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."
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."
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)
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.
Executive Compensation; Benefits in General
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)
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