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May 28, 2014          Get Health & Welfare News  |  Advertise
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Employee Benefits Jobs

Administrator, Defined Contribution 401(k)
Niles Lankford Group
in IN, OH, SC

Human Resources Manager
International Union, UAW
in MI

Finance Lead Profit Sharing
Walgreens
in IL

DC Plan Administrator
Capital Retirement Plan Services, Inc.
in PA

DB/DC Plan Administrator
Actuarial/TPA Firm
in IL

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Webcasts and Conferences

Federally-facilitated Small Business Health Options Program (FF-SHOP) Series III - Update and Issuer Q&A
June 3, 2014 WEBCAST
(Centers for Medicare & Medicaid Services (CMS))

401(k) Plan Workshop 2014 - Nashville
June 25, 2014 in TN
(SunGard Relius)

Tax Forms Workshop: 5500 and More - Nashville
June 26, 2014 in TN
(SunGard Relius)

PPA Pre-Approved Plans Workshop - Corbel Documents - Syracuse
June 26, 2014 in NY
(SunGard Relius)

Supreme Court: The Decisions Affecting ERISA Plans, Participants and Providers
July 15, 2014 WEBCAST
(ABA Joint Committee on Employee Benefits)

Winning in IRA Rollovers
September 15, 2014 in MA
(Financial Research Associates)

Retirement Committee 101: From Basis Points to IPS and Beyond
October 9, 2014 WEBCAST
(TRI-AD)

View All Webcasts and Conferences


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

Threat of Federal Tax Liens Looms Over PBGC 4062(e) Downsizing Liability Cases
"In recent years, many employers who have downsized or sold businesses have faced a PBGC demand for liability ... There is now the potential for an even greater shock: according to PBGC, PBGC has the authority -- where an employer does not pay the PBGC-asserted downsizing liability amount by a PBGC-established deadline -- to assert and perfect federal tax liens on all of the employer's property, before any judicial determination that the downsizing liability even exists." (Keightley & Ashner LLP)  


[Advert.]

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A Four-Step Plan to Cull Accounts of Terminated Employees from 401(k) Plan Participant Rolls
"As service providers we spend enormous resources to educate both parties that participation in the plan helps everyone. But that same reluctance of some employees to enroll initially just might have an equal but opposite force for employees that move on and leave their vested balance intact.... Failure to provide any of the mandatory disclosure documents is a breach of your client's fiduciary duty. An expanding list of terminated participants is undoubtedly increasing the chance that something or someone gets overlooked." (Alliance Benefit Group, via RIABiz)  

The Fiduciary Duty of Care: A Nod to the Past and a Look to the Future
"Historically the fiduciary duty of care, and its subsidiary duty of suitability, can be traced to a relatively obscure but momentous 19th century common law case, Harvard College v. Amory (1830). The dispute centered on management of a $50,000 trust, comprised mostly of financial and manufacturing stocks, and the subsequent loss of 40 percent.... At the time, it may have seemed like just another property dispute, but today nearly all courts will judge an investment decision not on the severity of any loss, but on the process followed by the fiduciary." (fi360)  

A 401(k) Fiduciary Dilemma: The Risk of Using Volatility to Define Risk
"[T]he leading thinkers in the financial industry have long used the elegance of statistics -- specifically, standard deviation as a measure of volatility -- to frame the definition of risk. It worked so cleanly on the blackboards of academia that it just had to be used in the boardrooms of America. There was only one problem. The theory was wrong.... And that's a problem for 401k plan sponsors who rely on the investment industry to design menu options and advise participants. More importantly, if the old paradigm is dead, what new paradigm has replaced it?" (Fiduciary News)  

DOL Delays Fiduciary Redefinition Proposal Yet Again
"The [DOL] is now saying its re-proposal of what it calls 'Conflict of Interest Rule-Investment Advice' will be issued in January 2015.... Also in January 2015, the DOL expects to issue notices of proposed rulemaking about the safe harbor for the selection of annuity providers for individual account plans, as well as including lifetime income estimates on participants' defined contribution account statements." (PLANSPONSOR)  


[Advert.]

Learn, Network and Sell at the SPARK National Conference

Sponsored by SPARK

Join senior executives from leading retirement services firms for unequaled networking, educational and sales opportunities. Gain insights into the latest market trends, business strategies, regulatory and legislative issues, and product developments. June 15-17. Register now.



