To BenefitsLink home page

Retirement Plans Newsletter

June 18, 2010

View Newest Jobs

View all jobs on

DATAIR Plan Document System.
Choose your documents: RETIREMENT PLANS: 401(k)/Profit Sharing, 403(b), DB, Cash Balance; CAFETERIA PLANS: 125, HSA, HRA
Choose your formats:
* Long format Standardized and Nonstandardized Prototypes   * Short format Standardized and Nonstandardized Prototypes
* IDP format Volume Submitters   * Prototype format Volume Submitters
Contact or call 1-888-328-2474

[Official Guidance]
Text of Revised 'Notification of Plan Abandonment' to DOL in Case of Abandoned Retirement Plan (PDF)
4 pages, from June 18 Federal Register, but the notice does not state which part or parts of the notice have been revised, or why.
(U.S. Employee Benefits Security Administration)

[Guidance Overview]
DOL Issues Final Regulations on the Timing and Order of QDROs (PDF)
2 pages. Excerpt: "The regulations provide that a plan administrator cannot disqualify a QDRO solely because it is issued after or revises another domestic relations order or QDRO, or is issued after the plan participant's death, divorce, or annuity starting date."
(Buck Consultants)

Is 67 the New 55 for Retirement?
Excerpt: "There are fierce arguments looming over whether taxes should be raised or Social Security benefits should be cut, either outright or through an increase in the retirement age."
(National Public Radio)

IRS Handout for the ESOP Update Phone Forum Presentation, June 24, 2010 (PDF)
23 pages. Excerpt: "'Qualified participant' and 'Qualified election period' as described in section 401(a)(28)(B) of the Internal Revenue Code, the repurchase of employer security under Section 409(h)(2)(B)(i) and issues related to the transfer of employer security and cash between plan accounts."
(U.S. Internal Revenue Service)

Plan Terminations: Annuity Market Quarterly Update (PDF)
4 pages. Excerpt: "It certainly won't come as news that many of the remaining defined benefit plan sponsors in the U.S. are taking steps to terminate their plans. Yet, the actual number of plan terminations has not been high recently. In this article, we focus on the annuity purchase aspect (often referred to as pension close-outs) of plan terminations."
(Aon Consulting)

Where Registered Investment Advisors Stand in the 401(k) Business, According to Study
Excerpt: "Of the plan sponsors with plans that have more than $500 million of assets, among who choose to use a financial advisor to oversee the investments in their company's 401(k) plan, 49% of them use an RIA, according to Retirement Planscape 2010."

Valuing Liabilities in State and Local Pension Plans (PDF)
12 pages. Excerpt: "The conclusion is that whereas using a riskless rate instead of the assumed return on assets produces a very high measure of public pension liabilities, such a change does not have immediate implications for funding or investment. And adopting a riskless rate has clear advantages: it would accurately reflect the guaranteed nature of public sector benefits; it would increase the credibility of public sector accounting with private sector analysts; and it could well forestall unwise benefit increases when the stock market soars."
(Center for State and Local Government Excellence)

Leaders of 4 California Public Employee Unions Agree to Pension Rollback
Excerpt: "Among the concessions: The retirement age would rise by five years for new hires, and current workers must immediately begin contributing more -- at least 10% of their salary -- to their retirement."
(Los Angeles Times)

American Benefits Council Testimony Before DOL/SEC Joint Hearing on Target Date Funds (PDF)
4 pages. Excerpt: "Finally, like with glide paths, any regulations regarding whether target date funds are custom or off the shelf should be drafted so that plan fiduciaries have the flexibility to determine the appropriate offering for its plan participants based on the information obtained from its due diligence."
(American Benefits Council)

8% As the Projected Annual Rate of Return on Assets of a Pension Fund Is Too High
Excerpt: "We've got to start using more credible numbers in booking public pension liabilities. . . . Coming up with a more credible pension liability number is an absolutely necessary first step toward doing the hard work of figuring how either to pay for these benefits or to start cutting them."

The ASPPA Annual Conference is attended by 1,600 of your colleagues, with more than 60 workshops and 80 vendor displays in the exhibit hall focusing on all areas of the retirement business. Attendees even get face time with representatives from every aspect of the retirement plan industry, including the IRS and DOL and Members of Congress and their staffs.
Sponsored by ASPPA

Executive Compensation; Benefits in General

[Guidance Overview]
Securities and Exchange Commission Interpretive Guidance on Executive and Director Compensation Disclosure Rules (PDF)
8 pages. Excerpt: "The guidance replaces staff interpretations issued in previous years, and is drafted in a manner that facilitates periodic future updates. The interpretative guidance is briefly summarized [in the target document] with the most recent guidance presented in italics."
(Frederic W. Cook & Co., Inc.)

Congress Addressing Executive Compensation and Corporate Governance (PDF)
6 pages. Excerpt: "The current global financial crisis, government bailouts and the ensuing contraction of the credit markets have led to calls for increased regulation and government oversight of Wall Street. The U.S. Senate weighed in on the debate when, on May 20, 2010, it passed the Restoring American Financial Stability Act of 2010 . . . ."
(Sutherland Asbill & Brennan LLP)

More Hard Choices in Drafting Compensation Clawback Policies
Excerpt: "How far back in time should the compensation clawback provision reach? Should the policy limit the period of the look back? Should a clawback apply only to amounts earned during a period for which financials were restated? How do we treat compensation payable with respect to a several year period, some years for which financials were not restated?"
(Michael Melbinger via Winston & Strawn LLP)

Proposed Bankrup.tcy Rules Restrict Compensation
Excerpt: "The proposed legislation would subject executive comp to court approval, prohibit bonuses and incentive payments, link executive pay to that of other workers, and grant unions creditor status, among other items."
(Human Resource Executive Online)

ERISA Preemption: Depends on What You Mean by the Word Relate
Excerpt: "I suspect that one of the reasons this issue - of the scope of ERISA preemption - is difficult to handle at times is that there is a language barrier of sorts; as this case shows, relate has a specific meaning in the context of ERISA and ERISA preemption, and an entirely different and broader one when used as part of regular speech . . . ."
(Stephen Rosenberg of The McCormack Firm, LLC)

Webcasts and Conferences

"Fundamentals of 401(k) and Other Qualified Plans" - Chicago
in Illinois on July 21, 2010
presented by SunGard Relius

Benefits Essentials: Health Care Reform
in Pennsylvania on August 24, 2010
presented by University Conference Services

Experts' Guide to Employee Benefits Research
Nationwide on July 22, 2010
presented by ABA Joint Committee on Employee Benefits

Health and Welfare Plan Management for Mid-Sized Employers Conference
in Nevada on September 26, 2010
presented by University Conference Services

Mid-Sized Retirement & Pension Plan Management Conference
in Illinois on October 5, 2010
presented by University Conference Services

Press Releases

Click to post your job on

Newly Posted Employee Benefits Jobs

Retirement Plan Administrator
for a leading national TPA with locations
in MD, NJ, PA

Quality Assurance Auditor
for Milliman
in TX

ESOP Administrator
for Pension Administration Firm in White Plains, NY

External Sales Associate
for Transamerica
in NY

Client Service Plan Administrator
for San Diego Pension Consultants
in CA

Strategic Communications Consultant
for New York Life Retirement Plan Services
in IL

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

Where the best employers find the best candidates!

Handy Links:

Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!

Sign-up form is at (free).

This email has been published by:, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151

Jeanette Hull, News Editor

David Rhett Baker, J.D., Editor and Publisher

Copyright 2010, 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:

Other useful links: