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, 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 by January 10
and save $150.
IRS Guidance Allows 401(k) and 403(b) Plans to Quickly Add Roth Conversion Features
Excerpt: "IRS guidance on 'in-plan Roth rollovers' -- a new feature that was created by the Small Business Jobs Act in September 2010 -- will allow plan sponsors to quickly add the feature to existing 401(k) and 403(b) plans if the administrative support is in place. Amendments to 401(k) plans are not required before December 31, 2011."
(Deloitte via BenefitsLink.com)
2010 Deadline Extended for Adopting Certain Defined Benefit Plan Amendments
Excerpt: "The deadline by which single-employer defined benefit plans must be amended to comply with the funding-based limits under Code § 436 -- and cash balance plans must be amended to comply with the special vesting and certain other rules under Code § 411 -- has been extended to the last day of the plan year beginning on or after January 1, 2011."
(Deloitte via BenefitsLink.com)
2011 PBGC Reportable Event Waivers
Excerpt: "Technical Update 10-4 also provides a hint that final rules are coming soon: it states that the PBGC expects to issue the final amendments to the reportable event regulations sometime in 2011. We'll see. When the final amended regulations are published, hopefully they will at least contain some of the small plan waivers that have simplified the administration of these plans."
(The VIA Retirement Plan Blog)
Obscure IRS Shift Provides Contradiction Instead of Clarity for DC Annuities
Excerpt: "The seemingly obscure issue of when a payment from an annuity contract purchased under a Defined Contribution plan is considered to be a 'payment from an annuity' is actually one of the most pressing tax issues that needs to be resolved in the area of DC annuitization."
(Robert J. Toth, Jr.)
IRS Notice with In-Plan Roth Conversion Guidance (PDF)
3 pages. Excerpt: "[The notice] is in question and answer format and provides guidance regarding the tax and distribution treatment as well as plan amendment and administrative requirements of in-plan Roth conversions. The Notice also provides clarification on such items as what amounts are eligible to be converted and recharacterization of converted amounts."
(Transamerica Center for Retirement Studies)
Determination Letter Deadline Nears for Governmental Retirement Plans
Excerpt: "An IRS newsletter reminds sponsors of individually designed governmental retirement plans of the one-time option to request a determination letter [during Cycle E] rather than Cycle C (which expired Jan. 31, 2009). The article lists five common issues for governmental plans seeking DLs: Section 415 limits, the normal retirement age in profit sharing plans, definitely determinable benefits, refunds of employer contributions and cross-referencing errors."
What the Payroll Tax Cut Means for Social Security
Excerpt: "The payroll tax, which supports Social Security, is currently set at 6.2 percent for workers, matched by employers. If enacted, the deal will reduce the worker's share to 4.2 percent in 2011; the employer's share will be unchanged."
Social Security Reform: Should the Retirement Age Be Increased?
Excerpt: "This paper is a comprehensive analysis of the issues surrounding the retirement age provisions in the Social Security Act. The paper considers the four statutory age-related factors affecting benefits - the full retirement age (FRA), the early eligibility age (EEA), the retirement earnings test and the delayed retirement credit."
(Social Science Research Network)
ASPAA Urges Congress to Retain Tax Incentives for Retirement Savings
Excerpt: "The American Society of Pension Professionals & Actuaries said it is 'deeply concerned' that recommendations from the National Commission on Fiscal Responsibility and Reform would eliminate tax incentives for retirement savings and negatively impact the ability of working Americans to effectively prepare for retirement."
Minneapolis-St. Paul Takes Top Spot in Retirement Readiness Survey
Excerpt: "An Ameriprise Financial study of the nation's largest U.S. metro areas found that following Minneapolis-St. Paul in the top spot is Raleigh-Durham and then, in order, Nashville, Sacramento-Stockton-Modesto and Seattle-Tacoma rounding out the top five."
Tax Hikes a Retirement Readiness Detriment
Excerpt: "A news release about the latest analysis of the National Retirement Risk Index . . . said tax hikes could produce a 3% hike in the retirement readiness index. If households respond by cutting back their saving, the rise in the Index would be greater, the news release said."
How Can We Make the 401k Simpler?
Excerpt: "The laws and regulations promulgated in the 1980's could not conceive of today's investing environment. Many of the 'problems' with 401k plans today exist only because of the mandated existence of intermediaries. Worse, instead of addressing the problem head on, regulators merely add more intermediaries."
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 www.asppa.org/ntsaaconference
Benefits in General; Executive Compensation
Dodd-Frank Compensation Clawbacks: Key Issues and Action Items for Corporate Counsel (PDF)
2 pages. Excerpt: "There are a number of steps that corporate counsel can take now to begin the process of implementing the Dodd-Frank Act clawback requirement: Take inventory of clawback provisions already in place and identify areas in which the clawback provisions would be insufficient under the statutory Dodd-Frank Act requirements."
(Sutherland Asbill & Brennan LLP)
Minimizing Liability for Company Holiday Parties
Excerpt: "Holding true to the maxim that 'no good deed goes unpunished,' employers may face liability for the conduct of employees who become intoxicated during office parties and thereafter behave inappropriately or illegally."
(Littler Mendelson P.C.)
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: