ASPPA

Benefits Manager
East Bay Regional Park District
in CA

Document Compliance Consultant
TIAA CREF
in NC

Director, Client Executive
Transamerica Retirement Solutions
in IA, IL, MI, MN, MO, WI

Retirement Plan Services Manager
Smith Elliott Kearns & Company, LLC
in PA

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Plan Restatement Issues and Design Possibilities
RECORDED
(ASPPA [American Society of Pension Professionals & Actuaries])

Voluntary Fiduciary Correction Program Workshop
RECORDED
(ASPPA [American Society of Pension Professionals & Actuaries])

2014 Affordable Care Act Tax Provisions for Individuals, Families and Small Businesses
RECORDED
(IRS [Internal Revenue Service])

Biometrics: Incorporating Health Risk Assessments and Outcome Based Wellness Incentives Into Your Health Plan
November 10, 2014 WEBCAST
(Lorman Education Services)

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[Guidance Overview]

IRS Publication 4531: 401(k) Plan Checklist (Revised October 2014) (PDF)
"Every year it's important that you review the requirements for operating your 401(k) retirement plan. Use this checklist to help you keep your plan in compliance with many of the important rules." (Internal Revenue Service [IRS])  

[Advert.]

Network, Learn and Sell at the SPARK Forum Retirement Industry Conference

Join top record keepers, asset managers, TPAs, advisors, marketing and sales executives for unequaled education and networking. Gain insights into the latest market trends, business strategies, regulatory and legislative issues, and product developments.

[Guidance Overview]

IRS Issues Final and Proposed Regs on Hybrid Pension Plans
"Treasury and the IRS are continuing to study whether a hybrid plan design that bases the interest crediting rate on participant self-direction of investments should be permitted. If they decide that such design is not permissible, only plans that have this feature on September 18, 2014 will be granted relief from the anti-cutback rules of Code Section 411(d)(6)." (Littler)  

[Guidance Overview]

Here We Go Again: Does the DOL's August RFI Mean New Fee Disclosure Requirements Are Coming Soon?
"On one hand, the DOL has been concerned that defined contribution plan participants will be unable to navigate the wide universe of investment options available under [self-directed brokerage accounts (SDBAs)] unless strict procedural rules are in place. On the other hand, the plan sponsor community has tried to make clear that rank-and-file employees typically are not interested in SDBAs. Instead, more sophisticated investors request this feature, and they do not need a detailed protective regime. The DOL ... has recognized the different points of view on this issue and has sought input to help develop a balanced approach to regulating SDBAs." (Porter Wright Morris & Arthur LLP)  

[Guidance Overview]

The New ASOP 27: What Is the Impact on Multiemployer Plan Funding? (PDF)
"Economic assumptions covered by ASOP 27 include the investment return, discount rate, inflation, postemployment benefit increases, compensation increases, and any other related assumptions. The general process that must be followed by the actuary in developing economic assumptions is: (a) identify the components of the assumption, (b) evaluate the relevant data, (c) consider factors specific to the measurement and other general factors, and (d) select a reasonable assumption. Relevant data could include both recent and long-term historical data, but undue weight is not to be given to recent experience. Adjustments may be made to allow for the chance of an adverse deviation or if there are plan provisions that are hard to value." (Milliman)  

IRS to Temporarily Shut Down FIRE Filing System Oct. 11 Through Oct. 14
"The IRS [has] announced ... that the IRS electronic filing system known as FIRE (Filing Information Returns Electronically) will be shut down from approximately 3:00 p.m. ET on Saturday, Oct. 11, 2014, until approximately 6:00 a.m. ET on Tuesday, Oct. 14, 2014. The reason for the shutdown, according to the IRS website, is due to an annual power outage, apparently for routine maintenance. The problem is this shutdown is scheduled for three of the last five days before the October 15 filing deadline for calendar year plans that requested an extension." (American Society of Pension Professionals & Actuaries [ASPPA])  

Proposed Changes to ERISA Section 4062(e)
"Critics argue that, since 2006, PBGC has aggressively applied 4062(e) in situations to which it was not intended to apply, calculated the resultant liability in a way that was not intended and demanded a remedy that is not authorized by the statute.... S. 2511 ... would, in effect, compel PBGC to change its approach by re-writing the statute. The HELP Committee, in executive session, approved (with modifications) that bill on July 23, 2014, and the full Senate passed the bill unanimously on September 16." (October Three Consulting)  

A Legacy of Pensions: An Interview with Former PBGC Director Josh Gotbaum (PDF)
"[We] have accomplished a lot, but we have yet to have congressional legislation to enable multiemployer plans to save themselves, we have yet to have a consensus on what changes in ERISA would facilitate retirement security for the next forty years, and so there is much that is not yet done." (American Benefits Council)  

Big U.S. Firms Boost Equity Weightings in 401(k) Target-Date Funds
"In changes that have raised the potential investment risks in many 401(k) retirement accounts, several major fund companies are increasing the stock allocation of their target date funds, which are used by many of those with such plans.... In some cases employees who are in their 40s now find themselves in funds that are 94 percent allocated into stocks, up more than 10 percentage points. The changes have prompted concerns from consultants and analysts who worry that the fund managers are raising the risks too high for 401(k) investors as they seek higher returns, perhaps as a way to boost their own profiles against rivals." (Reuters)  

Happily Ever After? Investment Funds That Live with ERISA, for Better and for Worse (PDF)
"This article discusses trust requirements, custody, ERISA's bonding rules, reporting of investments and direct filings with the [DOL], reporting issues (relating to compensation, hard-to-value assets and gifts and entertainment) and prime brokers." (Dechert LLP)  

2014 Multiemployer Pension Funding Study (PDF)
"[T]he overall funding shortfall for all plans declined by $45 billion for the year ending December 31, 2013, and the aggregate funded percentage increased by 9% from 72% to 81%.... [T]he median multiemployer funded percentage of 86% as of December 31, 2013, has nearly recovered to its pre-crash level of 89%. However, it also shows that the proportion of plans that are under 80% funded has increased from 29% to 37%." (Milliman)  

Comparison of Actuarial Funding Policy Recommendations Reveals Considerable Consensus -- and a Few Notable Differences (PDF)
"[T]he funding of U.S. public sector pension plans has become a high-profile topic... Organizations within the public pension industry (including three of the major professional actuarial groups) have responded ... by issuing guidance for establishing and maintaining actuarially responsible funding policies for these plans.... There is considerable consensus on the recommendations outlined in each of the reports... Some differences ... can be attributed to differences in intended scope." (Segal Consulting)  

Pension Finance Update as of September 30, 2014 (PDF)
"Stocks retreated in September, but the impact was mostly offset by higher interest rates, which reduced pension liabilities. Three-fourths of the way through 2014, pension finances remain modestly underwater for the year -- our traditional 'Plan A' 1 is down almost 6%, while the more conservative 'Plan B' is down 2%." (October Three Consulting LLC)  

Recent Guidance Relating to Pretax and After-Tax Distributions
"With an increase in the number of retirement plans that offer Roth after-tax contributions, more participants may be retiring with pretax and after-tax amounts in their plan accounts.... The new rules assign the pretax amount to the direct rollover portion first. This allows participants to directly roll over the pretax portions. Any excess pretax amount is next assigned to any indirect rollover and remaining pretax amounts are taxable." (Milliman Retirement Town Hall)  

IRS Blesses Tax-Free Roth Conversions
"Recent IRS pronouncements have cleared the path for tax-free Roth conversions of after-tax money in retirement plans for some individuals. To be among the lucky people who can do this, you must meet two requirements: First, you must participate in a qualified retirement plan (such as a 401(k) plan). Second, you must have after-tax money either in that plan or in a traditional IRA. If you have both those characteristics, you can convert the after-tax money to a Roth IRA tax-free with the blessing of the IRS." (Natalie Choate, for Morningstar Advisor)  

