Employee Benefits Attorney
Atlanta Law Firm
in GA

Benefit Administrator
Craford Benefit Consultants
in OR

Part-Time Employee Benefits Attorney
Atlanta Employee Benefits Consulting Firm
in GA

Consultant, Benefits
Time Warner Cable
in NC

Attorney
Constangy, Brooks & Smith, LLP
in AL

Pension Administrator
The Savitz Organization
in PA

Retirement Plan Administration Specialist
Consulting Actuaries Incorporated
in NJ

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2014 Fourth Quarter Update
August 12, 2014 WEBCAST
(McKay Hochman Co., Inc.)

HSAs, HRAs, FSAs: How They Can Reduce Your Cost and Increase Your Benefits
October 21, 2014 in MD
(Lorman Education Services)

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[Official Guidance]

Text of IRS Comment Request for Form 8717 and Form 8717-A (PDF)
"There are changes being made to the forms at this time, because the user fees were updated by Rev. Proc. 2014-8 ... and are effective for applications filed on or after February 1, 2014. Form 8717 has been renamed, User Fee for Employee Plan Determination Letter Request. Information previously on Form 8717 relating to opinion or advisory letter requests for Volume Submitter and Master or Prototype plans has been deleted. This information may now be found on new Form 8717-A, User Fee for Employee Plan Opinion or Advisory Letter Request," (Internal Revenue Service [IRS])  

[Advert.]

ASPPA Annual Conference on October 26-29 in Washington DC

We don't just set the bar, we're constantly raising the bar for America's Retirement. And we unleash that tenacity at every ASPPA Annual Conference.

[Guidance Overview]

Employers Should Heed IRS Notice 2014-35 Providing Late Filers of Form 5500 Relief from Penalties (PDF)
"The Form 8955-SSA must be filed with the IRS in hard copy by the later of 30 calendar days after the filer completes the DFVC filing or by December 1, 2014. This requirement applies to any DFVC filing submitted through EFAST2 (which includes most DFVC filings from December 31, 2009, to present), regardless of whether the DFVC filing was submitted before the IRS issued this notice regarding the Form 8955-S." (Alston & Bird, LLP)  

[Guidance Overview]

The New Rules for Money Market Funds: Broader Than You Think
"The mutual fund industry liked money market funds just fine the way they were, banks wanted them gutted, and SEC staffers and politicians were caught in the middle. It took many iterations to arrive at [this] barely acceptable compromise, which passed by the minimum margin of 3 to 2.... Several reports seem to suggest, as does the SEC's press release, that the rules apply only to institutional funds. Not so -- the most notable modification, requiring some money funds to float their net asset values rather than fix the price at a constant $1.00, is indeed for institutional funds only. But provisions for liquidity fees and redemption gates apply to all funds, both institutional and retail." (Morningstar)  

[Guidance Overview]

SEC Approves Amendments to Rules Governing Money Market Funds
"In addition to the Amendments, the SEC proposed exemptive relief from Rule 10b-10 of the Securities Exchange of Act 1934. The proposed relief would exempt broker-dealers from the written notification requirements of Rule 10b-10(a), with respect to transactions effected in shares of floating NAV money market funds. The SEC also re-proposed amendments to Rule 2a-7 in order to eliminate the use of credit ratings in Rule 2a-7." (Dechert LLP)  

[Guidance Overview]

Handout for IRS Phone Forum: 403(b) Plans Update and Latest Developments, July 28, 2014 (PDF)
28 slides. "Scope of Presentation: [1] Background and Overview of Pre-Approved Plan Program; [2] Changes to the Pre-Approved Plan Program -- Rev. Proc. 2014-28; [3] Effect of Windsor Decision; and [4] Additional Resources." (Internal Revenue Service [IRS])  

[Guidance Overview]

Puerto Rico Tax Code Amendments Offer Window to Pay Reduced Tax on Retirement Funds (PDF)
"It is expected that lump sum distributions taken from a qualified plan following separation from service during the 'window' period will be treated as capital gains taxed at the 8% rate. It is far less certain whether the rate applicable to prepayments before separation from service from qualified plans will be 8% or 15%.... [O]ne possible approach to avail oneself of the 8% rate for qualified plan funds would be to roll over a lump sum distribution to a Puerto Rico IRA and then take advantage of the 8% preferential tax rate on IRA prepayments[.]" (Buck Consultants at Xerox)  

