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August 24, 2011 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

Employee Benefits Jobs

Education Consultant
for AXA Equitable in CA, TX

Director of Client Operations @ fun, dynamic and growing company!
for The Online 401(k) in CA

Plan Document Specialist
for Lincoln Financial Group in IL, IN

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Webcasts and Conferences

Health Insurance Exchanges: What Employers Should Know Webinar
Nationwide on August 30, 2011 presented by BNA, Inc.

HR Summit 2011
in Florida on October 17, 2011 presented by marcus evans

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[Official Guidance]
IRS Employee Plans News, August 23, 2011, Issue (PDF)
Articles include: Master and Prototype Plan Sponsors; Responsibilities and Tips To Help Your Adopting Employers; Employee Stock Ownership Plan Worksheet, Revised 08/2011; A Tool To Help Design EsOPs; Information on August 25 Phone Forum: How To Correct Plan Errors and 403(b) Issues (EPCRS); Form 8955-SSA FAQs. (U.S. Internal Revenue Service)

DATAIR Government Forms Software   [Advert.]

Sponsored by DATAIR Employee Benefit Systems, Inc.

EFAST2-approved 5500s with all schedules and PBGC forms, 1099Rs, 5300 series, FAS 158 (license only the modules you need). Built-in verification and expert live support assures accuracy. PC-based software for economy and maximum security.

[Official Guidance]
IRS Retirement News for Employers, Summer 2011 Edition, August 24, 2011
Articles include: Compensation Errors in Retirement Plans; Plan Distributions: How Much To Withhold. (U.S. Internal Revenue Service)

[Guidance Overview]
GASB Proposals to Revamp Governmental Pension Plan Accounting (PDF)
"The proposals are likely to increase the amount of reported liabilities for public plans at a time when the amount of those liabilities is hotly debated and financial pressures on states and local governments have resulted in many proposals to change such plans, some of which have been adopted already. The proposals also introduce employer-level financial reporting of liabilities that may in some cases be difficult to implement." (Groom Law Group)

[Guidance Overview]
PwC Denied Summary Judgment on Whipsaw Calculation Claim
"[F]ormer participants of the firm's Retirement Benefit Accumulation Plan (RBAP) argued their distributions using a whipsaw calculation improperly used the 30-year Treasury rate to project their benefits to age 65 when a set rate between 7% and 9% would have been more accurate." (PLANSPONSOR.COM)

Fiduciary Implications: Using Re-Enrollment to Improve Target Date Fund Adoption (PDF)
"An assumption underlying most 401(k) plans is that participants know how to invest their funds. Based on that assumption, most plan sponsors offer their participants an array of prudently selected mutual funds, provide investment education and conclude that they have fulfilled their responsibilities. Unfortunately, the assumption isn't correct—as either a matter of fact or a matter of law." (Drinker Biddle & Reath LLP)

PBGC Developing Investment Policies and Operating Procedures Based on GAO Recommendations
"The GAO was particularly critical of the PBGC's policy statements and operating procedures, which it found were incomplete and 'do not provide sufficient guidance to ensure sound implementation of its investment policies." (Wolters Kluwer Law & Business / CCH)

401(k) Loan Can Be Smart Move
"[Those who have taken loans more recently may] have avoided significant stock market losses, while paying themselves what now looks like a handsome, and guaranteed, rate of return." (Dow Jones & Company, Inc.)

Illinois Likely Site of Next Fight Over Public Employee Benefits
"Leaders in both parties in Springfield appear ready to push a major pension reform bill this fall that would remove Illinois workers' current defined-benefit plan and replace it with less lucrative options, including a 401(k) plan." (

PBGC's Plan for Regulatory Review (PDF)
"PBGC is implementing Executive Order 13563 by: [1] Reconsidering several regulations PBGC had previously proposed. [2] Beginning to make changes to provide for more extensive public participation in rulemaking by adding public hearings and other means to its process." (The White House)

PBGC Announces Efforts to Streamline Regulations
"As part of the Obama administration's government-wide effort to save U.S. companies billions of dollars, PBGC will review its regulations to: Cut down administrative burdens; Streamline the filing of premiums and information; and Make it easier for small businesses to comply with regulations." (PLANSPONSOR.COM)

Timely PPA Notices Meet Duty to Tell Participants About Pension Cutbacks, Court Rules
"While the decision concerns a multiemployer plan and is not binding on other courts, it is among the first to consider whether a fiduciary has any duty to notify participants ahead of PPA deadlines when imposing mandatory benefit restrictions. The court's rationale may give comfort to both single-employer and multiemployer plan sponsors implementing such restrictions." (Mercer LLC)

Employee Entitled to Reinstatement in Closed Pension Plan on Rehire, 4th Circuit Rules
"A rehired employee may resume participation in a company's traditional pension plan if she repays the lump sum benefit previously received, the 4th Circuit has ruled. . . . The unpublished ruling isn't binding precedent." (Mercer LLC)

Taxing Big California Public Pensions, Ending Collective Bargaining, Will Have Costs
"Taxing public pensions in excess of $100,000 a year could bring an extra $60 mil.lion into state coffers—but would likely drive retirees from the Golden State . . . . The [ballot initiative measure] would basically amend the state Constitution to institute a new state tax on pension benefits in excess of $100,000 a year, paid to retirees by the California Public Employees Retirement System and the California State Teachers' Retirement System." (Orange County Register Communications)

The Fiduciary Exception to the Attorney-Client Privilege
"'Document everything' is often a best practice, but when you are an ERISA plan fiduciary communicating with your attorney, you may need to throw that thinking out the door." (Porter Wright Morris & Arthur LLP)

Press Releases

PBGC Announces Regulatory Review to Help Plan Sponsors
(Pension Benefit Guaranty Corporation (PBGC))

US Labor Department Sues Former Nashville, Tenn., Consulting Company and President to Restore Employees’ 401(k) Plan Contributions
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

Consumer Driven Health Plan Growth Slows; Costs Surpass HMOs
(United Benefit Advisors)

Judy Diamond Associates Delivers 2010 Form 5500 Plan Data to the Employee Benefits Industry in Record-Breaking Time
(Judy Diamond Associates)

Planned Administrators Inc. Adds New Director of Sales
(Planned Administrators Inc. (PAI))

Greeley and Hansen Selected as One of The Principal 10 Best Companies for Employee Benefits and Financial Security
(Greeley and Hansen)

Illinois Companies Honored for Outstanding Workplace Wellness Programs
(Blue Cross Blue Shield of Illinois), Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
Phone (407) 644-4146
Fax (407) 644-2151

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

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