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December 4, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy

ASPPA (Advert.)

The ASPPA 401(k) Summit | March 13 – 16, 2010 | Orlando World Center Marriott Resort (clickable image)

The ASPPA 401(k) Summit | March 13 – 16, 2010 | Orlando World Center Marriott Resort

The ASPPA 401(k) SUMMIT is bigger and better than ever in 2010! Expect 140 exciting exhibits in the hall, dozens of top-notch workshop sessions like "Plan Designs for the Age of Obama," and the presentation of the prestigious Morningstar-ASPPA 401(k) Advisor Leadership Award. The SUMMIT offers 14 hours of ASPPA Continuing Education (CE) credit and is designed to comply with various CE programs, including ERPA CPE.

For more information and to register, click here: The ASPPA 401(k) SUMMIT.



[Guidance Overview]
Year-End Review of Operational Aspects of 403(b) Plan Amendments (PDF)

Excerpt: "As we approach the end of 2009, 403(b) plan sponsors should review their plans and the way in which they operate. The following chart highlights the major provisions of the new 403(b) rules and provides useful references for plan sponsors." (Prudential Pension Analyst)



[Guidance Overview]
Year-End Compliance Reminders for Defined Contribution Plans That Are Not Subject to ERISA (PDF)

Excerpt: "This information applies to defined contribution plans, such as qualified governmental plans (including 'grandfathered' 401(k) plans), qualified church plans that do not elect to be covered by ERISA ('non-electing church plans'), 403(b) programs, and section 457 plans that are not subject to Title I of ERISA." (Prudential Pension Analyst)



[Guidance Overview]
Year-End Compliance Reminders for Defined Contribution Plans Subject to ERISA (PDF)

4 pages. Includes discussion of 401(k) limits, reviews contribution limits, discusses forfeiture handling, and other common administration-related year-end tasks. (Prudential Pension Analyst)



[Guidance Overview]
Understanding ERISA 3(38) Fiduciary Delegation

Excerpt: "My recent four-part series on Delegation for Plan Sponsors has created some confusion among a number of readers about a certain issue. That issue involves the significance of the added protection afforded a plan sponsor when it utilizes the services of an advisor serving as a fiduciary under section 3(38) of the Employee Retirement Income Security Act of 1974 as opposed to an advisor serving as an ERISA section 3(21) fiduciary." (Morningstar Advisor)



[Guidance Overview]
Seventh Circuit Rules No Anti-Cutback Violation in Limiting the Availability of a Lump Sum Distribution

Excerpt: "The Seventh Circuit, in Wetzler v. Illinois CPA Society & Foundation Retirement Income Plan . . . (7th Cir. Nov. 10, 2009), ruled that a plan amendment that expressly limited the circumstances under which a lump sum distribution would be available to highly compensated employees (HCEs) did not violate ERISA Section 204(g), ERISA's anti-cutback rule." (Proskauer Rose)



[Guidance Overview]
District Court Certifies a Class of 24,000 Plan Trustees in the Haddock v. Nationwide Revenue Sharing Litigation

Excerpt: "Plaintiffs contend that Nationwide used its aggregation of plan investments to extract revenue sharing payments from mutual funds in exchange for investing the plan assets with those mutual funds. According to plaintiffs, Nationwide was a plan fiduciary because, even though the plan trustees selected the funds to offer in each plan, Nationwide acted as a gatekeeper in fund selection by determining the pool of mutual funds from which the plan trustees could select." (Proskauer Rose)



Vanguard's Sample Investment Policy Statement for a Defined Benefit Pension Plan
Excerpt: "This sample document includes typical elements that defined benefit investment committees that want to address funded ratio volatility may include in their investment policy statements." (Vanguard Institutional)



Senate Bill Would Required Disclosure 401(k) Retirement Benefit Projections
Excerpt: "Legislation introduced in the Senate Thursday would require 401(k) and other defined contribution plan sponsors to inform participants how much income they could expect at retirement based on their current account balances. . . . The lawmakers said in a news release that the bill was modeled on a law that requires the Social Security Administration to provide annual statements to workers on how large of a benefit they will be able to expect based on current earnings." (Business Insurance)



South Dakota Board Recommends Limiting COLAs Under State Pension Plan
The board of trustees of the plan determined on a 15-1 vote that it would recommend legislators limit the plan's COLAs on a temporary basis in order to improve the fund's actuarial soundness. (AP via New York Times; free registration required)



New York State Pension Reform to Help Unions as Well as Cut Costs
Teachers unions receive a new benefit; the use of private contractors is restricted; schools and governments are prohibited from opening 401(k)-type plans. (AP via New York Times; free registration required)



