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May 19, 2011 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

[Guidance Overview]
Supreme Court Signals Broader View of Equitable Relief Under ERISA
"Why the Court embarks on this peculiar path is beyond me. It cannot even be explained by an eagerness to demonstrate -- by blatant dictum, if necessary -- that, by George, plan members misled by an SPD will be compensated. . . . SCALIA, J." (Roy Harmon III / Health Plan Law)


DATAIR Retirement Plan Document Software [Advert.]

Sponsored by DATAIR Employee Benefit Systems, Inc.

Cost-effective PC software gives you everything needed to produce and maintain accurate plan documents, SPDs, amendments and employee communications. Many choices of DC, DB, 403(b) and Cash Balance plan types, plus expert support from DATAIR's team.


[Guidance Overview]
Supreme Court Says SPD Terms Not Enforceable As Plan Terms Leaving Opening for Showing Actual Harm
"Despite this narrow holding, the Supreme Court, in dicta, expanded the scope of equitable relief available under ERISA 502(a)(3), suggesting that the traditional equitable remedies of reformation, equitable estoppel or surcharge are available to provide relief, and that a showing of detrimental reliance is not required for all equitable remedies, but plaintiffs must show 'actual harm.'' (Davis Wright Tremaine LLP)

[Guidance Overview]
Supreme Court Holds Reformation Not Permissible Under ERISA for Misleading Summary Plan Description (PDF)
"A unanimous Supreme Court held that plan terms cannot be 'reformed' under ERISA § 502(a)(1)(B) based on misleading summaries and descriptions that violate the disclosure requirements of ERISA." (Alston & Bird LLP)

[Guidance Overview]
Duke Energy Settles Retirement Plan Lawsuit for $30 Mil.lion
"The plaintiffs claimed Duke broke federal age-discrimination laws when it converted its defined-benefit pension plan to a cash balance plan in 1997." (The Charlotte Observer)

[Guidance Overview]
Misplaced Enrollment Form Creates ERISA Liability for Sponsor
"[This case] holds at least three lessons for employers: Even small employers can be sued for large amounts under ERISA; Retaining the responsibility for collecting investment forms can be risky; and Thoughtful plan governance can prevent unforeseen corporate liability." (Spencer Fane Britt & Browne LLP)


What's Next in Employment Agreements: Free Webinar [Advert.]

Sponsored by Sutherland Asbill & Brennan LLP

Wednesday, June 8, 1-2 pm ET: It pays to be prepared when it comes to executive employment agreements. Join Sutherland attorneys to discuss emerging issues, including clawbacks and evergreen agreements. Register now.   [Attorney Advertising]


[Guidance Overview]
Seventh Circuit Clarifies ERISA's Sale of Assets Exception for Employers Participating in Multiemployer Pension Plans (PDF)
"The Seventh Circuit is the first Circuit to interpret the 'solely because' language of ERISA's sale of assets exemption to withdrawal liability. The Fund's broad interpretation of 'solely because,' had it been upheld, would have defeated the Congressional intent to encourage asset sales by exempting those that comply from withdrawal liability." (Seyfarth Shaw LLP)

IRS to Issue Funding Relief Guidance on Charity Plans, Officials Say
"The 2010 Act provides a delayed effective date for funding and benefit restrictions imposed on eligible charity plans . . . by Code Secs. 430 and 436." (Wolters Kluwer Law & Business)

Text of 'Savings Enhancement by Alleviating Leakage in 401(k) Savings Act of 2011' (PDF)
"To amend the Internal Revenue Code of 1986 to modify the rules relating to loans made from a qualified employer plan, and for other purposes." (U.S. Congress via American Benefits Council)

Leakage of Participants' DC Assets: How Loans, Withdrawals, and Cashouts Are Eroding Retirement Income (PDF)
"This study examines the three main sources of leakage: Loans taken out and sometimes not repaid in full; Withdrawals taken during active employment; Cashing out retirement savings upon a job termination." (Aon Hewitt)

