Investment Analyst
eRIA Services
in WI

Defined Contribution Plan Administrator
FACTS, inc.
in IN

Retirement Plan Administrator
Pension Firm in New York City
in NY

Senior Financial Analyst
Nolan Financial
in MD

Defined Contribution Department Manager
Keating & Associates, Inc.
in KS

Employee Benefits/ERISA Associate
Sherman & Howard
in CO

Part-time Retirement Planning Consultant
Transamerica Retirement Solutions
in CA

Regional Vice President/Retirement Plan Wholesaler
Ohio National Financial Services
in CA, GA, KS, MO

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FSA Rollover Revisited: Mid-Year Results, Strategies for Open Enrollment
August 21, 2014 WEBCAST
(Alegeus Technologies, LLC)

Valuation Actuary Symposium
August 25, 2014 in NY
(Society of Actuaries)

Who’s an Employee and Why Does it Matter?
August 28, 2014 WEBCAST
(ASPPA [American Society of Pension Professionals & Actuaries])

Understanding Qualified Longevity Annuity Contracts (QLACs)
September 4, 2014 WEBCAST
(ABA Joint Committee on Employee Benefits)

Employment Law Essentials and Best Practices
December 3, 2014 in PA
(ALI-ABA [American Law Institute-American Bar Association])

View All Webcasts and Conferences

[Official Guidance]

Text of PBGC Monthly Interest Rate Update for September, 2014
"This final rule ... [prescribes] interest assumptions under the regulation for valuation dates in September 2014. The interest assumptions are used for paying benefits under terminating single-employer plans[.] ... The September 2014 interest assumptions under the benefit payments regulation will be 1.25 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit's placement in pay status. In comparison with the interest assumptions in effect for August 2014, these interest assumptions are unchanged." (Pension Benefit Guaranty Corporation [PBGC])  

[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]

Pension Funding: Impact of Extending Interest Rate Corridors
"The funding stabilization will increase the effective interest rates for liability valuations and reduce required contributions for 2013 through 2017. Minimum required contributions will be reduced by about $69 billion for plan years 2013 to 2017. Although making smaller contributions could ease financial constraints on plan sponsors, the stabilization will reverse starting in 2018." (Towers Watson)  

[Guidance Overview]

Pension Provisions in the Highway and Transportation Funding Act of 2014
"For 2014, the minimum rate increases from 80% of the 25-year average to 90% of that average.... [T]his could decrease a plan's funding target by as much as 10-15%, depending on plan provisions and demographics.... The increase in the interest rate may reduce the minimum required contribution for 2013 that is due by September 15, 2014 for calendar year plans. However, plan sponsors should also look at the impact the lower contribution could have on the PBGC premium requirements. Previous credit balance elections and quarterly contribution requirements may need to be revisited as well." (Cheiron)  

[Guidance Overview]

Handout for IRS Phone Forum on Defined Benefit Plan Terminations, August 14, 2014 (PDF)
55 presentation slides. Topics Covered: [1] Plan Terminations; [2] Plan Funding/Funding & Reversions; [3] PBGC; and [4] Notice of Intent to Terminate the Plan. (Internal Revenue Service [IRS])  

HAFTA Smooths Highways, and Pension Funding, Too
"Absent pension smoothing, the law mandates that the assumption be based on relatively current interest rates.... One could argue that such an assumption is unreasonable. For a plan designed to pay benefits over decades, does it really make sense to assume such a low rate? Couldn't that result in significantly overfunding the plan (potentially to the detriment of the company since it can't really get that money back) when interest rates rise? Conversely, when interest rates rise, does it make sense to potentially underfund the plan at those higher rates since interest rates may go down?" (Benefits Bryan Cave)  

[Advert.]

In-House Practitioner Registrants Attend for Free

Providing a forum for in-house counsel at plan sponsors, plan administrators and insurance companies and their outside legal counsel to benchmark litigation defense and regulatory compliance strategies for ERISA claims.

