To EmployeeBenefitsJobs.com To BenefitsLink home page

BenefitsLink Retirement Plans Newsletter

September 19, 2011 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

Employee Benefits Jobs

Fiduciary Services Program Manager
for Fiduciary Consulting Group, LLC in NH

Plan Administrator
for The Newport Group, Inc. in FL, TX, VA

Retirement Services Operations Manager
for State Bank & Trust in MN

Retirement Plan Administrator
for Indiana Benefits, Inc. in IN

Relationship Management Specialist
for Prudential in CA

Post Your Job on EmployeeBenefitsJobs.com

View All Jobs

RSS feed for jobs RSS Feed: All Jobs


Webcasts and Conferences

"457(b) Plans for 401(k) Practitioners" - A 3-part Web Seminar
Nationwide on November 1, 2011 presented by SunGard Relius

"Don't Be Caught Short: Short Plan Years" Web Seminar
Nationwide on September 27, 2011 presented by SunGard Relius

"Electronic Participant Fee Disclosure" Web Seminar
Nationwide on October 12, 2011 presented by SunGard Relius

"ERISA Workshop 2011" - Appleton
in Wisconsin on October 19, 2011 presented by SunGard Relius

"ERISA Workshop 2011" - Charlotte
in North Carolina on October 19, 2011 presented by SunGard Relius

"ERISA Workshop 2011" - Cleveland
in Ohio on October 20, 2011 presented by SunGard Relius

"ERISA Workshop 2011" - Detroit
in Michigan on October 21, 2011 presented by SunGard Relius

"ERISA Workshop 2011" - Nashville
in Tennessee on October 20, 2011 presented by SunGard Relius

"Premature Distribution Penalties" Web Seminar
Nationwide on October 7, 2011 presented by SunGard Relius

Newly Updated CLE Program: Fee Disclosure: What You Need to Know and What You Need to Do Now
in New York on September 22, 2011 presented by WEB (Worldwide Employee Benefits Network ), New York Chapter


We also publish the BenefitsLink Health & Welfare Plans Newsletter (free): Subscribe

[Guidance Overview]
What's New with PBGC Premium Relief
"[This post highlights] three new PBGC premium relief items: 1. Seven Day Rule—for waiver of late premium penalties in 2011 and later. 2. 'Alternative' premium method election relief—for 2010 and later years. 3. Waiver of certain 'alternative' method penalties—for 2008 and 2009." (Van Iwaarden Associates)


The biggest event of the year!   [Advert.]

Sponsored by ASPPA

70+ interactive sessions on hot topics shaping the industry, up to 25 ASPPA CPE credits/23 ERPA and JBEA CPE credits, 80+ displays in the exhibit hall. Register now for best pricing.


[Guidance Overview]
DOL's Interim Policy on Electronic Distribution of Participant-Level Fee Disclosures
"Plan sponsors and their advisors now have the guidance they need to get their delivery systems in place ahead of the May 31, 2012 compliance date." (Thomson Reuters/EBIA)

[Guidance Overview]
DOL Guidance on Electronic Disclosure Under Participant Fee Disclosure Regulations
"Plan administrators who make the required disclosures in accordance with the Technical Release will not be subject to enforcement action by the DOL. Notwithstanding this guidance, employers should watch out for future guidance as this is merely interim relief and final regulatory guidance is expected in the future." (Ogletree, Deakins, Nash, Smoak & Stewart PC)

[Guidance Overview]
EBSA Interim Policy Allows Electronic Disclosure of Participant-directed Plan Fee Information
"There is a special transition provision for the first initial disclosures required under the regulations applicable to plans that have e-mail addresses of participants already on file." (Practical Law Company, Inc.)

[Guidance Overview]
DOL Releases Interim Guidance on Electronic Delivery of Participant-Directed Retirement Plan Disclosure
"There will likely be further discussion of electronic delivery issues as DOL progresses toward its goal of modifying its existing safe harbor rule. The experience of plans using the approaches described in the current guidance is likely to influence the direction of those further changes." (Morgan, Lewis & Bockius LLP)

Barney Frank to DOL: Revise Fiduciary Rule on Retirement Plans
"In his Sept. 15 letter to Solis, Frank admits that 'some ERISA rules may need to be updated' but said doing so must not be done in 'a way that has adverse effects on the choices available to consumers, municipalities, pension plans and others.' He then urges Solis to 'withdraw and repropose your rule in coordination' with the SEC and the Commodity Futures Trading Commission (CFTC)." (AdvisorOne)

Tool Helps Plan Sponsors Focus on Income in Retirement
"Putnam, a money management firm, announced last week that it is making available to plan sponsors a product called Lifetime Income Score, a tool it says will give employers a way to help boost employees' retirement savings." (Employee Benefit News; free registration required)

