DB Plans Still Face Sizable Funding Obligations Despite Market Run-Up in 2009
Excerpt: "Towers Watson has projected aggregate regulatory funded status and minimum required contributions for single-employer defined benefit (DB) plans in a continuing series of studies. To again facilitate discussions in the pension community -- particularly about the necessity and the nature of legislative funding relief -- we update the projections to reflect new financial and economic conditions and outlooks. Absent a legislative reprieve, we estimate that the funding obligations of DB plans will remain substantial, despite the excellent run in the capital markets in late 2009."
(Towers Watson)

Tough Times Require Strong Social Security Benefits: Views on Social Security
Excerpt: "Plagued by higher unemployment rates, fewer assets, and worries about paying their monthly bills, African Americans and Hispanics are especially supportive of strengthening Social Security. For example, when given a choice between cutting taxes and government spending or strengthening Social Security in response to the economic crisis and large deficit, two in three Americans (66%) - including 73 percent of African Americans, 67 percent of Hispanics, and 66 percent of whites - support strengthening Social Security over cutting its benefits."
(National Academy of Social Insurance)

Underfunded State Retirement Systems and the Roads to Reform (PDF)
66 pages. Excerpt: "In fiscal year 2008, which for most states ended on June 30, 2008, states' pension plans had $2.8 trillion in long-term liabilities, with more than $2.3 trillion socked away to cover those costs . . . ."
(The Pew Center on the States)

California, Other States Face Problem of Growing Pension Liabilities, According to Pew Report
Excerpt: "States could trim future obligations by reducing benefits for future employees and requiring greater employee contributions to retirement funds, the Pew report says. They also could raise retirement ages and improve the way pension funds are managed."
(Los Angeles Times)

Restored 401(k) Matches Point to an Economic Thaw
Excerpt: "Eighty percent of companies that suspended or reduced their company matches in 2009 say they are planning to restore it this year, according to Hewitt Associates, a human resources consulting and outsourcing services company."
(The Washington Post; free registration required)

Participants Paying More Attention to Defined Benefit Plans, According to Mercer
Excerpt: "Mercer's outsourcing business has seen a 40% increase in participant requests for calculations of their estimated defined benefit (DB) account values in 2009 versus 2008. In a news release Mercer said the surge is likely driven by concerns over decreased retirement nest eggs following the recent market downturn. While it could be that the surge indicates participants are already evaluating their total retirement position, Mercer says it underscores the need to encourage employees to do so."
(PLANSPONSOR.com)

Mandating Company Stock Investments Does Not Shield Fiduciaries, DOL Says
Excerpt: "Defined contribution plan fiduciaries must assess the prudence of a company stock fund despite plan terms mandating the investment, according to a Department of Labor (DOL) brief filed in the US Second Circuit Court of Appeals (In Re: Citigroup ERISA Litigation). The trial court ruled that because the plan required a company stock option, committee members had no discretion and were not fiduciaries with respect to offering company stock. DOL asserts this would immunize fiduciaries from responsibility for 'even the most imprudent and disloyal investments' and was 'flatly contradicted' by ERISA."
(Mercer LLC)

Pension Fund Accounting, Liabilities, Hurt Investors
Excerpt: "By examining a company's pension accounting, you can find out if it's headed for trouble. A plan that's projected to return a lofty 10% with 40% of its assets in low-yielding bonds should serve as a warning. A plan that allocates too heavily to stocks should be questioned because the potential volatility could create risks for the sponsoring company."
(TheStreet.com)

[Opinion]
Annuities the Next 401(k) SNAFU? Advisers Offer Six Reasons Why
Excerpt: "Now, the government is looking for your ideas on the pluses and minuses of requiring the inclusion of annuities as an option in 401k plans . . . . [T]he Treasury and Labor Department 'also seek an explanation why most retirees, when faced with a choice of a lifetime income option or a lump-sum distribution, choose the lump-sum option.' FiduciaryNews asked several prominent independent investment advisers what they felt about this initiative. They revealed six major concerns every 401k fiduciary must consider regarding annuities."
(Fiduciary News)

[Guidance Overview]
New Military Leave Guidance Under the HEART Act
Excerpt: "The Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act) requires employers to provide certain retirement and welfare benefits for returning military personnel and their beneficiaries. On January 20, 2010, the Internal Revenue Service (IRS) issued Notice 2010-15, which provides long-awaited guidance in the form of questions and answers on several HEART Act provisions, including survivor benefits, benefit accruals, differential pay and distributions."
(McDermott Will & Emery)

[Guidance Overview]
Correcting Deferred Compensation Plan Document Failures Under Code § 409A (PDF)
3 pages. Excerpt: "The new notice also gives an indication of how the IRS views various other § 409A interpretation issues. For example, it explains how a plan where benefits are payable only if the employee signs a release can operate without violating the § 409A payment timing requirements."
(Kelly. Hannaford & Battles P.A.)