401(k) Plan Participants Using Almost Double the Investment Funds
"Why the increase? One simple reason is that the number of funds offered increased substantially. Today the average number of funds included in a 401(k) plan is 19.4 compared to only 6.3 in 1996." (The Spectrem Group)

Asset Allocation Fund Usage Rising in 401(k) Plans
"The popularity of asset allocation funds is expected to increase as investors become increasingly comfortable with relying on the investment expertise of providers rather than trying to 'do it yourself'." (Spectrem Group)

Senate Bill Would Limit 401(k) Loans
"The bill would reduce the number of loans workers may take from a 401(k) and give participants more time to repay after losing a job. It will allow savers to contribute to their plan after taking a hardship withdrawal and ban debit cards linked to the accounts . . . ." (Treasury & Risk)

12th Annual Transamerica Retirement Survey, May 2011 (PDF)
"The [survey] found that for many Americans, the foundation of their retirement strategy is simply to not retire or to work considerably longer than the traditional retirement age of 65. Overall, American workers' confidence in their ability to achieve a financially secure retirement is low." (Transamerica Center for Retirement Studies)

Report of Results from the Survey of Calendar-Year Plans' 2011 Zone Status, Spring 2011
"This survey is based on actual certifications for about 230 calendar-year multiemployer plans . . . . The certifications took into account any changes in plan design, employment outlook, negotiated contribution rates and investment performance through the end of 2010 . . . ." (The Segal Group, Inc.)

Use Plan Design to Take Advantage of Employee Inertia
"The majority of employers want to prepare their employees for a financially secure retirement, but have found educational campaigns unlikely to result in substantial changes in behavior." (Employee Benefit News; free registration required)

A 401(k) Annuity's Fixed Monthly Payments May Help in Retirement, But Watch Out for the Fees
"Depending on the plan sponsor, you might pay various administrative costs just to annuitize a 401(k) account, so it's important to understand these charges before making a decision." (AARP)

Some Colleges and Universities to Receive IRS 403(b) Compliance Questionnaire
"[The questionnaire is] part of a new initiative focusing on the requirement to adopt a written plan and satisfy the 'universal availability' rule for elective deferrals." (Mercer LLC)

Retirement Income Adequacy with Immediate and Longevity Annuities (PDF)
"This report analyzes how differently immediate and longevity annuities can affect probable income adequacy in retirement by taking into account long-term health care expenditures. Specifically, it attempts to find the optimal level of annuitization and asset allocation that would provide a desired level of confidence that individuals will have sufficient retirement income, based on the three different types of risk: investment income, longevity, and long-term care." (Employee Benefit Research Institute)

[Opinion]
The 401(k) Plan Sponsor's Biggest Mistake
"Of all [the fiduciary] liabilities, the one most overlooked deals with the hiring of an ERISA attorney. Sometimes it's the fear of fees and sometimes it's just the nature of the question, but for some reason too many plan sponsors don't seek an ERISA attorney when it matters." (BenefitsPro)

[Opinion]
Could Your 401(k) Plan Be Illegal?
"Legalities aside, what about the moral and ethical issues? The present system subsidizes the cost for employers and eviscerates the savings of plan participants." (TheHuffingtonPost.com, Inc.)

Press Releases


Employee Benefits Jobs

401k Sales Hunter!!
for Automatic Data Processing (ADP) in OR

Plan Service Specialist
for Tegrit Administrators in SC

Administrative Consultant
for Edd Holder and Associates in FL

Pension Administrator - 401(k) Profit Sharing / DB Plans (Littleton, CO)
for Nicholas, Hicks & Betts, Inc. in CO

ERISA Attorney
for The Angell Pension Group, Inc. in CT, MA, RI

Post Your Job on EmployeeBenefitsJobs.com

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Webcasts and Conferences

MJM401k Summer Workshop Series: 401(k) Fees - What Fiduciaries Must Know
in Arizona on June 2, 2011 presented by MJM401k

MJM401k Workshop Series: The Coming Inflation Threat - What 401(k) Plan Sponsors Should Be Doing Now
in California on June 1, 2011 presented by MJM401k

US Pensions Summit 2011
in Illinois on July 18, 2011 presented by marcus evans


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