To BenefitsLink home page

Retirement Plans Newsletter

July 8, 2010

View Newest Jobs

View all jobs on

Pension Reporter System. Easy to use PC based software for EFAST2 electronic filing. Full instructions and expert support. Choose from 4 modules:
  • 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

[Official Guidance]
Text of IRS Notice 2010-52: Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates (PDF)
4 pages. Excerpt: "This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), the 24-month average segment rates, and the funding transitional segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007."
(U.S. Internal Revenue Service)

[Guidance Overview]
IRS Update of Model Language for Traditional, Roth, and SIMPLE IRAs (PDF)
Excerpt: "The newly revised [Listings of Required Modifications] include a number of substantive additions meant to incorporate applicable provisions of the Worker, Retiree, and Employer Recovery Act of 2008 and the Heroes Earnings Assistance and Relief Tax Act of 2008."
(Sutherland Asbill & Brennan LLP)

[Guidance Overview]
Summary of Single-Employer Plan Funding Relief Legislation (PDF)
9 pages. Excerpt: "In general, the Act contains the following provisions, all of which are explained further [in the target document]: A choice between electing funding relief under the 2 and 7 rule or the 15-year rule for any two years during the 2008-2011 period. . . ."
(American Benefits Council)

[Guidance Overview]
Is a One-Participant Plan Eligible to Correct Late Filings Under the Delinquent Filing Voluntary Compliance Program?
Excerpt: "A one-participant plan which files late should include a letter to the IRS requesting an abatement of the IRS penalty."
(SunGard Relius)

[Guidance Overview]
Has the DOL and the IRS Changed the Ability of One-Participant Plans to File Form 5500-EZ?
Excerpt: "The IRS finally issued the Form 5500-EZ and its accompanying instructions. Unfortunately, the IRS did not include with the instructions any form of extension for plans which had a deadline after December 31, 2009, and before the issuance of the new form."
(SunGard Relius)

New Legislation May Help Both Defined-Contribution and Defined Benefit Plans
Excerpt: "Instead of forcing stable-value fund providers into a bind, however, the current version of legislation only requires further study of the funds. Within 15 months of the bill's passage (likely by October 2011), the Securities and Exchange Commission and the Commodity Futures Trading Commission . . . must study whether or not stable-value contracts 'fall within the definition of a swap' . . . ."

SEC Proposed Regs Would Require Target Date Retirement Funds to Disclose Asset Allocations
Excerpt: "The Securities and Exchange Commission . . . has issued proposed regulations that would require a target date retirement fund that includes the target date in its name to disclose the fund's asset allocation at the target date immediately adjacent to the first use of the fund's name in marketing materials."
(Wolters Kluwer)

Fees, Framing, and Financial Literacy in the Choice of Pension Manager
Excerpt: "A growing literature shows how consumers make mistakes in a variety of different settings pertinent to financial decision-making. Using data from a randomized experiment in Chile, we show how different ways of presenting pension management fees shape consumer choices, and how responses to pension fee information varies by level of financial literacy."
(Pension Research Council; registration required to download working papers)

The 10 Most Generous U.S. Retirement Plans
Excerpt: "The firms with the more generous plans that have $100 million or more in assets are . . . ."

The 10 Most Common Retirement Benefits
Excerpt: "Retirement benefits vary considerably by employer. Most large employers now provide a 401(k) or similar type of retirement account, but other valuable retirement perks including retiree health insurance and traditional pensions are declining."
(U.S. News & World Report)

DOL Sues California-Based Explore General Inc. and Its Officers to Recover Workers' Retirement Plan Contributions
Excerpt: "The [DOL] has sued Explore General Inc. and its officers for allegedly failing to forward more than $70,000 in employee contributions and to collect more than $100,000 in employer contributions owed to the company's 401(k) plan in violation of [ERISA]."
(U.S. Employee Benefits Security Administration)

