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June 6, 2011 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

[Official Guidance]
Text of PBGC Disaster Relief Announcement 11-11 Relating to PBGC Deadlines in Response to Severe Storms, Tornadoes and Flooding in Kentucky
"[PBGC] is waiving certain penalties and extending certain deadlines in response to the severe storms, tornadoes and flooding that occurred beginning on April 22, 2011, in Kentucky." (Pension Benefit Guaranty Corporation)


Western Benefits Conference 2011 [Advert.]

Sponsored by ASPPA and WP&BC

Featuring groundbreaking sessions for plan sponsors, attorneys, consultants, health & welfare professionals, actuaries, investment advisors and TPAs, the WP&BC and ASPPA present the Western Benefits Conference July 24-27 at the Bellagio in Las Vegas.


[Guidance Overview]
IRS Retirement Plan Disqualification
"In two recent cases -- Michael C. Hollen v. Commissioner and Christy & Swan Profit Sharing Plan v. Commissioner -- the U.S. Tax Court upheld the [IRS] disqualification of a retirement plan because of plan document and operational failures." (Towers Watson)

[Guidance Overview]
401(k) Eligibility vs. 403(b) Universal Availability
"There is a distinct difference between when employees become eligible to participate in a 401(k) plan and a 403(b) plan." (WithumSmith+Brown)

[Guidance Overview]
IRS Releases Draft 2009 Form 8955-SSA
"The draft Form 8955-SSA, the Social Security Administration's ERISA Form 8955-SSA 2-D Barcode Standards, IRS Announcement 2011-21 . . . and Frequently Asked Questions Regarding Form 8955-SSA are all accessible on the IRS website's Form 8955-SSA Resources screen." (Wolters Kluwer Law & Business)

[Guidance Overview]
DOL's Proposed Extended Applicability Dates for Fee Disclosures to Fiduciaries and Participants
"These changes will help assure that plan fiduciaries and service providers have worked out the details of service providers' disclosure obligations before that information is needed for disclosures to participants." (Thomson Reuters/EBIA)

The Persistence of Employee 401(k) Contributions Over a Major Stock Market Cycle
"[T]he study shows that workers are not persistent (continuing once a worker has started) in contributing, and a weak stock market exacerbates the problem." (Social Science Research Network)

Pensions and Retirement Plan Enactments in the 2011 State Legislatures, as of May 30, 2011
"This report summarizes selected state pensions and retirement legislation enacted from January 2011 through the date of publication. Its goal is to help researchers and policy makers know how other states have addressed issues that could arise in any state." (National Conference of State Legislatures)

Long-Term Investors Looking Into Wider Acceptance of ETFs in 401(k)s
"ETFs, toted for their low expenses and broad market coverage, have become glaring omissions from 401(k) plans. Most employees are restricted to actively managed mutual funds that have higher costs and potentially heavier weightings in select stocks." (Global Trends Investments)

Do Commodities Fit in Your 401(k)?
"In the latest, but potentially risky, move to fight inflation, some of the nation's largest 401(k) providers are adding commodities funds and other alternative assets to normally play-it-safe retirement plans." (Dow Jones & Company, Inc.)

Advisers Are Ahead of the Game on DOL Rule Compliance
"When coming up with compliance strategies, service providers might be confounded by the fact that some of the regulations are related and have to be considered together." (Investment News; free registration required)

The Annuity Puzzle/Gamble/Uncertainty
"[People with defined-contribution plans like 401(k)s] can transform their uncertainty into a guaranteed monthly income stream that mirrors the payouts of a traditional pension plan. They can do so by buying an annuity -- but when offered the chance, nearly everyone declines. Economists call this the 'annuity puzzle.'" (The New York Times; free registration required)

Revealing Excessive 401(k) Fees
"Until your new and improved account statement arrives, you can check to see if BrightScope has graded your 401(k) or 403(b) plan." (The New York Times; free registration required)

Michigan Governor Asks Supreme Court for Opinion on Pension Taxes
"The Michigan State Employee Retirees Association claims that charging income tax on their pensions violates a state constitution prohibition on diminishing pension benefits, and has promised to sue." (The American Independent News Network)

Retirement Plan Finances for Surviving Spouse
"New surveys show that women continue to trail men when planning for retirement. That makes it all the more important for most married couples to make retirement-planning decisions with the goal of leaving the spouse with greater longevity -- typically, the wife -- in good shape financially after the other dies." (The Wall Street Journal)