[Guidance Overview]

IRS Issues Guidance on In-Plan Roth Rollovers and Latest Cumulative List (PDF)
"Notice 2013-74 ... provides the ground rules for implementing in-plan Roth rollovers (IRRs), clarifying, in Q&A format, both the rules for existing IRRs that have been available since 2010 ... and the expanded IRRs that have been available since January 2013 ... [A chart in this article] reviews each of the Q&As therein, and describes the impact on both types of IRRs. Second, the IRS issued Notice 2013-84, which opens the determination letter program for Cycle D filers beginning February 1, 2014 (and ending with the January 31, 2015, filing deadline), and provides a list of Internal Revenue Code provisions that will be the subject of IRS review." (Groom Law Group, via Journal of Pension Benefits)  

Money Fund Industry Embraces New SEC Rules
"The threat of regulation by the Financial Stability Oversight Council ... encouraged fund companies to negotiate with the [SEC] on new rules for money-market mutual funds ... The strongest provisions affect funds that hold about one-third of the industry's assets, while those catering to retail investors and holding U.S. government securities were exempted." (Treasury & Risk)  

Transcript of IRS Phone Forum on Related Employers, May 22, 2014 (PDF)
17 pages. Excerpt: "We're talking today about related employers, and for employee benefit purposes, there are two types of employers that are of importance. One are controlled groups, and usually when you're dealing with controlled groups, you're looking at a collection of employers that are linked together because they have some type of common owner attributes. We're also going to talk about affiliated services groups. They also have this linkage of common ownership attributes, but usually that common ownership percentage is far less than it would be to get to a controlled group. But as a substitute for that lesser ownership percentage, you've got some degree of related service, either between the two entities, or the two entities are performing that service together to the public." (Internal Revenue Service [IRS])  

Update on IRS Rulings on Pension De-Risking
"[W]hile there may be a small number of these rulings still 'in the pipeline' that may be completed, after that the IRS is unlikely to consider issuing any more. The normal procedure -- where, as in the case of de-risking, there is ongoing demand for more rulings -- is for IRS to issue a Revenue Ruling similar to the previous Private Letter Rulings... The current controversy over de-risking, however, makes it unlikely that IRS will issue such a Revenue Ruling in this case. In at least two states, Connecticut and New York, legislation has been introduced that, if adopted, would significantly restrict de-risking transactions." (October Three Consulting)  

20-Year-Old Presumption of Prudence Rejected by Supreme Court
"At first glance the elimination of the presumption of prudence would appear to be a negative change for all ESOPs, but a review of litigation from 1995-2013 found no decisions involving closely held companies and the presumption of prudence. And although the new standard articulated by the Supreme Court is undoubtedly helpful for fiduciaries of publicly traded companies who invest in employer stock in their retirement plans, it provides little helpful guidance for ESOP fiduciaries in closely held companies." [Fifth Third Bancorp v. Dudenhoeffer, No. 12-751 (U.S. June 25, 2014)] (Warner Norcross & Judd LLP)  

Dispelling the Myth: Is a 3(16) Fiduciary Really Necessary?
"Very few firms offering 3(16) services will actually go as far as being named the 'Plan Administrator' in the plan document, which means that they are limited to taking on 3(16) responsibility only for the areas that are indicated in their contracts, and the Employer as Plan Administrator retains responsibility for administering all other plan functions, plus monitoring the prudence of the 3(16) selection.... [It] is easy for a 3(16) provider to contractually limit its own liability for services when the 3(16) provider does not control the payroll or human resource functions for the Employer." (Retirement Management Services)  

Redesigning Your DC Plan to Help Employees' Retirement Income Last a Lifetime
"There are ... several ways employees can use their DC plan assets to maximize guaranteed lifetime income. Employers need to be familiar with these strategies and, if necessary, redesign the distribution options in their DC plans to help their employees take advantage of them. They should also communicate these strategies to employees who are approaching retirement, to educate them about their options." (Sibson Consulting)  

What to Outsource in Defined Contribution Plans
"In all defined contribution (DC) plans, some functions are delegated to outside service providers, if only record keeping and some investment management. Before undertaking a formal program of outsourcing fiduciary responsibility, however, a sponsor will want to engage in an explicit decision-making process to determine which functions to outsource and which to retain control over. Generally, the outsourcing decision will begin with an inventory of the relevant plan responsibilities, functions, and a determination of the sponsor's plan objectives and resources. This paper explores how DC plan sponsors should think about what functions to outsource and provides a client case study[.]" (Russell Investments)  

