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BenefitsLink Retirement Plans Newsletter

January 12, 2012 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

Employee Benefits Jobs

Regional Pension Consultant
for Retirement Alliance in FL

Regional Pension Consultant
for Retirement Alliance

Regional Retirement Education Counselor
for Prudential in IL

Assistant Plan Administrator
for Pollard & Associates, Inc. in MD

Implementation Mgr - RP
for The Standard in OR

Client Service Associate (Retirement Plan Customer Support)
for Prudential in IA

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Webcasts and Conferences

"Earned Income: Computing Compensation for the Self-Employed" Web Seminar - NEW DATE!
Nationwide on January 31, 2012 presented by SunGard Relius

2012 First Quarter Update
Nationwide on February 14, 2012 presented by McKay Hochman Co., Inc.

2012 First Quarter Update
Nationwide on February 15, 2012 presented by McKay Hochman Co., Inc.


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[Official Guidance]
IRS Retirement Plan FAQs Regarding Form 8955-SSA
"What are the requirements for answering 'yes' to question 8 on Form 8955-SSA? . . . . A plan administrator may answer 'yes' to question 8 if the required information was timely furnished to participants in other documentation such as benefit statements or distribution forms. A separate statement designed specifically to satisfy this requirement is not required." (U.S. Internal Revenue Service)


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[Guidance Overview]
IRS FAQs on Notice to Terminated Participants with Deferred Vested Benefits Reported on the New Form 8955-SSA
"Plan administrators should review the materials previously distributed to terminated vested participants for the 2009 and 2010 plan years to confirm whether a separate notice should be provided to the affected participants by the January 17, 2012, deadline for calendar year plans." (Ballard Spahr LLP)

[Guidance Overview]
The ERISA Litigation Newsletter, January 2012
"[This edition] addresses the implications of two major Supreme Court decisions, Cigna Corp. v. Amara and Walmart Stores, Inc. v. Dukes, and developments in 401(k) plan excessive fee and employer stock drop cases. We also focus on a recent Second Circuit decision addressing the issue of when the statute of limitations on benefits claims commences . . . ." (Proskauer Rose LLP)

[Guidance Overview]
New Procedures for Filing Determination Letter Applications
"[T]hese changes are intended to (1) reduce the burden on employers for filing determination letter applications (and in some cases, eliminate the need to file an application) and (2) reduce the time it takes for the IRS to process determination letter applications." (Porter Wright Morris & Arthur LLP)

Will Public Pensions Run Out of Money?
"While the [Center for Retirement Research at Boston College] brief comprehensively reviews the proposed changes by the Governmental Accounting Standards Board (GASB) and the potential impact on state and local public pension plans, most of the attention is focused on the column in Appendix B that lists the year in which each individual plan will run out of funds." (Pension Dialog)

Large Employer, Union Embrace Adjustable Pension Plan Model
"In a move that might signal an important trend in pension design, a major labor union and employer have agreed to adopt an Adjustable Pension Plan (APP) effective January 1. Approximately 4,000 employees will be covered by the innovative plan." (Cheiron, Inc.)

Investors Express Optimism for Retirement Plan Investing
"Many of those surveyed feel better about investing in retirement vehicles, like 401(k)s and IRAs. Nearly three-fourths of investors said they believe now is a good or very good time to be investing in retirement products such as 401(k) plans and IRAs (73% each). Both of these figures represent meaningful increases over last quarter's lows (66% for 401(k)s and 67% for IRAs)." (PLANSPONSOR.COM)

Inspector General Faults PBGC's 'Systemic' Failures
"Following another report that finds fault with the Pension Benefit Guaranty Corp.'s audit processes and valuation of plan assets, the agency has cut most of its ties with one auditor and has promised to change procedures so that errors are prevented — or corrected. Critics say it's about time the agency responded to problems." (Human Resource Executive Online)

Fidelity Analysis Highlights Positive Impact of PPA on 401(k) Plans
"The study found that more than half (51%) of Fidelity's 401(k) participants are now in a plan that offers auto enrollment, up from just 16% five years ago, having a dramatic impact on participation rates. Additionally, the percentage of plans defaulting participants into age-based lifecycle funds has increased from 11% to 73%." (Wolters Kluwer Law & Business / CCH)

Larger Issue of Illinois Pension Plans Still Unresolved after Bill Signing
"The bill outlaws double dipping by union officials who were gaming the system to secure their own six-figure public pensions. In effect, union leaders were being allowed to use the pension system set up for public employees. While that type of behavior won't be allowed any longer, the larger issue of pensions -- and their impact on the state's finances -- remains unresolved." (Pantagraph.com)

Recovering from the Market Downturn of 2008 (PDF)
"We first assess how declines in typical portfolio values impacted overall projected retirement incomes, factoring in Social Security, future growth and future savings. We then find that even for investors within five years of retirement, modest increases in savings combined with slightly delayed retirement can recover their pre-2008 retirement outlooks if they stay in diversified age-appropriate portfolios." (Society of Actuaries)

[Opinion]
Current DC Plan Practices Will Likely Produce Future Retirement Benefits that Are Inadequate for Most (PDF)
"In response to policymaker's concerns, it is essential that the 401(k) industry develop an effective solution to save the private retirement system. There is no doubt that the industry can craft a better solution than a state-run, centralized, and likely underfunded pay-as-you-go government program." (Unified Trust Company)

Benefits in General; Executive Compensation

Multi-Generational Views on Family Financial Obligations: Survey of Baby Boomers and Members of Generations X and Y (PDF)
"[T]his research suggests that Americans' desire to give is strong, but not limitless, and the money provided as a gift or for help with specific financial issues, or any other type of non-financial assistance, tends to be seen as a reflection of caring and love between family members, rather than as a familial mandate or unspoken contract." (Metropolitan Life Insurance Company)

Press Releases



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