IRS Employee Plans News, August 2, 2010 (PDF)
5 pages. Read this edition of the Employee Plans News for articles on: Tax Return Preparers; Pension Funding Relief; Notices for Single and Multiemployer DB Pension Plans on Pension Funding Relief; Retirement Plans Widget; ESOP-Owned S Corporation; Disregard the Payment Voucher Mailed with New Favorable Autoclosure Determination Letters; and EP Phone Forums.
(U.S. Internal Revenue Service)
Valuation Is Key to Avoiding Problems When Creating an ESOP
Excerpt: "It's important to work with a valuation firm that specializes in ESOPs. There are a number of factors that valuation people will look at, including forward-looking financial analyses that model out what the company will look like with an ESOP."
The Future Financial Status of the Social Security Program (PDF)
15 pages. Excerpt: "This article describes the financial status of the Social Security program, including an analysis of the concepts of solvency and sustainability and the relationship of Social Security to the overall federal unified budget."
(U.S. Social Security Administration)
Form 5500 Schedule C Issues Creating a Potential Rift Between Plan Sponsors and Service Providers (PDF)
2 pages. Excerpt: "Unfortunately, early indications are that there is a difference between what is required to be reported and what will actually be enforced if there is a mistake or misrepresentation. Although the number of specific identification codes has been expanded to 55, and you are supposed to list as many as may be applicable to a specific fee, quite a few codes lack clear definition."
(Prime Trust Advisors)
'10 Things You're Probably STILL Doing Wrong As a Plan Fiduciary'
Excerpt: "The list . . . is a compilation based on my experience, the experiences of a group of experts who conducted a panel by the same title at the PLANSPONSOR National Conference in June, and a list of 'Common Plan Mistakes' from none other than the Internal Revenue Service itself."
Monsanto Cash Balance Plan Cleared of Age Discrimination
Excerpt: "A provision in Monsanto Co.'s cash balance pension plan that cut off interest credits once participants reached age 55 did not discriminate against older workers, a federal appellate court has ruled."
Report Says Focus on Pension 'Earnings' Inhibits Risk Management
Excerpt: "The report describes how current U.S. pension accounting standards cloud true economics by including a 'funny money' component in pension earnings, presenting a fundamental obstacle to CFOs in pursuing rational risk management."
Employees Waiting for Return of 401(k) Match
Excerpt: "All told, almost one in five U.S. companies with at least 1,000 workers have reduced or suspended their matching contributions since September 2008. Roughly half have yet to restore those benefits, though many are considering reinstating at least a portion of the match within the next 12 months . . . ."
(The Wall Street Journal)
Mets Management Called Out by 401(k) Suit
Excerpt: "The suit, filed in the U.S. District Court in Manhattan, is seeking class-action status on behalf of other Sterling employees, hopes to 'recover assets that were lost through imprudent investments made on its behalf.' It names Sterling executives Arthur Friedman and Michael Katz as co-defendants, as well as Mets Chief Executive Officer Fred Wilpon."
Remarks by TIAA-CREF CEO on Retirement Security for 2010 Martin Feldstein Lecture
Excerpt: "Many of you have done research, some of which I'll cite today, that is changing the way we think about retirement, from the perspectives of employers, employees, retirees, and public policy makers. We clearly are at a pivotal moment in the national discussion on retirement security. Over the past 30 years, the responsibility for funding retirement and the associated risks has shifted from employers to individuals."
(Teachers Insurance and Annuity Association - College Retirement Equities Fund)
What Caused San Diego's Ballooning Pension Payment?
Excerpt: "In addition to covering the higher benefit payments, the city is now also repaying for its previous practice of diverting money from the pension fund to increase the city budget."
This year's program for DOL Speaks provides an opportunity to discuss employee benefits issues with colleagues and local, regional and national government employees from the US Department of Labor, including the new DOL Fee Disclosure Regs! Exchanging information and get educated about current regulatory, legislative, fiduciary, health benefits and retirement topics straight from the source. Designed for motivated and involved benefit plan professionals from across the country and the industry!
Register before August 20 and save $100. Visit www.asppa.org/dol.
Benefits in General; Executive Compensation
EBSA's Index of Granted Individual Exemptions under ERISA
Excerpt: "This new online index lets people search by subject matter for individual exemptions granted from 1996 through 2010. For example, the index catalogues exemptions relating to captive reinsurance, co-investing, collateralized mortgage obligations, leases and in-kind contributions."
(U.S. Employee Benefits Security Administration)
Choose an HR Vendor Wisely
Excerpt: "The investigation of an HR services vendor for misappropriating funds earmarked for clients' medical bills, 401(k) claims and payroll shows once again why choosing the right vendors can make all the difference. Selecting consultants offers the same risks as mergers or acquisitions -- and the consequences of choosing poorly can be 'disastrous.'"
(Human Resource Executive Online)
Economic Downturn Influencing Rewards Strategy (PDF)
Excerpt: "[This article] looks at Hay Group's Changing Face of Reward research and examines how the business drivers of rewards are changing due to the impact of the global downturn and other macroeconomic trends in the global economy."
(Premium Incentive Products Magazine)
Webcasts and Conferences
Newly Posted Employee Benefits Jobs
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
This email has been published by:
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
Fax: (407) 644-2151
Jeanette Hull, News Editor
David Rhett Baker, J.D., Editor and Publisher
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: