Defined Benefit Testing Consultant
Transamerica Retirement Solutions
in MA

Investment Analyst, Retirement Plans Group
Bechtel Corporation
in CA

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Deep Dive on Recent Pension Buyout Activity
October 6, 2014 WEBCAST
(Mercer)

ERISA Workshop: Rollover Taxation and Other Developments
October 16, 2014 WEBCAST
(SunGard Relius)

Alternative Asset Training Camp, 2014
October 20, 2014 in CA
(Retirement Industry Trust Association [RITA])

Cafeteria Plan, Health FSA, and DCAP Mistakes: Finding, Fixing, and Preventing
October 30, 2014 WEBCAST
(Thomson Reuters / EBIA)

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[Guidance Overview]

IRS Webcast Audio Recording: Defined Benefit Plan Terminations
Topics: Defining 'Date of Termination'; Reversions -- what needs to be done; Funding Requirements -- must be satisfied as of the date of termination; PGBC issues; and Notice of Intent to Terminate the Plan -- what is needed. Recorded August 14, 2014. (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.

Text of Federal District Court Opinion: Plan Administrator's Rounding of Interest Rate Used for Cash Balance Plan Calculations Was Not Abuse of Discretion (PDF)
"[R]ounding random numbers will produce half the number set rounding up and half rounding down.... [G]enerally, rounding is more fair than truncating. If the Plan Administrator had decided to truncate the decimal after five digits it would have the practical effect of always rounding the Monthly Interest Rate down. More fundamentally, the relevant ERISA analysis is one of administrator discretion, not whether 'the court itself would have reached a different conclusion.' ... The mere fact that the Plan Administrator made a discretionary decision that did not benefit Plaintiff does not, by itself, render that decision unreasonable." [Johnson v. Duke Energy Retirement Cash Balance Plan, No. 1:13CV156 (M.D.N.C. Sept. 29, 2014)] (U.S. District Court for the Middle District of North Carolina)  

Chart of 401(k) Fee Litigation, September 2014
"The focus of the lawsuits against the plan sponsors evolved over time to include broader challenges to, among other things, the selection of actively managed mutual funds as plan investment options, the use of retail share classes, the investment and transaction drag associated with unitized stock funds, the use of a bundled service provider and the fiduciaries' purported failure to capture additional revenue streams for the benefit of the plan.... [L]awsuits ... against 401(k) plan service providers ... typically are based on allegations that the service providers are 'functional fiduciaries' under ERISA. The plaintiffs claim that, in negotiating for and receiving revenue sharing, the service providers breached fiduciary duties and engaged in 'prohibited transactions' under ERISA." (Groom Law Group)  

Much Ado about Signature Authority: Embezzled Plan Assets and the Inconvenience of Triggering Fiduciary Status
"CEOs and other executives who prefer to avoid fiduciary status with respect to the company's ERISA plans can take steps to accomplish this.... [T]hey should direct the company to maintain adequate internal controls over remittances of employee contributions to segregate them from the company's assets in compliance with DOL plan asset regulations.... [A]mending the plan to name an independent fiduciary for this purpose would establish a solid buffer between the executive and fiduciary status." (ERISA Fiduciary Administrators LLC)  

Which Retirement Plan Fiduciary Most Drives 401(k) Plan Design?
"[T]here remain many specific circumstances, especially when the corporate sponsor cannot afford to hire employees committed exclusively to running the plan, where plan design requires the service provider to take the lead.... The need for expert guidance is most acute among smaller employers.... Still, there is one factor that might overcome the lack of expertise in these companies, and that is the personal objectives of the owners." (Fiduciary News)  

[Advert.]

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Lump Sum Term-Vested Payouts from DB Plans: Is Now the Time?
8 pages. "While lumping out term-vested plan participants is perhaps the lowest cost strategy for reducing pension plan risk, it is one component of an overall de-risking strategy.... A plan engaged in an asset optimization strategy is to some degree undermining its own strategy by reducing assets under management, and giving up the potential for positive investment returns. This is particularly the case for plan sponsors delaying de-risking strategies based on anticipated increase in interest rates. Under the current low interest rate environment, costs of settling benefits now may turn out to be relatively high." (SEI)  

