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January 31, 2011 Health & Welfare Plans Newsletter  |  Advertise  |  Unsubscribe

Social Security and Welfare Benefits Going Paperless
"In May, the government will no longer pay someone eligible for benefits with a mailed check. Instead, the money will be electronically deposited directly into a bank account or made accessible by a debit card. And by March 2013, the 10 mil.lion people who receive checks, out of 70 mil.lion people in all, must switch over to direct deposit or use a card." (The New York Times; one-time registration required)


Independent TPAs or Retirement Plan-Oriented RIAs: (advert.)

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[Guidance Overview]
IRS Updates Determination Letters Procedures; DB-K Plans Under Sec. 414(x) Now Included
"Determination letters will not be issued concerning issues involving IRC Sec. 415(m) involving governmental excess benefit arrangements." (Wolters Kluwer)

[Guidance Overview]
Hybrid Pension Plans on the Rebound
"Pension professionals have been waiting four years for the regulations promised by the Pension Protection Act of 2006, which defined hybrid plans. The regs were published last October and hearings are scheduled at the end of this month." (Human Resource Executive Online)

[Guidance Overview]
NEA Members Alleged That Their Union Intentionally Misled Them Into Buying Unattractive Annuities
"[The court] ruled that ERISA didn't apply to the variable annuities and that the members couldn't sue under its provisions. The members still have the option of bringing a lawsuit based on other legal theories. . . ." (Mark Nestmann)

[Guidance Overview]
EEOC Says Ledbetter Act Does Not Apply to Pension Payments (PDF)
"Adopting the 'paycheck rule,' the Ledbetter Act provides that the period for filing a charge under Title VII begins anew each time an employee receives a wage payment based in part on the challenged compensation decision, regardless of when it was made. . . . On November 30, 2010, the EEOC ruled in a case of first impression that the Ledbetter Act's paycheck rule does not apply to pension payments." (Buck Consultants)

As Focus on the Fiduciary Is Increasing, PSCA Developing a Certification Program for Plan Fiduciaries
"Trusted plan sponsor industry leaders working with leading ERISA attorneys have developed a comprehensive self-study online training program designed for members of fiduciary committees and other employees who have primary responsibility for the operation of their companies ERISA plans." (Profit Sharing / 401k Council of America)

Hospital Worker Racks Up $1M in Overtime, Padding His Taxpayer-Funded Pension
"Despite a base salary of nearly $62,000,[if the worker were eligible to retire today, he] would receive a whopping $96,000-a-year pension thanks to the $316,122 he made in OT the past three years. Pensions are based on the average of a worker's final three years of salary." (NYDailyNews.com)

401(k) Advice for a Hefty Fee
"For investors who have a large account, say $500,000 or more, and want help, signing up for a managed account may be a cost-effective option. Financial Engines says the average annual expense for its managed accounts -- including mutual fund and management fees -- is 0.65%. That is a reasonable amount to pay in total expenses in a 401(k) plan." (The Wall Street Journal)

Fiduciaries of 401(k)s Can Choose to Favor Their Participants or Their Consultants (PDF)
"Investment consultants come in three basic varieties when it comes to acknowledging their fiduciary responsibilities under [ERISA.]" (American Society of Pension Professionals & Actuaries via Prudent Investor Advisors, LLC)

MetLife Qualified Retirement Plan Barometer: A Study of Retirement Income Culture Among the FORTUNE 1000 (PDF)
"The [survey was constructed to measure] how companies are doing with regard to creating a retirement income culture within their respective companies." (MetLife, Inc.)

Majority of DC Plans Now Offer Automatic Enrollment, According to Survey
"The Aon Hewitt Inc. survey of 210 midsize to large employers found that 57% of their defined contribution plans offered an automatic enrollment feature in 2010, up sharply from 24% in 2006 . . . ." (Business Insurance)

Auditors Probe U.S. Role in GM Funding of Delphi Pension Plan
"The audit focuses on GM's decision after its 2009 bankrup.tcy to add to Pension Benefit Guaranty Corp. benefits for Delphi hourly workers without doing the same for salaried retirees." (Workplace Management: free registration required)

Florida's New Governor Wants State Workers to Help Fund Their Pensions
"The money could be used to offset the state's nearly $5 bil.lion budget gap, fulfill Scott's promise to cut $1.4 bil.lion in property taxes or be rolled back into the retirement system to shore it up before the state's aging work force retires." (St. Petersburg Times)

Hawaii Pension Taxation Plan Not Popular Among Seniors
"A state tax on pension income -- with an exemption for low- to middle-income retirees -- could generate $114 mil.lion a year, among the largest single sources of potential revenue the governor has identified to close a projected two-year deficit in excess of $700 mil.lion." (staradvertiser.com)

Orange County, California, Considers $320 Mil.lion Pension-Note Sale to Itself
"The plan is to sell taxable pension-obligation notes maturing in about 16 months to the Orange County Investment Pool . . . . The proceeds would allow the county to make its annual pension fund payment ahead of schedule, qualifying for a discount of as much as 7.75 percent . . . ." (Bloomberg L.P.)