California Group Pushes for Pension Reforms
Excerpt: "A group of California taxpayer advocates is aiming to turn a bad run of news for public retirement plans into a pension reform movement in the nation's biggest state. They're pushing a ballot measure that would scale back defined-benefit pension plans for new public workers at both the state and local level. They say their plan would save California governments $500 billion over 30 years." (The Bond Buyer)



Pension Relief Bill Signed Into Law in West Virginia; Cities Can Freeze Retirement Plans
Excerpt: "A long-discussed measure to help West Virginia cities shouldered with skyrocketing police and firefighter pension costs was signed into law Thursday by Gov. Joe Manchin. The legislation, which takes effect Jan. 1, 2010, gives cities the option of closing their existing retirement plans to new hires and refinancing those plans over a 40-year period to pay off their unfunded liabilities." (Herald-Dispatch.com)



N.Y. Pension Reform Headed for Governor's Desk
Excerpt: "A pension-reform measure approved this week by New York state lawmakers and likely to be signed by Governor David A. Paterson raises the retirement age from 55 to 62 as part of a broad plan to save state and local governments about $48 billion over 30 years." (PLANSPONSOR)



[Opinion]
Protecting Our Aging Retirees: Converting 401(K) Accounts into Federally Guaranteed Lifetime Annuities

Excerpt: "We as a society have set up a funding system for retirement that assumes retirees will be able to successfully manage their IRAs for the 20 or 30 years of retirement. We know, however, that most will not. . . . Unless we provide a more secure way to stretch retirement dollars into the twilight of retiree lives, we can expect to see more and more elderly retirees slide into poverty. The solution is to create federally guaranteed life-time annuities that retirees can purchase with the funds accumulated in their 401(k) retirement accounts." (Lawrence A. Frolik of the University of Pittsburgh School of Law)



[Opinion]
Public Employers Can No Longer Afford to Pay Employees' Share of Pension Costs

Excerpt: "[A]t least a third of California's municipal employers and a large number of other public employers across the country continue to pay their employees' share of pension costs, and require no contributions whatsoever for retiree medical benefits. Their pension funding behaviors are the exact opposite of private-sector employers . . . ." (Governing.com)




National Institute of Pension Administrators (NIPA) (Advert.)

NIPA’s 2010 Business Management Conference (2010BMC) Registration Discount Ends Dec. 11 (clickable image)

NIPA’s 2010 Business Management Conference (2010BMC) Registration Discount Ends Dec. 11

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 $100 off the full registration rate!

Links to Items on Executive Comp, Benefits in General

[Guidance Overview]
Discrimination Claims or ERISA Benefit Claims? The ERISA Preemption Divide

Excerpt: "In this case, the plaintiff sued on state law theories of discrimination and retaliation but the facts she alleged were found tilted toward a claim for severance benefits which in turn warranted preemption." (Health Plan Law blog by Attorney Roy Harmon III)


[Guidance Overview]
2009 Deadline For 409A and 162(m) Transition Relief; Documentary Correction Procedures Forthcoming

Excerpt: "Employers with deferred compensation plans must take action now to review their plans to take advantage of limited special relief that expires at the end of 2009. Under the IRS correction program for operational failures, employers may be able to mitigate adverse tax consequences for historical operational errors that occurred before 2008." (Baker & McKenzie)


Watson Wyatt Merger with Towers Perrin Gets Conditional European Regulatory Approval
Excerpt: "Towers, Perrin, Forster & Crosby Inc. and Watson Wyatt Worldwide Inc. have cleared all regulatory hurdles to merge and become Towers Watson & Co., on the condition that Watson Wyatt sells off its actuarial software business. The companies got clearance from the European Commission to form Towers Watson & Co., which will be one of the largest human resources consulting companies with estimated revenue of $3 billion, with the condition that Watson Wyatt sells its life insurance actuarial software business VIPitech." (Washington Business Journal)



Webcasts and Conferences

"Cross-Testing: Making the Most of Single-Member Groups" Recorded Web Seminar
Nationwide on December 3, 2009
presented by SunGard Relius

(Click to post your webcast or conference)

Press Releases

Secretary of Labor Hilda L. Solis to Roll Out US Department of Labor's Regulatory Agenda with Video Remarks and Live Web Chat
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Pittsburgh Business Group on Health Drug Program Lands Solid 1-2 Punch: Drug Costs Dropped in 2008; New Contract Terms Meet Employer Goals, Estimated to Save $55 Million
Pittsburgh Business Group on Health

Majority of Employers Would Reduce Health Benefits to Avoid Proposed Excise Tax, Survey Finds
Mercer

(Click to post your press release)

Employee Benefits Jobs

Pension Administrator
for Chambers Benefit Group
in NM

Senior Pension Administrator
for Snyder Cohn
in MD

401(k) Recordkeeping Accountant
for NRECA
in VA

Participant Communication Consultant
for The Standard
in TX

Director of Business Development
for RPG Consultants
in NY

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