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Retirement Plans Newsletter

November 9, 2010

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DATAIR's DC/Win System for Allocations, Discrimination Testing, and Proposals. Handles New Comparability Plans, Sole Proprietorships, 401(k) and 403(b) plans. Use with our DB System for Cash Balance and Combo Plans. Expert support. DC/401(k) System includes:
* Downloads from many allocated account fund providers * Automated loan processing
* Flexible data import/export * Interface with DATAIR's 5500/1099R system. or call 1-888-328-2474

[Official Guidance]
Text of IRS Notice 2010-76: Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates (PDF)
4 pages. Excerpt: "This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in November 2010; the 24-month average segment rates; the funding transitional segment rates applicable for November 2010; and the minimum present value transitional rates for October 2010."
(U.S. Internal Revenue Service)

[Guidance Overview]
2010 Year-End Reminders for Qualified Defined Contribution Plan Sponsors
Excerpt: "You can combine two or more of the [required] notices into a single document if you time delivery of the combined notice appropriately."
(McKenna Long & Aldridge LLP)

[Guidance Overview]
ERISA Bonding Requirements
Excerpt: "To comply with ERISA, plan sponsors must understand the bonding requirements and ensure that the bond that they purchase satisfies them. [This] article provides an overview of the ERISA bonding requirements and explains . . . . [Originally published in the Practical Law Journal.]"
(Groom Law Group)

[Guidance Overview]
DOL Proposes Sponsor-to-Participant Disclosure Regulations (PDF)
9 pages. Excerpt: "Under the regulation, the plan administrator must provide general plan information, administrative expense information and individual expense information."
(Aon Hewitt)

[Guidance Overview]
SEC Adopts New Disclosure Brochure for Investment Advisers (PDF)
Pages 1, 4-14 of 28 pages. Excerpt: "Under new Form ADV, Part 2, the disclosure document is divided into three distinct components: the firm 'brochure' (Part 2A), the wrap fee program brochure (Appendix 1 to Part 2A) and the 'brochure supplement' (Part 2B)."
(Morgan, Lewis & Bockius LLP)

Avoid Fiduciary Liability When Choosing the Class of 401(k) Funds
Excerpt: "Not only do you need to be sure you're offering a good selection of funds for your employees, but also you need to be concerned with the expenses and fees being charged by the investment options."
(Warner Norcross & Judd LLP)

Retirement Planning Most Difficult Financial Task, According to Recent Study
Excerpt: "A news release about the poll of more than 4,000 U.S. households said many investors are taking over the responsibility for their own financial planning, but many don't know enough to make informed choices."

Segal Backs Parts of GASB Pension Accounting Views
Excerpt: "Segal said in a letter to GASB that it backs level percentage of pay cost methodology and long-term earnings discount rate items, but the consultancy said it had concerns regarding GASB's preliminary views on decoupling funding and accounting, expense volatility from recognition periods for liability changes, and expense volatility from proposed asset smoothing."

Overview of the Center for Retirement Research 2009 Retirement Survey (PDF)
21 pages. Excerpt: "In July and August 2009, the Center for Retirement Research at Boston College . . . conducted a survey to gauge three things: 1) how people were responding to the loss of their retirement assets due to the financial crisis; 2) who was responding by increasing their expected working life; and 3) how people were responding to realistic information about how long they would have to work or how much they would have to save in order to recoup their financial losses."
(Center for Retirement Research at Boston College)

Breaking the Myths: Interest in Target-Date Funds Still Healthy
Excerpt: "For example, in its Target-Date Series Research Paper: 2010 Industry Survey, Morningstar wrote: 'Target-date funds have been the subject of unprecedented criticism in the wake of 2008's market slide, but that has not deterred millions of investors from making these funds the centerpiece of their retirement savings. New cash continues to pour into these offerings.'"
(The Vanguard Group, Inc.)

