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Field Service Rep - Retirement Plans
Nationwide Financial
in FL

Employee Benefits - Alternative Track Associate
Morgan, Lewis & Bockius LLP
in DC

Employee Benefits - Mid-level Associate
Morgan, Lewis & Bockius LLP
in DC, IL, NY, PA

ERISA Attorney
Nyhart
in IN

Actuarial Consultant
Verisight, Inc.
in IL

Conversion Specialist
Verisight, Inc.
in CA

ERISA Consultant/Attorney
Sentinel Benefits & Financial Group
in MA, NY

Defined Contribution Plan Administrator
Profit Planners, LLC
in IL

Part Time Retirement Services Processor
ATPA
in CA

Retirement Services Product Manager
Insperity
in ANY STATE

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The Two Main Components of a “Reasonable Arrangement” under 408(b)(2)
September 18, 2014 WEBCAST
(Pension Consultants, Inc.)

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[Official Guidance]

Text of PBGC Monthly Interest Rate Update for October and Fourth Quarter 2014
"The fourth quarter 2014 interest assumptions under the allocation regulation will be 3.10 percent for the first 20 years following the valuation date and 3.29 percent thereafter. In comparison with the interest assumptions in effect for the third quarter of 2014, these interest assumptions represent no change in the select period, (the period during which the select rate (the initial rate) applies), a decrease of 0.33 percent in the select rate, and a decrease of 0.37 percent in the ultimate rate (the final rate). The October 2014 interest assumptions under the benefit payments regulation will be 1.00 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 September 2014, these interest assumptions represent a decrease of 0.25 percent in the immediate annuity rate and are otherwise unchanged." (Pension Benefit Guaranty Corporation [PBGC])  

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[Official Guidance]

Text of IRS Notice 2014-53: Guidance on Pension Funding Stabilization Under the Highway and Transportation Funding Act of 2014 (HATFA) (PDF)
"This notice provides guidance on certain issues relating to HATFA. Notice 2012-61 continues to apply except to the extent the statutory provisions have changed.... Except as [otherwise provided in this notice], a plan sponsor elects to defer the use of the HATFA segment rates ... until the first plan year beginning on or after January 1, 2014, by providing written notice to the enrolled actuary for the plan and to the plan administrator. The notice must specify the name of the plan, employer identification number and whether the use of the HATFA segment rates is deferred for all purposes or only for determination of the AFTAP used to apply benefit restrictions under Section 436. The election described in this section III.A is irrevocable, and must be made no later than the later of: [1] the deadline for filing the Form 5500, Form 5500-SF or Form 5500-EZ (including extensions) for the plan year beginning in 2013; or [2] December 31, 2014." (Internal Revenue Service [IRS])  

[Guidance Overview]

The IRS Wants You to Know About the Form 5500-EZ Penalty Relief Program Before It's Too Late
"The pilot program gives, in part, sponsors and administrators of retirement plans not covered by Title I of ERISA automatic relief from IRS late filing penalties on past due Forms 5500-EZ. Non-ERISA plans covering only a 100% business owner or one or more partners, and their spouses, are eligible for the relief. If the business or partnership has employees other than the owner, spouse, or partners' spouses, the correction program cannot be used. In addition, if the plan includes employer stock, the plan would own part of the business and, therefore, would not qualify for the relief." (Bloomberg BNA)  

[Guidance Overview]

GASB 67/68: Substantively Automatic Plan Provisions (PDF)
"This [article] discusses 'substantively automatic' plan provisions and their inclusion in the determination of a plan's total pension liability (TPL). For many plans, the concept of 'substantively automatic' is critical to the treatment of cost of living adjustments (COLAs), which are often granted on a discretionary or ad hoc basis." (Milliman)  

[Official Guidance]

Test of IRS Notice 2014-50: September 2014 Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates (PDF)
"This notice provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), ... the 24-month average segment rates[,] ... the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate ... and the minimum present value segment rates ... as in effect for plan years beginning after 2007. These rates reflect certain changes implemented by [MAP-21]." (Internal Revenue Service [IRS])  

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[Guidance Overview]

DOL Seeks Information on Use of Brokerage Windows (PDF)
"The stated purpose of the RFI is to increase the DOL's understanding of the prevalence and role of brokerage windows in these plans. The DOL is seeking information to determine what regulatory standards or guidance may be necessary to protect participant savings. The goal is to ensure participants are not exposed to undue risk and that fiduciaries understand the scope of their responsibilities when brokerage windows are part of the investment platform.... The DOL seems to have a particular concern about the use of non-designated investment alternatives as the exclusive means of investing in a plan to avoid any fiduciary or reporting obligations." (Buck Consultants at Xerox)  

The Top Ten Things to Do If Your 401(k) Plan Fails Nondiscrimination Testing
"Assess alternate testing methods.... Make any necessary refunds.... Consider making a Qualified Non-Elective Contribution (QNEC) or Qualified Matching Contribution (QMAC).... Institute automatic enrollment.... Institute automatic increases... Implement a safe harbor 401(k) plan.... Make your match go further.... Build a case for retirement savings.... Target non-highly-compensated employees for a participation campaign.... Keep it simple." (TRI-AD)  

