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Retirement Plans Newsletter

October 14, 2010

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SunGard offers these sessions on fee disclosures:
Participant Fee Disclosure — The Third Time Is the Charm — This Nov. 3 Web seminar provides details on the new participant fee disclosure regulations. This seminar also repeats on Nov. 16.
ERISA Workshop — Hosted in 24 cities, this full-day seminar focuses on the service provider fee disclosure regulations, forfeitures, in-plan Roth rollovers, and other current need-to-know topics.
Read more about our programs here.
Sponsored by SunGard

[Official Guidance]
Text of EBSA-Issued 'Fact Sheet' on Final Regs for Discosure of Investment Fees and Expenses to Self-Directed Plan Participants
Excerpt: "In addition to the plan-related information that must be furnished up front and annually, participants must receive statements, at least quarterly, showing the dollar amount of the plan-related fees and expenses (whether 'administrative' or 'individual') actually charged to or deducted from their individual accounts, along with a description of the services for which the charge or deduction was made."
(Employee Benefits Security Administration, U.S. Department of Labor)

[Official Guidance]
Text of EBSA Final Regs on Disclosure of Investment Fees and Expenses to Self-Directed Plan Participants (PDF)
142 pages. The regulation applies to plan years beginning on or after November 1, 2011. Excerpt: "[A]ll participants and beneficiaries with the right to direct the investment of assets held in their individual plan accounts should have access to basic plan and investment information. For this reason, the Department is issuing this regulation under ERISA section 404(a), with conforming amendments to regulations under section 404(c). This regulation . . . establishes uniform, basic disclosures for such participants and beneficiaries, without regard to whether the plan in which they participate is a section 404(c) plan. In addition, the regulation requires participants and beneficiaries to be provided investment-related information in a form that encourages and facilitates a comparative review among a plan's investment alternatives."
(Employee Benefits Security Administration, U.S. Department of Labor)

[Official Guidance]
EBSA-Issued Model of 'Comparative Chart' Described in Final Regs on Disclosure of Fees and Expenses to Self-Directed Plan Participants (MS Word Document)
5 pages. Excerpt: "This document has 3 parts. Part I consists of performance information for plan investment options. This part shows you how well the investments have performed in the past. Part II shows you the fees and expenses you will pay if you invest in an option. Part III contains information about the annuity options under your retirement plan."
(Employee Benefits Security Administration, U.S. Department of Labor)

[Official Guidance]
Disaster Relief Announcement 10-17 Relating to PBGC Deadlines in Response to Severe Storms, Flooding and Tornadoes in Wisconsin
Excerpt: " Pension Benefit Guaranty Corporation . . . is waiving certain penalties and extending certain deadlines in response to the severe storms, flooding and tornadoes that occurred on July 20, 2010, in Wisconsin."
(Pension Benefit Guaranty Corporation)

[Official Guidance]
Listing of IRS Published Guidance for August - October 2010
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements.
(U.S. Internal Revenue Service)

[Guidance Overview]
Bechtel Has Agreed to $18.5 Mil.lion Settlement of an Excessive 401(k) Fee Suit
Excerpt: "A Los Angeles Times news report said the agreement would end proceedings in a class-action case filed by two former Bechtel employees in California who alleged the company violated its [ERISA] fiduciary responsibilities by not using its size to get lower fees from vendors . . . ."

[Guidance Overview]
Tax-Qualified Retirement Plans: Amendments and Other Year-End Action Items
Excerpt: "[This webcast] outlined potential required 2010 year-end qualified retirement plan amendments and participant notices. Topics discussed included: Required-law amendments; QDIA and safe-harbor 401(k) notices; Other required communications; and, Early 2011 deadline matters (e.g., Cycle E filings, benefit restriction notices)."
(Morgan, Lewis & Bockius LLP)

[Guidance Overview]
FASB's Proposed New Disclosure for Employers in Multiemployer Plans
Excerpt: "Under the Proposal, an employer would be required to disclose additional quantitative and qualitative information about its participation in a multiemployer plan. The Proposal would not change the standards for recognition of liabilities associated with multiemployer plans (i.e., booking a charge to income on the employer's financial statement). Instead, the Proposal would require additional narrative footnotes to the employer's financial statement."
(McGuireWoods LLP)

BP Employee Savings Lawsuits Sent to Texas Court Handling Oil Spill Claims
Excerpt: "In the suits, filed as class actions on behalf of all U.S. employees participating in the company's retirement savings plan, workers claim losses of more than $1 bil.lion from the stock plunge after the April 20 spill. BP's pre-spill safety record made the London-based company a risky investment, the employees say."
(Bloomberg L.P.)

