Retirement Plans Newsletter |
|
|
| November 5, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
DATAIR Employee Benefit Systems, Inc. (Advert.)
Software for Retirement and Cafeteria Plan Documents DATAIR Plan Document System. Choose your documents: RETIREMENT PLANS: 401(k)/Profit Sharing, 403(b), DB, Cash Balance; CAFETERIA PLANS: 125, HSA, HRA Choose your formats: * Long format Standardized and Nonstandardized Prototypes * Short format Standardized and Nonstandardized Prototypes * IDP format Volume Submitters * Prototype format Volume Submitters Contact sales@datair.com or call 1-888-328-2474 |
[Guidance Overview]
Defined Benefit Plan Funding Relief Bill Introduced; Implications for Plan Sponsors
Excerpt: "Congressmen Pomeroy (D-ND) and Tiberi (R-OH) have introduced the Preserve Benefit and Jobs Act of 2009, a bill implementing many of the defined benefit plan funding relief proposals being advocated by sponsor and participant groups. In this article we review the bill and its implications for plan sponsors." (J.P. Morgan)
[Guidance Overview]
Broker-Dealers and Other Non-Fiduciaries as Fiduciaries? (Part 2)
Excerpt: "The ultimate outcome of the great wrestling match among the executive and legislative branches of the federal government, and various powerful financial services interest groups as to whether broker-dealers will be turned into fiduciaries and, if so, what kind of fiduciary standard they will have to live up to is not yet known, of course. Given that, many of the registered representatives who believe that they already are fiduciaries to their clients cannot be blamed for perhaps feeling as though they're in a state of suspended animation." (Morningstar Advisor)
[Guidance Overview]
Court Says Participant in Overfunded DB Plan Has No Standing to Sue for Fiduciary Breach
Excerpt: "According to the opinion, all parties agreed that at the time [the plaintiff] filed his complaint, and at all times from 2001 to 2006, the plan was 'substantially overfunded,' according to actuarial valuation reports of the plan's assets and liabilities. The parties also agreed that plan never failed to pay benefits owed to participants or beneficiaries, and that AEGON had no intention to terminate the plan." (PLANSPONSOR)
Banner Year for Federal Benefits: One Other Big Benefit May Be On the Way
Excerpt: "Despite a deficit of $12 trillion or so, a major recession and unemployment of about 10%, this has been a banner year for federal employee benefits. With the passage of the Defense authorization bill into law, federal employees found themselves with a new list of benefits (or at least changes) including: . . . [Also,] you may find that you have the ability to rollover the cash value of your unused sick leave or annual leave balances that cannot be carried into the next year into your Thrift Savings Plan account." (FedSmith)
SEC to Firms: Cut the Mind-Numbing Disclosures
Excerpt: "The SEC expects to soon start reviewing disclosure requirements for quarterly and annual filings. The agency wants to figure out what information should be omitted and what needs to be added. . . . " (Business Insurance)
Employment-Based Retirement Plan Participation: Geographic Differences and Trends, 2008
Excerpt: "About 56 percent of all working-age (21-64) wage and salary employees work for an employer or union that sponsors a retirement plan. Among full-time, full-year wage and salary workers ages 21-64 (those with the strongest connection to the work force), just under 63 percent worked for an employer or union that sponsors a plan." (Employee Benefit Research Institute (EBRI))
Why You Won't Be Able to Retire
Excerpt: "[T]he most recent reading shows that 51% of Americans will not be ready to retire at age 65, up from 44% in 2007. Frighteningly enough, that figure doesn't even take into account health-care or long-term care costs. When those costs are included, the percentage of Americans who aren't ready to retire jumps to 70%!" (Motley Fool)
Second Circuit Limits Impact of Employer's Oral Misrepresentation of Benefits Plan
Excerpt: "Ever since the Second Circuit Court of Appeals held more than 15 years ago in Mullins v. Pfizer, Inc. . . . that a fiduciary's material misrepresentation concerning the availability of future voluntary retirement benefits could be considered a breach of fiduciary duty under [ERISA], the Second Circuit has been a relatively hospitable venue for such claims. Larger companies had the impossible task of policing hundreds of potential manager/human resource personnel 'fiduciaries' to prevent misrepresentations; a misrepresentation, even in a casual conversation, could be an ERISA violation. This all changed on September 30, 2009, when the Second Circuit decided in Ladouceur v. Credit Lyonnais . . . ." (Paul Hastings)