Mercer Survey of 2010 Executive Pay Planning
Excerpt: "The unprecedented scrutiny of executive pay isn't letting up any time soon. This attention places more pressure than ever on decision makers to be responsive to stakeholder concerns and to understand the direction of current market practices. This Perspective presents results from Mercer's December 2009 survey of 2010 executive pay planning at more than 120 US organizations, including insights into survey findings on executive salary decisions, annual and long-term incentive program design and various hot-button compensation issues."
(Mercer LLC)

Navigating the Shifting Tax, and Retirement Living Costs, Landscape
Excerpt: "Retirement accounts, charitable gifts and taxes that older, high-income Americans face on Medicare are all in dispute on Capitol Hill. As long as Washington dithers on tax policy, higher-income individuals and people with most forms of investment income will find it difficult to plan their economic lives. Here is a look at the changing tax landscape, starting with little-known levies that can fall hard on higher-income retirees."
(The New York Times; free registration required)

Omaha, Nebraska, Police Benefits Healthier than Most
Excerpt: "Police receive about 15 days a year in sick days. If an officer stays healthy, he can eventually earn an extra week of vacation and accumulate a sick-leave bank that can be cashed out after 20 years for up to about 10 months' worth of pay. The average worker's sick-day benefits in Omaha are not as generous. Nor are those for state employees or state troopers. Sick days are just one provision in the Omaha police contract -- both the current and proposed contracts -- where benefits enjoyed by police exceed those found in the private sector and among state employees."
(Omaha World-Herald)

Microsoft Does a Benefits Tech Makeover
Excerpt: "In the face of rising costs, a maturing workforce and a wide range of benefit offerings, the company's HR delivery team viewed a unified employee benefits portal as critical to managing Microsoft's 100-percent-employer-paid health care benefits."
(Workforce Management; free registration required)

Labor Force Participation Rates: The Population Age 55 and Older, 2008 (PDF)
Pages 10-17 of 20 pages. Excerpt: "The Near Elderly And Elderly Are Staying In The Work Force Longer: The labor-force participation rate is increasing for those age 55 and older. The percentage of civilian noninstitutionalized Americans age 55 or older who were in the labor force declined from 34.6 percent 1975 to 29.4 percent in 1993. However, since 1993, the labor-force participation rate has steadily increased, reaching 39.4 percent in 2008 -- the highest level over the 1975-2008 period."
(Employee Benefit Research Institute)

Ex-Benefits Administrator Charged in $40M Embezzlement Case
Excerpt: "The former administrator of a New York union benefits fund was indicted for embezzling $40 million to support a lavish lifestyle. Prosecutors in the case allege that the spending included $5 million for horses, $300,000 for women's clothes at Neiman Marcus and about $1 million for jewelry."
(PLANSPONSOR.com)

"401(k) Plan Workshop: Current Issues and New Developments" - Appleton
in Wisconsin on March 26, 2010
presented by SunGard Relius

"401(k) Plan Workshop: Current Issues and New Developments" - Des Moines
in Iowa on March 25, 2010
presented by SunGard Relius

"401(k) Plan Workshop: Current Issues and New Developments" - Norfolk
in Virginia on March 26, 2010
presented by SunGard Relius

"401(k) Plan Workshop: Current Issues and New Developments" - Seattle
in Washington on March 19, 2010
presented by SunGard Relius

"Form 5500/EFAST2 Workshop" - Appleton
in Wisconsin on March 25, 2010
presented by SunGard Relius

"Form 5500/EFAST2 Workshop" - Des Moines
in Iowa on March 24, 2010
presented by SunGard Relius

"Form 5500/EFAST2 Workshop" - Irvine
in California on March 18, 2010
presented by SunGard Relius

"Form 5500/EFAST2 Workshop" - Norfolk
in Virginia on March 25, 2010
presented by SunGard Relius

"Form 5500/EFAST2 Workshop" - Phoenix
in Arizona on March 19, 2010
presented by SunGard Relius

"Form 5500/EFAST2 Workshop" - Seattle
in Washington on March 18, 2010
presented by SunGard Relius

403(b) Plan Audits
in Illinois on March 25, 2010
presented by ASPPA Benefits Council of Chicago

Best Practices for Other Retirement Plans When You Have an ESOP
Nationwide on March 16, 2010
presented by National Center for Employee Ownership

Business Literacy
Nationwide on April 7, 2010
presented by National Center for Employee Ownership

Challenges and Solutions for Mature ESOP Companies
in Pennsylvania on October 20, 2010
presented by National Center for Employee Ownership