When It Looks Too Good to be True: Rollovers as Business Start-Ups
Excerpt: "A withdrawal from a 401(k) plan or individual retirement account . . . is [a possibility for raising capital]. [From Texas Tax Lawyer, Vol. 38, No. 1, State Bar of Texas Tax Section, October 13, 2010.]"
(Haynes and Boone, LLP)

Segmenting the Middle Market: Retirement Risks and Solutions (PDF)
64 pages. Excerpt: "The major indication for all segments of mid-level net worth households is that in most cases it will be necessary to convert home value into cash at some point."
(Society of Actuaries)

Summary of Puerto Rico Plan Issues (PDF)
Excerpt: "In response to recent IRS guidance, many plan sponsors are now in the process of spinning off assets and liabilities associated with Puerto Rico resident employees covered by their U.S./Puerto Rico dual tax-qualified plans to new plans qualified only in Puerto Rico."
(American Benefits Council)

`How Dare You Take My Pension' Becomes Refrain as Voters Consider Cutbacks
Excerpt: "As public-pension costs soar . . . they're igniting political fights across the country. In California alone, voters in nine cities and counties will decide next month whether to curb benefits for current or retired police officers, firefighters, librarians and janitors."
(Bloomberg L.P.)

Sponsors Might Gain More Time for Amending Hybrid Plans to Comply with PPA
Excerpt: "Under current law, the amendments are due by the end of the 2010 plan year. The purpose of the extension would be to give sponsors sufficient time before amending their plans to analyze the new final and proposed regulations on hybrid plans that are expected to be issued soon."
(Towers Watson)

PBGC Will Share Its Principal Modeling Tool, the Pension Insurance Modeling System, with Society of Actuaries
Excerpt: "[Under] the agreement, the PBGC has delivered to the SOA a copy of the PIMS source code, the PIMS database, and related model documentation. The SOA will use PIMS to produce its own research and analysis for reports and other external communications."

Pensions and Retirement Plan Enactments in 2010 State Legislatures as of October 10, 2010
Excerpt: "[The goal of this report] is to help researchers and policy makers know how other states have addressed issues that could arise in any state. In keeping with that goal, the report excludes most clean-up legislation, cost-of-living adjustments, administrative procedures and technical amendments."
(National Conference of State Legislatures)

How the ERISA Fiduciary Can Avoid the 3rd Deadly Sin: Bond Insecurity
Excerpt: "For a traditional conservative (as opposed to speculative) long-term investor seeking higher returns using traditional investments, stocks and cash remain the only viable investment vehicles. The classic benefits of bonds no longer exist."
(Fiduciary News)

Baby Boomers, the 401(k) and Social Security
Excerpt: "Literally trillions of dollars of income tax will be paid . . . as retirees consume their tax deferred savings. This 401(k) generated tax resource will help the government meet its Social Security promise to baby boomers and perhaps reduce the future tax burden on younger workers. 401(k) is about more than just individual retirement savings."
(Profit Sharing / 401k Council of America)

New rules from the IRS require paid tax preparers to obtain a PTIN, as well as either meet broad competency requirements or become an Enrolled Retirement Plan Agent (ERPA). We can help you become an ERPA with our incredible tools, practice exams and study aids. Register now and order your materials. The exam window is January 6-February 17, 2011!

For more information and study aids, visit AIRE, LLC. To register for the exam, visit ERPA Exam

Sponsored by AIRE, LLC

Benefits in General; Executive Compensation

Time Off for Voting: State-by-State
Excerpt: "Many states allow employees to take time off, sometimes with pay, so that they can vote. The chart below provides a general overview of each state's law as to time off, pay, and what, if any, advance notice is required before taking time off to vote."
(Vorys, Sater, Seymour and Pease LLP)

Webcasts and Conferences

"ERISA Workshop" - Appleton
in Wisconsin on November 9, 2010
presented by SunGard Relius

"ERISA Workshop" - Chicago
in Illinois on November 10, 2010
presented by SunGard Relius

"ERISA Workshop" - Dallas
in Texas on November 11, 2010
presented by SunGard Relius

"ERISA Workshop" - Irvine
in California on November 12, 2010
presented by SunGard Relius

"ERISA Workshop" - Kansas City
in Kansas on November 11, 2010
presented by SunGard Relius

"ERISA Workshop" - Milwaukee
in Wisconsin on November 10, 2010
presented by SunGard Relius

"PTIN and Me: New Rules; New Duties; New Questions" Web Seminar
Nationwide on October 26, 2010
presented by SunGard Relius

"The New Service Provider Fee Regs: The Wait Is Over" Archived Web Seminar
Nationwide on October 13, 2010
presented by SunGard Relius

Press Releases

COBRA Premium Subsidy Helped Fewer Than Expected
Employee Benefit Research Institute (EBRI)

ASPPA's College of Pension Actuaries Issues Letter to PBGC
American Society of Pension Professionals & Actuaries (ASPPA)

Newly Posted Employee Benefits Jobs

Qualified Plan Specialist
for Beyer-Barber Company
in PA

Defined Benefit Operations Analyst-(Contractor)
for SunGard Financial Systems
in NJ, NY

Defined Contribution Manager
for The Angell Pension Group, Inc.

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