Group Benefit Enroller
for Principal Financial Group in OH

New Business Consultant
for The Retirement Advantage, Inc. in IL

ERISA Associate
for Brownstein Hyatt Farber Schreck in CO

Employee Benefits Manager
for County of Sonoma in CA

Benefits Administrator
for TPA Firm in Nashville, TN in TN

NQDC Client Service Manager
for PEN-CAL Administrators - National leader in Executive Benefits Plan Administration in CA

Director Assistant Counsel
for The Standard in OR

Associate Manager, Actuarial - Institutional Income
for Prudential in CT

Vested Interest Senior Relationship Manager
for PNC in PA

Manager of Retirement Services
for McCamish Systems, An Infosys Company in GA

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Supreme Court: Video Analysis of Affordable Care Act Decision
Nationwide on July 13, 2012 presented by Faegre Baker Daniels LLP

CFDD

[Official Guidance]

Text of IRS Notice 2012-46: Notice Requirements Under Section 101(j) of ERISA for Funding-Related Benefit Limits in Single-Employer Defined Benefit Pension Plans (PDF)
"This notice provides guidance in the form of questions and answers with respect to the notice requirements of section 101(j) of [ERISA], which requires that notice be provided to participants and beneficiaries relating to certain limitations on benefits in pension plans imposed under section 206(g) of ERISA, as added by the Pension Protection Act of 2006 ... This notice is effective on ... [the first day of the first calendar month following 90 days after publication of this document in the Internal Revenue Bulletin; it is scheduled to appear in IRB 2012-30, which will be dated July 23, 2012]. However, the plan administrator may rely on the provisions in this notice before that date. The plan administrator may also apply a reasonable interpretation of section 101(j) of ERISA before that date." (Internal Revenue Service)

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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!

Don't Forget to Monitor Your 'Self-Directed Brokerage Account'
"The DOL response [to Question #30 in Field Assistance Bulletin No. 2012-02] has raised several concerns including; 1) many recordkeeping systems are not equipped to track this data and enhancements to do so would take time and money; 2) some were surprised to learn that there was a fiduciary duty to monitor the [Self-Directed Brokerage Account, or 'SDBA']; and 3) it brings into question the idea of whether having an SDBA is worth the hassle and potential liability." (fi360 Blog)

Is It Wise to Tap an IRA to Pay Off Your House Mortgage?
"Paying off a mortgage when you retire, even if you have to use retirement funds to do so, may sound very appealing. We're not making much money in savings accounts or money markets right now, anyway. Surely, the thinking goes, if we all paid off our mortgages, we could retire and live on very little income. Nevertheless, unless your mortgage balance is very small in comparison to your retirement nest egg, [the author] would strongly advise against raiding it to get rid of your mortgage." (Reuters via FoxBusiness.com)

Public Services Threatened as Illinois Pension Debt Grows
"The gap between what Illinois promises employees in retirement benefits and what it has set aside to pay them is $83 bil.lion. The state government would have to shut down for 2-1/2 years and use all of the tax money it collects to pay that off.... [T]hat leaves states like Illinois with few options." (GPB News)

California Gov. Jerry Brown, Democrats Fail to Reach Pension Reform Deal
"Pension reform supporters have been hoping to build momentum for statewide changes after voters in San Diego and San Jose overwhelmingly passed sweeping changes in those cities last month. Brown's announcement Tuesday suggests the majority party still has work to do to satisfy his demands for a comprehensive package to help contain rising pension costs. Critics say the costs are unsustainable and are starting to compete with public education and other programs for limited state and local funds." (San Jose Mercury News)

A Checklist for Soon-To-Be-Retirees
"Here are a few activities soon-to-be retirees should do before they call it quits: Figure out a game plan for drawing down your assets.... Start living on your projected retirement income while still employed.... Make sure you are aware of your retirement plan vesting schedule... Double check that you have health insur.ance in place.... Take advantage of your health benefits." (U.S. News & World Report)

Lifting the Veil on 401(k) Fees
"The Department of Labor has undertaken a series of regulatory initiatives to ensure that Plan Fiduciaries and Plan Participants and their beneficiaries obtain comprehensive information about the services provided to the plan and the cost associated with those services. This new regulation is designed to help identify if there are any conflicts of interest, to help select and monitor third-party providers, and to assist Plan Fiduciaries to adhere to ERISA Section 404(a)(1), i.e., which is to act prudently and solely in the interest of the plan's participants and beneficiaries and for the exclusive purpose of providing benefits and defraying reasonable expenses of administering the plan." (EisnerAmper LLP)

Pension Funding Status Improves During June
"The funded status of the typical U.S. corporate pension plan rebounded 1.8 percentage points to 71.6 percent in June after steep slides in April and May ... BNY Mellon credited the June improvement to strong equity markets in the U.S., which rose 3.9 percent, and in developed international markets, which increased 7.0 percent." (BNY Mellon)

Funded Status of Pension Plans Declines Sharply in Second Quarter of 2012
"[T]he typical U.S. pension plan's funding ratio declined by five percentage points during the second quarter of 2012, from 83% to 78%. With this decline, it is estimated that plan funded statuses have remained approximately flat thus far in 2012, erasing all of the gains plans experienced in the first quarter. 'The first half of 2012, marked by early improvement in funded ratios followed by a sharp correction, bears a remarkable resemblance to the first half of 2011,' said Francois Pellerin, Head of Asset Liability Investment Solutions [at UBS]. 'What is also similar is the outperformance exhibited by plans whose sponsors have adopted a dynamic pension risk management framework.'" (UBS)

U.S. Pension Plans' Funded Status Declines in First Half of 2012
"The aggregate deficit in pension plans sponsored by S&P 1500 companies grew $59 bil.lion in the first half of 2012, to $543 bil.lion ... This deficit corresponds to an aggregate funded ratio of 74% as of June 30, 2012 compared to a funded ratio of 75% as of December 31, 2011, at which point the aggregate deficit was $484 [bil.lion]. Although US equity markets rose by 4% during June as measured by the S&P 500 total return index, discount rates used to measure the pension liability fell by 24 to 32 basis points during the month[.]" (Mercer)

Will Pension Woes Unleash a Debt Crisis for Local Governments?
"[T]he 'pension noose' is weighing down counties, cities, states and corporations. It's the slow motion freight train everyone wants to ignore until they can't. And who will get squeezed as pension woes come home to roost? Mostly workers and retirees, but taxpayers too as they will see their taxes go up to fund basic services." (Pension Pulse)

[Opinion]

The 403(b)ill of Rights
"We, the people of the 403(b) plan, in order to form a more perfect retirement vehicle, establish justice, insure investing tranquility, provide for the common fairness, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the 403(b) Investors of the United States of America.... Ten simple ideas that are hardly revolutionary. What might school districts and other non-profit employers hope to gain by implementing this 403(b)ill of Rights? How about more happy, loyal, dedicated employees." (403bWise.com)

Cypen & Cypen Newsletter for July 3, 2012
Covers employee benefit developments with an emphasis on governmental plans. Topics in this issue include: Obamacare's Individual Mandate Provision Survives Supreme Court Scrutiny; Medicaid Expansion Does Not; Young U.S. Families Do Not Save; The Situation in Longboat Key, Florida; Picking the Right Financial Adviser; Prepare To Retire at 70. (Cypen & Cypen)