To BenefitsLink home page

Retirement Plans Newsletter

December 28, 2010

View Newest Jobs

View all jobs on

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 Correcting Amendment to IRS Final Regs on Hybrid Retirement Plans (PDF)
2 pages. Excerpt: "This correcting amendment is effective on December 28, 2010, and is applicable on October 19, 2010. . . . [T]he final regulations . . . contain errors that may prove to be misleading and are in need of clarification."
(U.S. Internal Revenue Service)

[Official Guidance]
Text of Minor Clarifying Correction to IRS Proposed Regs on Hybrid Retirement Plans (PDF)
2 pages. Excerpt: "On page 64214, column 3, § 1.411(b)(5)-1(e)(2)(iii)(A), line 19, the language 'change the rate of interest crediting' is corrected to read 'change the interest crediting rate'."
(U.S. Internal Revenue Service)

[Guidance Overview]
401(k) Participant Wins FINRA Arbitration
Excerpt: "A 401(k) participant who claimed Morgan Stanley caused significant losses in his account by not moving money out of the stock market when he requested has been awarded $80,504 after arbitration."

[Guidance Overview]
The 403(b) 81-100 Trust Under Rev. Rul. 2011-1 Is Not What It Seems
Excerpt: "The IRS issued Revenue Ruling 2011-1, under which it will allow the combining of 403(b) assets with 401(a) assets in the 81-100 trusts. Or maybe not. Take a look at the details, and it really doesn't seem to be able to do much of what it says can be done. What it really is is another shining example of how complicated it is when Tax, Labor and SEC rules clash."
(Robert J. Toth, Jr.)

Bill to Extend Pension Benefit Freeze Relief Dies
Excerpt: "The House adjourned last week without action on a bill passed by the Senate that would have created a one-year extension for an expiring provision that effectively exempts underfunded pension plans from rules that require them to freeze benefit accruals."
(Pensions & Investments)

Fiduciary News Trending Topics for ERISA Plan Sponsors: Week Ending 12/24/10
Excerpt: "Each Monday, [Fiduciary News gives] you a quick synopsis of the major news events and trends impacting ERISA plan sponsors, 401k fiduciaries and those in the business of supporting these fine folks."
(Fiduciary News)

Is a $1 Mil.lion Retirement Nest Egg Attainable?
Excerpt: "The $1 mil.lion figure that is frequently cited as the silver bullet needed to enjoy a comfortable retirement is actually attainable, Consumer Reports found in a recent survey of 24,270 online subscribers age 55 and up."
(Employee Benefit News; one-time free registration required)

The Target-Date Fund Is Intended to Provide an Autopilot for Defined Contribution Participants
Excerpt: "The 'glide paths' of target-date funds assume constant risk premia from equities and other asset classes. In this issue we explore another path utilizing the Fundamental Index approach and find its inherent contra-trading produces a far better result. Furthermore, this approach is simple and inexpensive, two critical components of an effective 401(k) solution. In addition, we review how a simple tactical asset allocation approach would generate an even bigger retirement kitty."

The Next 10 City Pensions That Will Run Out of Money
Excerpt: "Projections by Robert Novy-Marx and Joshua Rauh . . . show the average city has $15,000 per household in unfunded pension liabilities. These massive liabilities are ignored by common government accounting (see chart [on target page])."
(Business Insider, Inc)

Saving More Is Now a Popular 2011 New Year's Resolution
Excerpt: "A new Harris Poll finds 22% of those surveyed pledging to save more for retirement while 40% have set as a goal saving more generally in 2011."

Text of Request to PBGC by Texas Rangers Purchaser for Exemption From Bond/Escrow Requirement Relating to the Sale of Assets (PDF)
2 pages. Excerpt: "This notice advises interested persons that the [PBGC] has received a request from Rangers Baseball Express, LLC, for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) of [ERISA] with respect to the Major League Baseball Players Pension Plan."
(Pension Benefit Guaranty Corporation)

Text of Approval by PBGC to Chicago Cubs Purchaser for Exemption from the Bond/Escrow Requirement Relating to the Sale of Assets (PDF)
3 pages. Excerpt: "Section 4204 of [ERISA] provides that a bona fide arm's-length sale of assets of a contributing employer to an unrelated party will not be considered a withdrawal if three conditions are met."
(Pension Benefit Guaranty Corporation)

Come discuss employee benefits issues with industry colleagues and local, regional and national experts from the IRS, DOL and the private sector. Programs focus on current regulatory, legislative, administrative and actuarial topics. When are we coming to your area?
Sponsored by ASPPA

Benefits in General; Executive Compensation

Secretary of Labor Names New Members to ERISA Advisory Council
Excerpt: "Secretary of Labor Hilda L. Solis has announced five new members to the 2011 Advisory Council on Employee Welfare and Pension Benefit Plans, commonly referred to as the ERISA Advisory Council. In addition to the new members, Solis has also announced who will serve as the council's incoming chair and vice chair."
(Wolters Kluwer)

Summary of the Principal Provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
Addressed in the summary are various employment-based benefits such as the child care credit, Employer Provided Educational Assistance, and Adoption Credit and Exclusion from Income for Employer Provided Assistance.
(Baker, Donelson, Bearman, Caldwell & Berkowitz, PC)

BenefitsCheckUp: A Benefits Programs' Website for Baby Boomers
Excerpt: "Find and enroll in federal, state, local and private programs that help pay for prescription drugs, utility bills, meals, health care and other needs."
(National Council on Aging)

Press Releases

Newly Posted Employee Benefits Jobs

Employee Benefit Attorney With ESOP Experience
for Chang, Ruthenberg & Long PC
in CA

Director Product Marketing
for Prudential
in NJ

Manager Product Marketing
for Prudential
in NJ

Associate Account Manager
for Cammack LaRhette Consulting
in MA

Where the best employers find the best candidates!

Handy Links:

Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!

This email has been published by:, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151

Jeanette Hull, News Editor

David Rhett Baker, J.D., Editor and Publisher

Copyright 2010, 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: