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BenefitsLink Retirement Plans Newsletter
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[Guidance Overview]
Anti-Alienation Rule Did Not Prevent Participant from Enforcing Judgment Against Plan
"The award of funds that were erroneously removed from a participant's 401(k) account and credited to his former spouse incident to a marital dissolution would not violate ERISA's anti-alienation rule, even if the plan has not yet recovered the funds from the spouse, according to the U.S. Court of Appeals in New York . . . . The anti-alienation rule, the court advised, does not prevent plan funds from being used to satisfy a judgment against the plan."
(Wolters Kluwer Law & Business / CCH)
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The ASPPA 401(k) SUMMIT is Bigger and Better in New Orleans! [Advert.]
Come to the Big Easy for the unparalleled 401(k) SUMMIT. Join over 1,500 attendees including Broker Dealer Registered Reps, Registered Investment Advisors, Plan Administrators (TPAs) and Product and Service Professionals. Register now and save!
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[Guidance Overview]
IRS Reduces Program for Requesting Tax Status Determination Letters
"Revenue Procedure 2012-6 significantly reduces the scope of the determination letter program in several ways. These changes particularly affect sponsors of pre-approved master and prototype (M&P) or volume submitter plans. Sponsors of such plans may still generally rely on 'opinion' or 'advisory' letters . . ., however, the IRS has largely eliminated the option of applying for an individual, supplemental determination letter on the abbreviated Form 5307."
(Littler Mendelson P.C.)
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No Need to Terminate American Airlines' Pension Plans, PBGC Says
"Some have suggested that American must duck its pension commitments and kill its pension plans in order to survive. We think that commitments to 130,000 workers and retirees shouldn't be disposable, that American should have to prove in court that this drastic step is necessary. For other airlines, it hasn't been."
(Pension Benefit Guaranty Corporation)
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Corporate Pension Plans in for More Funding Woes in 2012
"Officials from BNY Mellon Asset Management, Mercer, UBS Global Asset Management, Milliman and Legal & General Investment Management America all expect another volatile year for both equity markets and funding ratios, similar to 2011 where funded status plummeted below 80% in large part because of minimal investment returns and a significant drop in the corporate discount rate."
(Pensions & Investments; free registration required)
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Broker Fiduciary Rule Officially in Limbo
"In a letter to Congress last week, the SEC said that it will gather information for an economic analysis of the impact of a standard-of-care regulation."
(Investment News; free registration required)
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GM Could Launch Retiree Pension 'Buyout'
"General Motors may launch a program to 'buy out' the pensions of some of its retirees -- in an effort to reduce its unfunded liabilities, an industry analyst said Wednesday."
(The Detroit News)
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Secrets of the 401(k) Millionaires
"'The one characteristic that differentiates the winners from the non-winners here is contribution rate — a high percentage of those mil.lion-dollar savers had constant participation and high contribution rates.'"
(The Wall Street Journal)
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Alabama Lawmaker Wants Changes to State Retirement Systems
"Alabama House Speaker Mike Hubbard said . . . taxpayers can't continue to support an investment strategy that cost the state $1 bil.lion last year for public employees' retirement benefits and matching contributions."
(Alabama Live LLC)
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Virginia Governor Proposes Pension Overhaul
"Virginia State workers would contribute an additional 1% toward their retirement under [the proposed plan]. [Governor] McDonnell also wants to offer employees the choice of a hybrid plan combining a 401(k)-style defined contribution system with a defined benefits program, and to change the formula for cost-of-living adjustments . . . ."
(PLANSPONSOR.COM)
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Wisconsin Reports Record Number of State Worker Retirements
"In 2011, the state pension fund received a record 18,780 retirement applications from employees of state agencies, school districts and local governments, compared to an average of approximately 10,500 in each of the previous seven years, the state Department of Employee Trust Funds said, according to the Wisconsin State Journal."
(PLANSPONSOR.COM)
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Can a Professional Retirement Plan Advisor Really Make That Much of a Difference? (PDF)
"This survey of 409 employer offering a 401(k) or a 403(b) plan completed in September 2011 found that sponsors who partner with a Professional Retirement Plan Advisor enjoy superior retirement outcomes for their participants, superior understanding of fiduciary issues, improved plan designs, improved plan arrays, improved overall asset allocation among plan participants, more reasonable fees, and greater confidence in plan compliance and investment options."
(Retirement Advisor Council / EACH Enterprise, LLC)
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[Opinion]
Public Agencies and Their Unfunded Pension Liabilities
"[F]or those of us who regularly work with public agencies and their retirement obligations, the tendency to discuss 'the pension crisis' at the macroeconomic level allows taxpayers and impacted agencies to rationalize that: (a) if the sky is truly falling, there is nothing we can do about it; or (b) yes, there may be signs of a serious problem, but they involve other parts of the State and other agencies, not us."
(Chang Ruthenberg & Long PC)
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[Opinion]
How 401(k)s Make Many Americans Poorer
"One of the most widely dispensed and universally accepted pieces of financial advice is that you should contribute at least enough to your 401(k) to get the full match from your company. If you don't, so the wisdom goes, you will be giving up free money. Well, it turns out that money isn't exactly 'free.' In a sense, it's coming right out of your paycheck."
(Time Inc.)
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Benefits in General; Executive Compensation
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Press Releases
US Labor Department Recovers More than $114,000 for Profit-sharing Plan of Defunct Mentor, Ohio, Company
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))
Bethlehem, Pa., Company Agrees to Restore More than $34,300 to Employee 401(k) Plan Following US Labor Department Lawsuit
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))
ASPPA Launches Plan Consultant Magazine
(American Society of Pension Professionals & Actuaries (ASPPA))
NCPA Comments on FTC Action Against CVS Caremark, Vows to Continue PBM Transparency Efforts
(National Community Pharmacists Association (NCPA))
Disability, Health Groups Support Individual Mandate in Supreme Court Amicus Brief
(National Senior Citizens Law Center)
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