Retirement Plans Newsletter |
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| October 6, 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]
DOL Advisory Opinion 2009-02A on Estate Planning and IRAs
Excerpt: "[The DOL was asked w]hether an estate plan would give rise to a prohibited transaction under Code section 4975 if it is designed to use permissible minimum distributions from an IRA to fund a Trust, which is not a plan subject to fiduciary obligations under Title I of ERISA or the Code but is a disqualified person with respect to the IRA under Code section 4975, and where the beneficiary of the Trust is the IRA owner's grandson and Trustee of the Trust is the IRA owner's son who is entitled under applicable state law to receive statutory trustee commissions from the Trust." (U.S. Employee Benefits Security Administration)
[Guidance Overview]
IRS's Guidance on Tax Treatment of Rollovers from Employer Plans to Roth IRAs
Excerpt: "The IRS Issued Notice 2009-75, in which they provide guidance on the federal income consequences of rollovers from employer plans[1] to Roth IRAs, primarily net unrealized appreciation (NUA) of employer stocks and income-averaging eligible amounts[i]." (RetirementDictionary!)
[Guidance Overview]
New Sample Plan Amendments and Added Guidance on Automatic 401(k) Contributions
Excerpt: "The Obama administration is moving [Automatic contribution arrangements ('ACAs')] into the public spotlight as a way to increase individual retirement savings through employer-sponsored retirement plans. The Pension Protection Act of 2006, final Treasury regulations and this current set of IRS guidance are all meant to assist employers of all sizes in the adoption of an ACA as soon as possible. Employers should review their current 401(k) or SIMPLE IRA plans to determine if an ACA, or one of the qualified ACAs, would be appropriate and beneficial for its participants and advantageous to the company." (Pillsbury Winthrop Shaw Pittman LLP)
[Guidance Overview]
IRS Guidance on 2009 Required Minimum Distributions from Certain Retirement Plans (PDF)
2 pages. (Milliman)
[Guidance Overview]
Court Dismisses Stock Drop Case against Humana
Excerpt: "The U.S. District Court for the Western District of Kentucky has dismissed claims by retirement plan participants that Humana officials violated their fiduciary duties by holding plan assets in company stock after mistakes made in pricing Medicare Prescription Drug Plans led to decreased company earnings. In his opinion, Judge John G. Heyburn, II said defendants were following the plan's explicit terms by investing plan assets in Humana stock, and that '[t]he allegations do not suggest anything more than poor judgment on the part of the fiduciaries who relied on well-reasoned and researched advice in determining the earnings projections.'" (PLANSPONSOR.com; free registration required)
Many Pension Plans Facing Sharply Higher 2010 Contributions, Mercer Tells Congress
Excerpt: "Pension funding relief already provided by Congress and the IRS has reduced what would have been dramatically higher 2009 required contributions for many sponsors, but a cash crunch looms for the 2010 plan year, Mercer told a congressional panel. 'Barring an enormous market recovery, we expect that many plans will face significantly increased required contributions,' said Mercer Principal Craig Rosenthal in testimony before the House Ways and Means Committee. Rosenthal presented findings from an extensive new Mercer study on the status of plans' funding and credit balance levels." (Mercer LLC)
401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2008 (PDF)
68 pages. Excerpt: "Because 401(k) balances can fluctuate with market returns from year to year, meaningful analysis of 401(k) plans must examine how participants' accounts have performed over the long term. Looking at consistent participants in the EBRI/ICI 401(k) database over the five-year period from 2003 to 2008 (which included one of the worst bear markets for stocks since the Great Depression), the study found: After rising in 2003 and for the next four consecutive years, the average 401(k) retirement account fell 24.3 percent in 2008. The average 401(k) account balance moved up and down with stock market performance, but over the entire five-year time period increased at an average annual growth rate of 7.2 percent, attaining $86,513 at year-end 2008. The median (mid-point) 401(k) account balance increased at an average annual growth rate of 11.4 percent over the 2003-2008 period to $43,700 at year-end 2008." (Employee Benefit Research Institute)
Fact Sheets: State Defined Contribution Plans
This series of fact sheets focuses on a sample of states that have created defined contribution pension plans for their employees: Alaska, Indiana, Michigan, Oregon, and West Virginia. (Center for State and Local Government Excellence)
How to Rebuild a Retirement Investment Portfolio After Recession's Hit
Excerpt: "One year after the collapse of Lehman Bros., the average stock mutual fund is virtually unchanged. The question now: How to rebuild your retirement plan and recover from the bear market that began nearly two years ago. The average stock fund has fallen 28% since the stock market's peak on Oct. 9, 2007. What should you do now? Start with a list of things you shouldn't do . . . ." (USA TODAY)
Many Companies Going Beyond Basic Education Programs for Retirement Savings by Providing Variety of Financial Services and Tools
Excerpt: "Companies offering employees basic informational sessions on their retirement savings plans is nothing new. But with the recession, many employers realize that offering just retirement savings education and setting their 401(k) plans on autopilot might not be enough to get employees on track to retire on time, experts say. . . . Now more than ever before, employees appreciate it if employers help them with overall financial planning, from dealing with credit issues to paying for college . . . ." (Workforce Management; free registration required)
Connecticut Town Gets Union Agreement on DC for DB Switch
Excerpt: "Officials of a Connecticut community have hammered out an agreement with an employee union to drop a pension plan in favor of a defined contribution plan. A news report in the Register Citizen of Torrington, Connecticut, said the latest benefits pact was with the city managers union with whom the city has been in talks since July 2008. The agreement makes the union the fourth out of seven representing city employees to agree to eliminate pensions." (PLANSPONSOR.com; free registration required)
Retirement Savings: Better Information and Sponsor Guidance Could Improve Oversight and Reduce Fees for Participants
58 pages. Excerpt: "[GAO recommends that] Congress should consider (1) amending ERISA to require sponsors to disclose fee information to facilitate comparisons, and (2) giving the Department of Labor (Labor) specific authority over certain plans. Also, GAO recommends that the Internal Revenue Service (IRS) develop guidance on sponsor involvement, collect additional data on 457(b) plans, and share more information with financial regulators. Labor and IRS agreed with our recommendations, although IRS stated that it will continue sharing information with regulators using its current methods." (U.S. Government Accountability Office)
Suit Claims IGT Employees Harmed by Retirement Plan Investment
Excerpt: "There's a new twist in the shareholder legal actions against International Game Technology over the decline in IGT's stock price since 2007. The casino supplier is now being sued by two groups of employee retirement plan participants who say the plan made a poor investment decision when it invested in the company's own stock. Two lawsuits seeking class-action status to represent past and current IGT employees were filed against IGT on Friday in U.S. District Court for Nevada, charging the employees were harmed when the company's retirement plan invested in IGT stock at a time when IGT stock allegedly was inflated by false statements about the company's prospects." (Las Vegas Sun)
[Opinion]
American Benefits Council Comment Letter to SEC on FBAR Issues (PDF)
3 pages. Excerpt: "The American Benefits Council (the 'Council') is writing to urge guidance with respect to foreign financial account reporting (Form TD F 90-22.1 (Report of Foreign financial and Financial Accounts, or FBAR)), to the effect that foreign accounts held in connection with retirement plan trusts are not considered 'financial accounts' for FBAR reporting purposes. We further request clarification that executives and managers who serve as trustees, fiduciaries, investment advisors or in other management or administrative capacities with respect to retirement plan trusts are exempt from FBAR reporting requirements with respect to those activities." (American Benefits Council)
[Opinion]
Industry Group Letter to Treasury Regarding Hybrid Plan Guidance (PDF)
6 pages. Excerpt: "This letter, which is submitted by the Coalition to Preserve the Defined Benefit System (the 'Coalition'), the American Benefits Council (the 'Council') and The ERISA Industry Committee ('ERIC'), identifies key transition and process issues with respect to upcoming hybrid plan guidance." (American Benefits Council)
DATAIR Employee Benefit Systems, Inc. (Advert.)
DC/401(k) Administration Software from DATAIR DATAIR’s DC/Win System for Allocations, Discrimination Testing, and Proposals. Handles New Comparability Plans, Sole Proprietorships, 401(k) and 403(b) plans. Use with our DB System for Cash Balance and Combo Plans. Expert support. DC/401(k) System includes * Downloads from many allocated account fund providers * Automated loan processing * Flexible data import/export *Interface with DATAIR's 5500/1099R system. sales@datair.com or call 1-888-328-2474 |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS's Business Travel Expense Guidance
Excerpt: "The Internal Revenue Service (IRS) issued Revenue Procedure 2009-47 on September 30, 2009. The guidance updates the rules for determining the amount of an employee's ordinary and necessary business expenses for lodging, meals, and incidental expenses incurred while traveling away from home that are deemed substantiated under Section 1.274-5 of the Income Tax Regulations." (Hewitt Associates)
[Guidance Overview]
Eleventh Circuit Upholds ERISA's Plan's Benefit Denial Under Doyle Test
Excerpt: "The unpublished decision in Keith v. Prudential affords further insight into the Eleventh Circuit's take on the proper approach to judicial review in cases of conflicted fiduciaries. The Court has previously held that Met Life v. Glenn implicitly abrogated its prior approach which involved a heightened standard of review and burden shifting. In Keith, the Court signals how this change can make a practical difference in outcomes." (Roy Harmon III via Health Plan Law)
Webcasts and Conferences
409A Correction Program-Last Chance for Pre-2008 Violations, New Breaks for 2009 and Laterin New York on October 15, 2009
presented by WEB (Worldwide Employee Benefits Network ), New York Chapter
Free Webinar - 401k Advisors' Plan Sponsor Education Series for October: "How Healthy is Your Retirement Plan?"
Nationwide on October 27, 2009
presented by 401k Advisors
Free Webinar - 401k Advisors' Plan Sponsor Education Series for October: "How Healthy is Your Retirement Plan?"
Nationwide on October 29, 2009
presented by 401k Advisors
(Click to post your webcast or conference)
Press Releases
Transamerica Enhances Annual Retirement Plan Review with Comparative Industry Analysis and Detailed Action PlanTransamerica Retirement Services
The Conference Board Finds That The Recession Did Not Substantially Alter Institutional Investment
Conference Board, The
ESCA Heralds New Legislation To Promote Employee Ownership Among Private Companies
Employee Owned S Corporations of America
Integrated Benefits Institute Announces Availability of 2008 IBI Benchmarking Industry Reports
Integrated Benefits Institute
Cammack LaRhette Consulting Launches 403(b) Curriculum
Cammack LaRhette Consulting
(Click to post your press release)
Employee Benefits Jobs
Regional Sales Director, Northern CA, OR, WA, ID, WY, UTfor DailyAccess Corporation
in CA, ID, OR, UT, WA, WY
Defined Contribution Administrator
for First American Bank
in IL
Flex Benefits Administrator, Dallas, TX
for DailyAccess Corporation
in TX
Pension Administrator
for Applied Pension Services, LLC - Katz Zlotnick & Associates
in NY
(Click to post your job opening | View all jobs |
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EmployeeBenefitsJobs.com (Sponsor)
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