EmployeeBenefitsJobs.com logo BenefitsLink.com logo

BenefitsLink Retirement Plans Newsletter

December 31, 2012          Get Health & Welfare News  |  Advertise  |  Unsubscribe
         Past Issues  |  Search

Employee Benefits Jobs

ERISA Paralegal
for Arnall Golden Gregory LLP in GA

Director, Transamerica Research Foundation - Healthcare
for Transamerica in MD

Post Your Job on EmployeeBenefitsJobs.com

View All Jobs

RSS feed for jobs RSS Feed: All Jobs


We also publish the BenefitsLink Health & Welfare Plans Newsletter (free): Subscribe

 

Watch Out: Your 401(k) Is Being Targeted in Washington
"Speaker after speaker [at a recent symposium] described how so many Americans -- women in particular -- lack the financial resources needed to retire ... [but the] recurring underlying theme was this: Don't be surprised if Congress and President Barack Obama make it harder to save for retirement starting in 2014. Nutty, isn't it? Why would Congress and the president target retirement savings plans? The answer, to paraphrase bank robber Willie Sutton, is because that's where the money is." (Forbes)

Pension Obligation Bonds: Risky Gimmick or Smart Investment?
"Over the years, returns on [pension obligation bonds (POBs)] have often fallen below the interest rate the state or locality paid to borrow the money, digging the liability hole even deeper.... Politically, it is easier to borrow money to pay for pension costs than it is to squeeze an already-stressed budget. While many economists and policy analysts view them as risky gimmicks and question the high market growth assumptions that make them seem viable, POBs have defenders who believe that with careful timing they can pay off." (Governing)

As Other States Find Pension Fixes, Illinois Drags Its Feet on Solving $95 Billion Problem
"Lawmakers [in Illinois] will convene again the first week in January in hopes of fixing the nation's worst case of underfunding state employees' pensions, a problem approaching $100 billion and mounting by $17 million per day. On the table are solutions that other states adopted as long as five years ago.... Among the changes are higher retirement ages, asking workers to contribute more and switching to 401(k)-style plans." (The Washington Post; free registration required)

IBM Moves to Reduce Costs by Changing Timing of 401(k) Match: Are Others Likely to Follow?
"Several industry consultants said they thought IBM's primary motive for the change was to reduce its costs by freeing itself from contributions for employees who leave the company during the year, a move that would help the company remain competitive. This, they said, would likely be the goal of most other plan sponsors that might follow in IBM's footsteps.... Representatives of plan sponsor advocacy organizations disagreed, saying the primary driver for IBM was to retain existing employees and to use the funds that would otherwise need to be contributed earlier in the year. This, they said, would help the company maintain its competitiveness." (Bloomberg BNA)

Wisconsin Pension Benefits Projected to Drop for Retirees
"Retired Wisconsin public employees could face up to a 13% decrease in their pensions beginning in May. The Department of Employee Trust Funds said the cutbacks are the last in a series of reductions caused by the most recent recession ... Payments have decreased since 2009, the year after the fund saw a 26% loss in the recession." (PLANSPONSOR.com)

Unpaid Employer Contributions Are Not Plan Assets Absent Clear Plan Language to the Contrary, 11th Circuit Rules
"[A] participant in the employer's 401(k) plan sued for breach of fiduciary duty because the employer used its employer contribution funds to pay its payroll taxes rather than remitting the funds to the 401(k) plan. The [11th Circuit Court of Appeals] cited binding precedent within the circuit as well as similar authority in the 2nd, 8th, 9th, and 11th Circuits supporting the court's conclusion that, absent clear and specific language to the contrary, the unpaid employer contributions were not plan assets until actually remitted to the 401(k) plan." [Pantoja v. Edward Zengel & Sons Express, Inc., No. 12-10036, 2012 WL 6117886 (11th Cir. Dec. 11, 2012)] (Haynes and Boone, LLP)

SEC Chief Announces Hedge Fund Enforcement Priorities and Fiduciary Lens
"Citing the Investment Advisers Act of 1940, [Bruce Karpati, Chief of the Asset Management Unit (part of the Division of Enforcement of the SEC)] reminds the public that investment advisers have an affirmative duty to behave with 'utmost good faith, and full and fair disclosure of all material facts' and to avoid misleading anyone. He further describes the adviser's fiduciary duty as 'the lens' through which federal regulators investigate possible bad behavior and offers numerous examples of recent complaints brought against hedge fund managers." (Good Risk Governance Pays)

Benefits in General; Executive Compensation

Quick Tips to Fight FMLA Abuse Around the Holidays
"[E]mployers need not settle for patterns of absences or even suspicious excuses for absences. Keep in mind a few best practices to combat FMLA abuse: Recognize whether the employee is seeking leave that might be covered by the FMLA ... Require that Employees complete a written leave request form for all absences ... Enforce usual and customary call-in procedures ... Prepare a list of probative questions you ask of all employees when they call in to report an absence ... Use medical certification and recertification to your advantage ... Conduct a comprehensive audit of your FMLA policy, procedures and use of leave[.]" (FMLA Insights)

2013 Reporting & Disclosure Calendar for Benefit Plans
"The latest version of this annual Sibson Consulting publication summarizes the 2013 reporting and disclosure requirements of [ACA, HHS, DOL, IRS and PBGC] of interest to sponsors of single-employer benefit plans. The 2013 Reporting & Disclosure Calendar for Benefit Plans lists and describes the forms, schedules and notices that must be filed with each organization for which plan types and by what deadlines. It also indicates who must file and whether copies must be provided to participants." (The Segal Company)

Same-Gender Marriage Becomes Legal in Maryland: Employee Benefit Ramifications
Same-gender marriage is legal in Maryland as of January 1, 2013. A two-part series of articles discusses how this will affect employee benefits in that state. The first part discusses employee benefits of private employers. The second part discusses employee benefits of governmental and religious organizations. (Calhoun Law Group)

Press Releases

BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
Phone (407) 644-4146
Fax (407) 644-2151

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright © 2012 BenefitsLink.com, Inc. but feel free to forward this newsletter if done without modification in any way.

All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of that content. You may not alter or remove any trademark, copyright or other notice from copies of the content.

Links to Web sites other than those owned by BenefitsLink.com, Inc. are offered as a service to readers. The editorial staff of BenefitsLink.com, Inc. was not involved in their production and is not responsible for their content.

Useful links: