PBGC Issues Final Rules for Bankrup.tcy Terminations
"[U]nder the 2006 [Pension Protection Act], when a plan terminates while the sponsor is in bankrup.tcy, the amount of benefits guaranteed by PBGC and the amount of benefits in priority category 3 are fixed at the date of the bankrup.tcy filing rather than at the plan termination date. . . . The final rule [interpreting and applying that amendment to ERISA] will be published in the Federal Register on June 14, and will be effective 30 days following publication." (PLANSPONSOR.com)

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ASPPA’s Certified Pension Consultant (CPC) credential: for benefits professionals working in all aspects of plan administration and design. CPCs work alongside employers to formulate, implement, administer and maintain qualified retirement plans.

EBSA Director Phyllis Borzi's Letter to the CFTC Regarding DOL Proposed Fiduciary Rule and Swaps (PDF)
Letter dated April 28, 2011. "Some market participants have expressed concern about the relationship between the [DOL's proposed regulations expanding the definition of a fiduciary investment adviser under ERISA] and the business conduct standards under the Dodd-Frank [legislation] and proposed Commodity Futures Trading Commission (CFTC) rules for swap dealers and major swap participants engaging in transactions with ERISA-covered plans. This letter responds to your request for comment. . . ." (U.S. Employee Benefits Security Administration)

Where Does State of Oregon Stand in Pension Reform?
"[Is] Oregon a national leader in pension reform, or are we lagging behind the efforts of other states? Turns out it's a little of both. Oregon back in 2003 changed PERS to deal with many pension issues that most other states ignored until the last few years." (StatesmanJournal.com)

U.S. Supreme Court Finds Janus Not Liable for Allegedly Misleading Prospectuses
"Janus argued that the funds were separate legal entities and that neither the parent company nor its subsidiary was responsible for the prospectuses and could not be held liable. The high court agreed, finding that the alleged false statements in the prospectuses were made by an investment fund, not Janus Capital . . . ." (PLANSPONSOR.com)

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Taxpayers on The Hook for Retiree Costs for Federal Contractors
"[T]axpayers have been footing the bill for retiree benefits not just for federal workers, but for independent freelance contractors who do work for the government as well. . . . [V]olatile investment returns can drastically impact pension contributions for government contractors, and in turn taxpayer costs to cover them." (FoxBusiness.com)

Taxpayers Face $1.7 Bil.lion Bill As Nuclear Lab Pensions Soar
"The [Department of Energy] has 'limited influence' over its contractors' pension plans yet 'ultimately bears the investment risk incurred by the contractor sponsoring the plan,' according to a GAO report released May 31. A combination of market declines and low interest rates has raised pension costs, the report said." (Washington Post; free registration required)

IRS, DOL, PBGC Flag Retirement Rules for Reconsideration and Possible Streamlining
"The PBGC will reconsider proposed regulations on facility closings and reportable events, among other rules. The Labor Department may streamline the process for obtaining prohibited transaction exemptions but has not made a commitment to ease plan sponsors' disclosure burdens. The IRS will focus primarily on barriers to lifetime-income options in qualified plans." (Mercer Select)

Business Groups Warn Budget Negotiators Against Higher PBGC Premiums
"[T]he groups argued that raising premiums without making 'contextual' reforms to the PBGC would amount to a tax hike on plan sponsors . . . ." (Mercer Select)

Fiduciary News Trending Topics for ERISA Plan Sponsors: Week Ending 6/10/11
"For those who believe an Investment Policy Statement (IPS) for an ERISA retirement plan helps reduce fiduciary liability, here's a nine step process for creating a strong IPS." (Fiduciary News)

More Confusion Like on Disclaimers of Death Benefits by Former Spouses
"Former spouses, who made common-law disclaimers, but claimed benefits as designees, may find their victories against the plans rather ephemeral [despite the unanimous decision of the U.S. Supreme Court in Kennedy v. Plan Administrator of the Du Pont Savings and Investment Plan." (Workplace Prof Blog)

