ASPPA

Client Service and Operations Manager
AFS 401(k) Retirement Services, LLC
in MD

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It’s Not Too Late to Switch to a Better Document System
August 5, 2014 WEBCAST
(ASC Institute)

Defined Benefit Plan Terminations Phone Forum
August 14, 2014 WEBCAST
(IRS [Internal Revenue Service])

Advising Small Employers About Health Care Reform: Your Guide to Applicable Rules and Impacts
August 27, 2014 WEBCAST
(Thomson Reuters / EBIA)

Bundled Payment Success Stories: Case Study Results from Geisinger and BCBSNC
September 24, 2014 WEBCAST
(Atlantic Information Services, Inc)

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[Official Guidance]

Text of IRS Private Letter Ruling: Lump Sum Window for Participants Already in Pay Status Will Not Violate Minimum Distribution Requirements (PDF)
"Under the amendment, the Covered Individuals would have a specified limited window period of no more than 180 days during which they could elect to receive in lieu of their current annuity what Company A represents is the actuarial present value of their remaining benefits under the aforementioned Plans, in the form of a single lump sum payment. The window period may consist of multiple phases, such as an opt-in phase during which Covered Individuals would have the opportunity to proceed through the remainder of the window program and an election phase during which Covered Individuals could elect to receive, in lieu of their current annuity, the actuarial present value of their remaining annuity payments in the form of an immediate lump sum, and the extent the law requires, a qualified joint and survivor annuity (including a single annuity for retirees who are not married), or a qualified optional survivor annuity." [PLR 201431034, May 7, 2014] (Internal Revenue Service [IRS])  

[Advert.]

Early Retirement Incentives: Navigating the Legal Issues

August 7 live webinar. This live webinar will discuss ways of structuring early retirement incentives so that they will not only have the desired effect on the financial bottom line, but also stay on the right side of the law. BenefitsLink discount.

[Guidance Overview]

A Review of ESOP Diversification Requirements (PDF)
19 pages. Topics include: [1] Legal requirements to offer diversification; [2] Who is eligible for diversification? [3] When is the diversification election made? [4] What if the account balance and/or stock value is not known in time to comply with the 90 day and 180 day deadlines? [5] How does an ESOP satisfy the diversification requirements? [6] Should a plan sponsor extend diversification beyond what is required by law? [7] What is required for diversification? [8] Methods to comply with the diversification requirements. (The Principal Financial Group)  

Congress Passes Pension Smoothing Extension -- Without PBGC Premium Increases (PDF)
"[On July 31] the Senate passed the Highway and Transportation Funding Act of 2014 that had previously gained approval in the House. As a revenue raiser to fund the Highway Trust Fund, the legislation extends MAP-21 pension interest rate smoothing. It does not include PBGC premium increases! The legislation heads next to President Barack Obama, who is expected to sign it into law soon." (Buck Consultants at Xerox)  

Pension Smoothing on the Way After All: Highway Funding Bill Sent to President for Signature
"The Highway and Transportation Funding Act has been passed by Congress and is expected to be signed by the President. In addition to funding the highway trust fund through May 2015, the act provides pension funding stabilization. It delays the widening of the interest rate corridors under MAP-21 until 2018. The narrower corridors will cause an increase in the interest rates used for many defined benefit pension plan measurements." (Towers Watson)  

The Active vs. Passive Debate Continues
"[The authors] examine the active-versus-index debate, providing context for the changing nature of performance leadership. The research shows that the market environment can have a greater impact on relative performance than manager skill or even cost differences, and that during periods of significant performance deviation between opposing market segments, there can be pronounced differences in active performance relative to the market." (Vanguard)  

Pension Plan Funded Status Increases Slightly in Q2 2014 (PDF)
"During the second quarter of 2014 (Q2 2014), the funded status of the model pension plan examined ... increased by 1 percentage point: from 92 percent to 93 percent. This increase was driven by an asset return of 4 percent and a liability increase of 3 percent." (Segal Rogerscasey)  

Change in Average 401(k) Account Balances from January 1, 2013 Through August 1, 2014 (PDF)
This report shows change in average account balances grouped by age and tenure, from January 1, 2013 through August 1, 2014, for 'consistent' participants (those who had an account balance as of December 31, 2012). (Employee Benefit Research Institute [EBRI])  

PBGC Premium Problem Means Potentially Enormous Burden on Employers
"[S]teps plan sponsors can take to mitigate premium payments: Implement a risk transfer strategy ... Employ a liability relative investment strategy... Change the funding policy." (New York Life Retirement Plan Services)  

Social Security Trustees Release 2014 Status Report on Social Security Funds
"[B]enefit payments and administrative expenses exceeded Social Security's payroll tax revenues and other non-interest income in 2013. Between 2014 and 2018, the annual cash-flow deficit will average about $77 billion. Although transfers from the U.S. Treasury's general funds will offset much of the annual aggregate cash-flow deficits, Social Security costs are expected to exceed revenues throughout the remainder of the 75-year period." (Gabriel, Roeder, Smith & Company)  

Social Security Replacement Rates for Hypothetical Retired Workers (PDF)
"Tables A through D show benefit and replacement rate information for the five different pre-retirement earnings levels. Each table shows the Social Security benefit in wage-indexed 2014 dollars and as a percent of career average earnings ... The denominator of this replacement rate is the average of the highest 35 years of earnings for these hypothetical workers, wage-indexed to the year before retirement.... The calculations in these tables are wage-indexed to just before retirement to provide a closer comparison of pre-retirement earnings and post- retirement benefit levels." (Office of the Chief Actuary, U.S. Social Security Administration [SSA])  

Replacement Rates for Retirees: What Makes Sense for Planning and Evaluation? (PDF)
"This actuarial note analyzes different approaches to developing Social Security benefit replacement rates for new retirees.... Based on our comparison of several approaches to computing benefit replacement rates for Social Security using a large sample of actual retirees, we conclude that a comparison of benefits relative to wage-indexed career-average earnings provides the most useful and accurate approach for a diverse population with career earnings patterns that vary greatly." (Office of the Chief Actuary, U.S. Social Security Administration [SSA])  

Disaggregation of the Long-Range Actuarial Balance for the OASDI Program Since 1983 (PDF)
"One measure that the Office of the Chief Actuary uses to summarize the long-range (75-year) actuarial status of the program is the long-range actuarial balance. This actuarial note documents the changes in actuarial status of the OASDI program since 1983 by providing a disaggregation of the actuarial balance into several components of change." (Office of the Chief Actuary, U.S. Social Security Administration [SSA])  

How Long Must I Keep My Year-End IRA Statements?
"All IRA custodians are required to send you an annual statement of the December 31 fair market value (FMV) of your IRA by January 31 of the following year. That FMV information is also shown on IRS Form 5498, which is sent to IRS and to you each year in May. Accordingly, there is no need for you to keep the end-of-year mutual fund statements once you check them against the 5498." (The Slott Report)  

Study Says DC Plans Work When Supplemented by Social Security
"Recent retirees reported median household assets of $473,000, which included investable assets and home equity, while subtracting debt. Nearly half, or 48%, had $500,000 or more.... Yet despite these healthy numbers, Social Security accounted for the lion's share, or 43%, of their income. The second largest source, at 19%, came from traditional defined benefit plans, followed by amounts withdrawn from personal savings and investment accounts including IRAs and defined contribution plans, at 18%." (On Wall Street)  

Bill Would Repeal Recent Pension Contribution Hikes for Federal Employees
"The legislation ... would repeal two separate increases on the amount federal workers must pay toward their pensions. A 2012 law to extend unemployment insurance forced employees hired in 2013 and those with less than five years of federal experience to pay an additional 2.3 percent for a total of 3.1 percent of each paycheck toward their defined benefit. The 2013 budget agreement required all employees hired after 2013 and with less than five years of federal experience to pay a total of 4.4 percent of their salaries toward their Federal Employees Retirement Systems accounts. Employees hired before 2013 contribute just 0.8 percent of their pay to their pensions." (Government Executive)  

[Opinion]

The Case for Adjustable Defined Benefits
"Notwithstanding the fact that 'adjustable defined benefits' might constitute an oxymoron, as a concept it represents the only way that defined benefit plans can be sustained. Rather than throwing new employees into individual 401K plans, while they effectively subsidize legacy defined benefits for veteran employees and retirees, why not adjust defined benefits down to a financially sustainable level and let everyone participate?" (California Policy Center)  

[Opinion]

Text of Comments by Vanguard to DOL on Proposed Fee Disclosure Guide
"The Department should permit a 'hybrid' summary and guide, summarizing much of the information required by the Final Rule and cross-referencing other documents for additional information. Cross-references to a document by name, rather than a page or section number, should be considered sufficiently specific.... The Department should not require a guide, if necessary, to be provided to plan fiduciaries separately from the information disclosed under the Final Rule." (Vanguard)  

Great-West Financial Builds Team to Serve Financial Institutions Channel
Great-West Financial

UpJoy Launches Web-Based Corporate Wellness Platform To Promote Positivity And Productivity In The Workplace
UpJoy

Allianz Life of New York Launches New Index Variable Annuity
Allianz

Covered California Announces Rates for 2015; Rigorous Negotiations with Health Insurance Companies Keep Rate Increases Low and Choices Robust
Covered California

New Online Resource Gives You Something to Think About
PBGC [Pension Benefit Guaranty Corporation]

ERIC Applauds Congress for Not Including PBGC Premium Increase in Highway Bill
ERIC [ERISA Industry Committee]

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