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BenefitsLink Retirement Plans Newsletter
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GASB Calls for More Disclosure of State and Local Government Pension Obligations
"In the first step of what could be a lengthy rule-making process, the Governmental Accounting Standards Board issued a 'preliminary view,' on the proposal to create new rules, which calls for five-year projections of cash inflows and outflows and other financial obligations, including pensions obligations and long-term contracts, 'with explanations of the known causes of fluctuation,' . . . ."
(Business Insurance)
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Logical Implications of GASB's Methodology for Valuing Pension Liabilities (PDF)
"It is well known that the funding status of state and local government defined benefit pension plans, as measured by the accounting methodology prescribed by the Governmental Accounting Standards Board (GASB), improves when the plans take on more investment risk. This paper documents several lesser known logical implications of the GASB methodology."
(University of Rochester, Simon Graduate School of Business)
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U.S. Representative from Ohio Seeks to Expand Probe into Delphi Pensions
"'Local leadership of the Delphi Salaried Retirees in my district estimate that nearly 20,000 current and future retirees across the nation and 1,000 retirees in the Dayton area were negatively affected by the decisions of the Treasury, Auto Task Force and the PBGC,' [Representative Turner wrote]."
(Cox Ohio Publishing)
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Tax Benefits and Allocation Issues in Rollovers to Roth IRAs
"The goal of this analysis is to provide practitioners with an overview of the potential retirement and estate planning benefits of rollovers from a 401(k) plan into a Roth IRA, as well as to alert practitioners to the impact that common 401(k) plan distribution rules will have on the tax benefits of such a rollover in light of the current IRS allocation rules."
(Texas Tax Lawyer via Haynes and Boone, LLP)
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Insured Pension Risk Transfer Solutions Stand to Rescue Struggling DB Plans
"A new report by Dietrich & Associates claims that because many sponsors in the next few years will be focused on de-risking their pension program to predictably fund the plan over a series of years, struggling defined benefit pensions are poised to be rescued by insured pension risk transfer solutions."
(Asset International, Inc.)
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MassMutual’s Award-Winning ERISA Advisory Services [Advert.]

MassMutual’s ERISA Advisory Services can help plan fiduciaries and other professionals by providing up-to-date information and easy-to-use tools that help simplify the process of maintaining the compliance health of your retirement plan.
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[Opinion]
The 403(b) 8955 FAQ from the IRS
"Keeping it simple and sensible is never an easy task. As a matter of fact, it is extremely difficult to do, particularly when dealing with something as complex as 403(b) regulations. This is why the IRS's recent release of its 8955 FAQ's is so striking: in merely two FAQs, IRS and Treasury provided answers that not only make regulatory sense and further tax administration, but did it in a way which makes sense for 403(b) plan sponsors. And it surprisingly well co-ordinates with positions the DOL has taken."
(Robert J. Toth, Jr., Business of Benefits)
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[Opinion]
130+ Benefit Increases Since 1970 Are Major Cause of Illinois Pensions' Unfunded Liability
"The problem with constitutional amendments is that they can only be revoked (maybe) by another constitutional amendment. However, legislative public acts are reversed or revoked all the time. If the legislature passed legislation that increased benefits over and above what was approved in 1970, why can't they pass new legislation revoking all those increases?"
(Champion News, LLC)
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Benefits in General; Executive Compensation
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[Guidance Overview]
New IRS Regulation Project Tackles Definition of 'Governmental Plan'
"Governmental pension plans are exempt from the reporting, participation, vesting, and fiduciary standards of ERISA, and similarly governmental welfare plans are generally exempt from the ERISA rules that privately sponsored welfare plans must satisfy. Thus, a plan's status as ''governmental'' is critically important to defining the obligations of the plan sponsor, and the rights of participants and beneficiaries."
(Groom Law Group)
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Employees Want Cash and Benefits Gifts for the Holidays
"Nearly three-quarters (72%) of employees responding to a survey . . . said a cash bonus would be among their top choices for employer-gifted holiday perks this year, followed by a salary raise (62%), and paid time off (32%)."
(PLANSPONSOR.COM)
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Employee Financial Wellness a Growing Global Concern
"MetLife's 9th Annual Study of Employee Benefits Trends also found 78% of respondents said concerns over financial problems while at work can have a negative impact on employee productivity. In conjunction with the study, MetLife also released a white paper in coordination with the Boston College Center for Work & Family, titled The MetLife Study of Financial Wellness Across the Globe."
(PLANSPONSOR.COM)
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Press Releases
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