New York Attorney General Finds Pattern of Public Workers' Inflating Pensions
Excerpt: "Many New York state and local government workers pad their pensions by drastically increasing their overtime in their last years of employment, according to a report released Wednesday . . . ."
(The New York Times; free registration required)

More Workers Checking In on Pension Plans
Excerpt: "Mercer reported a 40 percent increase in defined-benefit participants asking for their estimated end benefit in 2009 versus 2008 . . . ."
(Workforce Management)

Suggested Changes to 'Thinking of Retiring' Special Insert for Workers 55 or Older (PDF)
9 pages. Excerpt: "This document suggests changes to current Social Security publications, specifically the 'Thinking of retiring?' special insert to the annual Social Security Statement for workers 55 or older and the 'When to Start Receiving Retirement Benefits' publication . . . ."
(American Academy of Actuaries)

American Academy of Actuaries Comments on 2011 Schedules SB and MB Filing Instructions and Forms (PDF)
3 pages. Excerpt: "The Pension Committee believes that it would be helpful on the Schedule SB to have guidance on what interest rates to use when calculating the shortfall amortization installment when using the full yield curve to generate the funding target."
(American Academy of Actuaries)

Valued by every practitioner and recommended for every ERPA candidate, The ERISA Outline Book, 2010 Edition by Sal L. Tripodi, J.D., L.L.M. offers six volumes of vital information on everything you need to know. Highlights include: IRS guidance on the waiver of 2009 required minimum distribution; automatic enrollment guidance from the IRS and Treasury; guidance on discontinuing safe harbor nonelective contributions; EFAST2 electronic filing system and DOL guidance; reporting guidance for 403(b) plans, guidance on deferrals from paid time off plans, court cases on scrivener's errors, and over 100 new rulings, guidances and regulations affecting retirement plans.

Order your copy of The ERISA Outline Book, 2010 Edition today! Visit now!

Sponsored by ASPPA

Executive Compensation; Benefits in General

New Executive Compensation and Governance Requirements in Financial Reform Legislation
Excerpt: "In many cases, the Act directs the Securities and Exchange Commission . . . to implement the Act's requirements by adopting rules or directing the national securities exchanges or associations . . . to adopt rules. The Act also authorizes the SEC or securities exchanges to exempt certain companies, such as smaller issuers, from some of the Act's requirements."
(K&L Gates LLP)

National Compensation Survey: Occupational Earnings in the United States, 2009
Excerpt: "The National Compensation Survey . . . provides comprehensive measures of occupational earnings, compensation cost trends, the incidence of benefits, and detailed benefit provisions."
(U.S. Bureau of Labor Statistics)

Social Media Won't Work for Benefits Information, According to Survey
Excerpt: "[A]bout three-fourths of workers said they were not interested in receiving information via Facebook about their employer-sponsored health benefits, tips on improving their health or saving money on health care."
(Business Insurance)

Code Section 457A Traps for Multinational Employers
Excerpt: "In a nutshell, Section 457A limits deferrals of compensation by US individuals employed by 'nonqualified entities' - entities in countries other than the US, which do not have robust tax systems."
(Michael Melbinger via Winston & Strawn LLP)

Webcasts and Conferences

Annual Plan Administration & 401(k) Basics Seminars
in California on August 18, 2010
presented by Actuarial Consultants, Inc.

HIPAA and Other Health Benefits Laws: Compliance Assistance Seminar
in Nebraska on September 14, 2010
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Pension Funding Relief What's In, What's Not and How It Works
Nationwide on July 15, 2010
presented by International Foundation of Employee Benefit Plans

Press Releases

ERIC Commends Appointment of PBGC Director
ERIC (ERISA Industry Committee)

Click to post your job on

Newly Posted Employee Benefits Jobs

Group Benefits Specialist - New Business Development
for David J. Hollinger Associates, Inc.
in MN

Manager, Client Transition
for Prudential
in IA

ERISA Compliance Manager
for Charles Schwab Corp., Inc.
in TX

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: