ASPPA

Retirement Plans - Client Relationship Manager
Ameritas Life Insurance Corp.
in LA, TN, TX

Lead Legal Analyst
T. Rowe Price
in MD

Director - Retirement Plan Services
CliftonLarsonAllen LLP
in IL

Daily Team Associate I
MBM Advisors, Inc.
in TX

Account Manager
Nova 401(k) Associates
in ANY STATE

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Qualified Health Plan (QHP) Series -- Open Q&A
June 18, 2014 WEBCAST
(Centers for Medicare & Medicaid Services (CMS))

Transitional Reinsurance Program: An Overview of Policy and Operations for Reinsurance Contributions
June 20, 2014 WEBCAST
(Centers for Medicare & Medicaid Services (CMS))

Voluntary Fiduciary Correction Program and Abandoned Plan Program
June 24, 2014 WEBCAST
(Employee Benefits Security Administration [EBSA], U.S. Department of Labor)

Is Your Benefits Knowledge in Jeopardy?
June 26, 2014 in DC
(Worldwide Employee Benefits Network [WEB] - Washington Metropolitan Chapter)

SunGard's Just for ERPAs Workshop
September 2, 2014 in IL
(SunGard Relius)

SunGard's Advanced Pension Conference - Chicago 2014
September 3, 2014 in IL
(SunGard Relius)

View All Webcasts and Conferences

[Guidance Overview]

GASB's Second Implementation Guide on Pension Plan Financial Reporting Provides Guidance for Employers
"[T]he latest Implementation Guide [for Statement 68, 'Accounting and Financial Reporting for Pensions'] ... answers 272 questions that were raised by users, preparers and auditors of state and local government financial statements about putting the new standards into practice.... In addition to questions and answers, the Implementation Guide includes several appendices, one of which defines terms and others that present illustrative examples, which should not be relied upon as accounting guidance." (Segal Consulting)  

[Advert.]

Set Yourself Apart From Your Peers With the CEBS Designation

Co-sponsored by the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania, the CEBS designation gives you the knowledge and confidence to succeed in today's business environment. Learn More!

NCR Corp. Makes Lump-Sum Offer to U.S. Retirees in Frozen DB Plan
"It is the second lump-sum offer for former U.S. employees ... in the past two years. The new offer is being made to employees who began receiving benefits between Jan. 1, 1994, and April 1, 2014. The offer window will be July 2 until Aug. 22.... As of Dec. 31, the U.S. defined benefit plan, which was frozen at the end of 2006, had a fair value of plan assets of $2.683 billion and projected benefit obligations of $2.931 billion, for a funding ratio of 91.5%. The company contributed $187 million to the plan in 2013." (Pensions & Investments)  

Nonprofit Allowed to Exit Kentucky Employees Retirement System
"The U.S. Bankruptcy Court for the Western District of Kentucky recently ruled that Seven Counties Services, a community mental health center serving Louisville, Kentucky, is permitted to leave the KRS due to rising pension costs, which the court deemed as an unsustainable financial burden for Seven Counties. That burden would have required the center to dedicate at least 20% of its budget, $15 million, on pension obligations in 2015, the news reports say. This compares with only $3.5 million in 2007." [Seven Counties Services Inc. v. Kentucky Employees Retirement System, No. 3-31442(1)(11) (Bankr. W.D. Ky. May 30, 2014)] (PLANSPONSOR)  

Fear of (Not) Dying
"The good news is the new mortality tables reflect what you've probably heard already: despite our poor diets and sedentary behavior, Americans are living longer than ever! The bad news is factoring this added longevity to an average pension plan increases the liabilities by an estimated 5-7%. This increase could potentially be factored into IRS funding liabilities and lump sum calculations within two years, and audit firms may push for earlier recognition in accounting liabilities." (The Principal Blog)  

Agency Action on Fiduciary Definition Delayed (Again)
"During his confirmation hearings last year, U.S. Labor Secretary Thomas Perez had promised to meet with stakeholder groups who have been involved in this rulemaking process. Some view the delay as an opportunity for the Secretary to do so.... [T]he delay may be attributable to the need to fine-tune and work through the technical and complex provisions of the rule -- particularly efforts to ensure that the rule does not make it difficult for small retirement accounts and small businesses to get access to investment assistance." (Squire Patton Boggs)  

[Advert.]

Please join us for our 3rd Annual ftwilliam.com Customer Conference!

Sign-up for our 3rd Annual ftwilliam.com Customer Conference, August 3-5 in downtown Chicago! Earn CE credits while learning about the latest industry news and trends, interacting with your peers, and learning more about your ftwilliam.com software tools.

New Jersey Unions Lining Up to Sue Over Reduced Pension Fund Contributions
"The lawsuits seek to block the governor's decision, announced May 20, to withhold a majority of the payments for the two fiscal years. The governor and the state Legislature had agreed several years ago that he would make the payments in return for legislation that, among other things, raised the retirement age for certain public employees and required employees to pay more for their pensions.... Three separate lawsuits have been filed[.]" (Pensions & Investments)  

Chicago Unions Plan to File Lawsuit Challenging Pension Reform Law
"Anders Lindall, spokesman for AFSCME 31, which represents thousands of city employees, said a coalition of labor groups was preparing a lawsuit to challenge the city's pension reform plan.... 'The problem in the retirement systems is not the cost of the benefit. The problem is the city's failure over decades to pay a responsible actuarially-based share of the contributions,' he said." (CBS Chicago)  

ESOPs: Common Sense Required
"ESOPs present a unique challenge when it comes to risk. That is, the company stock held by the ESOP is the sole asset held by the plan ... In the context of [a recent Seventh Circuit case], once the deal was characterized as 'aggressive', it was then the fiduciary's responsibility to dig in. What gives rise to the nature of the aggressive nature of the deal? Are there ways to mitigate the aggressiveness? Can the plan be adequately compensated for the risk inherent in the transaction?" [Fish v. GreatBanc Trust Company, No. 12-3330 (7th Cir. May 14, 2014)] (Harrison Fiduciary)  

Annuity Ownership Boosts Retirement Confidence
"47 percent of retirees and pre-retirees who own annuities said annuity ownership contributed to their feeling of confidence.... The top three factors contributing to their confidence include: [1] Confident in my ability to manage finances, 62%; [2] Expect to live modestly in retirement, 59%; [3] Have saved enough for retirement 53%." (LIMRA)  

[Advert.]

Most fiduciaries who use target date funds are inviting lawsuits.

Most who use TDFs as QDIAs are breaching their fiduciary duties, so we've written a book to educate them. At $1 trillion & growing, this train is speeding down a rickety track that needs repair before it is too late. Avoid disaster by reading Click Here.

How America Saves for Retirement: 2013 DC Plan Data from Vanguard (PDF)
"In 2013, the median participant account balance was $31,396 and the average was $101,650. Vanguard participants' median and average account balances rose by 13% and 18%, respectively, during 2013.... Eighty-six percent of plan sponsors offered target-date funds at year-end 2013, up 26% compared with year-end 2008.... At year-end 2013, 34% of Vanguard plans had adopted automatic enrollment, up two percentage points from 2012." (Vanguard)  

Commentary on the April 2014 Mercer Pension Buyout Index Results
"During April ... the average cost of purchasing annuities from an insurer increased from 108.6% to 108.9% of the accounting liability. The economic cost of maintaining the liability remained level at 108.7% of the same liability.... he past several months have illustrated the volatility in insurer annuity pricing as the buyout cost has quickly moved from less than to greater than the economic cost." (Mercer)  

Even Wealthy Retirees Live on Social Security and Pensions
"'Only a small number of the people who have 401(k)s and IRAs are really relying on them as a regular source of income,' said Steve Utkus, director of the Vanguard Center for Retirement Research. 'There's a lot more income from pensions than we expected,' he adds." (Reuters)  

The Digital Frontier: A Crucial Element in Engaging Participants
"Plan participants trust their employers, or plan sponsors, to provide them with the resources, tools and information necessary to plan their retirement readiness.... What can a plan sponsor do to leverage the Web and other digital technologies? [Sponsors should] work with their plan providers to better understand what is offered on providers' platforms and look for specific tools that can engage participants." (PLANSPONSOR)  

[Opinion]

Text of Comments by SIFMA to DOL on Proposed Fee Disclosure Guide
"We are concerned, however, that the Proposal will impose additional and unnecessary costs on service providers where no evidence exists that the current disclosure rules are inadequate. Uncited anecdotal evidence is not a substitute for objective evidence that would illustrate the need for further regulation in this area and that need justifies the significant additional cost of the Proposal." (Securities Industry and Financial Markets Association [SIFMA])  

[Opinion]

Financial Advisors: Take the Pledge to Act as Fiduciaries
"[The] 403(b) arena [is] full of sales agents pitching high-fee products that serve their interests at the expense of their client's. [The authors propose to require] all 403(b) investment professionals to take a formal fiduciary pledge in writing to put their client's interests above their own." (403bwise)  

[Opinion]

Text of Comments by Retirement Advisor Council to DOL on Proposed Fee Disclosure Guide (PDF)
"[P]eriodic cost and service benchmarking are more beneficial to plan fiduciaries than fee disclosures combined with the proposed guide.... [I]nformation delivered in writing rarely satisfies plan sponsors' need for assistance because many lack the time, interest, or expertise needed to dedicate several hours to study the information presented.... Simpler disclosures sometimes make for more complex decisions." (Retirement Advisor Council)  

[Opinion]

