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March 9, 2011 Health & Welfare Plans Newsletter  |  Advertise  |  Unsubscribe  |  Past Issues

[Guidance Overview]
403(b) Plan Terminations' Guidance
"A recent revenue ruling from the IRS answers . . . questions [about distribution of assets]." (Poyner Spruill LLP)


Compliance Testing Can Be Easier with ASC! (advert.)

Sponsored by ASC

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[Guidance Overview]
IRA's Purchase of Note and Deed of Trust Is Prohibited Transaction Where Obligors of Note Are Disqualified Persons
"In this situation, the IRA would be purchasing the note from an unrelated party where the IRA owner would have an understanding, as a fiduciary, that the assets of the IRA would be used to create a prohibited transaction (i.e., the ongoing debtor-creditor relationship between the IRA and the disqualified persons) once the IRA buys the note." (Wolters Kluwer)

[Guidance Overview]
New Puerto Rico Tax Code Means Significant Changes to Retirement Plans for Puerto Rico Employees
"Generally effective immediately for tax years beginning on or after January 1, 2011, the new code requires significant changes to plan administration and updates of plan documents for both dual-qualified plans (i.e., plans qualified under both the U.S. and Puerto Rico Internal Revenue Codes) and Puerto Rico-only qualified retirement plans." (McDermott Will & Emery)

DB Versus DC Plan Investment Returns: The 2008-2009 Update
"This analysis updates . . . prior studies with investment returns for 20082 for a large set of plans and provides a snapshot of year-end returns for 2009 based on a small set of plan sponsors." (Towers Watson)

Reforming K-12 Educator Pensions: A Labor Market Perspective (PDF)
"An important question is whether the current retirement benefit systems are an efficient or equitable way to structure educator compensation. An examination of the incentives built into typical state defined benefit plans suggests otherwise." (TIAA-CREF Institute)


Don’t Miss Pensions & Investments 401(k) Investment Lineup Summit (advert.)

Sponsored by Pensions & Investments

Join P&I and an elite group of your peers for this informative conference that will provide the most up-to-date thinking on how to best design a DC investment lineup and present you with valuable networking opportunities. Plan sponsors attend FREE.


Pensions and Public School Teacher Retirement: An Analysis Using National Teacher Data (PDF)
"Research shows that DB plans have had strong effects on worker retention in the private sector, as workers delayed retirement until they cash in on large pension wealth accruals late in their careers and then retire abruptly. We explore these effects for teachers, using data that includes measures of teacher qualifications and job satisfaction." (TIAA-CREF Institute)

Fees, Framing, and Financial Literacy in the Choice of Pension Manager (PDF)
"[The authors] show how different ways of presenting pension management fees shape consumer choices, and how responses to pension fee information varies by level of financial literacy." (TIAA-CREF Institute)

Battered Public Pension Funds Improve
"State pension systems had an estimated funding ratio of 69% for fiscal year 2010, ending June 30, up from 65% for fiscal year 2009, according to Wilshire Associates . . . . But pension plans remain well below the 95% estimated average funding ratio for 2007." (The Wall Street Journal)

EBSA Extends Comment Period for Fiduciary Definition Change
"[EBSA announced] that the deadline is being extended for 15 days after the date the official transcript of the EBSA March 1-2, 2011 public hearing . . . on the proposal becomes available online and in the agency's Public Disclosure room. EBSA said the release of the meeting transcript is not yet scheduled." (PLANSPONSOR.COM)

A Look at Four Strategies That Could Help Make a Retiree's Savings Last a Lifetime
"Financial advisers are rethinking retirement-spending rules of thumb and coming up with new withdrawal strategies that help clients maintain their standard of living regardless of the stock market's ups and downs." (The Wall Street Journal)

Principal 401(k) Participants Increase Deferrals with Online Tool
"Retirement plan participants using an online tool save at an average rate of 39% higher than other plan participants, according to a study by Principal Financial Group of its clients." (Employee Benefit News; free registration required)