MassMutual Is Found to Be a Fiduciary in ERISA Suit by Proposed Class of Customer Plans
"After conducting an extensive analysis of both old and recent case law on the functional fiduciary tests under ERISA 3(21)(i) and (iii) ... [the court] found that MassMutual was a functional fiduciary because it controlled its own compensation ... [but] found that MassMutual was not a fiduciary with respect to the change of or potential changing of investments in the [Separate Investment Accounts] ... [T]hese decisions seem to be based on a combination of which circuit the lawsuit is brought in and the specific practices of each insurance company in how they are setting up and operating their separate account investments as part of the group annuity contracts offered." [Golden Star v. MassMutual Life Insurance Co., No. 3:11-30235-PBS (D. Mass. May 20, 2014)] (The Lowenbaum Partnership and FRA PlanTools)  

The Disposition of DC Accounts: Who Rolls Over into an IRA? Who Leaves Money in the Plan? Who Withdraws Cash?
"This study documents the outcome of DC plans using a nationally representative survey ... and [analyzes] how the disposition decisions correlate with a number of demographic and financial variables. The goal is to provide insight for plan administrators, investment managers, and policy makers to help plan participants make better decisions." (Employee Benefit Research Institute [EBRI])  

Institutional Plan Sponsors Experience Modest First Quarter Gains
"Positive gains across all asset classes helped institutional plan sponsors gain a median return of approximately 2 percent in the first quarter of 2014 ... Asset allocation per segment was as follows: Public Funds were weighted towards U.S. equity (32.7 percent) and international equity (22.9 percent); Foundations & Endowments were weighted towards private equity (23.3 percent) and U.S. equity (20.2 percent); Corporate ERISA plans were weighted towards U.S. fixed income (36.8 percent) and U.S. equity (29.3 percent)." (Northern Trust)  

The Changing Face of Retirement: Aegon's Retirement Readiness Survey, 2014 (PDF)
"As in 2013, people continue to hold positive aspirations for retirement, with many associating retirement with leisure (46%) and a sense of freedom (41%). Nevertheless, this is combined with a continuing widespread lack of confidence that retirement will actually deliver these benefits.... Only one in six (18%) expect to be better off in retirement when compared to current retirees... Underlying these low scores is a widespread lack of retirement saving and planning... Employers have a dual role to play in providing both financial support in the form of workplace pensions and other workplace savings products, as well as services such as online retirement planning tools or workplace financial advice." (Transamerica Center for Retirement Studies)  

[Opinion]

Statement from Insured Retirement Institute on Updated 'Fiduciary Rule' Timetable
"IRI continues to be concerned that a forthcoming rule proposal from the DOL could have unintended consequences that would ultimately deprive lower- and middle-income Americans from accessing affordable retirement planning services and advice. This new rulemaking timetable will provide more time and a new opportunity to work with the Administration to ensure that no rule proposal will prevent access to the important advice provided to Americans by their financial advisors." (Insured Retirement Institute [IRI])  

Benefits in General; Executive Compensation

Attracting and Keeping Employees: The Strategic Value of Employee Benefits
"Employees' feelings about their health and retirement benefits are correlated with their employment choices, as well as their commitment and engagement. Workers worry about rising health care costs and retirement security, and most look to their employers for solutions. When benefit programs meet employees' needs, employers enjoy a significant competitive advantage in attracting and retaining employees." (Towers Watson)  

Exhaustion of Administrative Remedies Exceptions Explained
"Two recent cases provide an important reminder that the judicial gloss on ERISA's claim procedure imposing exhaustion of remedies before filing suit must be carefully considered in any ERISA benefits case.... Aside from compliance with the plan's administrative review and appeal processes, the plaintiff must allege compliance with those procedures in any subsequent federal suit." (Health Plan Law)  

Text of SEC Semiannual Regulatory Agenda, Spring 2014 (PDF)
A list of upcoming regulatory projects of the SEC. (U.S. Securities and Exchange Commission)  

Text of Treasury Department Semiannual Regulatory Agenda, Spring 2014 (PDF)
A list of upcoming regulatory projects of the Treasury Department, including the IRS. (U.S. Department of the Treasury)  

Text of DOL Semiannual Regulatory Agenda, Spring 2014 (PDF)
A list of the upcoming regulatory projects of the DOL, including the Employee Benefits Security Administration [EBSA]. (U.S. Department of Labor)  

GAO Report: Challenges for Those Claiming Social Security Benefits Early, and Their New Health Coverage Options
"To better understand the circumstances faced by those who claim early Social Security benefits, GAO examined: [1] demographic and occupational characteristics associated with early claiming; [2] retirement income of early claimers compared to those who delay; and [3] how PPACA changes health coverage options for early claimers." (U.S. Government Accountability Office)  

Top Three Reasons DOL Auditors Come Knocking
"In 2013 alone, 775 new DOL investigations were opened as a direct result of benefit plan participants' complaints.... Increasingly, employers are being audited by the DOL for Form 5500 errors.... In many cases, the feds' audits are completely random." (HR Benefits Alert)  

CEO Pay Levels Increase as Companies Brace for Pay Volatility
"After a record year for companies and their shareholders, CEO pay showed solid increases in 2013 for the first time since 2010. The year served as another example of shareholder perception remaining 'front and center' in the thoughts of compensation decision-makers, as the delivery of pay remained highly volatile and performance-based." (Hay Group)  

409A Under the Microscope: IRS Announces Audits (PDF)
"For those employers who are not selected for the trial, now is a good time for a self-audit to determine whether one of the available correction programs can get the plan back on the straight-and-narrow for past defects and to make sure future activities won't draw fire." (Buck Consultants)  

Press Releases

CalPERS Releases Chief Investment Officer Recruitment Brochure
CalPERS [California Public Employees' Retirement System]

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