Public Pensions and Labor Supply Over the Life Cycle
Excerpt: "Virtually all developed countries face projected budget shortfalls for their public pension programs. The shortfalls arise for two reasons. First, populations in developed countries are aging rapidly. Second, until recently older individuals in developed countries have been retiring earlier. These two developments have created serious strains on public pension programs."
(Social Science Research Network)

Thaler and Sunstein's 'NUDGE': An Application in Retirement Planning
Excerpt: "This paper reviews principles of behavioral finance as applicable to retirement withdrawal planning, discusses common retirement planning problems, reviews relevant law, and proposes an application of Thaler and Sunstein's NUDGE (2008)."
(Social Science Research Network)

A Modified Life Expectancy Approach to Withdrawal Rate Management
Excerpt: "This research explores the costs and benefits of modifying life expectancy (planning horizon) within a multiple-factor withdrawal management strategy."
(Social Science Research Network)

Buy-and-Hold Strategy May Undercut Investment Goals
Excerpt: "The kind of active management I'm recommending involves periodically identifying the right asset allocation for your situation and then implementing it. Periodically assess your investment resources, goals and personal circumstances, select a reasonable asset allocation to meet your needs with a minimum of risk, and then rebalance your account to this allocation."
(Army Times Publishing Company)

Six Strategies for Funding Your 401(k)
Excerpt: "Here's a look at how workers choose how much to deposit in their 401(k) each year."
(U.S. News & World Report)

Grocery Store Owner Will Repay Millions to 401(k) Plan
Excerpt: "An Oregon and California grocery store operator has agreed to pay as much as $8 mil.lion over six years into a frozen 401(k) plan that company officials used to finance coastal land deals that soured, federal and company officials say."
(Oregon Live LLC)

Fiduciary360's Comments on SEC Proposed 12b-1 Rule (PDF)
3 pages. Excerpt: "As a general matter, fi360 has long promoted the reexamination and reform of 12b-1 fees, and we believe that the Commission's current proposal is particularly timely in light of its consideration of whether to extend the fiduciary standard to brokers who provide personalized investment advice."
(U.S. Securities and Exchange Commission)

401(k) Plans and the Election
Excerpt: "[W]ith divided government, it is unlikely that there will be major legislative change affecting the system anytime soon. That's a good thing."
(Profit Sharing / 401k Council of America)

How the Fed Is Threatening Your Retirement, According to Charlie Farrell
Excerpt: "The Fed has announced an ambitious plan to buy at least $600 bil.lion of fixed income securities to help stimulate the economy. But the Fed's actions pose a risk to your retirement security."
(CBS Interactive Inc.)

Itís a whole new world at the 2011 NTSAA Annual Conference, the premier 403(b) and 457 forum for educating producers, providers, agents, broker/dealers, sales and marketing managers, office staff, plan sponsors and other business officials. Register now and join your colleagues in Orlando February 2-5, 2011.

For more information and a brochure, go to

Sponsored by NTSAA

Benefits in General; Executive Compensation

Reassessing Work/Life Balance
Excerpt: "Widespread layoffs and other job changes associated with the latest recession have caused workers to question career-related sacrifices, including time away from family, less leisure time and fewer self-improvement activities, according to new research from Florida State University."
(Human Resource Executive Online)

GSA Amends Federal Travel Regulations to Include Domestic Partners
Excerpt: "The domestic partners of federal employees, as well as the immediate family of those partners, will now be covered by federal travel regulations . . . for purposes of federal employees' job-related travel or relocations."
(Thompson Publishing Group Inc.)

Webcasts and Conferences

2011 NTSAA Annual Conference
in Florida on February 2, 2011
presented by National Tax Sheltered Accounts Association

It's Time to Play - Employee Benefits Jeopardy!
in California on December 1, 2010
presented by No. Calif. Chapter of Certified Employee Benefits Specialists (ISCEBS)

The ASPPA Cincinnati Pension Conference
in Ohio on November 15, 2010
presented by ASPPA (American Society of Pension Professionals & Actuaries)

Wellness Program Checkup: A Clean Bill of Health for 2011
Nationwide on November 8, 2010
presented by EBIA / Thomson Reuters

Press Releases

DATAIR Releases 2010 EFAST2 5500s
DATAIR Employee Benefit Systems, Inc.

The Wealth Accumulation Years: Plan for the Years Ahead
Certified Financial Planner Board of Standards, Inc.

Newly Posted Employee Benefits Jobs

for Employee Benefits Firm
in DC

Enrolled Actuary
for Full Service Actuarial Consulting Firm in Monmouth County
in NJ

Retirement Plan Consultant
for July Business Services
in TX

ERISA and Employee Benefits Attorney
for Putney, Twombly, Hall & Hirson LLP
in NY

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