Retirement Plans Newsletter |
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| October 7, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
SunGard Relius (Advert.)
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[Official Guidance]
Text of IRS Notice 2009-76: Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates (PDF)
4 pages. Excerpt: "This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), the 24-month average segment rates, and the funding transitional segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007." (Internal Revenue Service)
[Guidance Overview]
2009 RMD Waivers: IRS's Clarification and Transitional Relief
Excerpt: "As adopted, the amendments must reflect the operation of the plan with respect to the 2009 RMD waiver (except for the period January 1 through November 30, as described above in the Transition Relief regarding Plan Compliance). The IRS provides two versions of a sample amendment: in one version the 2009 RMDs and Extended 2009 RMDs will be distributed unless the participant or beneficiary affirmatively elects otherwise, and in the other version the distributions will not be made unless the participant or beneficiary affirmatively elects otherwise. Direct rollovers of the 2009 RMDs and Extended 2009 RMDS are not offered under either - although the sponsor can add provisions to provide a direct rollover of both, or only of the 2009 RMD." (Deloitte via BenefitsLink.com)
[Guidance Overview]
IRS Guidance and Model Amendments for Suspending 2009 Minimum Required Distributions (PDF)
3 pages. Excerpt: "The Notice provides the following rollover relief: Clarification that both distributions that would have been 2009 RMDs if not for the suspension (2009 RMDs) and certain installment payments that include 2009 RMDs (which the Notice refers to as 'Extended RMDs'), which could normally not be rolled over, are eligible for tax-free rollover, so long as the requirements applicable to rollover distributions are otherwise satisfied. An extension of the normal 60-day rollover period for 2009 RMDs and Extended RMDs, which will end no earlier than November 30, 2009." (Drinker Biddle Reath LLP)
[Guidance Overview]
IRS/Treasury Officials Provide Informal Views on Safe Harbor Contributions, ADP/ACP Testing Methods, and W-2 Imputed Income
Excerpt: "EBIA Comment: We chose these highlights from the report's 44 Q&As covering a variety of retirement and welfare plan issues . . . . While the answers in the report do not necessarily represent IRS or Treasury policy, they provide helpful insight regarding the issues addressed. On some issues, the officials reported that the IRS is working on formal guidance. Those issues included optional changes under the HEART Act, the 2009 required minimum distribution (RMD) waiver amendment requirements . . ., and guidance regarding when shutdown benefits are retirement-type protected benefits under Code Section 411(d)(6)." (Employee Benefits Institute of America)
Public Pension Coordinating Council Standards Program (PDF)
5 pages. Excerpt: "The Public Pension Standards are intended to reflect minimum expectations for public retirement system management and administration, as well as serve as a benchmark by which all defined benefit public plans should be measured. The retirement systems and the state and local governments that sponsor them are encouraged to meet these standards." (National Association of State Retirement Administrators)
PSCA's Annual Survey of Profit-Sharing and 401(k) Plans
Excerpt: "The Profit Sharing/401k Council of America (PSCA) has released its 52nd Annual Survey of Profit Sharing and 401(k) Plans, which provides up-to-date information on current practices and trends in profit-sharing and 401(k) plans. The PSCA's survey reports on the 2008 plan year experience of 908 plans covering 7.4 million participants with more than $600 billion in plan assets." (Wolters Kluwer)
New Guidance on Department of Labor Enforcement Priorities for Employee Benefits
Excerpt: "In a September 14, 2009 speech, Assistant Secretary of Labor Phyllis C. Borzi announced that EBSA has initiated a criminal project to prosecute what she referred to as 'the most egregious and persistent violations' of ERISA, and also plans to focus enforcement efforts on several key civil areas. All plan sponsors, administrators and other fiduciaries should be aware of these enforcement priorities." (Arent Fox LLP)
Investing in Retirement Accounts: Analyzing Influences on Choice
Excerpt: "Asset allocation patterns in DC accounts as reported by the 2007 Survey of Consumer Finances (SCF) provide a valuable reference. This analysis uses regression techniques to identify factors that are closely correlated with investors' portfolio choices. Considering these salient factors should enable plan sponsors and policymakers to choose financial education tools, policies and default programs to better guide and improve DC plan participants' asset allocations." (Watson Wyatt Worldwide)
Minneapolis Asks Judge to Rule on Return of an Alleged $52 Million in Pension Overpayments
Excerpt: "About 1,400 retired Minneapolis police and firefighters learned Monday that they could face huge IOUs to the city if it prevails in a lawsuit against their pension funds. For the first time, the city made it clear that it wants a judge to order two closed pension funds to retrieve $52 million in alleged overpayments to retired police and firefighter pensioners or their survivors. That would amount to an average of nearly $42,000 for each retired police pensioner or survivor and more than $30,000 from each firefighter retiree or survivor." (Star Tribune)
Few Options Remain to Repair Social Security System
Excerpt: "Some people have said that, given the weight of its other financial obligations, the federal government will be forced to renege on its Social Security obligations. But experts, both liberal and conservative, say that scenario is highly unlikely. 'The problem is really the government as a whole is in a deficit position. That doesn't mean they won't meet that particular commitment, but the question of how we're going to meet all of our commitments fiscally is kind of up in the air,' said Eric Toder, an institute fellow at the Urban Institute in Washington. 'I don't think that's one they're likely to default on.' Still, people paying into the system now are highly likely to get less than is being promised." (The Tribune-Review Publishing Co.)