When Are Imprudent Fiduciaries Liable for Changes in Stock Value?
"The lesson for fiduciaries is clear. Fiduciaries can be sued for not selling stock as well as for selling at what plaintiffs allege is the wrong time. And now that the Supreme Court has eliminated the so-called 'Moensch presumption' that decisions involving employer stock are presumptively prudent, fiduciaries of plans with employer stock funds need to be particularly diligent." [Tatum v. RJR Pension Investment Committee, No. 13-1360 (4th Cir. Aug. 4, 2014)] (Osler, Hoskin & Harcourt LLP)  

Supreme Court Emphasizes That ERISA Plan Documents Are Not Always Pre-Eminent
"[T]he Court also discussed ERISA's limits on the pre-eminence of the [plan document], in rejecting the fiduciary's argument that the duty of prudence must conform to the plan document's requirement that the fiduciary invest in employer stock. As the Court framed the argument, it was whether a 'non-pecuniary goal' in an ERISA plan (here, the goal of promoting employee ownership of employer stock) can trump ERISA's statutory duty of prudence, designed to protect the retirement assets of employees. The Court held that non-pecuniary goals in a plan did not limit the duty of prudence." [Fifth Third Bancorp v. Dudenhoeffer, No. 12-751 (U.S. June 25, 2014)] (Begos Brown & Green LLP)  

A Proposed Method for Meeting the Dudenhoeffer Standard (PDF)
"[W]ith respect to a company the stock of which is publicly-held, it should be lawful and prudent to choose reputable analysts that track the stock and use a majority opinion with respect to them to make the prudence determination.... If a majority rated the stock as a 'hold' or better, it would be deemed a prudent investment.... A non-insider employee ... could be required to track the results as of a date in each quarter, and report the results to the investment fiduciary or fiduciaries. An interim analysis could be performed if an unusual event occurred that caused a sudden stock value drop. The plan in issue could be drafted to provide for [this] system of analysis[.]" (Allen Buckley LLC)  

Righting a Wrong: The 'Claim of Right' Doctrine and Other Tax Considerations for the Repayment of Pension Plan Overpayments
"[P]lan administrators must press forward with repayment requests because of their fiduciary duties ... [I]ndividuals who received overpayments are liable for repaying the full amount of their overpayment and interest, regardless of whether they can obtain tax refunds or deductions for the repayments.... If cash repayments are made after the year in which the overpayment occurred, the repayment may be treated as a loss deduction under Code Section 165(a). However, if the repayment is less than $3,000, the deduction must be treated as a miscellaneous itemized deduction." (Proskauer's ERISA Practice Center)  

Survey Shows High Level of Uncertainty Among Plan Administrators
"Nearly 80% of respondents said they were unsure if their plan advisor was acting in a fiduciary capacity; 17% percent of respondents were unsure how their advisors were compensated; and one quarter said they were unsure how often their plan went out to bid -- with 22% indicating their plan had never been put out to bid." (Strategic Benefit Services)  

Investment Manager for San Diego Pension Plan Dials Up the Risk to Combat a Shortfall
"A large California pension manager is using complex derivatives to supercharge its bets as it looks to cover a funding shortfall and diversify its holdings. The new strategy employed by the San Diego County Employees Retirement Association is complicated and potentially risky, but officials close to the system say it is designed to balance out the fund's holdings and protect it against big losses in the event of a stock-market meltdown. San Diego's approach is one of the most extreme examples yet of a public pension using leverage -- including instruments such as derivatives -- to boost performance." (The Wall Street Journal; subscription may be required)  

The Impact of Future Contributions to Defined Contribution Plans on Retirement Income Adequacy for Gen Xers
"[R]ecent studies by other organizations suggest Gen Xers will fare much worse than the Boomers. Unfortunately, these studies appear to be plagued by either explicitly ignoring future contributions to defined contribution plans or failing to account for the recent changes in many defined contribution plans to incorporate automatic enrollment features (including automatic escalation of contributions). Ignoring future contributions exaggerates the percentage of Gen-X workers simulated to run short of money in retirement by roughly 10 to 12 percentage points among all but the lowest-income group." (Employee Benefit Research Institute [EBRI])  

