now scheduled to take effect on March 1, 2010, will require companies that touch personal information of Massachusetts residents to provide certain minimum safeguards to protect the information from unauthorized access, disclosure or misuse." (Buck Consultants)
Early Retirement Incentive Program Did Not Violate ADEA
Excerpt: "The 11th U.S. Circuit Court of Appeals has determined that an early retirement incentive program for Fort Lauderdale police officers and firefighters did not violate the Age Discrimination in Employment Act (ADEA)." (PLANSPONSOR.com)
Public Pension and Retiree Healthcare Expense Problems Mount for Local California Governments
Excerpt: "Unless government officials muster up the political courage to implement reforms that would make government pensions and retiree health-care benefits sustainable, the cost of government services will continue to be inflated and growing pension costs could threaten the very solvency of state and local governments." (PublicCEO.com)
Options to the Traditional 401(k) Match (PDF)
Excerpt: "Companies looking ahead to how they will restructure their reward programs in a recovering economy will no doubt be asking some tough questions about their 401(k) plans. One option is more challenging but also more intriguing -- reengineer their strategies to make their employees' retirement objectives more achievable, focus more on health care needs, and attract and retain the best people." (Towers Perrin)
Webcasts and Conferences
"ERISA Workshop" in San Franciscoin California on November 6, 2009
presented by SunGard Relius
COBRA Compliance Checkup: Administrative Challenges and Strategies
Nationwide on October 1, 2009
presented by EBIA / Thomson Reuters
(Click to post your webcast or conference)
Press Releases
ASPPA Expands Expertise in Recordkeeper Certification ProgramASPPA (American Society of Pension Professionals & Actuaries)
Education, Due Diligence Key to Gaining From Sustainable Investing
Watson Wyatt
Newport Appoints Industry Leader to Head Qualified Retirement Services Division
Newport Group, The
New Rules Protect Patients’ Genetic Information
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
U.S. Labor Department Proposes Exemption to Allow New Health Plan for Chrysler Retirees to Acquire Company Securities
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Firms Select SunGard's New ETF Retirement Plan Solution
SunGard
(Click to post your press release)
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