San Diego City Employees' Retirement System Faces 401(k) Sticker Shock
"Closing the pension system to all new employees except for police officers and offering 401(k)s to everyone else would force the city to speed up its pension payments . . . ." (voiceofsandiego.org)

Retirement Funding Expectations Changed for Younger Generations
"Current retirees are more likely to depend on employer-sponsored pensions and Social Security, while future retirees expect to rely on their own savings. Nearly two in three (65%) of the non-retired say the 401(k) will be a major source of retirement funding for them, compared to 37% of the retired." (PLANSPONSOR.COM)

Report Presents Positive Future for NYC Pension System
"The report . . . says City contributions to employee pension funds will increase through FY 2016, after which they will decline as a percentage of the City's expenditures and revenues." (PLANSPONSOR.COM)

Labor Secretary Again Files Brief in Support of Remedy against MetLife
"With a new U.S. Supreme Court decision in her arsenal, Secretary of Labor Hilda L. Solis again filed an amicus curiae brief with the 4th U.S. Circuit Court of Appeals to review its decision in a case against Metropolitan Life Insurance Company (MetLife)." (PLANSPONSOR.COM)

CalSTRS Backs Bill Limiting Pension Spiking
"According to a CalSTRS press release, the measure . . . would change the types of compensation that are credited to the CalSTRS and CalPERS defined benefit programs, in order to curtail the what was described as the 'inappropriate inflation in retirement benefits', known as pension spiking." (PLANSPONSOR.COM)

$100,000 Pension 'Club' of Public Retirees in California Is Growing
"Almost 9,000 retirees in the California Public Employees' Retirement System receive at least $100,000 in annual benefits, more than quadruple the number getting that much during 2005, according to a review of CalPERS data. Collectively, these pensioners will receive about $1.1 bil.lion in benefits this year." (Santa Cruz Sentinel)

New State Bills Seek to Sweeten Public Worker Pensions
"About 60 bills have been introduced this year that would enhance the pensions of state and local workers, according to the Citizens Budget Commission." (www.democratandchronicle.com.)

[Opinion]
Social Security's Finances: Past and Future
"Given our current budgetary constraints, one way of shoring up Social Security's finances -- which could be part of the reform package I proposed earlier this week -- is to give poorer seniors a greater share of what they earned as workers while suspending the replacement concept for higher earners." (Bloomberg LLP)

Press Releases

Segal Awarded MOBIS Contract
(The Segal Company)

Council Welcomes Proposed Rule Releasing Medicare Claims Data
(American Benefits Council)

ERIC Urges DOL to Expand Safe Harbor for Electronic Disclosure by Employee Benefit Plans
(ERI Economic Research Institute)

Pioneer Investments Announces Partnership With Fiduciary Benchmarks
(Pioneer Investments)

DC Plan Investment Council Launches Study To Research The Benefits Of Doing Business With Professional Retirement Plan Advisors
(DC Plan Investment Council)

"Historic Victory for Workers" as Connecticut Legislature Completes Work on Paid Sick Days Bill
(National Partnership for Women & Families)

Keas Introduces the Power of Play in a New Online Health and Wellness Social Game that Delivers Unprecedented Employee Health Engagement Rates
(Keas)

Delta Dental Launches New SmileWay Wellness Program to Raise Oral Health Awareness, Promote Wellness
(Delta Dental)

Employee Benefits Jobs

Plan Document and Compliance Specialist/Legal Assistant
for Tax Sheltered Compensation, Inc. in MN

Actuary - Deputy Chief
for New York City Office of the Actuary in NY

Actuary - Credentialed
for New York City Office of the Actuary in NY

Senior Benefits Analyst - Phoenix, AZ-1101595
for Freeport-McMoRan Copper & Gold in AZ

Assistant Director, Institutional Sales Support
for Prudential in CT

Vice President, Total Rewards
for Leading Health Care System in OH

Post Your Job on EmployeeBenefitsJobs.com

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Webcasts and Conferences

2011 Retirement Research Consortium (RRC) Conference
in Massachusetts on August 4, 2011 presented by Center for Retirement Research at Boston College

6th Annual Obesity and Wellness Congress
in Virginia on September 21, 2011 presented by World Congress

Creating a Culture of Health
in Illinois on October 17, 2011 presented by World Congress

Self-funded vs. Fully Insured Health Plans: What’s Right for You? Webcast
Nationwide on June 21, 2011 presented by Business 21 Publishing


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Jeanette Hull, News Editor
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager
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