Effective Boards of Directors: Best Practices in Governing an ESOP Company
in California on May 26, 2010
presented by National Center for Employee Ownership

Effective ESOP Committees
Nationwide on March 2, 2010
presented by National Center for Employee Ownership

ESOP Accounting: Financial Reporting by Plan Sponsors
Nationwide on February 23, 2010
presented by National Center for Employee Ownership

ESOP Company Case Studies
Nationwide on April 8, 2010
presented by National Center for Employee Ownership

ESOP Feasibility
Nationwide on April 1, 2010
presented by National Center for Employee Ownership

ESOPs as a Business Transition Tool
Nationwide on March 30, 2010
presented by National Center for Employee Ownership

Executive Compensation for ESOP Companies
Nationwide on March 18, 2010
presented by National Center for Employee Ownership

Executive Compensation in ESOP Companies
in California on May 27, 2010
presented by National Center for Employee Ownership

Fiduciary Issues for Internal ESOP Trustees
in California on May 25, 2010
presented by National Center for Employee Ownership

Handling the ESOP Repurchase Obligation
in Pennsylvania on October 19, 2010
presented by National Center for Employee Ownership

Handling the Repurchase Obligation - How Repurchase Affects Valuation
Nationwide on June 3, 2010
presented by National Center for Employee Ownership

Handling the Repurchase Obligation - Legal Issues
Nationwide on June 1, 2010
presented by National Center for Employee Ownership

Handling the Repurchase Obligation - Planning Issues
Nationwide on June 2, 2010
presented by National Center for Employee Ownership

Is an ESOP Right for You?
in Illinois on September 28, 2010
presented by National Center for Employee Ownership

NY CLE Program: The Benefits Professional's Guide to Labor and Employment Law
in New York on March 18, 2010
presented by WEB (Worldwide Employee Benefits Network ), New York Chapter

Roth or Not to Roth? - Webcast
Nationwide on March 9, 2010
presented by InvestmentNews

S Corporation ESOPs - Administrative Issues
Nationwide on May 19, 2010
presented by National Center for Employee Ownership

S Corporation ESOPs - Legal Isses
Nationwide on May 18, 2010
presented by National Center for Employee Ownership

S Corporation ESOPs - Valuation Issues
Nationwide on May 20, 2010
presented by National Center for Employee Ownership

Second-Stage ESOP Transactions
Nationwide on March 9, 2010
presented by National Center for Employee Ownership

SEP Plan Pitfalls Phone Forum (Free)
Nationwide on February 26, 2010
presented by Internal Revenue Service (IRS)

Strategic Planning for Your ESOP
in Pennsylvania on October 21, 2010
presented by National Center for Employee Ownership

What You Need to Know as an Internal ESOP Fiduciary
Nationwide on May 4, 2010
presented by National Center for Employee Ownership

Click to post your webcast or conference

PBGC Assumes James Square Nursing Home Pension Plan
Pension Benefit Guaranty Corporation (PBGC)

Many Defined Benefit Plans Face Unexpected, Daunting Funding Demands
Principal Financial Group

NBCH Issues Annual eValue8 Report on Efforts of Health Plans to Prevent Diabetes and Promote Better Care
National Business Coalition on Health

ftwilliam.com Introduces ftwLink 2.1
ftwilliam.com

RPG Consultants Expands Advisor Network
RPG Consultants

Pew Study Finds States Face $1 Trillion Shortfall in Retiree Benefits
Pew Charitable Trusts

NASRA, NCTR Issue Statement on Pew Retirement Report
National Association of State Retirement Administrators

Two Industry Veterans Join Integrated Retirement Initiatives
Integrated Retirement Initiatives, LLC

Blue Prairie Group Launches Fiduciary-Based Investment Consulting Report
Blue Prairie Group

US Insurers Adopt Common Platform to Address Medication Use
Outcomes Pharmaceutical Health Care

Click to post your press release

Plan Administrator for Retirement Plan & ERISA Specialists
for Dana Consulting Group, Ltd.
in IL

Transition Manager – Retirement Services
for MassMutual Financial Group
in MA

Employee Benefit Senior Associate
for Allen, Gibbs & Houlik L.C.
in KS

Notices Coordinator
for New York Life Retirement Plan Services
in MA

Actuarial Assistant
for New York Life Retirement Plan Services
in MA

Participant Communications Specialist
for New York Life Retirement Plan Services
in MA

Click to post your job on EmployeeBenefitsJobs.com | View all jobs | RSS feed of all jobs

• View Today's Active Message Threads
• Using the Web for Employee Benefits Research (hypertext article)
• Employee Benefits Library

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 2010 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:

• How to Sponsor an Issue
• Privacy Policy
• Archive of Previous Newsletters