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BenefitsLink Retirement Plans Newsletter

March 13, 2013          Get Health & Welfare News  |  Advertise  |  Unsubscribe
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Employee Benefits Jobs

Client Service Representative
for Associated Pension Consultants in CA

Client Service Manager
for J.P. Morgan in CO, KS, MO

Consulting Actuary
for Milliman in TX

Actuarial Analyst
for Milliman in TX

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Webcasts and Conferences

Form 5500 Update
Nationwide on March 26, 2013 presented by McKay Hochman Co., Inc.

Employee Plan Compliance Resolution Systems (EPCRS) 2013
Nationwide on March 28, 2013 presented by McKay Hochman Co., Inc.

The Road to 2014: ACA Considerations for Individuals Webinar
Nationwide on March 21, 2013 presented by Morgan Lewis & Bockius LLP

The Road to 2014: ACA Considerations for Group Health Plans Recorded Webinar
Nationwide on March 25, 2013 presented by Morgan Lewis & Bockius LLP

EPCRS Changes - Employee Plans Compliance Resolution System, as revised by Revenue Procedure 2013-12
in Connecticut on March 21, 2013 presented by National Institute of Pension Administrators-CT Chapter

ERPA Conference
in Colorado on May 30, 2013 presented by AIRE, LLC (American Institute of Retirement Education)

Taking a Fresh Look at Target Date Funds: What Advisors Need to Know About DOL and SEC Regulations and Guidance Webcast
Nationwide on March 21, 2013 presented by National Association of Plan Advisors (NAPA)

Handling Rehired Employees Webcast
Nationwide on April 9, 2013 presented by American Society of Pension Professionals & Actuaries (ASPPA)

View All Webcasts and Conferences

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Understanding Pension Buy-Ins, Buy-Outs and Lump Sum Payments (PDF)
"[P]lan sponsors are considering the following risk reduction strategies in 2013: [1] 63% -- Liability driven investing; [2] 47% -- Lump sum payments; [3] 31% -- Closing/freezing accruals; [4] 16% -- Plan termination; [5] 14% -- Annuitization. This commentary provides an overview of the benefits and challenges that plan sponsors face in implementing annuitization options and lump sum payments to decrease risk." (SEI)


Attend the Women Business Leaders Forum in Austin, June 10-13!

Sponsored by ASPPA

The Women Business Leaders Forum will focus on HR hot topics, business growth for succession or sales, social media, technology and TPA trends. It will be a mix of general sessions and roundtables with plenty of time to network with your peers.

Ex-Chrysler Execs' Pension Claims Rejected
"A judge overseeing the leftover assets of pre-bankruptcy Chrysler LLC has rejected pension claims from five former Chrysler executives ... This was a supplemental pension plan for executives at a certain level and above. It did not represent all pension obligations to retired Chrysler executives." (Detroit Free Press)

Targeting Generational Issues in Retirement Education
"Baby Boomers (born 1946 to 1964) think about retirement very differently from other generations since they are closer to it. Thinking shifts from 'How much should I save?' to 'Do I have enough?'... Generation X (born 1965 to 1976) are in their peak earning years, but they have other financial obligations tugging at them, so they face tough choices about saving for retirement." (PLANADVISER.com)

Trends in 401(k) Plans and Retirement Rewards (PDF)
"73% of the survey's respondents reported that greater than 70% of their eligible employees currently participate in their organization's plan.... More than three-quarters of responding organizations (77%) indicated that the average employee contribution was greater than 5% of salary per paycheck.... [A] majority of companies (52%) reported that fewer than 10% of employees elect to contribute the maximum to their retirement plan.... [The results] suggest that employees need more education on the advantages of tax-deferred savings[.]" (American Benefits Council)

Why IRAs Hold More Money Than 401(k)s
"Investors collectively held $4.87 trillion in IRA accounts in 2011, compared to $3.88 trillion in private-sector defined contribution plans like 401(k)s, according to Federal Reserve data. Here's a look at why IRAs collectively hold more cash than 401(k) plans: Not everyone has a 401(k) at work.... Rollovers.... Lower fees.... More investment choices.... Saving in both." (U.S.News and World Report)


Easily locate approved correction methods in new EPCRS procedure.

