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August 30, 2013          Get Health & Welfare News  |  Advertise
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Employee Benefits Jobs

Retirement Planning Consultant
Transamerica Retirement Solutions
in TX

Client Relationship Manager-Key Accounts
July Business Services

Director of Marketing and Communications
July Business Services
in TX

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Webcasts and Conferences

The Wide World of Rollovers
September 24, 2013 WEBCAST
(McKay Hochman Co., Inc.)

FASB Education Session Including Postretirement Benefit Obligations
September 4, 2013 WEBCAST
(Financial Accounting Standards Board (FASB))

Advanced Cross-Tested Plans: Adding More Tools - Atlanta
September 27, 2013 in GA
(SunGard Relius)

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  LinkedIn   Twitter   Facebook Hand-picked links to the web's best news articles,
official guidance, jobs, webcasts and more.

Do Money Market Funds Belong in 401(k)s?
"What if you as a fiduciary had the choice between two investments with almost the same level of principal and credit risk, but one had superior returns that averaged 27,000% higher the last three years, average 1,400% better over five years, and still over 200% better averaged over 10 years? ... While near 0% money-market rates have skewed recent comparisons, the 10-years numbers are meaningful and show serious fiduciary liability for plan sponsors who force their participants into a money-market fund." (MarketWatch)  


401(k) Professionals: Apply to receive your QKA credential today!

Sponsored by ASPPA

Work in some aspect of retirement plan administration? Want to specialize in the administration of 401(k) plans? The QKA credential is for you! Get your Qualified 401(k) Administrator (QKA) Credential and show that you're serious about your career!

Detroit Emergency Manager Says Mismanagement Must Be 'Overwhelming' before He'll Take Over City Pension
"Emergency Manager Kevyn Orr said ... he would need 'overwhelming' evidence of alleged waste and investment mismanagement within city pension funds before he would consider taking control of a retirement system worth more than $5 billion. Orr is awaiting final results of a joint investigation by the city's auditor and inspector generals and an analysis of the retirement system's financial health before deciding whether he should oust pension fund members -- an option available to him under Michigan's emergency manager law." (The Detroit News)  

Target-Date Fund Glide Paths: More Than Just a Mathematical Formula
"While plan fiduciaries have an increasing number of target date funds from which to choose, determining which fund family best meets the needs of plan participants can be a challenge. To help reduce the chances of future mismatches between the expectations of plan fiduciaries and the reality of how various target date fund families are structured and subsequently perform, target date providers should clearly communicate the factors considered and the assumptions made in constructing their glide path." (Manning & Napier)  

Flood of Baby Boomer Retirements Could Affect State Services
"The baby boomer generation's march toward retirement is driving concerns about filling big holes in the private and public sector employment ranks, especially where high levels of expertise are critical.... State employee union officials say the potential problems are made worse by three consecutive years of staffing reductions that have left about 1,100 fewer employees, with many positions required to do more with less and becoming less attractive. And if benefits such as defined pension plans would be replaced by, say, a 401(k)-type retirement option, which some other states are considering, that could further hurt recruiting." (The Gazette)  

Cypen & Cypen Newsletter, August 29, 2013
Article titles include: New York Cuts Pension Contributions; Fast Facts and Figures About Social Security; Proxy Voting Analytics Report; and Does Household Debt Influence the Labor Supply and Benefit Claiming Decisions of Older Americans? (Cypen & Cypen)  


Best Practices in Designing Behavior-Changing Financial Wellness Programs - October 10 Webinar

Sponsored by Lorman and BenefitsLink

Learn how to move the needle in your employees' financial wellness, with best practices from successful employer programs, as well as how to make a significant impact on individual employees through applied behavioral finance techniques. Registration discount for BenefitsLink readers.

