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Sr. Retirement Plan Specialist - ERISA Attorney
New York Life Retirement Plan Services
in MA

Retirement Plan Administrator
Noble-Davis Consulting, Inc.
in OH

Senior Associate
Buck Consultants a Xerox Company
in CA

Assistant General Counsel
Major Not-For-Profit Health Plan
in NY

Relationship Manager - Institutional Trust & Custody
U.S. Bank
in OH

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Risk Analysis DOs and DON’Ts
February 27, 2014 WEBCAST
(Clearwater Compliance)

Time for Action on Pension Risk
March 11, 2014 WEBCAST
(Mercer)

Bundled Payment Programs: Case Studies From Two Insurers
March 18, 2014 WEBCAST
(Atlantic Information Services, Inc)

Insights into the Current Practices and Trends - from Securities and Exchange Commission Comment Letters to Pay Practices of Leading Private Equity Firms
March 26, 2014 WEBCAST
(PricewaterhouseCoopers LLP)

Health Care Reform
May 1, 2014 in NY
(Thomson Reuters / EBIA)

EBIA Spring 2014 Employee Benefits Seminar Recordings
May 12, 2014 WEBCAST
(Thomson Reuters / EBIA)

View All Webcasts and Conferences

[Guidance Overview]

IRS Retirement News for Employers, February 24, 2014 (PDF)
Topics include: [1] You can still set up a SEP by the due date (including extensions) of your 2013 business income tax return; [2] Tips for the sole proprietor; [3] Saver's Credit for contributing to an IRA or company retirement plan by April 15, 2014; [4] How to correct missing or late distribution of safe-harbor 401(k) notice; [5] Retirement plan deadlines; [6] Consider your Roth options; and [7] My RA program information Fact Sheet, FAQs and video in English and Spanish. (Internal Revenue Service)  

[Advert.]

6 Days Left to Save on the Benefits Event of the Year

"Well on its way to becoming the THE go-to-annual event for Benefits Professionals" John Hollon, VP for Editorial, TLNT.com. See for yourself what it's all about, visit BenefitsConf.com for details, then register today! Early Bird rates expire in 6 days.

[Guidance Overview]

PBGC Proposes Reporting Changes for Pension Plans
"The proposed modifications will add burden to all [defined benefit] plans. Furthermore, for multiemployer plans, it is not necessarily required that a rehabilitation plan based upon forestalling insolvency specify a particular year. Regulations under the relevant sections of the law have not been issued, and the sections of the law dealing with the zone status of multiemployer plans will expire this year (although the funding improvement plans and rehabilitation plans in existence will continue)." (Cheiron)  

[Guidance Overview]

IRS Guidance Answers Key Questions About In-Plan Roth Conversions
"Perhaps the most significant question answered in [IRS Notice 2013-74] is that, following the conversion of amounts that are not otherwise distributable, the resulting Roth amounts remain subject to the same distribution restrictions that applied to those amounts before the conversion.... The upshot of this requirement is that any amount converted under the new ATRA rules (i.e., any amount that is not otherwise distributable) must be accounted for separately from other Roth amounts (converted or otherwise) that are distributable." (Spencer Fane)  

[Guidance Overview]

Continuing Ed Material for IRS EP Personnel: Section 401(k) and (m) -- ADP/ACP Tests, Correction Methods under EPCRS (PDF)
59 pages, dated 2013. Excerpt: "At the end of this lesson, you should be able to: [1] Determine whether an employer correctly applied the ADP/ACP test. [2] Determine whether an employer timely corrected for an ADP/ACP test failure. [3] State the correction methods under Rev. Proc. 2008-50 when a plan does not timely correct for failing the ADP/ACP test. [4] Determine whether the employer made the correct Qualified Non-elective Contributions (QNECs)/Qualified Matching Contributions (QMACs) under Rev. Proc. 2008-50. [5] Determine whether the employer properly applied the one-to-one correction method. [6] Determine whether the employer properly coordinated multiple failures under a section 401(k) plan." (Internal Revenue Service)  

[Guidance Overview]

Continuing Ed Material for IRS EP Personnel: Overview of Hybrid Plans (Cash Balance and Pension Equity Plans) (PDF)
54 pages, dated 2013. Excerpt: "At the end of this chapter ... you will be able to: [1] Define a hybrid plan. [2] Identify the primary features and requirements of a cash balance plan and a pension equity plan. [3] Explain the 'A plus B' method. [4] Define principal and interest credits. [5] Explain the interest crediting standards for cash balance plans, including the market rate and the preservation of capital requirements. [6] Calculate the hypothetical account balance when given a plan formula. [7] Calculate the accrued benefit. [8] Explain the similarly situated employee requirement. [9] Explain the special vesting rule for cash balance plans. [10] Explain the present value of the accrued benefit for cash balance plans. [11] Determine if the plan complies with the 133-1/3% rule." (Internal Revenue Service)  

[Advert.]

