Fees have captured the attention of the DOL in earnest with three sets of major regulations. Our agenda reflects the latest updates, including: service provider fee disclosure regulations, anticipated participant fee disclosure rules, designing service agreements, DB and cash balance plans for DC practitioners, EFAST2, plan correction, new PTIN rules, Washington update, and more. Earn up to 950 minutes of CE credits including 1 ethics hour. Register today
IRS Retirement News for Employers, November 5, 2010, Special Edition (PDF)
2 pages. This special edition covers: Form 5558 Requests for Extension That May Have Been Inadvertently Denied: Procedures for plan sponsors who received extension denial letters in error; Preparer Tax Identification Number renewals; and, Information Reporting Program Advisory Committee Report on IRPAC proposed changes in reporting basis allocation for rollovers, payments made under EPCRS and more.
(U.S. Internal Revenue Service)
Text of Notice: President's Working Group Report on Money Market Fund Reform (PDF)
19 pages. Excerpt: "[SEC] is seeking comment on the options discussed in the report presenting the results of the President's Working Group on Financial Markets' study of possible money market fund reforms. Public comments on the options discussed in this report will help inform consideration of reform proposals addressing money market funds' susceptibility to runs."
(U.S. Securities and Exchange Commission)
New Hampshire High Court Upholds Pension Divestment
See item #8. Excerpt: "Because the trial court found that the trustees could not comply with the Sudan Divestment Act without violating their common law fiduciary duties, the Supreme Court declined to decide what standard to apply in determining whether a trustee who complies with the Sudan Divestment Act has met his fiduciary duties. Given the absence of a definitive ruling, the court remanded the case to the trial court to determine whether the Sudan Divestment Act impermissibly interferes with the trustees' statutory or common law fiduciary duties."
(Cypen & Cypen)
IRS Says Form 5500 Extension Requests Inadvertently Denied
Excerpt: "The agency said its Ogden Campus received numerous Forms 5558 requesting an extension from plan administrators still in the process of updating their systems for newly required electronic filing on the EFAST2 system. But some plan sponsors received a CP 216H notice, Application for Extension of Time to File an Employee Plan Return Denied - Not Timely, in error."
Avoid Penalties When Tapping an IRA Early
Excerpt: "While taxes almost always have to be paid, there is a way to avoid the penalty from IRA withdrawals made before age 59 1/2 by using a so-called 72(t) exception."
Making Savers Winners: An Overview of Prize-Linked Saving Products
Excerpt: "For over three centuries and throughout the globe, people have enthusiastically bought savings products that incorporate lottery elements. In lieu of paying traditional interest to all investors proportional to their balances, these Prize Linked Savings (PLS) accounts distribute periodic sizeable payments to some investors using a lottery-like drawing where an investor's chances of winning are proportional to one's account balances."
(The Pension Research Council; registration required to download papers)
Income Security in Your 80s, Bought in Your 60s
Excerpt: "The insurance is a way to protect you from running out of money should you live to a ripe old age, though it turns your retirement years into something of a contest with the insurance company."
(The New York Times; free registration required)
Income Eligibility Limits for IRA Deductions Will Rise Next Year
Excerpt: "Workers (and their nonworking spouses) who are 50 or older can each contribute up to $6,000 to an IRA in 2011. If you don't participate in another retirement plan and you're not married, you could deduct the amount of your IRA contribution on your tax return, regardless of your income."
(The Washington Post; free registration required)
Investment Company Institute Comments on SEC's Proposed New 12b-1 Rule (PDF)
32 pages. ICI outlines specific comments, concerns, and recommendations on five major elements of the proposal: ongoing sales charges; marketing and service fees; board oversight; new disclosures; and the proposed exemption from Section 22(d) that would allow for a new distribution option.
(Investment Company Institute)
Earn your missing CPE credits for the 2009/2010 cycle. Get the latest on hot regulatory and technical issues all at your convenience with ASPPA’s webcasts. Topics include: hybrid plans, participant fee disclosure, cash balance plan basics, redefining fiduciary status, the 2009 5500 process and much more! Visit www.asppa.org/webcasts
for more information and to register.
Benefits in General; Executive Compensation
Employers Addressing Bedbug Problems
Excerpt: "Amid growing concerns about commercial bedbug infestations -- particularly in New York, where the bloodsuckers have been reported in retail stores, movie theaters and office buildings -- employers need to know what to look for and how to react when potential problems arise, experts say."
(Workforce Management; free registration required)
Las Vegas, Nevada, Police Contract Finally Reveals Hidden Benefits
Excerpt: "[S]even executives of the Las Vegas Police Protective Association, who work nights and weekends only when necessary and who are not essential in protecting the public, for years have received both assignment pay and shift pay. Although they are paid at public expense, the arrangement was never publicly disclosed until written into the last police employee contract, and then only partially."
(Las Vegas Review-Journal)
How Will the 2010 Mid-Term Election Results Impact Employers?
Excerpt: "In the wake of victories that allowed Republicans to take control of the House and gain influence in the Senate, many businesses hope to see reforms of what they view as the anti-business policies of the Obama administration."
(Ford & Harrison LLP)
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