Retirement Plans Newsletter |
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| November 6, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
NTSAA (Advert.)
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[Official Guidance]
Composite Corporate Bond Rate Table Updated for November 2009
Corporate bond weighted average interest rate is 6.44%. (Internal Revenue Service)
[Official Guidance]
Weighted Average Interest Rate Table Updated for November 2009
4.36 percent. (Internal Revenue Service)
[Official Guidance]
Funding Yield Curve Segment Rates Updated for November 2009
Excerpt: "The 24-month segment rates are used for minimum funding requirements if a plan's first plan year begins after 2007, or if an election is made not to use the transitional rule of §430(h)(2)(G) of the Code. The following rates are the 24-month segment rates for use with respect to the applicable month and year listed." (Internal Revenue Service)
[Guidance Overview]
Towers Perrin Monthly Regulatory Round-Up: Retirement (PDF)
Excerpt: "The Monthly Regulatory Round-Up is a high-level summary of legal and regulatory developments that occurred during the past month that may be relevant to large employers." (Towers Perrin)
[Guidance Overview]
403(b) Document Deadline Approaching
Excerpt: "Final Treasury Regulations issued under Internal Revenue Code ('Code') Section 403(b) generally require all 403(b) arrangements to be maintained pursuant to a written plan document. Originally required to be in place by December 31, 2008, in late 2008 the IRS extended the documentation deadline to December 31, 2009. Accordingly, employers that maintain a 403(b) plan or otherwise make such an arrangement available to their employees should confirm that their 403(b) documentation is in compliance immediately." (Seyfarth Shaw)
[Guidance Overview]
ERISA: Life After the Stock Market Shock (PDF)
14 pages; reprinted by permission to the author from the Benefits Law Journal. Excerpt: "As the current financial crisis continues to unfold, questions abound about why the wheels fell off our economy and what, if anything, ERISA plan fiduciaries should do in response. What follows is the author's best guess as to what happened and what new problems ERISA fiduciaries face after the stock market shock." (Jones Day)
[Guidance Overview]
Reminders for Qualified Retirement Plans of Imminent PPA '06 Compliance Deadlines
Excerpt: "This Compliance Alert reminds sponsors of qualified plans about imminent deadlines for compliance with certain provisions of the Pension Protection Act of 2006 (PPA '06). Most significantly, by December 31, 2009, sponsors of calendar-year plans must adopt amendments required by PPA '06. Moreover, sponsors of defined benefit plans that chose to provide PPA '06-required individual benefit statements to all active, vested participants every three years (instead of providing an annual notice of availability upon request) are reminded that the first of these periodic statements must be provided for the 2009 plan year, subject to a delayed effective date for collectively bargained participants." (Segal Company)
[Guidance Overview]
Verizon Escapes $1.6 Billion Pension Liability for Drafting Error
Excerpt: "A federal judge in Illinois who ruled last year that Verizon was bound by the language in its defined benefit plan document even if it included a drafting error has now decided that Verizon can simply correct the error that could have cost $1.67 billion." (PLANSPONSOR)
Factsheet on Current U.S. Retirement Account Balances
Excerpt: "The retirement savings of American households took a big hit when the stock market crashed in 2008. Recently, however, a good portion of these losses has been reversed. This fact sheet follows trends in retirement account balances since the beginning of 2005." (Urban Institute)
Benefit Plan Protection: What Insurance Policies Are Needed?
Excerpt: "Experience has shown that benefit plans can face a wide range of potential legal claims and that comprehensive protection requires more than one type of insurance coverage. This publication discusses some common claims involving three insurance policies that can protect benefit plans, their trustees, fund office staff and, by endorsement, agreed-upon people or entities: fidelity bonds, fiduciary liability insurance and employment practice liability insurance." (Segal Company)
Survey Finds Widespread Deficiency in Retirement Preparation
Excerpt: "Despite the economic downturn's effect on the retirement plans of 50-something investors, only 23% of respondents to a recent survey are salting away more for retirement and 57% never changed their deferral rate." (PLANSPONSOR)
Pension Finance Update, November 2009
Excerpt: "In our monthly pension finance update, we review changes in market-driven assets and liabilities during the month of October. While both asset levels and discount rates generally fell during the month, funded ratios for many plans will be very similar to those that they experienced at December 31, 2008." (JPMorgan)
Convenience, Choice, And Control Are Important Factors As Investments Become More Conservative
Excerpt: "Saving for retirement is very important, according to 96.9% of respondents to a survey conducted by ING Institute for Retirement Research. In addition, respondents overwhelmingly (92.4%) said that automatically deducting from the paycheck is the best way to save; 83.6% said that their employer's plan was very important for saving for retirement, with 11.4% saying that their employer plan is fairly important." (Wolters Kluwer Law & Business)
Target Date Retirement Funds: Lack of Clarity Among Structures and Fees Raises Concerns (PDF)
21 pages, dated October 2009; summary of the committee's research. (U.S. Senate Special Committee on Aging:)
House Financial Services Committee Approves Investor Protection Act
Excerpt: "[On November 4, 2009,] the House Financial Services Committee passed H.R. 3817, the Investor Protection Act, by a vote of 41-28. The legislation is part of a broader effort to modernize America's financial regulatory system and was introduced by Rep. Paul E. Kanjorski (D-PA), Chairman of the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises." (U.S. House of Representatives, Financial Services Committee)
403(b) Prototype Likely to Allow for Vesting Schedules
Excerpt: "The Internal Revenue Service (IRS) is reportedly working on a final revenue procedure for Section 403(b) prototype plans that takes into account comments received. So said James Flannery, a tax law specialist at IRS, said at the annual conference of the American Society of Pension Professionals and Actuaries (ASPPA), according to a BNA report." (PLANADVISER)
Roth IRA Conversion Mania: My IRA for a Calculator That Works
Excerpt: "No matter who converts, what is certain now is that financial-services firms are rolling out -- at a breakneck pace -- new tools and resources designed to help IRA owners figure out whether a conversion makes sense or not." (MarketWatch)
State and Local Pension Gap May Be $1 Trillion
Excerpt: "U.S. state and local government pensions are underfunded by $1 trillion and may need to seek federal guarantees for their debt, according to Orin Kramer, chairman of New Jersey's Investment Council." (Bloomberg)
Lawyer in New York Pension Fraud Case Agrees to Settle
Excerpt: "Lawrence Reich, the attorney whose case sparked multiple investigations into pension fraud last year, has agreed to pay more than $240,000 to the New York State attorney general's office to settle his case. Under the deal, Reich agreed to forfeit any claims to pension credits earned after he was falsely reported as a full-time employee of five Long Island school districts at the same time." (Newsday.com)
Seniors Can Boost Their Social Security Benefits by 'Re-Retiring'
Excerpt: "People who began collecting Social Security at age 62 and restart their retirement benefits at 70 would get about 76% more a month. The catch is that they must repay what they had already received." (Los Angeles Times)
[Opinion]
CalPERS' $65 Million Middle Man: Time for Reform
Excerpt: "[T]he Los Angeles Times [this week exposed] $53 million of finders' fees going to a paid hustler with cozy connections to the board and the former CEO who is now on his payroll. Top that off with $33,000 in campaign contributions to the former chair of the board's investment committee, and you've got a colossal 'pay to play' scandal that will undoubtedly draw the attention and the ire of the S.E.C." (Governing.com)
MassMutual Financial Group (Advert.)
The Impact of the 2009 Form 5500 Changes on ERISA 403(b) Plans Need help with prototype document services, participant notices, or DC specialized testing services? We’ve got you covered. Averaging over 20 years of retirement plan experience per person, MassMutual’s ERISA Advisory Services team is truly a group of industry experts. While our clients benefit from a broad range of services, you can benefit from our expertise as well. For more information on how MassMutual’s ERISA consulting experts can help your company, contact EASConsulting@massmutual.com. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]Towers Perrin Monthly Regulatory Round-Up: Executive Compensation (PDF)
Excerpt: "The Monthly Regulatory Round-Up is a high-level summary of legal and regulatory developments that occurred during the past month that may be relevant to large employers." (Towers Perrin)
[Guidance Overview]
Federal Reserve Board Enters Executive Pay Debate with Proposal for Oversight of Incentive Compensation
Excerpt: "The proposal does not create specific compensation guidelines or impose specific limits on executive pay. Rather, the Fed has advanced a series of principles for supervisory review of incentive pay programs. Under the proposal, incentive compensation arrangements must (i) provide incentives that do not encourage excessive risk-taking beyond the organization's ability to effectively identify and manage the risk, (ii) be compatible with effective controls and risk management and (iii) be support by strong corporate governance, including active and effective board oversight." (Kilpatrick Stockton)
Will the SEC Apply New Executive Compensation Disclosure Rules for 2010 Proxy Season?
Excerpt: "[On November 5, 2009], John White (former Director of the SEC's Division of Corporation Finance, now with a small NY law firm known as Cravath) and Paula Dubberly (currently Associate Director) each commented that: 'you probably ought to begin drafting your officers and directors questionnaire based on the new rules.' It doesn't sound promising." (Executive Compensation Blog by Michael Melbinger of Winston & Strawn)
Harkin Promises Approval of Se.xual Orientation Discrimination Legislation in 2010
Excerpt: "A pivotal senator on employment issues predicts congressional approval next year of legislation that would ban workplace discrimination against homose.xuals." (Workforce Management)
Webcasts and Conferences
"2009 Required Minimum Distributions: Now We Know" Archived Web SeminarNationwide on November 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
Wellness Program Checkup: A Clean Bill of Health for 2010
Nationwide on October 29, 2009
presented by EBIA / Thomson Reuters
(Click to post your webcast or conference)
Press Releases
New Book Offers Practical, Easy-To-Understand Advice For New TrusteesInternational Foundation of Employee Benefit Plans
America's 50-Somethings in a State of Denial When it Comes to Retirement Savings
Wells Fargo
MedRisk, LLC to Offer Clients Benefit Informatics Data Analysis and Reporting Solutions
Benefit Informatics
Sibson Releases 2009 Expatriate Talent Market Trends Survey
Sibson Consulting
Sibson Consulting Announces 2009 Healthy Hospital Survey
Sibson Consulting
(Click to post your press release)
Employee Benefits Jobs
Benefits Specialistfor The Air Line Pilots Association, International
in TX
Senior Plan Administrator
for Actuaries and Associates
in TX
(Click to post your job opening | View all jobs |
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EmployeeBenefitsJobs.com (Sponsor)
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