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June 13, 2011 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

[Guidance Overview]
Court Dismisses Claim for Failure to Exhaust Administrative Remedies
"A federal court has dismissed claims that Halliburton Inc. miscalculated pension benefits . . . . Halliburton Company acquired Dresser Industries, and Halliburton became the sponsor of the Dresser Industries, Inc. [plan] in February 2000." (PLANSPONSOR.com)


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[Guidance Overview]
Correcting 403(b) Plan Errors—The Current State
"As a result of having gone through the process of the first financial statement audit of their 403(b) plans last year, many 403(b) plan sponsors have been confronted with operational errors discovered during the audit and are now wondering how to correct these errors without jeopardizing the tax favored status of their plans." (EisnerAmper)

[Guidance Overview]
FASB Modifies Proposed Multiemployer Plan Participation Disclosures
"At its meeting on May 31, the Financial Accounting Standards Board (FASB) tentatively agreed that it will not require employers to disclose an estimate of withdrawal liability for each material multiemployer defined benefit plan in which they participate, as it had previously proposed." (Morgan, Lewis & Bockius LLP)

[Guidance Overview]
Final FBAR Regulations Grant Some Relief, but Filing Obligations Remain (PDF)
"Plan sponsors face a June 30 filing deadline for 2010 filing of the Report of Foreign Bank and Financial Accounts (FBAR) to the IRS. Final regulations provide some relief but no blanket exemption to plan sponsors." (McDermott)

[Guidance Overview]
IRS Newsletter Highlights Common VCP Submission Errors and Service Provider Reports
"Under the IRS's Voluntary Correction Program (VCP), a plan sponsor, at any time before audit, may pay a limited compliance fee and receive the IRS's approval for correcting a qualification failure. One article highlights five common VCP submission mistakes that IRS reviewers have encountered recently . . . ." (Thomson Reuters/EBIA)

[Guidance Overview]
Fifth Circuit Affirms That Telephone Reimbursements for Retirees Are Not an ERISA Pension Plan
"Discounted phone service for retirees (and active employees) can be provided as a no-additional-cost service fringe benefit. Since these benefits are not income, they cannot be characterized as an ERISA pension plan." (Thomson Reuters/EBIA)

DOL Files Brief With US Court of Appeals for Fourth Circuit in Fiduciary Breach Damages Case
"Secretary of Labor Hilda Solis has filed a brief asking for a rehearing and reversal of an appellate panel's ruling that a 'surcharge' is not an available remedy under Section 502(a)(3) of [ERISA]. . . . [in light of the Supreme Court decision in CIGNA Corp. v. Amara.]" (PLANSPONSOR.com)

DOL Report: Employee Benefit Plan Auditing and Financial Reporting Models
"The Council elected to narrow its consideration to . . . audit and auditor quality, limited scope audits, and the audit and financial reporting requirements for 403(b) plans. . . . Based on its discussions and debate concerning these issues, the Council submits ten recommendations to the Secretary of Labor for consideration." (Employee Benefits Security Administration, U.S. Department of Labor)

Corporate Pension Plan Funding Increases
"The 2010 increase was attributed to a combination of employer contributions and fairly good investment returns." (Pensions & Investments)

New Report to DOL Addresses Potential Improvements to Auditing of Employee Benefit Plans
"[The ERISA Advisory Council] zeroed in on three areas: the quality of plan audits and auditors, limited scope audits, and 403(b) plans." (Computer World)

Retired Educators Return to Work: Good Deal for Minnesota Taxpayers? Or Double-Dipping?
"Educators who draw both salaries and pensions have come under fire in a number of states as part of a wholesale scrutiny of public workers and their benefits." (TwinCities.com)

PBGC Premium Proposal Booed By Business Groups
"PBGC Director Joshua Gotbaum's quest to cut the premiums paid by financially healthy plan sponsors and raise those paid by companies at risk of insolvency is under attack . . . ." (Pensions & Investments)

The Availability and Utilization of 401(k) Loans
"Although only about 22% of savings plan participants who are allowed to borrow from their 401(k) have such a loan at any given point in time, almost half had used a 401(k) loan over a longer, seven-year horizon." (National Bureau of Economic Research)

Study: Baby Boomers, Gen-Xers Savings Are Scarce
"Even if they bite the bullet and stay on the job well past retirement age and late into their 70s, most Baby Boomers and the Gen-Xers who follow them will not have enough savings to cover their basic retirement expenses and out-of-pocket health costs." (Employee Benefit Adviser; free registration required)

Borrowing Against Retirement Accounts Hits New Highs
"Loans against retirement plans were up overall last year, with one in seven workers borrowing money, according to new data . . . ." (DailyFinance)

Retirement at 65? But It's The New 45!
"[T]he national 'retirement age' of 65 has remained unchanged for 75 years, but the lifespan of the average American has gone up by 16 years." (The Christian Science Monitor)