Maximizing Your Investment in DC Advisor Value-Added Programs (PDF)
"[1] There is a strong correlation between being a DC Advisors' preferred provider and offering strong value-added programs. [2] One size does not fit all, programs have varying appeal that is often dependent upon the type of advisor, channel, or, even, target market segment. [3] Value-added programs open doors or break ties. [4] Winning firms have adopted best practices around creating and managing their value-added programs for both DC Advisors and their Broker/Dealer and Advisory firm home offices." (Chatham Partners)  

Fees Dropping for 401(k) Mutual Fund Investors
"The average 401(k) stock fund investor was charged 0.58% of assets to cover expenses at year-end 2013 vs. the industry retail average expense ratio of 0.74% ... The 401(k) average expense ratio on stock funds was 0.83% in 2003. On average, the industry charged an expense ratio of 1% of assets from 2000 through 2003." (Investor's Business Daily)  

Avoiding Pitfalls in Handling Retirement Plan Forfeitures
7 pages. Excerpt: "Plan sponsors have great flexibility in using forfeited amounts in the administration of their plan. The rules surrounding forfeitures may be less straightforward than expected -- and some plans have received increased IRS scrutiny for their forfeiture practices." (Vanguard)  

[Opinion]

An Obamacare-Sized Prescription for a Retirement Crisis Misdiagnosis
"Gene B. Sperling, former Director of the Economic Council under the Office of White House Policy for President Obama, put on a white lab coat and diagnosed the tax incentive system for private retirement savings with a serious illness by cherrypicking data points to paint his desired picture. It's no surprise that during Sperling's time working for Obama, the President borrowed his favorite line and called the system 'upside-down.' I criticized the President then for that misdiagnosis and I'll criticize 'Doctor' Sperling now for it too." (Ray Harmon, for American Society of Pension Professionals & Actuaries [ASPPA])  

BLS Report of Employee Benefits in the United States, March 2014 (PDF)
"Employer-provided medical care was available to 86 percent of full-time private industry workers in the United States in March 2014 ... By contrast, only 23 percent of part-time workers had medical care benefits available.... Retirement benefits followed a similar pattern as medical care benefits. In private industry, 74 percent of full-time workers had access to a retirement plan, significantly higher than 37 percent of part-time workers." (U.S. Bureau of Labor Statistics [BLS])  

Arbitration of ERISA Benefit Claims In Lieu of Judicial Review
"What would the Court do with an arbitration provision precluding judicial review of ERISA claim and appeal denials? ... ERISA is silent on mandatory arbitration in lieu of judicial review under Section 502(a) of ERISA (although a DOL regulation arguably prohibits it in the non-collective bargaining context). The recent Supreme Court decisions suggest, however, that plan sponsors may condition benefits on an agreement to arbitrate a final claim denial." (Seyfarth Shaw LLP)  

Hobby Lobby Decision Poses New Questions for Litigation
"[B]ecause the court's decision in Hobby Lobby seems to impute a burden that is placed by the ACA on the plan to the plan sponsor, the effect of the holding could be to reverse that effect for suits against the plan. 'If the requirement on the plan burdens the religious beliefs of the plan's sponsor and owner, then what does that say about the independence of the plan and the ability to pierce the corporate veil,' [said Teresa Renaker, a shareholder at Lewis Feinberg Lee Renaker & Jackson P.C.]" (Bloomberg BNA)  

Tips for Managing Executive Compensation in a Global Economy
"[E]xecutive compensation themes and practices migrate from one region or country to another.... [L]egislative requirements like say on pay and corporate governance trends, such as the separation of the chairman and chief executive roles, originated in certain countries before spreading to others.... The United Kingdom also has a longstanding practice of companies engaging with shareholders, a trend that is taking off in the United States. So it's important for professionals in the executive compensation field to stay attuned to global trends and emerging best practices." (Towers Watson)  

Industry Leader Les McPhearson Joins United Benefit Advisors as New Chief Executive Officer
United Benefit Advisors

Voya Financial Launches myOrangeMoney Digital Experience for Retirement Plan Customers
Voya Financial

Retirement Playbook Hires Industry Veteran to Meet Growing Demand
Retirement Playbook, Inc.

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