ASPPA

Senior Actuary
Acuff & Associates, Inc.
in TN

Retirement Plan Consultant, Vice President of Client Relations
401(k) Advisors - Arizona
in AZ

Client Service Representative
Alliance Benefit Group of Michigan, Inc.
in MI

Retirement Plan Consultant
QRPS, Inc.
in NC

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Health Care Reform Information Reporting (Code Sections 6055 And 6056) -- The Final Regulations!
April 3, 2014 WEBCAST
(Trucker Huss)

Hot Topics in Employee Benefits Litigation (NY CLE Program)
April 10, 2014 in NY
(Worldwide Employee Benefits Network (WEB) New York)

A New, Holistic Way to Look at Defined Benefit Plan Termination Strategies
May 15, 2014 WEBCAST
(University Conference Services)

HSAs in a Post-ACA World and Recent Lessons Learned
May 20, 2014 WEBCAST
(University Conference Services)

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[Guidance Overview]

New Two-Year Period to Adopt Restated Pre-Approved DC Plans
"Starting May 1, 2014, and ending April 30, 2016, employers can submit applications for individual determination letters for pre-approved defined contribution plans. An employer who adopts a master & prototype plan (standardized or non-standardized) may not apply for its own determination letter on Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans (instructions) -- instead, the employer should rely on the letter issued to the plan sponsor." (Internal Revenue Service [IRS])  

[Advert.]

Celebrate National Employee Benefits Day on April 2

Motivate your employees to make retirement planning a priority! The International Foundation of Employee Benefit Plans has helpful resources, interactive worksheets and useful tools to get your employees thinking about their future. Learn More.

[Guidance Overview]

SARSEP Plan Fix-It Guide, Updated March 27, 2014 (PDF)
Provides an overview of the rules for SARSEPs, an overview of the Employee Plans Compliance Resolution System, the most frequent errors fond in each plan type, and tips on how to find, fix and avoid these mistakes. (Internal Revenue Service [IRS])  

[Guidance Overview]

SARSEP Checklist, Updated March 27, 2014 (PDF)
"Every year it is important that you review the requirements for operating your Salary Reduction Simplified Employee Pension (SARSEP) plan. Use this checklist to help you keep your plan in compliance with many of the important rules." (Internal Revenue Service [IRS])  

[Guidance Overview]

DOL Proposes Roadmap for Fiduciary Fee Disclosures
"The guide is required if the disclosures are made in multiple documents or a 'lengthy' document.... The guide will be required to specifically identify the location of eight items of information... The guide must also identify a contact person who can answer questions and provide additional information.... Since the focus group sessions may extend past the close of the comment period, the Department acknowledged that it may reopen the comment period to address items that come out of those sessions. It appears as if the fee disclosure rule project -- which began in 2007 -- is still a ways from completion." (Benefits Bryan Cave)  

Four Questions to Ask About Your 401(k)'s Target-Date Fund
"Investors love [target-date funds] because they're easy to understand. Pick a retirement year and a manager will choose a group of funds to get you there. But life is rarely that simple. Here are some questions to ask: [1] What's Inside the TDF? ... [2] What's the Glidepath? ... [3] How Much Does it Cost? ... [4] Does the Glidepath Work For You?" (Forbes)  

The Coming MEP Revolution
"MEPs have been around for years (Pentegra's flagship programs for financial institutions go back to the 1940s) but the notion of applying them to the broader retirement market is relatively new and MEP growth is therefore in its infancy. MEPs fit employers of all sizes, but offer the greatest value boost for smaller employers -- roughly 80% of all retirement plans in the U.S. Yet MEPs today have perhaps 2% of the market. Expect that to change." (planadviser)  

Problems to Avoid in ESOP Distributions
"ESOP distributions can be the most complex and challenging area of ESOP design and administration.... The impact of ESOP distribution provisions on company profits must be balanced with the company's desire to provide meaningful benefits to plan participants.... Unfortunately, when the plan administrator exercises discretion to delay distributions or eliminate a single sum payment, it is usually because the company's profitability has declined.... The worst case scenario involves some plan participant special circumstances that may result in an allegation of discriminatory treatment." (Chang Ruthenberg & Long)  

Using Index Funds in Defined Contribution Plans (PDF)
"A plain vanilla, stripped-down S&P 500 index fund can be made available to participants for a few basis points.... For the most part, the fee is designed only to cover the investment management costs; it does not provide for the considerable expenses of running a defined contribution plan. Compliance, legal, communications, administration and the other plan necessities all cost significant amounts of money. To help defray those costs, slightly more expensive index funds have been created that provide revenue sharing to help offset plan administrative costs." (Cammack Retirement)  