Pension Woes of Alabama Town a Warning to Others
"The city of Prichard, Alabama . . . was warned that if no changes were made to its pension fund, the money would be gone by 2009. The warnings went unheeded, and now the pension funds have disappeared. When the monies dried up, Prichard stopped sending pension checks to its 150 retired workers . . . ." (New American)

Hundreds of Rhode Island Retirees Receive More Than One Public Pension
"[Many former government employees] are benefiting from opportunities that remain open for public employees to collect more than one taxpayer-financed pension by moving from one government job to another, or winning a seat, for example, on a local town council. Among them are those who retired relatively young from state or local police ranks and then moved into second, later-in-life careers." (The Providence Journal)

Proposal to Protect Retirees' Nest Eggs Becomes Latest Lobbying Flashpoint
"The 401k marketplace is prone to business arrangements that foster conflicts of interest -- for instance, when consultants receive compensation from the investment companies whose products they recommend to the plan -- according to a 2009 report by the Government Accountability Office. And the Securities and Exchange Commission found in a May 2005 study that 13 of the 24 pension consultants it examined had conflicts of interest." (Huffington Post)

Firms Begin to Reinstate Suspended 401(k) Matches
"United Parcel Service reinstated its 401(k) match in January after having suspended it in 2009. But the delivery giant changed the way it doles out the benefit: Instead of matching what employees defer up to 3% of eligible pay, UPS will now match half of what they defer, up to 5%. Its top contribution is now 2.5% of pay, compared with 3% in 2008." (The Wall Street Journal)

PBGC Seeks $25M in St. Vincent's Pension Case
"The appeal [by the PBGC] stems from a 2010 ruling by a U.S. District Court, which dismissed a lawsuit brought by St. Vincent's that raised the issue that Morgan Stanley knew the financial instruments were too risky, and that investing in them violated the pension plan's guidelines. . . . That ruling left PBGC responsible for paying benefits to Saint Vincent's 9,500 workers and retirees." (HealthLeaders Media)

Outsource Jobs: New Way to Cut Pension Costs?
"The practical argument is that contracting for services can cut government costs, often because of less generous retirement benefits in the private sector." (Calpensions Blog)

How 4 Years of Work Might Make Or Break Retirement
"Today, the average retirement age for men is 64 and for women, it's 62. But if people continue to retire this early, they are going to face a severe decline in their living standards. . . . A few additional years of work can make retirees in 2030 as well off as those of the current generation." (SmartMoney, authored by Alicia Munnell)

DOL's Proposed Fiduciary Definition Might Have Participant-Adverse Consequences
"[The DOL] has proposed to expand the definition of 'fiduciary' under ERISA section 3(21) with regard to investment advisers and those providing valuation services to employee benefit plans. . . . [W]e think that plan sponsors could be forced to curtail the information provided to participants regarding the investment options offered. In this respect, the proposal inadvertently could work to the detriment of plan participants by limiting investor education efforts." (PLANSPONSOR.com, authored by Stephen M. Saxon, Esq.)

PBGC Probes Wall Street's Role in Pension Failures
"Given that the [PBGC] has assumed responsibility for an additional 362 plans since the end of 2008, PBGC focus on financial advisers that may have contributed to the demise of bailed-out pensions is certainly warranted." (Forbes, authored by Edward Siedle)

How Neuroscience Supports a Fiduciary Standard
"Because clients are predisposed to 'offload' important financial decisions, a mandatory fiduciary standard of care should be applied to any individuals who purport to provide financial advice." (Morningstar Advisor)

The High Cost of Killing Public Pensions
"[Defined benefit] pension plans save governments money by reducing the number of citizens who must rely on public assistance as they grow older. Traditional pensions also provide essential benefits like spousal protections and disability benefits that are generally not available in 401(k) plans." (SEIU.org)