MJM401K Regulatory and Legislative Update, Second Quarter 2013 (PDF)
Topics include: DOL Provides Six Month Delay on 404(a)(5) Disclosure Deadlines; The Recent Repeal of Section 3 of DOMA; The Secure Annuities for Employee (SAFE) Retirement Act of 2013; and ERISA Recapture Account Guidance. (MJM401k)  


Statement of Pension Rights Center to ERISA Advisory Council about Private-Sector Pension De-Risking and Participant Protections (PDF)
"Since these particular transactions made headlines in 2012, the Pension Rights Center has heard from scores of retirees who, after being promised a guaranteed company pension for life, feel frightened, confused, and betrayed by these disturbing turn of events. They have asked for our help in understanding their rights and choices.... Employer representatives contend that retirees get everything their plan promised them, but this is not entirely true: retirees lose the basic protections of ERISA, including timely disclosures and, more important, the security of PBGC -guaranteed lifetime income." (Pension Rights Center)  

Benefits in General; Executive Compensation

[Guidance Overview]

IRS Recognizes All Legal Same-Sex Marriages for Federal Tax Purposes (PDF)
"Retirement plan sponsors who are not subject to the rules on spousal consent and survivorship rights (i.e., governmental and church plans) need no t adopt the IRS rule about same-sex spouses. These sponsors can decide not to provide coverage or can decide to use a different basis for determining marital status." (Buck Consultants)  

[Guidance Overview]

Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes
"Because employee benefit plans are extensively regulated by federal law, this announcement means that even employers in states that do not recognize same-sex marriage will be required to recognize such marriages for many employee benefits purposes. However, the impact will depend on whether the plan is subject to ERISA, or whether it is a governmental or church plan exempt from ERISA. The [detailed chart in this article] sets forth areas in which the announcement will affect the operation of different types of plans." (Calhoun Law Group)  

A State of Celebration: Treasury and IRS Issue Ruling Implementing Effect of Windsor Decision
"The announcement by the Treasury and IRS provides much-appreciated tax certainty and relief in the area of employee benefit administration because it provides for uniform application of the myriad of rules and requirements that apply to married couples under the Code and ERISA. For example, qualified plans must offer joint and survivor annuities ... and pre-retirement survivor annuities with the surviving spouse as beneficiary of the survivor portion. This requirement will now apply to opposite-sex and same-sex married participants." (Bloomberg BNA)  

IRS Announces That It Will Recognize All Same-Sex Marriages
"The new guidance allays concerns that the IRS would apply the more restrictive 'domicile rule,' which would have excluded couples who reside in states that do not recognize same-sex marriage. Instead, Thursday's guidance confers favorable tax treatment on all married couples, regardless of how their local state law treats same-sex marriage." (Littler)  

Hodgson Russ Employee Benefits Developments, August 2013
Topics include: IRS Compliance Check Targets Non-Governmental 457(b) Plans; Withdrawal Liability From Multiemployer Plan and Alter-Ego Liability; Private Equity Fund Deemed Trade or Business; Employer Breached Fiduciary Duty by Allowing Ineligible Employee to Enroll in Plan; $1.8M Penalty Assessed for COBRA Notice Violations; ERISA Governs Claim Under Phantom Carried Interest Plan; State Breach of Contract Claim for Severance Preempted by ERISA; and Employer Liability for Benefit Plan Mistakes. (Hodgson Russ LLP)  

Preserving Some Portion of the Non-Qualified Plan Benefits of a Bankrupt Company
"The bad news for the GM retirees is that they lost this case to have a plan amendment adopted as part of the bankruptcy process interpreted more favorably to them.... The good news ... is that the plan participants retained any non-qualified benefit at all following the bankruptcy." [Tate v. General Motors LLC, No. 12-1214 (6th Cir. Aug. 6, 2013)] (Winston & Strawn LLP)  

Press Releases

Legal Benefits Help with College Planning
Hyatt Legal Plans, a MetLife company

CalPERS Announces Start of 2013 Board Member-At-Large Election, Date of Candidate Forum
CalPERS (California Public Employees' Retirement System)

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