'Before It's Too Late: A Retirement Security Newsletter from Phyllis Borzi', March 31, 2014
"The [recent EBRI] survey results were a sobering reminder that we need to redouble efforts to reach workers without a retirement plan and find ways to help them to consider options such as myRA. To help get more workers saving, EBSA educates small business owners who do not currently offer a retirement plan about the many options available and helps them determine which might be appropriate for their needs. And for those workers who are already saving, tools such as calculators can assist with considering current contribution levels and thinking about how much they will really need for what may be a long retirement." (U.S. Department of Labor)  

Fiduciary Duty and Investment Advice: Attitudes of Plan Sponsors
"Nearly nine in ten (89%) plan sponsors say that they would favor (68% 'strongly,' 21% 'somewhat') requiring DC providers to give advice that is in the best interest of plan participants. Nearly as many plan sponsors (88%) favor requiring DC providers to clearly explain to plan participants if the provider's advice is not obligated to be in the participant's best interest (59% 'strongly' favor, 29% 'somewhat' favor)." (AARP)  

The 401(k) Plan of the Future Is Available Now
"Encouraging participants to save more is integral to a best practice redesign of the 401(k) plan. Increasing the match cap to 6% of eligible pay from lower levels encourages participants to save at a level that is much more likely to result in meeting their long term goal of attaining an adequate level of retirement readiness. Limiting the number of outstanding loans for each participant will also have a positive impact in terms of limiting 401(k) asset outflows due to the perpetual use of plan assets to meet day-to-day spending needs. Re-enrollment of current plan participants enables them to take a fresh look at how they are investing their contributions since many participants are managing what is most likely their first or second largest asset under the 'set it and forget it' mantra." (Pentegra Retirement Services)  

Suit Seeks Back Pay, Pension Boost for All California Judges
"A class-action lawsuit contends that California judges are owed back pay and a pension increase because their salary, frozen for five years, did not keep pace with average increases in state worker pay as required by law.... While judicial salaries were frozen, said the suit, state workers received average salary increases of 0.97 percent in fiscal 2008-09, followed by increases of 0.21 percent in 2009-10 and 0.22 percent in 2013-14." (Calpensions)  

Ferrigno Ready to Climb New Heights
"After 16 years fighting mostly uphill battles over retirement regulation and legislation, Edward Ferrigno is looking forward to scaling some actual mountains when he retires March 31 as vice president of Washington affairs for the Plan Sponsor Council of America.... The question is what Washington will do without him.... Many Washington retirement players credit Mr. Ferrigno with playing a central role in promoting auto enrollment, qualified default investment alternatives and higher plan contribution limits. He is also proud that 'we were able to bring sanity' to the debate of employer stock in defined contribution plans, a practice cast in a bad light following the Enron Corp. 'inferno,' he said." (Pensions & Investments)  

Cypen & Cypen Newsletter, March 27, 2014
Article titles include: Global pension fund assets hit record high in 2013; Towers Watson pension 100 -- year-end 2013 disclosures of funding, discount rates, asset allocations and contributions; Retirement confidence rebounds...for those with retirement plans; GASB will not delay implementation of pension standards; and Detroit pension funds hanging tough. (Cypen & Cypen)  

Eighth Circuit Rules Against 401(k) Plan Fiduciaries in Revenue Sharing Case
"The Court's findings related to recordkeeping services provide important examples of items that plan fiduciaries should address when evaluating recordkeeping and other third-party services. In addition, plan sponsors should ensure that plan fiduciaries receive fiduciary training on a regular basis so that plan fiduciaries understand their legal responsibilities. This training can demonstrate good faith compliance with ERISA requirements and may prevent or mitigate future litigation." [Tussey v. ABB, Inc., No. 12-2056 (8th Cir. Mar. 19, 2014)] (Winston & Strawn LLP)  

A Lone Ranger of the 401(k)'s
"The suit on behalf of ABB's plan participants was filed by Jerome J. Schlichter, a partner at Schlichter Bogard & Denton in St. Louis. Since he began suing companies over fiduciary failures eight years ago, he has settled six 401(k) cases ... The settlements have generated $125 million in recoveries to 300,000 participants, minus legal fees, and secured major reductions in plan costs for the future.... 'As these cases have progressed and the settlements occurred, more judges are understanding the practices and the harm to retirees,' Mr. Schlichter said. 'A body of law is developing, setting out fiduciary practices and standards.'" (The New York Times; subscription may be required)  

IRS Says 'Control' Thyself: Plan Examinations Focus on Internal Controls
"In general, internal controls refer to procedures that affect a plan's operations, compliance with regulations and financial reporting. The benefit to the plan and the plan sponsor of having internal controls are many. They include: [1] A less intensive IRS examination; [2] A more effectively run plan; and [3] A system to detect problems earlier and correct them under generally forgiving IRS correction programs. Accountants focus on five key areas (and so will the IRS) to determine whether those in charge of a plan have appropriate controls in place[.]" (Fiduciary Plan Governance, LLC)  