National Conference on ESOPs and Stock Plans: April 2014

If you work with employee stock ownership plans (ESOPs) or equity compensation plans, the Employee Ownership Conference in Atlanta will keep you up to date. Early rate expires on March 17, overflow rooms now available!

Supreme Court Won't Consider Fiduciary Status of Profit-Sharing Plan Recordkeeper
"The U.S. Supreme Court won't review an appellate court decision holding that a profit-sharing plan's recordkeeper didn't act as a plan fiduciary in selecting mutual funds for the plan's investment lineup for purposes of a challenge to the recordkeeper's receipt of revenue-sharing fees." [Leimkuehler v. American United Life Ins. Co., No. 13-536 [cert. denied Feb. 24, 2014)] (Bloomberg BNA)  

Key Facts and Frequently Asked Questions About the ERISA Section 3(16) Fiduciary Role (PDF)
Topics include: What Is a 3(16) Fiduciary? ... Why Is the 3(16) Role Important Right Now? ... Department of Labor (DOL) Enforcement Statistics ... Plan Sponsor Question: "Why Didn't We Already Have a 3(16) in Place?" ... 3(16) Responsibilities ... What Are the Benefits to the Plan Sponsor of Engaging a 3(16)? ... What Are the Benefits to the Advisor of Engaging a 3(16)? ... If the Plan Sponsor Hires a 3(16), What Is the Plan Sponsor's Remaining Fiduciary Obligation to the Plan? (Roland|Criss)  

Analysis of DC Plans of Fortune 100 Companies for the 2012 Plan Year
"Of Fortune 100 employers offering only DC plans to new hires in 2012, 56% offered matching and non-matching contributions. After freezing or closing their DB plan, many employers added a non-matching contribution to the DC plan design and contributed more to the plan. Forty percent of these Fortune 100 companies had automatic enrollment in 2012, and 50% of them automatically increase employee contributions over time." (Towers Watson)  

Securities Exclusion May Not Negate Duty to Defend Where ERISA Action Alleges Conduct Outside Exclusion's Scope
"Participants in the insured company's retirement plan brought an ERISA action against the technology company and its directors for breach of their fiduciary duties alleging various failures with respect to the plan's investments in the company's own stock.... [The federal district] court found that the company had 'adequately pled that the ERISA Plaintiffs alleged conduct outside the scope of the Securities Exclusion.' Specifically, the ERISA plaintiffs' allegation of failure 'to adequately review the performance' of the retirement plan's other fiduciaries did not clearly fall within the exclusion. As a result, the court found that the company stated a 'plausible claim for breach of the duty to defend.'" [International Game Technology, Inc. v. Federal Insurance Co., No. 3:13-cv-00026-RCJ-WGC (D. Nev. Feb. 13, 2014)] (Wiley Rein LLP)  

Shifting Plan Sponsor Attitudes in the $900 Billion Bundled DB and Total Retirement Outsourcing Market (PDF)
"16% of plan sponsors whose plans are unbundled indicate an intention to bundle some or all of their DB services in the next 12 to 24 months, while an impressive 48% of plan sponsors who are not fully bundled indicate they would be open to bundling their retirement plans if convinced of the benefits.... [M]any semi-bundled sponsors agree that time and resource savings and lower administrative fees are likely outcomes of bundling. However, along with unbundled sponsors, they are unwilling to sacrifice investment flexibility to achieve these outcomes." (Chatham Partners)  

Efforts to Rein In Public Sector Pension Costs Are Falling Short
"More than 40 states have taken steps in recent years to rein in mounting public employee pension costs that threaten to strangle government services.... The clearest evidence that pension overhauls have fallen short is that the gap between the projected cost of the benefits and the money set aside to pay for them has continued to grow -- to $4 trillion this year from $3.1 trillion in 2009[.]" (The New York Times; subscription may be required)  

