Retirement Benefits Consultant
PSA, a Division of Pavilion Advisory Group
in IL

Implementation Specialist
Nova 401(k) Associates
in ANY STATE

Defined Contribution Compliance Specialist
Shore Tompkins Actuarial Resources, LLC
in IL

Conversion Specialist/Trust Accountant
Shore Tompkins Actuarial Resources, LLC
in IL

Account Manager/Client Service Manager
Cammack Health LLC
in NY

Operations Manager
Trinity Pension Consultants, Inc.
in OH

Entry Level Plan Administrator
Retirement Administration, Inc.
in CA

Compliance Specialist
Lincoln Financial Group
in ANY STATE

Director of Client Services
National Provider of Retirement Services
in MN

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Participant Loan Basics
RECORDED
(ASPPA [American Society of Pension Professionals & Actuaries])

Plan Changes and Error Correction Basics
RECORDED
(ASPPA [American Society of Pension Professionals & Actuaries])

Participant Fee Disclosure-the Aftermath
November 20, 2014 WEBCAST
(Worldwide Employee Benefits Network [WEB] - New York Chapter)

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[Official Guidance]

Text of IRS Notice 2014-66: Lifetime Income Provided Through Target Date Funds in Section 401(k) Plans and Other Qualified DC Plans (PDF)
"This notice provides a special rule that enables qualified defined contribution plans to provide lifetime income by offering, as investment options, a series of target date funds (TDFs) that include deferred annuities among their assets, even if some of the TDFs within the series are available only to older participants. This special rule provides that, if certain conditions are satisfied, a series of TDFs in a defined contribution plan is treated as a single right or feature for purposes of the nondiscrimination requirements of Section 401(a)(4) of the Internal Revenue Code. This permits the TDFs to satisfy those nondiscrimination requirements as they apply to rights or features even if one or more of the TDFs considered on its own would not satisfy those requirements." (Internal Revenue Service [IRS])  

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[Official Guidance]

Text of DOL Information Letter to IRS: Fiduciary Guidance with Respect to a Series of Target Date Funds That Seek to Provide Lifetime Income Using Unallocated Deferred Annuity Contracts
"This responds to [the Treasury Department's] request for the [DOL's] views on whether a series of target date funds (Funds) could serve as 'qualified default investment alternatives' within the meaning [of the QDIA regulation], in light of the Funds' investments in unallocated deferred annuity contracts, described in [IRS Notice 2014-66]. You also ask whether, and to what extent, the Department's 'annuity selection safe harbor,' is available in connection with the selection of the unallocated deferred annuity contracts as investments of the Funds.... The use of unallocated deferred annuity contracts as fixed income investments, as described in the Notice, would not cause the Funds to fail to meet the requirements of paragraph (e)(4)(i) of the QDIA regulation. The selection of the unallocated deferred annuity contracts satisfies the requirements of section 404(a)(1)(B) of ERISA if the designated investment manager satisfies each of the conditions of the annuity selection safe harbor. The plan sponsor, as the appointing fiduciary, must prudently select the investment manager and monitor the selection at reasonable intervals, in such manner as may be reasonably expected to ensure that the investment manager's performance has been in compliance with the terms of the Plan and statutory standards, and satisfies the needs of the Plan." (Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL])  

[Official Guidance]

Text of 2015 Dollar Limitations on Benefits and Contributions
"The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. The IRS announced on October 23, 2014 cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2015." [Also available in PDF format.] (Internal Revenue Service [IRS])  

[Guidance Overview]

IRS, EBSA Give Boost to TDF/Deferred Annuity Combinations
"What [the DOL] letter also makes clear is that the fiduciary of the plan is not responsible for selecting the annuity provider, so that the annuity purchase safe harbor rules have no application. The current annuity purchase safe harbor rules are often cited as an impediment to plans offering annuities because many see them as providing little protection to fiduciaries.... The IRS notice explains that this special rule provides that, if certain conditions (specified in the Notice) are satisfied, a series of TDFs in a DC plan is treated as a single right or feature for purposes of the nondiscrimination requirements of Code Section 401(a)(4). According to the IRS, this permits the TDFs to satisfy those nondiscrimination requirements as they apply to rights or features even if one or more of the TDFs considered on its own would not satisfy those requirements." (Nevin Adams, for American Society of Pension Professionals & Actuaries [ASPPA])  

Another Church Plan Lawsuit Is Filed Over PBGC-Exempt DB Plan
"According to the lawsuit, the Daughters of Charity Health System plan is underfunded by more than $229 million. In addition, on October 10, 2014, the health system announced it would sell its six California hospitals and medical foundation to Prime Healthcare Services and Prime Healthcare Foundation. 'Plaintiffs fear the sale threatens their earned pension benefits,' the complaint says." (PLANSPONSOR)  