The Paternalization of Participant-Directed Plans (PDF)
"Most experts agree that the system is well-designed, with the proper incentives and structure in place to make it possible for American workers to achieve a secure retirement. However, workers are experiencing significant shortfalls in retirement savings.... [T]he flaw in the system may point back to the participants and their investment choices.... [R]etirement plan participants may be finding themselves overwhelmed by the investment decision-making required of them." (Arnerich Massena)  

IRS Allows Improper Retirement Plan Deductions Worth Millions, Inspector General Says
"For tax year 2011, approximately 200 taxpayers who did not file a Schedule C, E or F to report their net earnings from self-employment claimed more than $2 million in SEP deductions on line 28 of Form 1040.... Reporting net earnings from self-employment is a requirement for taking a SEP deduction on line 28, [the Treasury Inspector General for Tax Administration] noted." (Accounting Today)  

Millions of Dollars in Potentially Improper Self-Employed Retirement Plan Deductions Are Allowed (PDF)
"The overall objective was to determine whether the IRS's controls and third-party data are adequate to identify improper deductions for contributions made by self-employed taxpayers to their own SEP plan retirement account.... If the IRS improves controls, it could prevent improper deductions and potentially protect $71 million in revenue over five years. In addition, TIGTA found that the IRS could better use third-party data to detect potentially improper SEP deductions.... If the IRS improves controls, it could detect improper deductions and potentially realize $29 million in revenue over five years." (Treasury Inspector General for Tax Administration [TIGTA])  

[Opinion]

The Illusion of Protection: 'I'm a Fiduciary, But, But, But ...'
"[It] appears that the SEC has failed to enforce the fiduciary standard correctly ... And it also appears that many large Wall Street firms are putting themselves (and their advisors) at risk, by relying upon 'mere disclosure' as the means of 'managing the conflict of interest.' The evidence of these practices is found in the SEC disclosure document required of these firms, which are publicly available documents." (Ron Rhoades)  

Supreme Court Holds Severance Payments are Taxable Wages under FICA
"Employers should be aware that attempts to convert promised severance payments into non-wage payments (e.g., consulting fees) in order to avoid FICA tax can subject both the employer and employee to IRS scrutiny and possible penalties." (Dorsey & Whitney LLP)  

Supreme Court Rules That Severance Payments Are Subject to FICA Taxes
"The Supreme Court unanimously resolved the dispute between the Federal and the Sixth Circuits by agreeing with the IRS's long-held position. The Court first held, because the term 'wages' for FICA taxes includes 'all remuneration for employment,' it must include payments for 'not only work actually done but the entire employer-employee relationship for which compensation is paid.' ... The Court further held that, although the Code treats SUB payments 'as if' they are wages for federal income tax purposes, the 'as if' language does not mean that severance payments are not wages for other purposes." [U.S. v. Quality Stores, No. 12-140 (S.Ct. Mar. 25, 2014)] (Ballard Spahr)  

Proposed Tax Reform Potentially Impacts Executive Compensation (PDF)
"The proposed law would also undermine the benefits derived from non-contributory nonqualified deferred compensation arrangements, such as SERPs or restoration plans. Among these benefits is the deferral of taxation on amounts accrued and any earning thereon until such amounts are distributed to the employee. Under the proposed law, upon vesting these amounts would become subject to federal income tax." (Meridian Compensation Partners, LLC)  

Nonqualified Deferred Comp Plans See Higher Participation, Deferrals for 2014
"The eighth annual MullinTBG/PLANSPONSOR Executive Benefits Survey reveals while general plan participation rates were up only slightly to 46% (from 43.9% in 2012), 30% of survey webinar registrants observed higher participation, 19% higher deferral amounts and MullinTBG saw a 10.5% increase in enrollment. Similar to previous survey results, participation rates were highest (56%) for firms that offered a company match.... The survey, the longest-running of its kind, also revealed almost all companies (95%) offer [non-qualified deferred compensation plans (NQDCPs)] to their highly compensated employees, making it the most common executive benefit surveyed. In 2012, roughly 90 percent of responding companies said they offered a NQDCP." (Prudential)  

Employers Council on Flexible Compensation Names New Chairman of the Board, Appoints New Board Members
Employers Council on Flexible Compensation (ECFC)

ICMA-RC Recognized by Pension & Investments with Eddy Award for Education Website
ICMA-RC

River and Mercantile Group Announces Appointment of New Chairman Paul Bradshaw
River and Mercantile Group (RMG)

FCRC Apps Announces a New Surveying Tool for eFiduciary.net
FCRC Apps, LLC

Well-recognized Industry Specialist Joins Sapers & Wallack Retirement Plan Division
Sapers & Wallack, Inc.

Northeast Professional Planning Group, Inc. Appoints Lance P. Roteman
Northeast Professional Planning Group (NPPG)

Northeast Professional Planning Group Launches 3(16) Fiduciary Service
Northeast Professional Planning Group (NPPG)

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