FASB to Discuss Disclosure of Employer Participation in Multiemployer Plans
"The Board has scheduled a 1-hour discussion for this topic and plans to discuss comment letters received on the September 2010 Exposure Draft, and the plan for redeliberations." (International Foundation of Employee Benefit Plans)

[Opinion]
Pension Rights Center and Other Organizations' Letter to Oklahoma State Senate Protesting Bill That Would Significantly Cut Spousal Protections for Former Military Spouses (PDF)
"There are a number of provisions in the proposed legislation that raise concerns . . ., including the treatment of benefits based on the duration of the marriage and the treatment of disability pay generally." (Pension Rights Center)

Benefits in General; Executive Compensation

[Guidance Overview]
Top-Hat Plan Participants Lose Benefits After Sale of Company
"[W]hen a company purchases just the assets of another company, as happened in this case, the buyer assumes only those obligations and liabilities (e.g., non-qualified plans) that it explicitly agreed to acquire." (Michael S. Melbinger via Winston & Strawn LLP)

[Guidance Overview]
When Is Federal Common Law Appropriate to Determine Domestic Partner Status?
"The Sixth Circuit noted that, although courts do sometimes resort to federal common law to identify beneficiaries under ERISA plans, the text of the plan is the much preferred source." (Tax Management Inc.)

Federal Pay and Benefits Back in Spotlight
"The Republican-led House is scheduled to hold its first hearing [today] on the compensation of federal employees, pitting the Obama administration and federal worker union leaders against conservative fiscal experts armed with detailed reports suggesting federal employees are paid too generously when compared to private sector workers." (The Washington Post; free registration required)

Employee Benefits Developments, March 2011
"In this issue: SEC adopts final say-on-pay rules; IRS increases user fees for determination letters and other rulings; and cases involving ESOPs, a top hat plan, ERISA Section 510, a 401(k) plan, safe harbor, third-party administrators, and more." (Hodgson Russ LLP)

Seventy-Eight Percent of Employers Say Employees Are Happy With Benefits
"The survey also found that 60% of employers said their organization provides employees with an annual summary of benefit program features." (PLANSPONSOR.COM)

Key Considerations for Selecting Service Providers (PDF)
"This article discusses each benefit area's administration developments and the corresponding advantages of choosing a best-in-class versus single provider approach. The authors offer guidelines and tips employers can use in order to take advantage of the benefits offered by both approaches." (International Society of Certified Employee Benefit Specialists)

Press Releases

Evolving Landscape of DC Plans Subject of PSCA's Midwest Regional Conference
(Profit Sharing/401(k) Council of America (PSCA))

US Department Of Labor Announces Extension Of Public Hearing Record On Proposed Regulation On Definition Of Fiduciary
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

US Labor Department Sues Wisconsin-Based Coin Builders LLC And President To Recover More Than $1.3 Million For Company’s Profit-Sharing Plan
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

Employee Benefit Producer Training Program Moves Fall Offering to Fort Worth, Texas
(International Foundation of Employee Benefit Plans)

Thomson Reuters Selects HighRoads Procurement Service to Automate Its Pharmacy Benefit Management Business
(HighRoads, Inc.)

BrightScope and John Scott to Host 2011 Phoenix 401k Evaluation Summit
(BrightScope)

BASE® Reports Proven Savings Method to Combat Soaring Health Costs
(BASE)

Sieena to Showcase 365Kin, Its Employee Self-Service Portal During the 2011 HR Star Conference
(Sieena)


Employee Benefits Jobs

Retirement Plan Service Specialist in NH for Retirement Alliance, Inc

Workplace Regional Sales Manager in CA for Fidelity Investments

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Webcasts and Conferences

401(k) Rekon Advisor Symposium- Detroit
in Michigan on April 7, 2011 presented by 401(k) Rekon


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Jeanette Hull, News Editor
David Rhett Baker, J.D., Editor and Publisher
dbaker@benefitslink.com

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