Junior Plan Administrator
Professional Capital Services
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First American Bank
in IL

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TIAA-CREF
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Consultant, Corporate Compliance
Nationwide
in OH

Account Manager
Organization Specializing in the Retirement Industry
in DC, VA

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People's United Bank
in VT

Relationship Manager - Taft Hartley Services Group
New York Life Retirement Plan Services
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Washington Update — Legislation, Regulations, and Policymaker Priorities
January 28, 2015 WEBCAST
(Worldwide Employee Benefits Network [WEB])

11th Annual Executive Forum on Rewarding Healthy Behaviors
February 4, 2015 in NV
(World Congress)

View All Webcasts and Conferences

[Guidance Overview]

DOL Announces Changes to Form 5500 for 2014
" 'Active Participants' include participants who are eligible to contribute to the plan, whether or not they actually choose to make contributions. This can be especially tricky for 403(b) plans since employees become eligible to make salary deferrals upon date of hire and few, if any, employees are excluded from the right to make elective deferrals. Many 403(b) plan sponsors have reported Active Participants as only those employees actually contributing to the plan or receiving employer contributions. When properly counted, a sponsor may find that the number of active participants is actually much higher than what they have been reporting. In some cases, the correct number may now result in the plan being considered a large plan and therefore subject to an annual audit." (Strategic Benefit Services)  

[Advert.]

Investments Institute -- March 9-11, 2015

Attend the Investments Institute in Rancho Mirage, CA. Learn vital information needed to make decisions for the employee benefit funds you represent, discuss economic/legislative updates and terminology from today's headlines. Register Today!

[Guidance Overview]

Significant Multiemployer and Single Employer DB Plan Changes Now in Effect
"While the most talked-about changes relate to plans in critical (the 'red zone) or endangered (the 'yellow zone) status, there are also a number of changes of which even well-funded multiemployer plans should be aware. Key provisions from the law affecting multiemployer and single employer plans, which generally took effect January 1, 2015, are detailed [in this article]." (Proskauer Rose LLP)  

Patent Infringement Lawsuit Reminds ERISA Fiduciaries to Monitor Service Providers
"Plan fiduciaries should consider the following guidelines in selecting and dealing with providers: Because plan service providers are 'parties-in-interest' under ERISA, be sure that their involvement with the plan will not result in a prohibited transaction.... An online search should be made for any reported court decisions involving any potential provider.... Even without a formal bidding process, complete details concerning the services to be provided and the fees charged must be obtained.... Thoughtfully negotiate and periodically review provider contracts, including any indemnity obligations of both the provider and the plan administrator, particularly when the provider's form agreement is used." (McGuireWoods LLP)  

D.C. Court of Appeals: Survivor Benefit in Undistributed Benefits Irrevocably Vests Upon Retirement; ERISA Pre-empts State Law Constructive Trust Effort (PDF)
"John argues that the divorce decree and this Texas statute entitle him to a declaration that he 'has equitable title' to Melissa's survivor benefit, and that upon receipt of her annuity, Melissa is bound by Texas law to deliver it to John's designee.... The conflict between ERISA and Texas law could hardly be starker -- what ERISA gives to Melissa, John argues, Texas takes away. But as the Supreme Court held ... 'in the face of this direct clash between state law and the provisions and objectives of ERISA, the state law cannot stand.' ... This case involves an effort by a plan participant to obtain an interest in undistributed plan benefits, and we hold only that absent a qualified domestic relations order and compliance with ERISA's strict waiver provisions for survivor annuities, he may not use state law for that purpose. This opinion has nothing to say about how ERISA might affect an effort by a plan participant to use state law to obtain an interest in benefits after distribution to the beneficiary." [Vanderkam v. Vanderkam, No. 13-5163 (D.C. Cir. Jan. 20, 2015)] (U.S. Court of Appeals for the District of Columbia Circuit)  

Multiemployer Plan Participants Allege Rehabilitation Plan Violated ERISA and PPA
"The complaint, filed on Jan. 9 in the U.S. District Court for the Southern District of New York, challenged the rehabilitation plan instituted by the multiemployer defined benefit plan's trustees pursuant to the Pension Protection Act on the grounds that the plan effectively amended the plan in a way that has already been ruled to violate the anti-cutback provisions of [ERISA] by the U.S. Court of Appeals for the Second Circuit ... According to the complaint, the trustees of the plan violated the requirements of the PPA and ERISA when they declared the plan to be in critical status and filed the rehabilitation plan canceling the ability of employees who were no longer performing covered service to 'age into' full vested benefits under the plan when the sum of their age or service credit reached 80 or 90." [Tagliareni v. Bakery and Confectionery Union and Industry Int'l Pension Fund Pension Plan, No. 15-cv-00171 (S.D.N.Y. filed Jan. 9, 2015)] (Bloomberg BNA)  

[Advert.]