Citigroup Decision's Warning for 401(k) Fiduciaries
"The court noted that Citigroup had not even attempted to offer any evidence that the plan participants had been provided with or possessed the necessary fee data. Without such data, the court held that the plan participants 'could not have known that the fees were excessive, and thus a basis for an ERISA claim.' ... [F]ew, if any, 401(k) plans provide the type of fee comparison data mandated by the court's decision. The court seems to suggest that the required fee comparison data includes comparison data on both the unaffiliated funds with a plan, but also on comparable alternative funds with similar types of assets and equivalent performance available in the marketplace." [Leber v. Citigroup 401(k) Plan Investment Committee, No. 07-Cv-9329 (S.D.N.Y. Sept. 30, 2014)] (The Prudent Investment Adviser Rules)  

How Big Is the Problem? The High Cost of Accounts Left Behind (PDF)
"[1] 9.5 million employees change jobs each year. [2] 38 million retirement accounts connected with former employees left with previous employers. [3] $92/year: Average recordkeeping, custody, and administration fee per account. [4] $3.5 billion: Estimated annual cost of DC plan accounts belonging to previous employees. [5] $43.5 billion: Estimated cost of former employees over a 10-year period." (Millennium Trust Company)  

What's the Impact of the 2015 IRS Retirement Plan Limits?
"Plans may see better nondiscrimination testing results (including ADP results) if there are fewer participants at the low end of the HCE range, especially those with big deferrals. It could make a big difference for plans that were close to failing the tests. Fewer HCEs means that there are fewer participants who must receive 401(k) deferral refunds if the plan fails the ADP test." (Van Iwaarden Associates)  

Navigating the New Retirement World
"Many years to navigate, with (it appears) punk returns on the horizon. What's an investor to do? ... [1] Save more/retire later -- prosaic and unappealing, but undeniably effective.... [2] Lower fees -- another simple idea, and less painful to do.... [3] Diversification -- moving away from the core.... [4] Flexible withdrawal strategies." (John Rekenthaler, for Morningstar Advisor)  

Pension Firms Accuse EU Regulator of Over-Reaching Authority
"Europe's pensions industry has accused its European Union regulator of overreaching its authority by pursuing plans to develop what pension funds say amounts to a new and onerous capital regime that could hurt their investing decisions.... The rules would force funds to use European instead of national standards in calculating the value of their assets and liabilities, allowing for comparison of the state of pension funds in different countries." (The Wall Street Journal; subscription may be required)  

Text of EBSA Revised Notice of ERISA Advisory Council Meeting on November 3-4, 2014
"[T]he 174th open meeting of the Advisory Council on Employee Welfare and Pension Benefit Plans (also known as the ERISA Advisory Council) will be held on November 3-4, 2014. No votes will occur until November 4. Despite our efforts to get this meeting notice published early, we were unable to do so. The Advisory Council meeting notice appeared on the public inspection desk of the Federal Register on October 20, 2014. This revised notice clarifies that final votes on the Council's recommendations to the Secretary will occur on November 4, 2014 ... The Council recommendations will be on the following issues: [1] Issues and Considerations around Facilitating Lifetime Plan Participation, [2] PBM Compensation and Fee Disclosure, and [3] Outsourcing Employee Benefit Plan Services." (Employee Benefits Security Administration [EBSA], U.S. Department of Labor)  

Retirement Plan's Venue Selection Clause Held Enforceable and Applied to Dismiss Participant's Benefit Claims
"The Federal courts ... have repeatedly held that adherence to the written terms of a plan in enforcing ERISA rights and obligations is of paramount importance. These decisions often demonstrate the extent to which the courts will enforce a plan sponsor's design choices provided they fit within ERISA's statutory and regulatory boundaries. Those boundaries are not endlessly elastic, but [this case] shows that they may be broader than some participants expected." [Smith v. Aegon Companies Pension Plan, No.13-5492 (6th Cir. Oct. 14, 2014)] (Williams Mullen)  

Audit Confirms Valuations for Employees' Retirement Fund of the City of Dallas Assets
Employees’ Retirement Fund of the City of Dallas

President Obama Names Donald Butt to PBGC Advisory Committee
PBGC [Pension Benefit Guaranty Corporation]

AHIP President Karen Ignagni Touts New Consumer Guide to Understanding Health Plan Provider Networks
America’s Health Insurance Plans [AHIP]

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