ERISA at 40: A History Lesson (PDF)
"[This] series looks back to explore how the employer-sponsored employee benefits industry has evolved, highlights lessons learned, and looks forward to what employers may expect in the future. This first article looks at the evolution of private sector retirement plans in the US and emerging federal regulation of those plans up to the date that ERISA was inked." [Topics include: Nineteenth Century Innovation; Regulation through the Tax Code; Increased Popularity of Retirement Plans; Arresting Financial Abuses; Studebaker's Demise and the Dawn of ERISA; A Decade Passes.] (Buck Consultants at Xerox)  

Results of the IRS 401(k) Compliance Check (PDF)
"In 2010, 1200 401(k) Plans were randomly selected to complete a compliance check questionnaire instituted by the IRS to ensure proper operation of this popular plan type. Are more reviews to come? ... The Roth 401(k) Compliance Project is among more than 20 projects approved by the [Employee Plans Compliance Unit] Project Selection Committee. While approval does not mean that the project will start immediately, the Roth 401(k) Project is a likely successor to the 401(k) Compliance Check Questionnaire." (Ekon Benefits)  

What the 2014 Trustees' Report Shows About Social Security
"The program's shortfall is relatively modest, amounting to 1 percent of gross domestic product (GDP) over the next 75 years (and 1.65 percent of GDP in 2088, the 75th year). A mix of tax increases and benefit modifications, carefully crafted to shield recipients with limited means and to give ample notice to all participants, could put the program on a sound footing indefinitely." (Center on Budget and Policy Priorities)  

Fidelity Quietly Settles Employee Lawsuits
"'Fidelity believes both lawsuits are entirely without merit,' said company spokesman Vin Loporchio. 'However, litigation imposes substantial costs and burdens, and we determined that settling these cases is in the best interest of our business and our employees.' ... At the heart of the complaints was the plaintiffs' claim that Fidelity participated in self-dealing within the FMR LLC Profit Sharing Plan at the expense of its own participants." (InvestmentNews)  

[Opinion]

Custom Target Date Funds Are Trillion-Dollar Fraud
"Despite their growing popularity, custom Target Date Funds (TDFs) are a big fat fraud, perpetrated to get consulting business.... The claim of 'matching demographics to their needs' is the fraud. The needs that are purported to be met are to replace pay and manage longevity risk. These simply can't be realistically achieved for a diverse group with wide ranges of salaries and savings. No glide path can meet these objectives." (Paladin)  

Benefit Denial Letters: Include the Time Limit for Judicial Review or Lose Contractual Limitations Defense
"If your denial letter fails to expressly state the contractual limitations timeframe, it might not preserve that defense.... [A federal district court dismissed the complaint] because the plan contained a three-year limitations period for filing suit. The Plan provided constructive notice of the time limit.... [On appeal, the 6th Circuit held that the] 'failure to include the judicial review time limits in the adverse benefit determination letter renders the letter not in substantial compliance with [ERISA] Section 1133.'" [Moyer v. Metropolitan Life Ins. Co., No. 13-1396 (6th Cir. Aug. 7, 2014)] (Lane Powell PC)  

Performance-Based SERPs: Changing the Executive Comp Landscape (PDF)
"[T]here is no empirical data linking the use of broad-based, equity-based grants below the top tier of executives to a company's performance.... In the bright light of the new compensation disclosure rules, the traditional reasons for implementing a SERP -- whether based on a defined contribution or defined benefit concept -- lack appeal for compensation committees because of the absence of a relationship between the performance of the company and benefit design to the financial performance of the business unit or company." (Fulcrum Partners LLC)  

CalPERS to Hold Public Hearing August 19, 2014 on Pensionable Compensation for New Members
CalPERS [California Public Employees' Retirement System]

Mike Parrett Joins the Principal Financial Group as VP of Consulting
Principal Financial Group

Prudential Retirement Adds New Plan Sponsor Client Pittsburgh Glass Works
Prudential Retirement

Newport Survey of Current Trends in Executive Benefits Promotes “Better, Smarter, More Informed Decisions” by Employers
Newport Group, The

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