Pre-PPA Plan Was Not Required to Use Statutory Discount Rate to Calculate Opening Account Balance
Excerpt: "A defined benefit plan that converted to a cash balance plan in 2000 (prior to the enactment of the Pension Protection Act of 2006) did not violate ERISA's bar on reducing accrued benefits when it used a higher discount rate to calculate the accrued benefit portion of the participants' opening account balance than the applicable rate provided under Code Sec. 417(e)(3), the U.S. Court of Appeals in St. Louis (CA-8) has ruled in Sunder v. U.S. Bancorp Pension Plan."
(Wolters Kluwer Law & Business)
Important Aspects of Reporting Direct and Indirect Compensation on Schedule C
Excerpt: "The revised schedule C requires plans to report both direct and indirect compensation paid to service providers. This Update will discuss the differences between the two. . . . [Question:] Does it make a difference in determining direct compensation how the plan allocates an expense among participant accounts? . . . . [Question:] What mutual fund or other investment fund expenses are indirect compensation? "
Employer Can Reduce Monthly Pension to Fix Error
Excerpt: "A federal court has ruled that an employer did not breach its fiduciary duties by decreasing a retiree's monthly pension check to recover overpayments made to him due to a miscalculation of his benefit amount."
403(b) Retirement Plan Audits -- Frequently Asked Questions (PDF)
6 pages. Excerpt: "The AICPA 403(b) Plan Audit Task Force has prepared these questions and answers to assist plan auditors and plan administrators (hereinafter used to also refer to the plan sponsors or employers) in implementing the U.S. Department of Labor (DOL) financial statement audit requirements (and subsequent enforcement relief) for section 403(b) retirement plans that are subject to [ERISA]."
(American Institute of CPAs, via the SPARK Institute)
Senate Bill Would Permit Roth Conversion Within 401(k)s
Excerpt: "According to a statement from Brian Graff, Executive Director/CEO of The American Society of Pension Professionals & Actuaries (ASPPA), an amendment to H.R. 4123 was adopted by unanimous consent that would allow distributable 401(k) account balances to be converted to Roth accounts within the 401(k) plan."
Public Pension Funds Are Adding Risk to Raise Returns
Excerpt: "[S]tates and other bodies of government are seeking higher returns for their pension funds, to make up for ground lost in the last couple of years and to pay all the benefits promised to present and future retirees. Higher returns come with more risk."
(New York Times; free registration required)
Pension Envy: The DB Haves vs. The DB Have-Nots
Excerpt: "Olivia Mitchell, the great retirement thinker and executive director of the Pension Research Council at the Wharton School, has seen enough of this resentment to give it a name: Pension Envy. Do you have it? Check the symptoms: One is strong feelings of regret that you didn't become a teacher or judge or dog catcher. The other is anger over the rising taxes you will have to pay to support government pensioners."
(CBS Money Watch)
Conditions for Defined Benefit Plan Funding Relief Are Needed to Protect Plan Participants (PDF)
2 pages. Excerpt: "As the Senate addresses pension funding relief as part of the tax bill, we urge you to maintain the 'cash-flow matching rule,' which will ensure that companies cannot use corporate cash to pay for excessive executive compensation, stock buy-backs and extraordinary dividends, while they are relieved from the statutory funding requirements for the plan covering rank-and-file workers. We take issue with the business community's view that the conditions of the proposed relief for single employer pension plans are too restrictive."
(Pension Rights Center)
Valued by every practitioner and recommended for every ERPA candidate, The ERISA Outline Book, 2010 Edition
by Sal L. Tripodi, JD, LLM offers six volumes of vital information on everything you need to know. Highlights include new guidances on waiver of 2009 required minimum distribution, automatic enrollment, discontinuing safe harbor nonelective contributions, EFAST2 electronic filing system, court cases on scrivener's errors and over 100 new rulings, guidances and regulations affecting retirement plans.
Pre-order your copy today! Visit www.asppa.org/bookstore to order now!
Executive Compensation; Benefits in General
Webcasts and Conferences
ERISA Advisory Council Meeting
in District of Columbia on March 22, 2010
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Nationwide on March 16, 2010
presented by FutureOffice Network
Newly Posted Employee Benefits Jobs
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