How Companies Helped Hasten the End of Retirement Plans and Benefits.
"Over the past two decades, companies have cut pensions, slashed retiree health coverage and killed other benefits. Many have reduced their contributions to 401(k)s as well. Companies say they are the victims of a 'perfect storm' of unforeseen forces: an aging work force, market turmoil, adverse interest rates." (Portfolio/Penguin via The Wall Street Journal)

Evolving Retirement Plan Market Presents New Opportunities for Advisors (PDF)
"In the wake of recent industry and regulatory developments, advisors in the retirement plan industry have a great opportunity to reflect on their roles and clearly identify how they want to deliver value to clients. In order to be successful, however, advisors have to know where to look for help." (The Standard)

Your Fiduciary Duty: Fidelity Bonding
"[ERISA] requires that all employee benefit plans have a fidelity bond. If it's been awhile since you reviewed the amount of your fidelity bond, make a note to check it to be certain that you are adequately covered." (the401kcpa.com)

401(k) Record Retention: What To Keep and for How Long?
"When it comes to 401(k) record retention and document storage, remember that your number one goal should be to have materials preserved in a format that allows for quick and easy retrieval. It's appropriate to store plan records electronically whenever possible." (Cambridge Investment Research, Inc.)

Prescience 2015: Expert Opinions on the Future of Retirement Plans (PDF)
"In a fast-changing environment, retirement plan sponsors, providers, consultants and advisors need a clear, forward-looking vision of the retirement plans landscape so they can invest in the development of products, services, systems and processes that will meet the needs of plan sponsors and participants well into the future." (Diversified Retirement Corporation)

The White House's Review of Regulations, Including ERISA and PBGC, May Ease Regulatory Load
"The regulations under scrutiny affecting pension executives and money managers include: simplified procedures for handling abandoned 401(k) plans; a more flexible approach to PBGC penalties; ways to stimulate lifetime income streams; and implementation of the Dodd-Frank Act." (Pensions & Investments; free registration required)

State Teachers Retirement System of Ohio Saves with Internal Managers
"[The system] saved $94 mil.lion in 2010 by managing about 80% of its total assets with in-house staff." (PLANSPONSOR.COM)

A Mandatory Workplace IRA Bill Re-Introduced
"This week U.S. Senator Jeff Bingaman introduced the Automatic IRA Act of 2011, which will, according to a press release, 'give nearly 42 mil.lion Americans an easy, effective way to take responsibility for their fiscal futures and plan for a secure retirement'." (PLANSPONSOR.COM)

Will You Need 135% of Your Salary in Retirement?
"[A]ccording to research conducted by Dan Ariely, people need 135% of their final income to live the way they want in retirement. The reason for this astounding difference has to do largely with the way Ariely, a professor of economics and behavioral finance at Duke University, did his research. Instead of asking people to ballpark how much of their final salary they will need, he asked . . . . questions geared to assess the quality of life that people expect in retirement." (MarketWatch, Inc.)

BrightScope Spotlights 401(k) Plans, Thanklessly
"In 2009, Mike and Ryan Alfred . . . introduced a rating for most of the big 401(k) plans and gave poor scores to many of them. In Act 2, the brothers and their company, BrightScope, put the names and disciplinary records of thousands of stockbrokers and investment advisers up on the Web where anyone could find them." (The New York Times; free registration required)

Do You Know What You Are? ERISA Titles Matter
"Knowing your title also creates clarification as to what your duties are, and what they are not. . . . What you are defines your risks and responsibilities." (Fox Rothschild LLP)

How Privatized Social Security Works in Galveston
"Government employees in Galveston, Brazoria and Matagorda Counties have controlled their private retirement plan for 30 years. They opted out of Social Security before Congress changed the law in 1983 to prevent others from withdrawing. Though the private program has its critics -- and some say it does not provide all of the important benefits many destitute Americans claim through Social Security -- many in these counties consider their system superior." (The New York Times; free registration required)

First Decision Issued in Florida Recommending a DC Plan for Public Workers in Accordance with City's Proposal
"In the first decision of its kind, a report issued by Public Employees Relations Commission (PERC) Special Magistrate William McGuiness recommended a defined contribution retirement plan for Sarasota police officers nearly identical to the plan proposed by the city of Sarasota." (Ogletree, Deakins, Nash, Smoak & Stewart PC)

Hybrid Rhode Island Pension Benefits Backed by State Treasurer
"On Thursday, she outlined some specifics that proposal will include. [Raimondo said her as-yet unwritten proposal will include a hybrid state-pension system that includes elements of the current defined-benefit plan along with a defined-contribution component, similar to 401(k) plans, which are driven by investment markets." (The Providence Journal Co.)

Federal Retirement Thrift Investment Board Approves 9 Percent Budget Increase
"Significant costs for 2012 include the introduction of a Roth 401(k) plan, scheduled to launch early next year; a $3.5 mil.lion boost to update data and call centers; a $2.1 mil.lion jump in personnel costs with a planned staff restructuring; and a $3.4 mil.lion one-time expense associated with the agency's move to a new office." (Government Executive)

Senator Baucus Urges Minimizing Costs in Retirement Savings Proposals
"Baucus said today that, while there's a pressing need to increase retirement savings, most of the proposals would cost the Treasury in forgone tax revenue." (Bloomberg L.P.)