Tax Implications of Lump-Sum Payouts from DB Plans
"The economic impact of a lump-sum payout must be carefully evaluated by the recipient. It may not be as advantageous as it appears. Plan sponsors implementing this strategy may wish to consider the impacts of the ACA as they draft the communications to the prospective payees." (Milliman Retirement Town Hall)  

'Dear Prudence:' -- For the Benefit of Mr. Moench
"Whether or not you think Moench and its progeny came out the right way, there is a significant flaw in the [Third Circuit's] rationale. The [Court] arguably got off on the right foot by looking to [the employer's] intent in establishing the ESOP, but, in divining that intent, it treated ERISA/Code-mandated boilerplate language in the plan (investing 'primarily in employer securities') as evidence that this objective was ascendant over the plan's ERISA/Code-mandated raison d'etre viz. providing retirement benefits to the participants. Whether the 'settlor's intent' can be discerned by looking to a few isolated sentences in a complex ESOP document that describe this subsidiary goal (because it has to) while ignoring the vast bulk of the document's provisions that describe the terms of conditions for payment of future retirement benefits in detail, seems dubious to say the least." (ERISA Fiduciary Administrators)  

How to Retire a Millionaire (Hint: It's Easier Than You Think)
"Why don't we see a lot of 'teenage' millionaires? First, IRAs haven't been around long enough for our hypothetical 15 year old to have turned 70 yet. More to the point, though, is why haven't we seen a lot of teenage IRAs in the first place. 'In my experience of dealing with young savers,' says Michael Lecours, Financial Advisor & Marketing Manager at Ohanesian / Lecours in West Hartford, Connecticut, 'they will always have a reason not to invest -- not enough money, simply forgot, or need money to pay other expenses. Something comes along that seems to be more important than saving for something that won't be used for 50 years.'" (Fiduciary News)  

U.S. Ranks No. 19 in Global Retirement Index (PDF)
"The U.S. scored 19th among 150 nations analyzed, as the benefits of increasing U.S. economic stability are moderated by the potential for rising interest rates and inflation, as well as persistent income inequality.... For overall retirement security, the U.S. remains behind the majority of countries in Western Europe and Canada, and ahead only of Israel on the list of the top 20 nations. Despite ranking sixth highest in per capita income, the U.S. ranks first in per capita healthcare expenditures, yet 33rd for life expectancy and relatively low (81st) for income inequality." [Full report (81 pages) available here.] (Natixis Global Asset Management)  

The Real Reason That CFOs Like Defined Contribution Better Than Defined Benefit Retirement Plans
"The analysis and discussion of the DB plan financials included in the corporate accounts of these large plan sponsors typically runs to 10 or more pages.... All of this is necessary because all of this is relevant to investors: the corporation is responsible for the balance of cost of the plan so the ups and downs of plan experience flow through to the economics of the corporation.... The DC plan, meanwhile, gets about two lines. Basically, the analysis says: 'We contributed $X'. That's it. That's all that investors need to know, because in essence that's the full extent of the impact of the DC plan on the corporation's financials." (Russell Investments)  

Profile of Mutual Fund Shareholders, 2013 (PDF)
"[In] 2013 the 'typical' mutual fund-owning head of household: [1] was middle-aged, employed, educated, married or living with a partner ... [2] was of moderate financial means ... [3] owned investments other than mutual funds, including individual stocks ... [4] had $100,000 invested in three mutual funds, including at least one equity fund; [5] owned mutual funds inside an employer-sponsored retirement plan ... [6] owned mutual funds outside employer-sponsored retirement plans, primarily purchased through investment professionals[.]" (Investment Company Institute [ICI])  

The Wharton 401(k) Loan Default Study: Documenting Unemployment's Unrecognized Penalties
"Defaulting loans at the time of unemployment is a significant source of retirement 'leakage.' Perhaps even more importantly is the human cost ... [T]his traditional plan design imposes a severe financial hardship upon those who involuntarily lose their jobs, at a time when they can least afford it. The taxation on the forced deemed distribution and 10% penalty on loan defaults is especially cruel. Not only may it artificially inflate the marginal tax rate and impose taxes without a distribution to pay them; but then the penalty is paid regardless of the application of the marginal rate or deductions." (Business of Benefits)  

Massachusetts Opens Probe Into Timing of 401(k) Matching Contributions
"The Massachusetts Securities Division is calling on 401(k) plan administrators to report how many companies have shifted to a lump-sum matching contribution once a year, a change that can undermine worker savings. The unit sent a letter to the 25 largest providers of 401(k) plans, requesting the number of employers who pay distributions at year-end, when the move was made from more frequent payroll periods and what workers are told about the potential consequences[.]" (Bloomberg)  

[Opinion]

Evaluating 401(k) Plans in a House of Mirrors
"Fidelity says that the average 401(k) account balance has nearly doubled since March 2009, the stock market's lowest point during the recession. Vanguard reports that the average 401(k) account balance is $101,650, the highest average since the company began tracking the figure in 1999. While these numbers sound promising, a few things are left out of the picture: Contributions vs. investment returns ... Median vs. average ... [and the] data set." (Pension Rights Center)  

[Official Guidance]

Text of IRS Final Regs: Property Transferred in Connection with the Performance of Services under Section 83
"These final regulations provide several clarifications regarding whether a substantial risk of forfeiture exists in connection with property subject to section 83. Specifically, the final regulations clarify that [1] except as specifically provided in section 83(c)(3) and 1.83-3(j) and (k), a substantial risk of forfeiture may be established only through a service condition or a condition related to the purpose of the transfer, [2] in determining whether a substantial risk of forfeiture exists based on a condition related to the purpose of the transfer, both the likelihood that the forfeiture event will occur and the likelihood that the forfeiture will be enforced must be considered, and [3] except as specifically provided in section 83(c)(3) and 1.83-3(j) and (k), transfer restrictions do not create a substantial risk of forfeiture, including transfer restrictions that carry the potential for forfeiture or disgorgement of some or all of the property, or other penalties, if the restriction is violated." (Internal Revenue Service)  

Reporting and Disclosure Guide for Multiemployer Plans, February 2014 (PDF)
57 pages, in the form of useful charts. Sections include: [1] All ERISA plans; [2] Defined benefit and defined contribution plans; [3] Defined benefit plans only; [4] Defined contribution plans only; and [5] Group health plans. (Buck Consultants)  

Form 8822-B Responsible Party Deadline for a Few Employee Benefit Plans and Trusts: March 1, 2014
"What is the penalty for failing to timely file a Form 8822-B? Nothing at this point. However, if you fail to provide the IRS with your current mailing address or the identity of your responsible party, you may not receive a notice of deficiency or a notice of demand for tax, and penalties and interest will continue to accrue on any tax deficiencies.... [If] an employee benefit plan (including any qualified retirement plan) or trust (such as a retirement plan trust or VEBA) uses its own EIN, we need to consider whether a filing is required. How do you know whether your plan or trust has a separate EIN? We suggest you look at your tax forms (Form 5500 or Form 990), and summary plan descriptions." (Porter Wright Morris & Arthur LLP)  

House Bill Would Extend Reach of 162(m) to All Employees and Eliminate (Significant) Exemption for Performance-Based Compensation (PDF)
6 pages. Excerpt: "The proposed legislation would effectively eliminate the corporate deduction for any compensation paid in excess of $1 million during any tax year beginning after December 31, 2013 to any current or former employee or director.... [T]he payment of annual and long-term cash incentives, the exercise of stock options and the settlement of performance shares would be subject to the $1 million deduction cap. For the largest public companies where proxy-disclosed officer salaries often equal or exceed $1 million (especially for the CEO), such companies would be precluded from taking a corporate deduction for any annual or long-term incentive payments made to such officers (or any other similarly situated employees)." (Meridian Compensation Partners, LLC)  

Employee Ownership Foundation Accepting Applications for Charles R. Edmunson Scholarships
Employee Ownership Foundation

7th Annual Savings Survey Reveals Persistence Of Financial Challenges Facing Most Americans
America Saves

Fallon Health Partners With Cognizant to Become the First Massachusetts Health Insurer to Provide Quotes for Merged Market Plans Under Affordable Care Act
Cognizant

Westminster Consulting is Selected as One of the 2014 PLANADVISER Top 100 Retirement Plan Advisers
Westminster Consulting

Mercer Releases First-of-its-kind Global Pension Buyout Index
Mercer

DOL Secures Appointment Of Independent Fiduciary For Abandoned Brooklyn, NY, Retirement Plan
Employee Benefits Security Administration (EBSA), U.S. Department of Labor

New Survey Reveals Positive Link between Healthy Employees and Companies with Strong Cultures of Health
Aon Hewitt

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