Sponsored by SunGard's Relius

Questions? Subscribe to SunGard's Relius Technical Update email newsletter and receive a free EPCRS quick-reference checklist, along with regular updates on current industry developments.

Wisconsin's Public Pension Works to Spread the Cheddar
"While current employees have recently begun to share their pension contributions with their employers, the retiree reductions are a direct result of a well-constructed pension machine that increases or decreases payouts in tandem with the gains and losses in the WRS's investment portfolio, which now has $84.6 billion in assets. Designed decades ago and unique among the 50 states, the ninth-largest public pension system in the U.S. features a mechanism that insulates Wisconsin from wide swings in funding by balancing both cost-sharing and risk-sharing between employers (that is, taxpayers) and employees." (Institutional Investor)

Nominee for SEC Chief Says She Will Crunch Numbers Before Shaping Fiduciary Rule
"Mary Jo White promised lawmakers that under her leadership, the Securities and Exchange Commission would take into account the potential market impact of raising investment-advice standards for brokers before proposing a regulation to do so.... She did not indicate her stance on uniform fiduciary duty, emphasizing only that the agency must address it." (Investment News; free registration required)

Target-Date Funds to Gain Lion's Share of DC Plan Allocations
"Target-date funds account for 15.7% of DC plans' asset allocation as measured by the quarterly Callan DC Index. As of Dec. 31, the target-date fund allocation trails only the domestic large-cap equity allocation at 23.3%. Stable value is third with 12.4%." (Pensions & Investments)


The DB-to-DC Transition Cost Mirage: False Arguments Distract from Real Pension Reform Debates (PDF)
"In the face of rising pension cost and a system that allows public employers to underfund worker benefits, many jurisdictions have looked to reform their retirement systems. A few have considered a structural change, moving away from the traditional defined benefit system and toward more sustainable alternatives... [T]his policy brief will address the two primary arguments leveled against a transition to a new system. [1] Moving to a new system would starve the current system of needed contributions.... [2] There are large costs associated with a transition." (Laura and John Arnold Foundation)


Does Air Canada Deserve a Pension Lifeline?
"[T]he people managing Air Canada's pension plan are doing a stellar job. They were put in place after the crisis and have outperformed the peer group ever since. But they're not magicians and no matter how good they are, they can't solely rely on exceptional investment returns to get out of a $4.2-billion pension deficit." (Pension Pulse)


Are 401(k) Plans a Failed Experiment?
"No matter how you play the game, 401(k) plans are a gamble. From our perspective, 401(k)s work well as a supplemental plan for many people, but they are failing millions of people as a primary retirement plan. Why? The fact is, 401(k) plans put all the risks and responsibilities on individuals." (Pension Rights Center)

Benefits in General; Executive Compensation

2013 Top Five Global Employer Rewards Priorities Survey (PDF)
"Though rankings varied somewhat across geographies, the Top Five priorities reported are: [1] The ability of reward programs to attract, motivate and retain employees; [2] Clear alignment of Total Rewards strategy with business strategy and brand; [3] Motivating staff when pay increases are flat or non-existent; [4] The cost of providing benefits to employees; [5] Demonstrating appropriate return on investment for reward expenditures." (Deloitte)

Call Me: Applying the Attorney-Client Privilege for Employee Benefit Plans
"Several courts have recently held that the attorney-client privilege should not block participants from learning the content of communications between the plan fiduciary and its attorney. The reasoning follows one of two lines: (1) the benefit of any legal advice runs to the plans' beneficiaries (the participants), so that anything legal counsel says to the administrator is in effect being said to the participants, or(2) the fiduciary duty to act in the 'best interest of the participants' and disclose information related to plan administration outweighs the attorney-client privilege." (Warner Norcross & Judd LLP)

Press Releases

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