[Opinion]
It's Time for Actuaries to Stand Up and Be Counted
"If officials do not take decisive action this year -- even as tax revenues are rising to pre-recession levels -- no rate of economic growth, increased taxes and expense cuts will save many states, counties, cities and towns from eternal debt." (watchdog.org)


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Benefits in General; Executive Compensation

[Guidance Overview]
Final SEC Rules on Say-on-Pay, Say-on-Frequency and Say-on-Parachutes
"The final rules require disclosure of golden parachute compensation arrangements under Item 402(t) for any transaction at which shareholders are asked to approve an acquisition, merger, consolidation or a proposed sale or other disposition of all or substantially all assets of the company, including Rule 13e-3 'going private' transactions and third-party tender offers." (McDermott Will & Emery)

[Guidance Overview]
SEC's Final Rules on Shareholder Say on Golden Parachute Pay
"Most important, the Final Rules clarify that the advisory vote 'Golden Parachute' payments will not be effective until proxy statements are initially filed on or after April 25, 2011 (unlike the SSOP and Frequency votes, which went into effect on January 21, 2011)." (Michael S. Melbinger via Winston & Strawn LLP)

[Guidance Overview]
SEC's Final Rules for Say-on-Pay, Say-When-on-Pay, and Golden Parachute Arrangements
"The say-on-pay and say-when-on-pay votes are required for companies' first annual or other meeting of shareholders occurring on or after January 21, 2011." (Wilson Sonsini Goodrich & Rosati)

[Guidance Overview]
IRS 2011 Maximums for Cents-Per-Mile and Fleet-Average Methods of Valuing a Vehicle's Personal Use
"If a company car is used for commuting or other personal uses that are more than de minimis, the employee will recognize income on the value of the personal use. That value may be determined using a general valuation rule or one of three special valuation rules . . . ." (Thomson Reuters/EBIA)

[Guidance Overview]
2011 Reporting & Disclosure Calendar for Staff Plans (PDF)
This version is for international union staff plan and fund office staff plan contacts. (The Segal Group, Inc.)

[Guidance Overview]
2011 Reporting & Disclosure Calendar for Multiemployer Plans (PDF)
An interactive online version of this calendar is available at http://www.segalco.com/publications-and-resources/multiemployer-publications/rd-calendar/. (The Segal Group, Inc.)

[Guidance Overview]
Supreme Court Holds Chevron Deference Applicable to 'Interpretive' Regulations (PDF)
"The U.S. Supreme Court's recent decision in Mayo Found. for Medical Education and Research v. United States . . . on the standard of deference for judicial review of 'interpretive' tax regulations, will inform both the future regulation-writing process for and challenges to employee benefit and executive compensation tax regulations." (Sutherland Asbill & Brennan LLP)

Say-on-Pay 2011: What Companies Have to Say on the Frequency Vote (PDF)
"Buck's analysis of proxy statements recently filed by nearly 150 companies indicates that a majority of the companies that included a say-on-frequency vote recommended a say-on-pay vote every three years." (Buck Consultants)

Presidential Memo on Extending Benefits to Same-S.ex Domestic Partners of Federal Employees
"Although legislative action is necessary to provide full equality to LGBT Federal employees, the agencies have identified a number of benefits that can be extended under existing law. OPM, in consultation with the Department of Justice, has provided me with a report recommending that all of the identified benefits be extended." (FedSmith Inc.)

Press Releases


Employee Benefits Jobs

Senior Client Relationship Manager in FL
The Newport Group

DC Administrator in OH
Third Party Pension Administration and Consulting Firm

Employee Benefits Associate in DC, IL
McDermott Will & Emery LLP

ERISA Attorney in NY
New York City Law Firm

Employee Benefits Associate in VA
Willcox & Savage, P.C.

401k Sales Hunter !!!! in AZ, CA, CT, FL, GA, IL, KY, MA, MI, MN, NY, OR, WA
ADP Retirement Services

401(k) Relationship Manager/Customer Service Representative in CO
ePlan Services, Inc.

Director, Risk Management in NJ
Prudential


Webcasts and Conferences

2011 First Quarter Update
Nationwide on February 9, 2011
McKay Hochman Co., Inc.

2011 First Quarter Update
Nationwide on February 9, 2011
McKay Hochman Co., Inc.

2011 First Quarter Update eSeminar
Nationwide on February 9, 2011
McKay Hochman Co., Inc.

2011 Spring Back-to-Basics Series
Nationwide on March 31, 2011
McKay Hochman Co., Inc.

Automatic Contribution Arrangements
Nationwide on April 14, 2011
McKay Hochman Co., Inc.

Complex RMD Issues
Nationwide on March 17, 2011
McKay Hochman Co., Inc.

Ethics for the Retirement Plan Professional
Nationwide on June 15, 2011
McKay Hochman Co., Inc.

Forces of Change: New Strategies for the Evolving Health Care Marketplace
in Massachusetts on September 12, 2011
Harvard School of Public Health Center for Continuing Professional Education

Form 5500 Update
Nationwide on March 22, 2011
McKay Hochman Co., Inc.

Participant Loans
Nationwide on June 21, 2011
McKay Hochman Co., Inc.

Qualified Default Investment Alternative
Nationwide on May 20, 2011
McKay Hochman Co., Inc.

Schedule C (Form 5500): The Second Time Around
Nationwide on March 29, 2011
McKay Hochman Co., Inc.


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