Roth IRAs and the Magical Disappearing and Reappearing Compensation Trick for Individuals with Foreign Earned Income
"In determining compensation for purposes of the 'dollar limitation' applicable to Roth IRAs ... compensation does NOT include foreign earned income (nor any amounts excluded through the foreign housing exclusion).... On the other hand, ... foreign-earned income IS treated as income for purposes of ... the phase-out limit.... Under phase-out rules, the contribution limit for Roth IRAs may be reduced based on a combination of the amount of a taxpayer's modified adjusted gross income (AGI) and federal income tax filing status.... AGI is computed for purposes of the 'phase out limitation' without regard to the I.R.C.'s provisions excluding certain foreign earned income or housing costs from gross income." (Bloomberg BNA)  

Three Ways to Increase Employee Participation in Your 401(k) Plan
"Many plans with auto-enrollment have a 90 percent or greater participation rate, but it appears many employers have yet to embrace this approach.... Target date funds appear to be a popular option among employers. In our 2013 survey only 29 percent said they didn't offer them. ... If your plan doesn't currently offer a match, consider adding this feature." (Moss Adams LLP)  

The Boomerang Generation's Retirement Planning
"The Millennial generation has gotten a bad rap concerning their retirement planning habits -- or lack thereof.... [This infographic] features 12 tips Millennials should consider when developing their retirement strategy." (Milliman Retirement Town Hall)  

How to Help Millennials Save For Retirement: Four Tips for Plan Sponsors
"[L]earning about and using their employer's retirement program is just plain boring or worse yet, scary, to Millennials. So how can plan sponsors support and engage this fast-growing critical group of employees? Harness their inertia.... Reestablish the link between having money and spending money.... Provide directions at their level.... Educate them about investing in the stock market." (Francis Investment Counsel LLC)  

Are Women and Men Different When It Comes to Retirement Plan Savings?
"[W]omen demonstrate an inclination toward savings -- they are 10% more likely to enroll in their workplace saving plans than men. And once enrolled, women across all income levels save at rates anywhere from 6% to 12% higher than those of their male counterparts." (Vanguard)  

Considering a 401(k) Loan? Weigh Your Options Before Borrowing
"Over the past year alone, more than 27,000 investors took loans specifically for the purchase of a home. While it's a small percentage of Fidelity's overall 401(k) loan-taking population, it is a trend the company has seen increasing over the past five years. Today's average home loan is $23,500, far higher than the average general loan value of $9,100. It represents 25 percent of an average borrower's 401(k) pre-loan balance, versus 17 percent for a general loan." (Fidelity)  

Summary of Finances of Selected State and Local Government Employee Retirement Systems, Second Quarter 2014 (PDF)
"For the 100 largest public-employee pension systems in the country, cash and security holdings totaled $3,365.4 billion in the second quarter of 2014. Cash and security holdings had a quarter-to-quarter increase of 4.6 percent, from $3,218.2 billion last quarter, and a year-to-year increase of 14.3 percent, from $2,945.6 billion in the second quarter of 2013. Earnings on investments totaled $129.4 billion in the second quarter of 2014." (U.S. Census Bureau)  

Best Practices in Employee Financial Security, 2014 (PDF)
"Provide employees with meaningful financial benefits to help them save for retirement.... Make it easy for employees to participate in securing their financial future, and give them incentives to do so.... Make a lifecycle fund the default asset allocation choice for 401(k) plans.... Help employees become more financially literate so they can take greater responsibility for their financial future.... Offer employees benefits, tools, and resources to help them achieve health wellness.... Design benefit programs that are accessible and flexible enough to accommodate changing lifestyles and needs." (The Principal Financial Group)  

Bristol-Myers Squibb to Transfer $1.4 Billion in U.S. Pension Obligations to Prudential
Bristol-Myers Squibb

Ternian Insurance Group’s New Executive Plan Helps Employers Recruit and Retain Top Talent While Addressing Concerns about Benefit Discrimination
Ternian Insurance Group

Prominent ERISA Litigator Nancy Ross Joins Mayer Brown’s Chicago Office as Partner
Mayer Brown

Husch Blackwell Adds Employee Benefits Attorney in Springfield, Mo.
Husch Blackwell

Employee Ownership Month 2014
ESOP Association

LPL Financial President Robert Moore Named New Chairman of the IRI Board
Insured Retirement Institute [IRI]

Wells Fargo Advisors Tackles Retirement Income with Launch of the “Income Center”
Wells Fargo Advisors

New White Paper Delves into Socially Responsible Investing
PlanPILOT

OneAmerica Introduces First Fixed-Indexed Annuity with Long-term Care Benefits
OneAmerica Financial Partners

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