Are Your Retirement Plans Keeping Up?

San Diego, Mar. 8-11. Choose from 45+ educational sessions on improving employee retirement readiness, complying with ERISA, ACA and more. 99% of past attendees agree -- it's time and money well spent! Register by Jan. 30 and save $200; use code BENL.

Fiduciary Push Expected after State of the Union Address
"The administration is already prepared to defend the Department of Labor rule with an economic justification document that is seen as a key to getting a court to uphold the regulation if it is finalized but then challenged in court. The economic justification document ... purports to show that consumer protections for investment advice to the retail and small plan markets are inadequate and that the current regulatory environment 'creates perverse incentives that ultimately cost savers billions of dollars a year.' The justification document said evidence through various studies indicates these costs arise from incentives to steer savers into higher cost products within the IRA market." (InsuranceNewsNet.com)  

Retirement Plans Comparison Table for Small Businesses: 2015 Plan Year
"This table provides a comparison of the features and benefits that apply to retirement plans that can be sponsored/adopted by small business owners.... Plans covered: SEP IRAs; SIMPLE IRAs; 401(k)s; Solo 401(k) / Individual-K; Profit Sharing; Money Purchase Pension; and Defined Benefit Pension." (Appleby Retirement Dictionary)  

Most Companies Improving Automatic Features in 401(k) Plans to Boost Worker Savings
"29 percent of employers automatically enroll participants in the plan at a savings rate that is at or above the company match threshold. Another 27 percent of employers automatically enroll individuals below the full match rate, but automatically escalate contributions over time so that workers will eventually be saving enough to receive the full company match.... 8 percent of companies automatically enroll participants below the full match threshold and have contribution escalation as an opt-in feature. 70 percent of companies responding to the survey have automatic enrollment." (Aon Hewitt)  

One in Five Investors Have Tapped Into 401(k) Prematurely
"The majority of nonretired investors in the U.S. say their employer offers a 401(k) plan, and of these, 89% say they participate in it. Yet 21% of those who participate in such a plan say they have either taken out a 401(k) loan or even taken an early withdrawal from the plan in the last five years." (Gallup)  

Back to the Future with DC Plans
"Modern DC plans are being constructed with safeguards and incentives to help keep participants on track for a secure retirement.... [For] the past decade, we've seen the emergence of hybrid plans and 'auto' DC plans in the United States, collective DC plans in Europe, compulsory DC plans in Australia and other parts of Asia, and government-sponsored DC plans in Europe and Asia. Innovation -- the proverbial mother of necessity -- is driving an evolution in the traditional DC plan structure to provide many of the best elements of the DB plan and the DC plan." (Vanguard)  

A Comparison of Various Measures of Pension Liabilities (PDF)
"Although different values are placed on liabilities in different contexts, they are all related to one another to some extent. [This article compares]: economic value (EV); projected benefit obligation (PBO); accrued benefit obligation (ABO); funding target liability (FTL); annuity buyout or 'pension risk transfer' cost (PRT); total economic cost (T); and hibernation cost (H)." (Russell Investments)  

When a Roth IRA May Be a Terrible Asset to Inherit
"If the beneficiary's tax rates are higher, it's clearly beneficial for the current IRA owner to go ahead and convert the IRA, paying the taxes now at current rates, and leaving the (high income) beneficiary a tax-free account. However, if the reality is that the beneficiary's tax rates are actually lower -- perhaps because the original IRA owner's wealth is being spread across multiple beneficiaries, because the beneficiary simply has less income and assets, or maybe just due to the fact that the beneficiary lives in a different state that has a lower tax rate -- then the best thing a (higher-income) IRA owner can do is simply to leave a traditional IRA to the beneficiary and let the beneficiary pay the taxes at his/her own lower tax rates!" (Michael Kitces in Nerd's Eye View)  