Principles of Successful Retirement Plan Design: A Focus on Employee Retirement Readiness
"Designing a 401(k) plan to serve your company and its employees is more than just selecting the right investments.... Incorporate behavioral finance fundamentals to help improve participant and plan results.... Deliver participant advice on a one to one basis.... Include plan design features to make enrollment and investment selection easy for participants.... Provide financial wellness services to improve the financial health of your employees.... Have a sound investment process." (Bronfman E.L. Rothschild)  

IRS Affirms Treatment of Short Sales for UBTI Purposes
"Since there are many hedge funds that utilize short selling as part of their investment strategy, it is important for hedge fund investors, including tax exempt organizations, to understand the U.S. tax treatment of these transactions.... It is well known that tax-exempt investors, including ... public and private employee pension funds, are among the largest and most influential investors in alternative investment strategies such as private equity and hedge funds.... From a U.S. federal income tax perspective, the key issue impacting hedge fund investment by tax exempt organizations is the UBTI rules imposed under Sections 511 through 514 of the Internal Revenue Code ... The IRS has recently reaffirmed this position regarding short sales [in] PLR 201434024 (8/22/14)[.]" (Mintz Levin)  

Can Insurance Companies Save Public Pensions?
"Does it make sense for local governments to turn over the assets of their employee pension plans to insurance companies, who would in turn make monthly payments to retirees? ... [The Urban Institute] gave the idea its top grade, saying it eliminates a troublesome financial risk for state and local governments, protects workers who change jobs frequently, and rewards young workers -- all while providing a steady stream of income for retirees." (The Washington Post; subscription may be required)  

2014 Retirement Research Consortium Meeting Presentations, August 7-8, 2014
Target page includes links to video, slides, summaries, and papers presented. Topics include: [1] Social Security Provisions; [2] Social Security and Vulnerable Populations; [3] Social Security Claiming; [4] 401(k)s: Saving and Investing Decisions; [5] Retirement Saving: Adequacy and Risks; [6] Working Longer; and [7] Lessons from Other Nations. (Center for Retirement Research at Boston College)  

House Subcommittee to Hold September 17 Hearing: 'Private Employer Defined Benefit Pension Plans'
"The hearing [by the Subcommittee on Select Revenue Measures] will focus on some of the challenges facing employers, employees, and retirees who rely on defined benefit pension plans to help provide retirement security. It will examine the funding rules governing multiemployer plans, as well as selected issues that affect single employer plans." (Committee on Ways and Means, U.S. House of Representatives)  

Senate Finance Committee to Hold Hearing: 'Updating Savings Policy for the Modern Economy'
Testimony will be provided by: [1] John C. Bogle, Founder and Former CEO, Vanguard; [2] Dr. Brian Reid, Chief Economist, Investment Company Institute; [3] Ellen Schultz, Author and Investigative Reporter, formerly with The Wall Street Journal; [4] Scott Betts, Senior Vice President, National Benefit Services; [5] Dr. Brigitte C. Madrian, Aetna Professor of Public Policy and Corporate Management, Harvard University, John F. Kennedy School of Government; and [6] Dr. Andrew G. Biggs, Resident Scholar, American Enterprise Institute. (U.S. Senate Committee on Finance)  

District Court Deems Claim for Equitable Relief Appropriate Under Amara and Varity
"The Court noted that the key to the Varity analysis was whether both theories of recovery were based upon the same alleged conduct; if so, the claim for equitable relief under ERISA Section 502(a)(3) was not appropriate. But here ... the alleged wrongful conduct was not [the insurer's] benefit determination, but rather the employer's failure to provide the conversion application in a timely manner. In fact, as a direct result of the employer's alleged breach, plaintiffs had no a claim for benefits pursuant to ERISA Section 502(a)(1)(B) under the policy terms; they had a claim under ERISA Section 502(a)(3) or nothing." [Biller v. Prudential Ins. Co. and Six Continents Hotels, Inc., No. 1:13-CV-03495-RWS. (N.D. Ga. Aug. 26, 2014)] (Womble Carlyle)  

Health Converges with Wealth Across the Generations
"Health care costs can be hard to estimate over the long-term and are dependent on many personal characteristics, but for most [people], the costs are likely to be significant.... Participants at all life stages will need to create a strategy for funding their retirement that includes the cost of health care. These costs are likely to increase over time, even while they are living out their retirement years.... While monthly financial needs are relatively predictable, future retirees will need help planning for the unpredictable, potentially significant expenses that are likely to come in retirement. Their retirement savings will need to last longer, and grow more, than any previous generations." (Manning & Napier)  

TIAA-CREF Launches PlanFocus Website for Plan Sponsors
TIAA-CREF

Grooms Benefit Solutions Launches New Service Model to Help Transform Employee Benefits Into A Strategic Business Investment
Grooms Benefit Solutions

Survey Predicts Health Benefit Cost Increases Will Edge up in 2015, Spurring Employers to Take Action
Mercer

Patrick Laratta Joins Fiduciary Partners as Senior Vice President
Fiduciary Partners Retirement Group

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