Can I Move Non-IRA Assets to an Inherited IRA?
"Only inherited IRA or inherited employer plan assets can be directly transferred from one inherited retirement account to another inherited IRA account. If you moved the non-IRA assets into an inherited IRA you would have an excess contribution, which would be subject to a penalty of 6% per year for every year that it remained in the inherited IRA." (Slott Report)  

Strategies to Improve Retirement Readiness (PDF)
"From 1979 through 2010, the percentage of private sector workers covered by a DB plan decreased dramatically from 62 percent to 7 percent, while the percentage covered by a DC plan increased from 16 percent to 69 percent. Despite the decline in DB coverage among the private sector, the public sector remains committed to DB plans, providing DB coverage to more than 85 percent of public sector workers in 2010. This paper identifies key findings about retirement readiness among workers in the U.S. and strategies to help individuals plan for retirement. It concludes by noting potential opportunities for employers to engage their employees in retirement planning." (CalPERS)  

[Opinion]

20 Years of Drinking the '4% Rule' Kool-Aid
"[T]he 4% Rule requires the retiree to have faith that historical performance is a good indicator of future experience and the retiree should 'stay the course' irrespective of actual investment returns or spending.... Retirees who invest in risky assets should not expect those assets to produce a fixed level of real income in retirement as implied by the 4% Rule or other safe withdrawal rate approaches." (Ken Steiner, FSA Retired)  

[Opinion]

The Adequacy of Defined Contribution Plans: Time for the Brutal Truth?
"[W]hile shifting to defined-contribution plans might make perfect rational sense for a private company, the state ends up paying the higher social costs of such a shift.... if you think defined-contribution plans are the solution, think again. Why? Apart from the fact that they're more costly because they don't pool resources and lower fees, or pool investment risk and longevity risk. They are also subject to the vagaries of public markets, which will be very volatile in the decade(s) ahead and won't offer anything close to the returns of the last 30 years." (Pension Pulse)  

Employers Must Prepare for Scrutiny as Federal and State Labor Departments Join Together to Fight Employee Misclassification
"[The DOL] has embarked upon a 'Misclassification Initiative' under which it has signed a Memorandum of Understanding (MOU) with the Internal Revenue Service and with numerous state Departments of Labor. These include Alabama, California, Colorado, Connecticut, Hawaii, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, New York, Utah, and Washington. Under these agreements, the agencies will work together and share information to reduce the incidence of misclassification, to help reduce the tax gap, and to improve compliance with federal labor laws. The agencies want to level the playing field for law-abiding employers who are finding it increasingly difficult to compete in the marketplace." (Goldberg Segalla)  

Seven Practical Tips for a Less Stressful, More Successful Open Enrollment
"[1] Test and tune the system in advance through pilot groups ... [2] Encourage early enrollment and avoid last-minute traffic jams ... [3] Make it easy for employees to log into the system ... [4] Be prepared to handle end-of-year life events ... [5] Give carriers plenty of time to process your EDI files ... [6] Solicit feedback both during and after open enrollment ... [7] Reduce stress by giving your employees and yourself a break." (bswift)  

Five High-Level Issues to Consider in Shaping Your Organization's Employee Benefit Offerings (PDF)
"[1] There is a 'retirement crisis' in America.... [2] Healthy employees are more productive and less likely to be absent.... [3] Offer benefits programs that appeal to a multigenerational workplace.... [4] Prudent outsourcing can assist plan sponsors manage benefit plans.... [5] Address employee benefits early in corporate transactions." (Epstein Becker Green)  

American Business Owner Optimism Reaches Highest Point in 3 Years
Principal Financial Group

AMA Study Finds WellPoint to be the Largest Health Insurer in Many Local Markets
American Medical Association [AMA]

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