Text of Proposed Regs for Hybrid (Cash Balance) Retirement Plans (PDF)
20 pages. Excerpt: "This document contains proposed regulations providing guidance relating to certain provisions of the [Code] that apply to hybrid defined benefit pension plans. . . . This document also provides a notice of a public hearing on these proposed regulations."
(U.S. Internal Revenue Service)
PBGC Announces Maximum Insurance Benefit for 2011; Unchanged from 2010
20 pages. Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) today announced that the maximum insurance benefit for participants in underfunded pension plans terminating in 2011 will be $54,000 per year for those who retire at age 65. The amount is higher for those who retire later and lower for those who retire earlier or elect survivor benefits (see chart). The PBGC maximum insurance benefit is indexed to a contribution and benefit base in Social Security law. Because that amount does not increase for 2011, the PBGC maximum insurance benefit is unchanged from 2010."
(Pension Benefit Guaranty Corporation)
IRS Issues Proposed and Final Regulations on Hybrid Retirement Plans
Excerpt: "The agency said the final regulations incorporate the transitional guidance provided under Notice 2007-6 as well as the provisions of the 2007 proposed regulations. The regulations adopt the terminology used in the proposed regulations (such as 'statutory hybrid benefit formula' and 'lump sum-based benefit formula') to take into account situations where plans provide more than one benefit formula."
IRS Issue Rules on Cash Balance Plan Interest Rates
Excerpt: "Cash balance pension plan sponsors that use a relatively high fixed rate to credit interest to employees' accounts would have to lower those rates under rules the Internal Revenue Service proposed Monday."
SSA's 2011 Social Security Indexed Figures
Excerpt: "This will be the second year in a row without an automatic COLA since the adjustment went into effect in 1975. Some other changes that would normally take effect in January 2011 based on the increase in average wages also will not take effect."
The DOL's Final Rule on Participant Fee Disclosure
Excerpt: "No discussion of the DOL's approach to the issue of retirement plan fees is complete without an evaluation of their motivation for pursuing fee disclosure in the first place. As a part of their final rule on participant fee disclosure, the Department shored up its economic justification for enhanced disclosure."
Company Stock Revisited: Some Good News, but Room for Improvement
Excerpt: "'Eleven percent of the 3.4 mil.lion Vanguard participants have concentrated positions in company stock,' . . . . 'The problem with company stock concentration is your livelihood is already tied to that company, and now you've also got your retirement plan account tied to that company's performance. It's a great example of putting too many eggs in one basket.'"
(The Vanguard Group, Inc.)
Los Angeles Mayor Introduces Pension Reform Proposal
Excerpt: "With Los Angeles facing a $320-mil.lion budget shortfall next year, Mayor Antonio Villaraigosa backed on Monday what he termed a 'landmark proposal' to reform 'out of control' pension costs and retiree health benefits for newly hired city police officers and firefighters."
(Los Angeles Times)
Federal Retirees Face 6- to 12-Month Waits for Full Pension Checks
Excerpt: "OPM calculates checks using an outdated system of paper-based records that has defied four attempts at modernization over 23 years. The result is that retirees -- between 46,000 and 62,000 a year -- receive partial annuity payments that are roughly 60 percent of what they are owed for months until OPM figures out what the full exact amount should be."
(Army Times Publishing Co.)
Retirement Issues Likely a Hot Topic in New Congress
Excerpt: "No matter how Congress approaches the problem, concerns about retirement security are growing more urgent during a time of sluggish economic growth . . . . As baby boomers put off retirement because of loss of income or assets -- or both, they'll be occupying jobs that could go to younger people."
(Workforce Management; free registration required)
Cost of Living Adjustment for Social Security Beneficiaries
Excerpt: "Based on low inflation data for fiscal 2010, Social Security beneficiaries won't receive a cost-of-living adjustment for 2011. [The author] explains how the Bureau of Labor Statistics measures inflation, the shortcomings of that index, and what alternative measures are out there."
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
Benefits in General; Executive Compensation
Nonqualified Plans Still Liked by Tax-Exempt Organizations
Excerpt: "According to Mercer's Executive Benefit and Perquisite Practices Survey for Tax-Exempt Organizations, these plans are most prevalent among health care organizations (60%), followed by foundations and charities (50% and 32%, respectively). Among all tax-exempt sectors, the prevalence of nonqualified plans significantly decreases when moving down the executive ranks."
2011 IRS Limits Announced
Excerpt: "The 2011 HSA limits were announced in May. The remaining limits were announced by the Treasury in mid-October."
(Kushner & Company)
The Financial Time Bomb of Longer Lives
Excerpt: "No other force is as likely to shape the future of national economic health, public finances and national policies, according to a new analysis on global aging from Standard & Poor's, as the 'irreversible rate at which the population is growing older.'"
(The New York Times; free registration required)
Webcasts and Conferences
Newly Posted Employee Benefits Jobs
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
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 subscribe to this newsletter.
Other useful links: