Retirement Plans Newsletter

February 10, 2010

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  • Annual Reporting Series: EFAST2 5500-series, PBGC Premium-series, SAR + all schedules and attachments
  • 1099-R Series: with related forms and 1099 electronic filing/Service Bureau
  • Qualification & Termination: 5300/5310-series and PBGC 500/600-series forms
  • FAS 132/158: Audit Letter, Worksheets, Schedules or call (888) 324-2474

[Guidance Overview]
EFAST2: Confusion on Short Year Filing
Excerpt: "Since the 2008 Form 5500 Instructions, the DOL has told us that plans having a short plan year beginning in 2009 and ending no later than May 31, 2009 could either (1) file their 2009 form 5500 on paper (using 2008 forms), or (2) file electronically within 90 days after the EFAST2 system became available (December 31). Unfortunately, confusion has resulted on both fronts. The good news is that the DOL is trying to make it right."
(SunGard Relius)

Insurers Test Market as Obama Opens Door for 401(k)s
Excerpt: "Insurers and mutual-fund companies are starting to sell retirement accounts with built-in annuities in response to concerns Americans will outlive their savings. President Barack Obama on Feb. 1 called for a change in government rules to allow adding annuities to 401(k) retirement plans. While the annuities offer a steady stream of income in exchange for upfront payments, the price for peace of mind may be higher fees and less access to cash."
(Bloomberg L.P. via BusinessWeek)

401(k) Fee Litigation, February 2010
Excerpt: "In addition to the lawsuits against plan sponsors, lawsuits have been brought against 401(k) plan service providers. These cases typically are based on allegations that the service providers are 'functional fiduciaries' under ERISA. [The outline and the chart are attached to the target page.]"
(Groom Law Group)

Real Facts About Target Date Funds in Response to ICI's Myths and Facts (PDF)
9 pages. Excerpt: "In January, the Investment Company Institute . . . released a set of 6 'Myths' about Target Date Funds. The ICI list misrepresented many of the basic facts about target date funds and painted an overly rosy picture of the target date fund marketplace. This paper intends to set the facts straight. In so doing we received comments and thoughts from Joe Nagengast and Craig Isrealsen of Target Date Analytics and from Independent Fiduciary Matthew Hutcheson. This paper will look at how target date funds fit into America's retirement picture and address the 6 'Myths' identified by the ICI."

California Attorney General Candidate Takes Aim at Public Employee Retroactive Pension Increases
Excerpt: "John Eastman, a conservative constitutional scholar vying to be California's next chief legal officer, said that labor contracts retroactively boosting pensions for local government workers violates a 1970 provision in the state constitution that prohibits increasing compensation for work that was previously completed."

Retirement Expectations, Confidence and Realities: Survey Results (PDF)
12 pages. Excerpt: "ING's latest retirement investor survey explores how people envision retirement, how confident they are in their ability to achieve their visions..and looks at what retirement's actually like for those who are there!"
(ING Institute for Retirement Research)

Burlington, Vermont, Files FINRA Complaint against Morgan Stanley
Excerpt: "The city of Burlington, Vermont, has filed a regulatory complaint against Morgan Stanley alleging that the firm's consultants sold the city pension fund investments that caused it to lose $21 million. . . . The city made public its complaint with the Financial Industry Regulatory Authority (FINRA) after getting City Council approval to file the FINRA action."

Small Business Owner Promised to Contribute to Employees' Retirement Plans But Failed to Do So
Excerpt: "Our firm promised to contribute a 3% match to employees' retirement accounts for 2008. However, we have been unable to do so. What are our obligations, legally and ethically?"
(Bloomberg L.P. via BusinessWeek)

The ASPPA 401(k) Summit | March 14 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.

Executive Compensation; Benefits in General

Connecticut Pension Body Files Executive Pay Proposals
Excerpt: "Connecticut State Treasurer Denise L. Nappier, principal fiduciary of the $22.7-billion Connecticut Retirement Plans and Trust Funds (CRPTF), announced that the CRPTF filed shareholder proposals at twelve major corporations to strengthen executive pay practices."

Washington, D.C. Update: The Feds Have a Full Employee Benefits Agenda (PDF)
5 pages. Excerpt: "In recent months, we have spent a considerable amount of time talking with government officials at the Departments of Treasury and Labor, as well as congressional staff members, concerning regulatory and legislative developments in Washington, D.C. The purpose of this bulletin is to bring you up to date on those subjects."
(Reish & Reicher)

Webcasts and Conferences

Health Management as a Serious Business Strategy, a Conversation with Dr. Dee Edington
in California on March 4, 2010
presented by No. Calif. Chapter of Certified Employee Benefits Specialists (ISCEBS)

SPARK Accredited Retirement Plan Consultant (ARPC) Classroom Session
in Illinois on March 30, 2010
presented by SPARK -- Society of Professional Asset-Managers and Record Keepers

Press Releases

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Newly Posted Employee Benefits Jobs

Research & Communications Specialist
for Northwestern Benefit Corporation of Georgia
in GA

Regional Sales Consultant
for Gallagher Retirement Services
in PA

Paralegal--Employee Benefits
for Trucker Huss, A Professional Corporation
in CA

Senior Pension Administrator
for San Fernando Valley TPA Firm
in CA

Pension Administrator
for 401(k) Recordkeeper
in NY

Director Plan Consulting Services
for OneAmerica Financial Partners, Inc.
in IN

Research Technical Analyst - ERISA/Retirement Services
for OneAmerica Financial Partners, Inc.
in IN

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