Why Financial Advisers Should Factor Tech Advances in Retirement Planning
"In the next stage of our [65-year-old] client's life, from 80 to 85, robots will be able to help him with the activities of daily living, for about 15% less than the current cost of a home-health service. By the time this client is 85, robots will not only be cheaper but more capable, and the savings will continue to increase. These future savings, and clients' increasing life expectancy, need to be factored into plans we're making today. Planners may want to set aside money for emerging technologies, and make calculations based on longer life expectancies." (The Wall Street Journal; subscription may be required)  

Retirement Security a Priority in the 2015 State of the Union
"Now, the White House proposes to build on the MyRA. Because the Automatic IRA would require employers with more than 10 employees to offer retirement accounts, about 30 million more workers would have the opportunity to save for retirement via payroll deduction. Using automatic enrollment, a mechanism that both works and that employees strongly support, the Automatic IRA would serve as a permanent retirement savings plan, rather than a starter account like MyRA." (The Brookings Institution)  

It's Been a Year -- Where's Obama's IRA for Everyone?
"Treasury ... launched a small pilot project in mid-December. There was little publicity, and the agency won't say how many employers are participating, or exactly when MyRAs will become more widely available later this year. At least one government agency is on board: [OPM] is opening MyRAs up to part-time and seasonal employees who aren't eligible for the Federal Employees Retirement System. Private employers who want to offer MyRAs to workers are welcome to volunteer, a Treasury spokesman says, but the department isn't actively recruiting new participants." (Bloomberg Businessweek)  

'Before It's Too Late': A Retirement Security Newsletter from Phyllis Borzi
"[In] FY 2014, EBSA recovered almost $600 million in direct payments to plans, participants, and beneficiaries. These are actual dollars in the pockets of individuals directly or indirectly through their plans. These recoveries include plan assets restored, participant benefits recovered, disgorgement of profits, and voluntary fiduciary corrections, as well as amounts recovered through the abandoned plan program and informal complaint resolution. The amount of money restored and errors corrected totaled $823.2 million. Over half of the $600 million recovered comes from informal complaint resolution spearheaded by EBSA's Benefits Advisors." (Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL])  

DOL Sues Investment Advisor and Plan Administrator to Recover Losses
"An investigation by [EBSA] found that from at least 2006 through 2011, [the subject of this investigation] caused himself [and two companies he owned] to be paid certain commissions and fees, the amounts of which were not properly disclosed to or specifically authorized by the plans or independent fiduciaries ... [and] failed to use all fees received by him to offset fees that the plans otherwise would have had to pay and used his fiduciary authority as investment adviser to cause the plans to remain invested in a higher fee fund class when the same fund portfolio was available in a lower fee class." (Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL])  

[Opinion]

Time for a National Conversation About Retirement Policy
"[W]hat if, as part of this national conversation about retirement policy, we also considered more-sweeping, comprehensive policy changes? That is exactly what a number of other countries around the world have done. As part of the debate around U.S. retirement policy, it seems worthwhile to consider their experiences. [1] Compulsory Private Retirement Savings ... [2] Mandatory Autoenrollment ... [3] Support for Defined-Benefit Pension Plans ... [4] Social Security Reform." (Scott Cooley, in Morningstar)  

[Guidance Overview]

ISS Provides Additional Guidance on New Voting Policy on Equity Plan Proposals
"An equity proposal may receive up to 100 points under the EPSC. For Russell 3000 and S&P 500 companies, the following is the maximum point score by category: 45 points for the plan costs, 20 points for the plan features and 35 points for grant practices. ISS has not disclosed maximum point score by individual factor. A score of 53 points or higher will generally result in ISS recommending FOR an equity plan proposal." (Meridian Compensation Partners, LLC)  

Beyond Retirement: Navigating Your Total Employee Benefits Package
"Even if you have been with the same company for years, it's important to reevaluate your needs and make sure you're getting the most out of your benefits. Here are some basic guidelines to help you understand what you need to consider: Retirement Plan ... Health Insurance ... Sick and Vacation Time ... Stock Options or Profit Sharing ... other perks." (AFS 401k Retirement Services)  

Lowe's Expands Accolade Service, Doubling the Number of Employees with Access to Accolade Health Assistants
Accolade, Inc.

O'Brien Retires as NAFA Chief
National Association for Fixed Annuities [NAFA]

Retirement Revolution Names BPO Partner Implementation Manager
Retirement Revolution, LLC

Retrofit Unveils New Weight Management Solution for Corporate Market
Retrofit Inc.

IRI Shares President Obama's Retirement Security Goals
Insured Retirement Institute [IRI]

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