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Text of SEC Request for Comment on Money Market Funds (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 via American Benefits Council)
DOL's Proposed Expansion of Definition of Fiduciary and Investment Advice
Excerpt: "If the DOL adopts the proposed regulation in its current form, many financial institutions and other service providers, such as appraisers and other valuation firms and broker-dealers that are typically not now fiduciaries under ERISA, are more likely to become fiduciaries and, as such, will be subject to the fiduciary duties, prohibited transaction rules, and potential liability imposed by ERISA."
(K&L Gates LLP)
DOL Proposal to Amend Definition of Fiduciary Under ERISA (PDF)
Excerpt: "On October 22, 2010, the Department of Labor . . . published proposed regulations that, upon adoption, would amend the definition of 'fiduciary' under section 3(21)(A)(ii) of [ERISA]."
(Transamerica Center for Retirement Studies)
Proposed Regulations Would Expand ERISA Fiduciary Exposure
Excerpt: "In the preamble to the Proposed Regulations (the 'Preamble'), the DOL expresses its view that the foregoing rules are too narrow to appropriately protect employee benefit plans in light of current market practices that could give rise to conflicts of interests for the numerous consultants, advisers and appraisers who significantly influence benefit plan investment decisions but may not be treated as ERISA fiduciaries under current law."
(James Morphy, Sullivan & Cromwell LLP via The President and Fellows of Harvard College)
Americans Want More Financial Education, According to Survey
Excerpt: " When asked to rank the importance of understanding their own personal finances, nearly 8 in 10 respondents (79%) gave it a 7 or above on a scale of one ('what I don't know won't hurt me') to 10 ('I feel the need to know all I can about my financial situation'), according to a press release."
University of California System to Consider Pension Reduction
Excerpt: "Under [the] proposal, current employees and the university would begin to contribute more money to the retirement plan, but there would be no reduction in benefits . . . . Employees hired after July 1, 2013, would be offered a plan with slightly reduced benefits, a step that would cut costs by 20% . . . ."
Social Security Provides Economic Security to Women
2 pages. Excerpt: "Social Security benefits, while modest, are a substantial source of income for older Americans, providing annual benefits of roughly $12,000 for women 65 and over."
(U.S. Congress, Joint Economic Committee)
Why Target-Date Funds Can Miss Marks
Excerpt: "[One expert] said TDF managers have 'high-jacked participant's accounts' by not reducing equity exposures and risk as the target date approaches. In effect, the TDF managers are doing a 'bait-and-switch' because the fund is being sold as an increasingly conservative portfolio as the retirement date approaches, but then the risk is increased as the managers unilaterally pursue longevity risk."
(InvestorPlace Media, LLC)
Understanding 401(k) Fees
Excerpt: "Critics share a common complaint: 401(k) fees are too high.* I've been asked this question in this way: Why aren't 401(k) plans as cheap as a low-cost Vanguard index fund?"
(The Vanguard Group, Inc.)
Valued by every practitioner and recommended for every ERPA candidate, The ERISA Outline Book, 2010 Edition by Sal L. Tripodi, J.D., L.L.M. offers six volumes of vital information on everything you need to know, including over 100 new rulings, guidances and regulations affecting retirement plans. Subscribe to the online version and access new updates the moment they are available!
Order yours today by visiting www.asppa.org/eob!
Benefits in General; Executive Compensation
IRS Revenue Ruling 2010-27: Addressing Qualifying 'Unforeseeable Emergencies' for Distributions (PDF)
Excerpt: "The revenue ruling provides guidance, in the form of examples, on what constitutes an unforeseeable emergency distribution under section 457(b) of the Code and section 1.457-6(c) of the regulations. The revenue ruling also applies the same standards to distributions from a nonqualified deferred compensation plan subject to section 409A."
(U.S. Internal Revenue Service via American Benefits Council)
Section 409A Compliance: Deadline for Taking Advantage of Correction Program Is December 31, 2010
Excerpt: "Companies should review all of their non-qualified deferred compensation arrangements to ensure that they comply with Section 409A and, if they do not comply, act now to take advantage of the Notice 2010-6 document correction program, as the relief available under Notice 2010-6 expires at the end of this year."
(Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.)
Retirement Plan Status Affecting Options: No ERISA Claim
Excerpt: "Specifically, the Second Circuit rejected a former employee's argument that it was an ERISA breach of fiduciary duty for a stock plan administrator to assure the former employee that she could exercise her options following retirement under an ERISA-covered retirement plan."
(Utz, Miller & Eickman, LLC)
Webcasts and Conferences
The ASPPA 401(k) SUMMIT
in Nevada on March 6, 2011
ASPPA (American Society of Pension Professionals & Actuaries)
Newly Posted Employee Benefits Jobs
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