[Guidance Overview]
Supreme Court: Establishing Procedures for Compliance with ERISA's Disclosure and Other Requirements?
"[We now] have a second ruling from the Supreme Court in CIGNA v. Amara, granting Amara certioria and remanding. This is a procedural twist that is more interesting to lawyers than employers, but it underscores the point we made about uncertainty in this area . . . . [The ruling is at http://www.supremecourt.gov/orders/courtorders/052311zor.pdf.]
(Porter Wright Morris & Arthur LLP)
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Selecting a QDIA Is a Fiduciary Decision
"Of the three choices for options, 1) age-based (target date funds - TDFs), 2) risk-based (balanced funds), and 3) managed accounts, TDFs are the most popular to date by far; but they remain a work-in-progress."
(fi360 Blog)
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Mercer Provides Administrative Checklist for Sponsors of Defined Benefit Plans
"'Additionally, if a plan sponsor is moving to a new plan administrator or preparing a plan for a freeze or termination, engaging in these 'pre-sourcing' activities will allow them to move quickly as business or market conditions change in order to capitalize on the opportunities to save on plan costs and/or reduce plan risks.'"
(Wolters Kluwer Law & Business)
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Senate Bill Targets 401(k) Plan 'Leakage'
"[The Senate bill with bi-partisan support was introduced May 18] to minimize the leakage from 401(k) plans occurring as a result of plan loans and hardship withdrawals."
(Deloitte via BenefitsLink.com)
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The Power of Retirement Planning: Global Report (PDF)
"The power of planning is this year's central message. In recognising the combined benefits of having a financial plan and seeking professional financial advice, it adds a critical element to the Future of Retirement series, moving beyond identifying the issues and challenges and looking to provide points of action towards a better retirement."
(HSBC)
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The Retirement Landscape Presents a Tangle of Risks, Uncertainties, and Challenges
"One of the biggest problems occurs when retirement plans designed around higher interest rates enter a low-rate environment. For example, many DB plans -- even ones that seemed conservatively valued just a few years ago -- face higher-than-planned-for liabilities due to low interest rates, in turn increasing contribution requirements and P&L expenses."
(Milliman, Inc.)
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[Opinion]
Plan Leakage Can Be Less of an Issue Than Participation
"[W]hile leakage can be vexing, the percentage of participants in Vanguard-recordkept plans who took a distribution in 2010 stood at just 3.7%, and the dollar amount overall was less than 1%."
(The Vanguard Group, Inc.)
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[Opinion]
The Unique Tax Benefits of Roth IRAs
"Best of all, Roth IRAs can be invested in literally anything you want: index funds, lifecycle funds (which I recommend for most people), individual stocks, or even alternative investments. This is a major benefit over a 401(k), which restricts you to a strict set of investment options chosen by your employer."
(Retirement Online LLC)
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[Opinion]
Are the Elderly ' Better Off Than Advertised' ?
"In 'The elderly are better off than advertised' Washington Post columnist Robert J. Samuelson attacks what he calls 'selective and self-serving statistics' that have been cited by defenders of Social Security and Medicare."
(Pension Rights Center)
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[Opinion]
Do 401(k) Retirement Plan Contribution Limits Make Sense?
"So why does the government place . . . limits on retirement plans? The short answer: so that the 401(k) plan doesn't discriminate against (or favor) certain employees participating in the plan on the basis of contributions. Another factor may be tax revenue, as employees defer their salaries pre-tax, which means they are not paying income tax on the deferrals -- a revenue loss for the government."
(Milliman, Inc.)
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Benefits in General; Executive Compensation
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[Guidance Overview]
Guidance Issued on Financial Institutions Incentive-Based Compensation Arrangements
"These rules, if enacted, would prohibit 'covered financial institutions' with total consolidated assets of $1 bil.lion or more ('Covered Entities') from providing incentive-based compensation arrangements which encourage inappropriate risk by providing excessive compensation or which could lead to material financial loss of the Covered Entity."
(SNR Denton)
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Employers Often Fail to Estimate Costs of Absences
"The survey of 331 human resources and benefits executives and managers of companies with over 500 employees by Liberty Mutual found an organizational disconnect between collecting absence data to satisfy state and federal regulations and using that data to understand costs and savings to function more effectively."
(Employee Benefit News; free registration required)
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Recent Compensation Compliance-Related Developments Affecting Reward Programs
"Employers should be mindful of recent legal developments that could affect their compensation and other reward programs. These developments include: A court ruling that payments for unused sick days are part of an employee's regular pay rate for purposes of calculating overtime pay . . . ."
(Towers Watson)
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Employee Ownership Update for June 1, 2011
In his latest column, NCEO Executive Director Loren Rodgers discusses a Treasury official's doubts about ESOP floor price protection, research on the behavioral impact of stock options, and more.
(National Center for Employee Ownership)
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Press Releases
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