Text of Comments by American Benefits Council to DOL on Proposed Fee Disclosure Guide (PDF)
"The Department has issued the proposal before gathering information to identify potential problems with the 408(b)(2) regulation and before assessing the significance of any problems relative to the cost of a proposed solution ... The guide proposal contains difficult rules with a substantial cost ... The very large new costs created by the current proposal will be passed on to large plans and participants, while producing, at best, only marginal benefits for large plans[.]" (American Benefits Council)  

[Opinion]

Text of Comments by ASPPA and CIKR to DOL on Proposed Fee Disclosure Guide (PDF)
"ASPPA and CIKR, in response to the original proposed regulation, recommended that the final regulation include a summary mandate. We believed then, and still believe today, that a summary would be particularly pertinent and useful with respect to the investment disclosures required by the final regulation.... At the very least, a summary should be acceptable as an alternative to providing a guide so that [covered service providers] can choose the approach that will be both cost effective and best serve the needs of the fiduciaries they serve." (American Society of Pension Professionals & Actuaries [ASPPA] and Council of Independent 401[k] Recordkeepers [CIKR])  

[Opinion]

Text of Comments by ERIC to DOL on Proposed Fee Disclosure Guides (PDF)
"[T]he guide requirement contained in the Proposed Amendment should not apply with respect to very large plans as it would generate additional costs to plans, participants, and service providers without a corresponding benefit to participants.... [G]enerating a guide would require service providers to create new systems, even if they only service very large plans that would not benefit from the guide.... DOL should only exclude very large plans with 5,000 or more participants or at least $100 million in assets from the guide requirement." (The ERISA Industry Committee [ERIC])  

[Opinion]

Text of Comments by ASPPA and ACOPA to IRS on Determination Letter Rulings for Plan Amendments Under Code Section 412(d)(2) (PDF)
"IRS ruling policy and, to the extent necessary, guidance (sub-regulatory or otherwise) should affirm the clear statutory language of IRC Section 412(d)(2) and Congressional authority to permit defined benefit plan sponsors to adopt retroactive 'discretionary' amendments.... The IRS should rebuild trust with the employee benefits plan community by engaging in dialogue, rather than using the threat of disqualification, as the vehicle to communicate a change in the Service's ruling policy." (American Society of Pension Actuaries [ASPPA] and ASPPA College of Pension Actuaries [ACOPA])  

[Guidance Overview]

Disability Premiums, But Not Most Medical, Can Escape Income Inclusion When Paid by Retirement Plans (PDF)
"The final IRS regulation opens the door for a specialized type of disability product that can be used in a qualified plan or 403(b) plan. As demand grows and product ideas expand, plan sponsors will be better positioned to evaluate the best options for participants, taking into account underwriting limits, premium costs, and alternative policies that may be available outside of the plan on an after-tax basis." (Buck Consultants)  

The ERISA Uncertainty Principle: Edmonson v. Lincoln National Life Insurance Company and ERISA's Unanswered Questions (PDF)
"ERISA at 40 is showing the kind of identity crisis that might signal an impending mid-life crisis. The petition underscores the substantial uncertainty that continues to surround the statute despite the significant judicial interpretation the federal courts have applied to its provisions over the last 40 years.... [It] raises two fundamental questions about the extent of ERISA's reach. First, who is subject to ERISA's fiduciary obligations? And, second, when are benefits due under an ERISA plan no longer plan assets subject to the statute?" [Edmonson v. Lincoln National Life Ins. Co., No. 12-1581 (3d Cir. Aug. 7, 2013; cert. denied May 19, 2014)] (Jenner & Block, via Employee Relations Law Journal)  

2014 Report of Recommendations of the Advisory Committee on Tax Exempt and Government Entities (PDF)
357 pages. Topics relevant to employee benefits include: [1] Analysis and Recommendations Regarding the Pre-Approved and Determination Letter Programs Exempt Organizations; and [2] The Affordable Care Act and Government Employees. [IRS Publication 4344, Rev. June 2014] (Internal Revenue Service [IRS])  

2013 CEO Pay Levels Increase as Companies Brace for Pay Volatility
"2013 saw the first material uptick in pay levels since 2010. Base salaries grew 1.7 percent to $1.2 million, while annual incentive payments increased for the first time since 2010 by 4 percent to $2.3 million, yielding an overall increase of 3.7 percent in median cash compensation to $3.6 million. Long-term incentive (LTI) grants increased as well, growing 3.8 percent to $7.9 million, leaving total direct compensation with a healthy 5.5 percent growth to just more than $11.4 million." (The Wall Street Journal / Hay Group 2013 CEO Compensation Study)  

CMS Announces Opportunity to Apply for Navigator Grants in Federally-facilitated and State Partnership Marketplaces
Centers for Medicare & Medicaid Services (CMS)

Steptoe Adds Joni Andrioff to Tax and ERISA, Labor & Employment Groups
Steptoe & Johnson LLP

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