DOL's Fiduciary Definition Proposal Misses The Mark
"It is unfair to the industry because it disregards decades of administrative law and practice under ERISA. It is bad for investors because it strips them of fiduciary protections when they are needed most." (Morningstar, authored by Mercer Bullard)

'Cheap Stock' and Section 409A Considerations for Pre-IPO Companies (PDF)
Excerpt: 'If a company makes grants of equity awards prior to going public at share prices that are much lower than the initial public offering price, this could lead to accounting charges for the company. But, perhaps more significantly, this could also highlight tax compliance issues under Section 409A." (Pillsbury)

Despite Winning on Summary Judgment, ERISA Fiduciaries Not Entitled to Attorneys Fees
"[A]n association of former unionized worker retirees sued two former association directors alleging that they had breached their fiduciary duty to the association and members by buying and maintaining a health insurance policy with expensive premiums that outweighed benefits received. The district court granted summary judgment [but later] denied a motion by the directors for [an award against the plaintiffs reimbursing the directors' attorneys fees." (JD Supra, authored by Constangy, Brooks & Smith, LLP)

Designing Deferred Compensation Plans for Governmental Employers and Tax-Exempt Organizations (PDF)
At page 3 of target newsletter. Excerpt: '[T]he inclusion of an amount into income under Section 457(f) can be structured so that it is treated as a payment for purposes of the short-term deferral exemption, even if the amount continues to be set aside and credited with earnings. In addition, the prospect of stricter regulations under Section 457(f) may make it more advantageous for companies to correct their 457(f) plans now, to the extent that they contain provisions that run afoul of 409A, than after the new guidance is issued." (Pillsbury)

GAO Report: Little Information Available on Qualified Supplemental Executive Retirement Plans
"[Some defined benefit retirement] plan sponsors have designed ways to indirectly transfer . . . nontax-qualified supplemental executive benefits into their existing tax-qualified DB plans . . . by increasing the benefits under the qualified plan, with an offsetting reduction in the benefits under the nonqualified plan . . . . These arrangements, commonly referred to as Qualified Supplemental Executive Retirement Plans (QSERP), can provide HCEs with a higher qualified benefit amount, the tax advantages provided by a qualified plan, as well as the increased benefit security provided by the backing of qualified plan assets." (U.S. Government Accountability Office)

Corporate Volunteer Programs Dramatically Increase Job Satisfaction of 'Millennial' Employees
"56% of millennials -- employees aged 21-35 -- who frequently participate in a company's sponsored volunteer activities are likely to rate their corporate culture as very positive, compared with 28% of millennials who don't volunteer." (Employee Benefit News; free registration required)

How Public Employees Get to Run Government
"Say you have a business in the private sector. Would you let your employees name their salary and benefit levels and oblige you to pass on the cost to your customers? Absent a captive market your customers will likely be gone and so would your business." (Burypensions Blog)

Lincoln Trust Company Looks At Passive Investing In 401(k) Plans
(Lincoln Trust Company)

ING to Offer Socially Responsible Asset Allocation Portfolios for Retirement Plan Investors
(ING Insurance U.S.)

DATAIR Employee Benefit Systems, Inc.

"ERPA Test Review - Part I" - A 3-part Web Seminar
Nationwide on June 28, 2011 presented by SunGard Relius

"ERPA Test Review for Part II" - A 3-part Web Seminar
Nationwide on July 6, 2011 presented by SunGard Relius

"Form 5500-EZ: Soup to Nuts" Web Seminar
Nationwide on June 28, 2011 presented by SunGard Relius

"The New Form 8955-SSA: Who, What, When, and How" Web Seminar - An Encore Presentation
Nationwide on June 30, 2011 presented by SunGard Relius

401(k) Rekon Advisor Symposium- San Diego
in California on July 12, 2011 presented by 401(k) Rekon

Trends and Hot Issues in Pharmacy Benefits
in Illinois on June 22, 2011 presented by Worldwide Employee Benefits Network (WEB)