[Opinion]
Watson Wyatt Testifies in Support of Funding Relief for DB Plan Sponsors
Excerpt: "Testimony of Mark Warshawsky, Director of Retirement Research, Watson Wyatt Worldwide, presented to the House Committee on Ways and Means at the hearing 'Defined Benefit Pension Plan Funding Levels and Investment Advice Rules,' Oct. 01, 2009." (Watson Wyatt Worldwide)
[Opinion]
Financial Planners and Market Bulls Are Blowing Smoke
Excerpt: "These days, I see more and more reports about the market stabilizing, about the little guy dipping his toes back into the water. The old catch-phrases are returning: We are in the midst of one of the great bull markets in history; March was a once-in-a-lifetime buying opportunity. Balderdash. The current bull market is a classic sucker rally in the middle of a bear market. This happened all the time during the Depression. The recent 50% bounce still leaves the Dow about 4,000 points below its all-time high. March was not a once-in-a-lifetime buying opportunity; it was a once-in-a-lifetime salvage opportunity. It was a chance to buy back your lost shirt while conceding that your pants are gone for good. Even more infuriating are the 'experts' advising people how to invest the money they plan to retire on." (Los Angeles Times)
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! |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS's 2009 Version of Form 3903 for Use by Individuals Reporting Deductible Moving Expenses
Excerpt: "EBIA Comment: Code Section 132(g) allows employers to provide certain moving expense reimbursements directly or indirectly to their employees on a tax-free basis, so long as the moving expenses would have qualified for a deduction from income on the employee's individual income tax return. In addition, employers often provide nonqualified moving expense benefits, which are includible in the employees' taxable income. Form 3903 helps employees calculate the amount they can exclude from income if tax-free reimbursements do not cover all of their qualifying expenses, or the amount they must report as additional taxable income if untaxed reimbursements exceed their qualifying expenses." (Employee Benefits Institute of America)
[Guidance Overview]
Say on Pay Is Coming: Are You Ready? (PDF)
7 pages. Excerpt: "Executive compensation and increased communication and transparency for shareholders are among the hot-button issues in economic reform. One need only look to the discussions at the recent G20 London Summit or the responses to Securities and Exchange Commission (SEC) calls for comments to understand that momentum is swinging toward allowing shareholders more access in matters of compensation. This memorandum will address recent legislative and regulatory developments in executive compensation as they relate to Say on Pay Proposals and will analyze ways in which companies can position themselves to better prepare for mandatory shareholder input into executive compensation." (Sutherland Asbill & Brennan LLP)
Webcasts and Conferences
"EFAST2: The Future of Form 5500" in Charlottein North Carolina on November 12, 2009
presented by SunGard Relius
"EFAST2: The Future of Form 5500" in Chicago
in Illinois on November 12, 2009
presented by SunGard Relius
"EFAST2: The Future of Form 5500" in Detroit
in Michigan on November 12, 2009
presented by SunGard Relius
"EFAST2: The Future of Form 5500" in Knoxville
in Tennessee on November 9, 2009
presented by SunGard
Cross-Tested Plans - A 3-part Web Seminar Archive
Nationwide on October 5, 2009
presented by SunGard Relius
Understanding Health FSA Reimbursements: From Acne Treatment to Weight-Loss Programs and Beyond
Nationwide on November 5, 2009
presented by EBIA / Thomson Reuters
(Click to post your webcast or conference)
Press Releases
Despite Economic Improvements, Most Companies Not Ready to Restore Executive Pay Cuts, Watson Wyatt Survey FindsWatson Wyatt
U.S. Employers Face Huge Pension Funding Tabs Without Relief, Watson Wyatt Analysis Finds
Watson Wyatt
Health Reform Comparison Tool Now Reflects Amendments To Senate Finance Committee Proposal
Kaiser Family Foundation
Most Employers Making Changes to Their 2010 Medical Program Expect to Increase Employee Contributions: Aon Consulting Survey
Aon Consulting
TD AMERITRADE Unveils New Online Retirement Center
TD AMERITRADE
House Dems: Don't Tax 'Cadillac' Plans
Politico.com
(Click to post your press release)
Employee Benefits Jobs
401(k) Wholesalerfor Howard Simon & Associates, Inc.
in IL
Cafeteria Plan Specialist
for Swerdlin and Company
in GA
Defined Contribution Plan Administrator
for Qualified Plan Administrators, Inc.
in GA
DC Plan Administrator
for Third Party Administration/Consulting Firm
in NJ
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