Ex-Husband Not Liable for Retirement Account's Drop in Value, Says Court
"The Arkansas Supreme Court on Thursday struck down a circuit judge's ruling that held a man liable for the decreased market value of his ex-wife's half of his retirement account following their divorce." (Arkansas News)

[Opinion]
On the News Media's Treatment of Fees, Regulation and Wrap Fees
"[An interesting article from the New York Times, directed at plan participants who may want to increase the returns in their 401(k)s by decreasing the costs in their plans and of their investments] is not interesting so much for what it says—nothing in it is likely to be very surprising, or even new, to most regular readers of this blog—but more for two points that it illustrates . . . ." (Stephen Rosenberg of The McCormack Firm, LLC)

[Opinion]
California Pension Wars Will Be Fought at City Hall
"The real issues of reform now shift from the weird world of Sacramento to California's cities and counties. Even legislators in the craziest of them—San Francisco obviously comes to mind—are more likely to pass needed reforms than those in the state Capitol, where interest-group politics trumps everything else." (Orange County Register Communications)

[Opinion]
Pension Abuse Reportedly Widespread
"[W]hat about the pension abuses that occur routinely in the private sector -- abuses that benefit the sponsoring companies but hurt their workers? I'm referring to the abuses exposed in 'Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers' by award-winning Wall Street Journal reporter Ellen Schultz." (Bankrate, Inc.)

[Opinion]
Book Review: 'Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers' by Ellen E. Schultz
"In [the book,] Ms. Schultz herds all her journalistic cattle into a single corral, laying out by what any measure is a damning indictment of the broken pension promises too many American corporations have made to their workers. For anyone seriously interested in the retirement industry—and that's what it amounts to, an industry—this book should be required reading." (The New York Times; free registration required)

[Opinion]
Mississippi State Representative Urges 'Caution' on Tampering with Retirement System
"Neither Gov. Haley Barbour nor I will be around if a future Legislature chooses to look at PERS. I also take issue with the governor's plan to use up to a quarter mil.lion dollars of federal stimulus money to hire a new team of professional financial analysts to study PERS. This money could have been better spent helping plug holes in our current budget." (www.clarionledger.com)

[Opinion]
Why Rick Perry Is Wrong about Social Security
"Perry's solution is to return the sponsorship of government retirement programs to the states, which he insists can handle the job better than the federal government. As evidence he points to an alternative retirement plan set up by Galveston and two other Texas counties in the early 1980s . . . . The Galveston program is basically a 401(k)-style defined contribution plan. You get out of it what you put in, along with the employer's match and investment gains on the total." (Los Angeles Times)

[Opinion]
Gov. Cuomo Deserves Praise for His Public Pension Plan, According to Organization
"Gov. Cuomo should be praised for his pension proposal, which sharply reduces current defined-benefit levels for local as well as state workers. If enacted, Gov. Cuomo's proposals would save New York City $30 bil.lion over 30 years, while the state and other public employers would save $93 bil.lion." (www.poughkeepsiejournal.com)

Benefits in General; Executive Compensation

[Guidance Overview]
IRS Provides Updated Guidance on Tax Treatment of Employer-Provided Cell Phones
"On September 14, 2011, the IRS issued updated guidance (pdf) on the tax treatment of employer-provided cell phones, effectively treating both business and personal use of such phones as exempt from an employee's wages." (Littler Mendelson P.C.)

Michigan House Approves Bill to Stop Domestic Partner Benefits
"The Michigan State House has approved legislation under which cities, counties, schools, universities, and the state would be prohibited from offering domestic partner benefits to the live-in companions of their employees." (PLANSPONSOR.COM)

Should Congress Cut Its Pay or Benefits?
"In April, [an] Ohio Democrat introduced the Shared Retirement Sacrifice Act of 2011, which would require lawmakers to wait until the age of 66 to collect their pensions. Currently, lawmakers can retire as early as 50 with a full pension depending on how long they served." (Cable News Network)

General Motors May Offer Bonuses and Reopen Plant
"In what is being viewed as a landmark deal, the union also preserved health care and pensions and improved profit-sharing for its roughly 48,000 members who work at G.M." (The New York Times; free registration required)

Press Releases



BenefitsLink.com, 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

Copyright © 2011 BenefitsLink.com, Inc. All rights reserved.
All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of that content. You may not alter or remove any trademark, copyright or other notice from copies of the content.
Links to Web sites other than those owned by BenefitsLink.com, Inc. are offered as a service to readers. The editorial staff of BenefitsLink.com, Inc. was not involved in their production and is not responsible for their content.

More useful links: