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April 1, 2011 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues

[Official Guidance]
Text of Amendment to Prohibited Transaction Exemption (PTE) 96-23 for Plan Asset Transactions Determined by In-House Asset Managers (PDF)
5 pages. 'In the Notice published on June 14, 2010, the Department proposed to amend PTE 96-23 in several respects . . . . [T]he Department did not receive any formal comments within the comment period . . . ." (U.S. Employee Benefits Security Administration)


Here’s Your Chance to Reshape the Industry! May 9-11- Dallas, TX (advert.)

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Participate in a collaborative effort to develop best practices for procedures, information-sharing, problem-solving, client service and compliance in the 403(b) marketplace. Today’s the last day to get the early bird discount so register now!


[Guidance Overview]
ERISA Class Exemption Change for INHAMs Released
"Federal regulators have released a final amendment to Prohibited Transaction Exemption 96-23 that broadens the transactions allowed for employee benefit plans whose assets are managed by in-house asset managers (INHAMs)." (PLANSPONSOR.com)

[Guidance Overview]
DOL Fact Sheet on Definition of Fiduciary (PDF)
2 pages. (U.S. Employee Benefits Security Administration)

Loan Defaults Costly for Certain Group of Participants
"A Financial Literacy Center working paper suggests that overall, one in ten plan loans results in a default, and eight of ten workers who leave a job with a plan loan outstanding then default on that loan." (PLANSPONSOR.com)

Program Perspectives on Defined Contribution Plans (PDF)
"[This 4-page report] highlights six types of defined contribution plans, providing BLS data on participation by type of plan and method of contribution." (U.S. Bureau of Labor Statistics)


Your Product + Our Readers = $$ (advert.)

Sponsored by BenefitsLink Newsletter

Advertise your company's products and services in the BenefitsLink newsletter. Our subscribers care about employee benefit plan compliance, administration, costs and design. Contact Mary Hall for details.


Retired Teachers in California Earn More Than Working Teachers in 28 States
"Last year, the CalSTRS CEO warned that returns of 20 percent annually would be needed to fund all pensions. Without further increases in revenue or cuts in benefits, the system could be completely broke in 35 years." (Mike Antonucci)

Governor Takes Aim at California Public Pension Abuses
"[California Governor Jerry] Brown, a Democrat, offered seven measures yesterday that among other things would prohibit employees from pension 'spiking' by manipulating overtime, unused vacation and special compensation to create an inflated benchmark for future benefits. Other bills would ban retroactive benefits and forbid workers from purchasing additional service credits." (Bloomberg)

Public Pensions Show Gains, But Doubts Linger
"U.S. public pension funds' investments are making gains, according to government data released on Thursday, but the gains may not be enough to cover looming shortfalls." (Reuters)

ERISA 3(21) vs. 3(38) -- A Distinction without a (Practical) Difference?
"[S]ome commentators have attempted to use these statutory differences to assert that investment advisors have no legal liability because they are providing nondiscretionary advice, while investment managers completely shield plan sponsors from legal liability by acting with discretion. Upon closer inspection, however, these theoretical distinctions quickly break down." (Robert J. Toth, Jr.)

Rethinking Defined Contribution Retirement Plan Design
"Many workers make decisions about saving and investing for retirement that are unlikely to produce an adequate retirement income. On December 3, 2010, the TIAA-CREF Institute hosted a forum that convened experts in behavioral economics, actuarial science, decision-making, and financial education and advice to examine creative uses and combinations of defined contribution plan features . . . ." (TIAA-CREF Institute)

Up Next: Retirement Reform -- Does Anyone Care About the Financial Security of American Workers in Retirement? (PDF)
10 pages. 'Surely America's retirement crisis is as severe, if not more so, than improving health coverage for the uninsured? After all, before Congress passed the health care reform bill, over 85% of Americans were covered by some form of health insurance. In comparison: . . . 45% of working Americans are currently not covered by an employer-sponsored retirement plan . . . ." (Aon Hewitt)

[Opinion]
Text of ASPPA Comments to DOL on Various Regulatory Projects
On March 31, 2011, ASPPA submitted comments to the U.S. Department of Labor in response to its request for comments on how it can improve its regulations. ASPPA's recommendations relate to: (1) the exclusion of 403(b) contracts prior to 2009; (2) electronic disclosure as the default option; and (3) a self-correction program for VFCP. (American Society of Pension Professionals & Actuaries (ASPPA))

Benefits in General; Executive Compensation

SEC Proposes Rules for Compensation Committees on the Use of Compensation Consultants and Other Advisers, and Conflicts of Interest
"From the descriptions and discussion at the open meeting, it does not appear that the proposed rules add much to the terms of the statute. . . . Apparently, however, the proposed rules do include an instruction clarifying the meaning of 'retained or obtained' [regarding the disclosure requirement of new Section 10C]." (Winston & Strawn LLP)

Underfunded State Pension Plans Create Credit Risk
"[S]tates that continue to fail to meet required annual pension obligations could very well be penalized by the credit-rating services, negatively affecting their ability to borrow . . . ." (Business Insider)

Employee Ownership Update for March 31, 2011
Corey Rosen discusses the following topics and more: ESOP-owned Web Industries has developed an innovative new radiation measurement product that fits on a small card. Directed trustees have very limited fiduciary responsibility but may do a lot of work. The taxation of employee stock purchase plans is sufficiently complex that even people who know the field sometimes get confused. The NCEO's annual conference is coming up, as is the Great Game of Business conference. (National Center for Employee Ownership)

Press Releases


Employee Benefits Jobs

Pension Administrator in CA for Jordan & Associates

Qualified Plan Administrator in CO for Trust Company of America

Request For Proposal (RFP) Specialist in CA, GA, IA, NJ, PA for Transamerica Retirement Services Corporation

Benefits Specialist (Financial Plans) in CA for CareFusion

Benefits Manager in CA for CareFusion

Client Service Manager in PA for Ascensus

Account Manager in MA for Financial Engines

Employee Benefits Representative # 2299 in TN for EASTMAN CHEMICAL CO.

Retirement Products and Services Officer in IN for First Merchants Bank

Senior Associate - Retirement in TX for Employee Benefit Solutions, Inc.

Executive Director in CA for The International Longshore & Warehouse Union - Pacific Maritime Association Benefit Plans

Assistant General Counsel in TX for Insperity

Post Your Job on EmployeeBenefitsJobs.com

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Webcasts and Conferences

Health Insurance Exchanges: MA, UT & CA Models
in California on May 4, 2011 presented by MCOL

Whose Patient is it? Patient Attribution in ACOs
in California on May 11, 2011 presented by MCOL


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