Revealing Hidden Costs of Your 401(k)
"[T]he costs are embedded in the expenses of many of the mutual funds you pick. In a practice known as revenue sharing, fund companies refund some of the expenses to the service provider running your plan to pay for its administrative costs." (The New York Times; free registration required)

Social Security Costs for San Francisco Public Workers Not Factored Into Pension Fixes
"San Francisco taxpayers contributed $104.5 mil.lion into city workers' Social Security accounts this fiscal year, and that cost is expected to grow in the next year. Yet those costs are not factored into two dueling ballot measures meant to address growing retirement costs." (SF Examiner)

[Opinion]
Text of ASPPA Comments to IRS on 2011–2012 Guidance Priority List
Among the comments: "ASPPA recommends that the IRS revise the due date for filing the 2009 and 2010 Form 8955–SSA . . . . ASPPA recommends that the IRS provide additional guidance on permissible mid-year changes to plans utilizing [ADP test safe harbor provisions, ACP test safe harbor provisions, or qualified automatic contribution arrangements] and issue final regulations on suspending or decreasing safe harbor 401(k) contributions." (American Society of Pension Professionals & Actuaries (ASPPA))

[Opinion]
Text of ASPPA's Suggestions to IRS for Improvements in the Pre-Approved Plans Program
"ASPPA recommends that the IRS modify its procedures to lessen the need for 'protective' determination letter applications. . . . ASPPA recommends that the IRS modify its existing Program to approve trust documents separately in order to avoid multiple IRS reviews of the same trust document. . . . ASPPA recommends that the IRS modify the Program to incorporate the best current practices of both the 'nonstandardized' Master and Prototype ('M&P') and volume submitter programs into each pre-approved plan program." (American Society of Pension Professionals & Actuaries (ASPPA))

Benefits in General; Executive Compensation

California Cities Carry Out Pension Changes While Governor Still Negotiating
"Brea is among about 90 cities in the most populous state that have made changes to their pension plans . . . while Governor Jerry Brown and lawmakers wrestle over ways to lower costs. . . . Taxpayers who have seen local government services cut are demanding that elected officials take action on the rising costs of public-worker benefits . . . ." (Bloomberg.com)

Employer Costs for Employee Compensation in March 2011
"Wages and salaries averaged $19.85 per hour worked and accounted for 70.7 percent of total compensation costs, while benefits averaged $8.25 and 29.3 percent, respectively." (U.S. Bureau of Labor Statistics)

[Opinion]
The Assault on Public Sector Collective Bargaining: Real Harms and Imaginary Benefits (PDF)
"[These proposed changes] serve no purpose beyond a partisan attempt to weaken a key supporter of the Democratic party and they do not address budget deficits. Instead, they take away a core right . . ." (American Constitution Society for Law and Policy, authored by Joseph E. Slater)

Press Releases

SouthWest Benefits Association Elects New Board of Directors
(SouthWest Benefits Association)

MetLife Helping Employees Tackle Broader Range Of Financial and Retirement Challenges
(MetLife)

ASPPA Offers IRS Ideas to Simplify Paperwork for Retirement Plan Filings
(American Society of Pension Professionals & Actuaries (ASPPA))

Mercer Reports Strong Growth in Health and Benefits Co-sourcing Market
(Mercer)

Sun Life Financial Employee Benefits Group Launches an Industry First: Malpractice Insurance Reimbursement Rider for Long-Term Disability Customers
(Sun Life Financial)

AccuFund Introduces the Employee Portal, a Client Interface for Organizational Communications and Employee Self-Service
(AccuFund, Inc.)

Getting Paid—Collecting the Disability Check: A Resource Manual for Libraries, Individuals & Professional Advisors
(ElderCare Publishing Co., Inc.)


Employee Benefits Jobs

Defined Benefit Pension Plan Administrator
for The Angell Pension Group, Inc. in ANY STATE

Implementation Mgr I
for The Standard in OR

Account Executive II / Sr Account Executive
for Principal Financial Group in TX

Conversions Specialist
for The Newport Group in NC

Client Service Manager
for The Newport Group in FL, NC, WI

ERISA Compliance Manager
for Charles Schwab in OH

Client Services Manager
for Charles Schwab in AZ

SunGard IT Analyst
for Tegrit Administrators in SC

Employee Benefit Specialist
for Tycor Benefit Administrators, Inc. in PA

Proposal Writer
for J.P. Morgan in KS, MO

Post Your Job on EmployeeBenefitsJobs.com

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Webcasts and Conferences

COBRA and Affordable Care Act Compliance Workshop
in Nevada on June 14, 2011 presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

HIPAA Security for Employer Plans and Business Associates: A Framework for Compliance
Nationwide on June 9, 2011 presented by EBIA / Thomson Reuters

Negotiating Investment Management & Consulting Agreements in a New Regulatory Landscape
Nationwide on June 30, 2011 presented by ABA Joint Committee on Employee Benefits

Supreme Court Update: ERISA & Class Actions
Nationwide on July 19, 2011 presented by ABA Joint Committee on Employee Benefits


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