Springfield Missouri Voters Approve Tax to Top Up Underfunded Firefighter Pensions
Excerpt: "The city's proposed 3/4-cent sales tax to bolster the underfunded Police and Fire Pension Fund passed with 54.6 percent of the vote." (Springfield Business Journal)
California Supreme Court Justices Question Conflict-of-Interest in San Diego Pension Case
Excerpt: "The California Supreme Court sounded ready yesterday to end the prosecution of six former city of San Diego pension board trustees, a move that could shut down part of a long-running legal battle. At a hearing that lasted more than an hour, the justices seemed skeptical about the case filed in 2005 by the county District Attorney's Office against the board members, charging them with breaking the state conflict-of-interest law." (SignOnSanDiego.com)
Christie Victory Could Mean Reform for New Jersey Pensions
Excerpt: "The pending arrival of the first Republican governor in New Jersey since 1997 also has renewed hope among some Democratic lawmakers that they can overhaul the state's pension system for public employees, which is underfunded by more than $34 billion." (Bloomberg)
Prichard Alabama Files Bankrup.tcy Over Pensions
Excerpt: "I have looked at every opportunity available to obtain money to help fund the retirement plan for the City of Prichard. After careful review of all of our options, bankrup.tcy protection seems to be the only solution left at this time. Over the past 50 years, the pension plan was amended by the Legislature more than fifteen times, and always the economic burden on the City was increased. . . . After several lawsuits filed by pensioners, it has forced us to come to this decision . . . ." (WKRG)
House Committee Passes Investor Protection Act
Excerpt: "Among the bill's provisions is what the news release called a 'harmonized standard' for fiduciary responsibilities of broker-dealers and investment advisers. The bill also doubles the SEC's funding over five years and provides new enforcement power and regulatory authority." (PLANSPONSOR)
[Opinion]
Some Thoughts on Jones v. Harris And Mutual Fund Fees
Excerpt: "This is how it is supposed to happen in financial markets -- smart investors bring the price of a financial instrument to its 'true' value, making a tidy profit, and then regular people can buy it at the correct value, increasing value for all. The disturbing implication is we have a situation where there are multiple equilibria; one for savvy insiders, and a worse one for people who aren't finance professionals. Why aren't these converging at mutual funds?" (The Atlantic)
National Institute of Pension Administrators (NIPA) (Advert.)
Register Today for NIPA’s 2010 Business Management Conference (2010BMC) Learn more about the only conference focused on the business aspects of running your TPA company. The National Institute of Pension Administrators’ 2010 Business Management Conference (2010BMC), Jan. 9-11, in Scottsdale, Ariz., addresses the unique needs of TPA business owners and executives by providing top-notch education and opportunities for you to network and share business success stories. For complete details, visit NIPA’s Web site and download a copy of the conference advance program. Register by December 11 and save! |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]IRS Begins Section 409A Audits
Excerpt: "This news may come as an unwelcome surprise to many who were hoping that the complexities and uncertainties of Section 409A might delay the IRS's enforcement efforts until more guidance was available and practices further developed. Information Document Requests ('IDRs') from the IRS to companies undergoing audits reveal that the IRS requires an audited company to disclose details of pay practices that could be subject to Section 409A and also to consider the possible application of Section 409A to these practices." (Jones Day)
[Guidance Overview]
California Supreme Court Affirms Employer's Right to Offer Voluntary Equity Plan
Excerpt: "In a decision strengthening the right of employers and employees to negotiate the terms of employees' compensation, the California Supreme Court in Schachter v. Citigroup, Inc. . . . . affirmed summary judgment against an employee who claimed that his incentive compensation plan violated the California Labor Code." (Morgan Lewis)
Small Increases in Compensation Costs in September 2009
