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BenefitsLink Retirement Plans Newsletter

March 26, 2012 Get Health & Welfare News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

Employee Benefits Jobs

401k Wholesaler
for AXA Equitable in OR, WA

DB Systems Analyst
for Milliman in TX

Director - Relationship Manager
for Fidelity Investments in CA, TX

Account Manager
for Rapidly Growing Employee Benefits Firm in GA

Call Center Representative
for The Savitz Organization in PA

Retirement Plan Sales Consultant
for Capital Group Companies in TX

Retirement Plan Sales Consultant
for Capital Group Companies in CA

Retirement Plan Sales Consultant
for Capital Group Companies in IN

Retirement Plan Manager
for Capital Group Companies in TX

ERISA Attorney
for Financial Services Company in OH

Testing Consultant
for Diversified in MA

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Webcasts and Conferences

"SunGard Relius Form 5500 and 401(k) Plan Workshops" - Bloomington, IL
in Illinois on April 24, 2012 presented by SunGard Relius

"SunGard Relius Form 5500 and 401(k) Plan Workshops" - Houston
in Texas on April 25, 2012 presented by SunGard Relius

"SunGard Relius Form 5500 and 401(k) Plan Workshops" - Boston
in Massachusetts on April 26, 2012 presented by SunGard Relius

"SunGard Relius Form 5500 and 401(k) Plan Workshops" - St. Louis
in Missouri on April 26, 2012 presented by SunGard Relius

Basics and More! Workshop
in Pennsylvania on March 30, 2012 presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Rekon Road Show - Seattle (Bellevue), WA
in Washington on April 24, 2012 presented by Rekon Intelligence


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[Guidance Overview]
11th Circuit Court of Appeals Addresses ERISA's Anti-Cutback Rule
"At issue was whether this pension plan amendment violated the anti-cutback rule when it changed the calculation of that Social Security offset for participants who had not yet reached age 52, the plan's earliest retirement age, at the time of the amendment. The court held that ... the anti-cutback rule protected only an accrued benefit from being reduced by plan amendment.... not ... a mere expectation based on anticipated years of future employment." (Justia)


Attend the 2012 Western Benefits Conference   [Advert.]

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Designed for retirement, health, welfare & benefits professionals, with particular emphasis on practical issues important to plan sponsors & their advisors. Speak with nationally-renowned speakers & government representatives and more!


Using the IRS Interim 403(b) Document Audit Relief
"If an employer is found not to have adopted formal 403(b) plan document in a timely manner, the IRS may choose (presumably under non-abusive circumstances) to enter into a type of agreement where sanctions more resembling those available under the 'Voluntary Corrections Program' (VCP) will apply, rather than those under the more expensive 'Closing Agreement Program' (CAP). This should help encourage employers who still not have adopted a formal program to act as quickly as possible to adopt a formal written plan document, albeit late." (Business of Benefits)

Massachusetts Law Paves Way for DC Plan for Small Non-Profit Organizations
"Massachusetts Treasurer Steven Grossman will sponsor a qualified defined contribution plan open to non-profit organizations with 20 or fewer employees, under a bill signed into law Friday ... [The Treasurer's office] noted that 14% of the Massachusetts workforce, or 460,000 people, are in the non-profit sector.... [and] said conservative estimates suggest that the new tax-deferred plan will help between 35,000 and 45,000 of those non-profit employees to better save for retirement." (Pensions & Investments)

Smaller 401(k) Plan Advisers Losing Fight to Stay in Business Facing Regulatory and Cost Pressures
"Registered investment advisory firms, roll-up groups and retirement plan specialist broker-dealers are stepping up efforts to acquire smaller plan advisers or to buy up blocks of 401(k) business from them. The acquisition movement is being driven by tougher regulations from the Labor Department, higher demands for service from plan sponsors and the lure of profitable rollover business." (Investment News)

TDFs See Significant Growth in 401(k)s
"According to research conducted by Cerulli Associates, as a result of the growth, TDFs will comprise 10% of 401(k) allocation, up from 2% in 2002." (PLANADVISER.com)

Longevity Insurance Faces Hurdles on Becoming Retirement Option
"[E]xperts said that it will take considerable groundwork before longevity insurance becomes a regular employee option. It will require a combination of further regulatory clarity from the Labor Department, increased education for workers and plan sponsors, and a ramp-up in sales suitability procedures for advisers selling these annuities to plans." (Investment News)

New York's New Pension Reform Eases Local Government Burden
"When new public employees — including local teachers, firefighters, police and other workers — are hired, they will have to contribute at a higher rate to their own retirement. Their retirement age will be 63, not the current 62. And their pensions will be based on the last five years they worked, not the last three. That's the upshot of newly approved reforms to the state pension system." (BuffaloNews.com)

Special Incentives on Top of Retirement Deal Made Pensions Even Sweeter for Top Wayne County, Michigan, Appointees/Aides
"The broader retirement offer came when the county's pension plan was only 67% funded — well below Oakland and Macomb counties and the City of Detroit. Any shortage in the plan must be made up by county taxpayers because such benefits are guaranteed under Michigan's Constitution." (Detroit Free Press)

Governor's Pension Overhaul Is Boost for New York, Moody's Says
"Governor Andrew Cuomo's changes to pension benefits for future workers will improve the ability of the state and its local governments to manage retirement costs, Moody's Investors Service said." (Bloomberg)

PBGC Statement about A&P Pensions
The Great Atlantic & Pacific Tea Co. Inc. (A&P) emerged from bankrup.tcy reorganization on March 13, 2012, with its three single-employer pension plans intact. "While A&P continues to face business challenges, we want to acknowledge their ongoing commitment to maintain these pensions," said [a PBGC spokesman]. "Bankrup.tcy forces tough choices, but plenty of companies go through it and keep their plans." (PBGC)

What Will My Account Really Be Worth? An Experiment on Exponential Growth Bias and Retirement Saving
"Recent findings on limited financial literacy and exponential growth bias suggest saving decisions may not be optimal because such decisions require an accurate understanding of how current contributions can translate into income in retirement. This study uses a large-scale field experiment to measure how a low-cost, direct-mail intervention designed to inform subjects about this relationship affects their saving behavior." (The National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full text)

[Opinion]
California Public Pension Fund Assumptions Put Future Generations at Financial Risk
"Why should pension systems base contribution rates on guesstimates of anticipated future earnings from often-volatile investments such as stocks and real estate? Think about it: If you knew you had a large upcoming mortgage or property tax payment that absolutely had to be made, would you put money in the stock market and hope that it would earn enough interest to meet the obligation? Or, would you set aside sufficient funds in a safe investment so that you knew you could cover the payment when it came due?" (MercuryNews.com)

[Opinion]
Greed Is Good: Pension Plan Funding vs. Corporate Profits
"Many corporations have taken considerable heat in recent years for freezing [or terminating] their pension plans ... But [helping people to retire] is just an ancillary effect of the primary purpose, which is to attract and retain employees. And when plan liabilities get too high — which most are these days because of low interest rates — that purpose may not seem as important as it used to." (CFO)

[Opinion]
Pension Rights Center's Testimony in Support of Connecticut Bill to Provide State-Sponsored Retirement Plan for Private Employers
"The state retirement system can play an important role in helping facilitate that American dream, by providing a vehicle for retirement savings for all workers.... Thirty years ago, one out of two private-sector workers participated in defined benefit plans. Now that figure is closer to one in five. And 401(k) plans have left most workers with insufficient assets for retirement." (Pension Rights Center)

Press Releases



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