Excerpt: "Compensation costs and its components -- wages and salaries and benefits -- decelerated for private industry workers for the 12-month period ending September 2009, registering the smallest increases since each series began. The differences were not statistically different from last quarter. Wages and salaries make up about 70 percent of compensation and benefits make up the remaining 30 percent." (Bureau of Labor Statistics, U.S. Department of Labor)
Towers Perrin U.S. Legislative Tracking Chart: Retirement and Executive Compensation (PDF)
Excerpt: "Thousands of bills are introduced in Congress but only a select few are summarized on this chart. This selection represents our best judgment on the likelihood of enactment and the relevance of the issue for employers." (Towers Perrin)
Webcasts and Conferences
"EFAST2: The Future of Form 5500" in Kansas Cityin Kansas on December 9, 2009
presented by SunGard Relius
"EFAST2: The Future of Form 5500" in St. Louis
in Missouri on December 9, 2009
presented by SunGard Relius
"ERISA Workshop" in Kansas City
in Kansas on December 10, 2009
presented by SunGard Relius
"ERISA Workshop" in St. Louis
in Missouri on December 10, 2009
presented by SunGard Relius
"Plan Forms, Notices, and Amendments: Streamlined, Effective, Timely" in Kansas City
in Kansas on December 9, 2009
presented by SunGard Relius
"Plan Forms, Notices, and Amendments: Streamlined, Effective, Timely" in St. Louis
in Missouri on December 9, 2009
presented by SunGard Relius
Cash Balance Pension Plans: It’s Time To Consider Retirement Plan Alternatives
Nationwide on November 12, 2009
presented by Lockstone Advisors/Janniere Consulting
Health and Welfare Roundup 2009: Checklist of New Compliance Requirements
Nationwide on December 3, 2009
presented by EBIA / Thomson Reuters
How To Change The Way Your Employees Think About Their Benefits With One Statement (No-Cost Webinar)
Nationwide on December 9, 2009
presented by Benefit Software Inc.
Improving Employee Morale and Retaining Key Employees (No-Cost Webinar)
Nationwide on November 12, 2009
presented by Benefit Software Inc.
Online Benefit Enrollment Made Easy! No-Cost Webinar Demonstrates How To Simplify Benefits Enrollment
Nationwide on November 12, 2009
presented by Benefit Software Inc.
Retirement Plan Compliance Assistance Seminar
in California on January 28, 2010
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
(Click to post your webcast or conference)
Press Releases
U.S. Department of Labor Sues Owner of Defunct Kearneysville, West Virginia, CorporationU.S. Department of Labor, Employee Benefits Security Administration (EBSA)
U.S. Labor Department Obtains Appointment of Independent Fiduciary for Abandoned 401(k) Plan of Defunct Whitman, Massachusetts, Company
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Retirement Plan Participation Showed Small Declines in 2008
Employee Benefit Research Institute (EBRI)
ERIC Strongly Opposes Proposal by Rep. Shadegg to Allow State Litigation of ERISA Plans
ERIC (ERISA Industry Committee)
Efforts to Promote Litigation Push Health Care System in the Wrong Direction
American Benefits Council
Tom Johnson Joins New York Life as Head of Business Development for Retirement Income Security
New York Life Insurance Company
National Investment Managers Acquires 500 Plan Block of Business
National Investment Managers Inc.
McGraw Wentworth Named As Best Small Agent/Broker To Work For In Insurance
McGraw Wentworth
Cafeteria Plans Provide Additional Employee Benefit Options
BASE
Guidant Group Launches GuidEDGE, The First Compensation Tool Developed For The Continent Workforce Market
Guidant Group, Inc.
(Click to post your press release)
Employee Benefits Jobs
401(k) Administratorfor Retirement Planners
in ANY STATE, VA
Client Relations Manager
for Hub International Insurance Services, Inc.
in CA
Associate Account Manager
for Cammack LaRhette Consulting
in MA
Manager of Administrative & Support Services
for City of Austin Employees' Retirement System
in TX
Director, Relationship Management-Stable Value
for Prudential
in NJ
Assistant Vice President, Retirement Plans Administration
for The Standard
in OR
Assistant Vice President, Retirement Plans Administration
for The Standard
in OH
(Click to post your job opening | View all jobs |
RSS feed of all jobs )
EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
| Where the best employers find the best candidates! |
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
Jeanette Hull, News Editor
jeanette.hull@benefitslink.com
David Rhett Baker, J.D., Editor and Publisher
david.baker@benefitslink.com
Copyright 2009 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.
Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/
Other useful links: