Retirement Plans Newsletter

March 10, 2015

BenefitsLink.com logo EmployeeBenefitsJobs.com logo LinkedIn logo Twitter logo Facebook logo
Get Health & Welfare News  |  Advertise  |  Previous Issues  |  Search

Employee Benefits Jobs

Pension Consultants/ Administrators
Leading Northern NJ Actuarial Firm
in NJ

Technical Director
Employee Benefit Resources, Inc.
in ANY STATE, MT

Plan and Trust Administrator
Thomas F. Barrett, Inc
in MD

401(k) Account Manager
Lincoln Trust Company
in CO

Regional Vice President (Sales) - Mid America Territory
Ascensus
in MO

Manager, Conversions
The Newport Group
in CA

Benefits Analyst
Stanford University
in CA

Plan Administrator
Bidwell Consulting Services, Inc.
in ANY STATE, CA

Sales Consultant
The Angell Pension Group, Inc.
in ME, NH, NJ, NY, PA

Employee Benefits Attorney
Wiggin and Dana LLP
in CT, NY

401(k) Administrator
Pollard & Associates, Inc.
in MD

Post Your Job

View All Jobs

RSS feed for jobs RSS Feed: All Jobs


Webcasts and Conferences

Changes to Cafeteria Plans: What You Need to Know to Prepare
March 26, 2015 WEBCAST
(Lorman Education Services)

ACA in 2015: What's Next in Compliance?
March 31, 2015 WEBCAST
(Thompson Interactive)

Total Workplace Well-Being: Getting Started Is Easier Than You Think!
April 2, 2015 WEBCAST
(International Foundation of Employee Benefit Plans [IFEBP])

35th Annual Conference -- The Wild Wild West of Health Benefits: Traversing Tough Terrain
April 29, 2015 in IL
(Midwest Business Group on Health)

Health Care Reform
May 7, 2015 in TX
(Thomson Reuters / EBIA)

HIPAA Privacy & Security
May 8, 2015 in TX
(Thomson Reuters / EBIA)

Summit 2015: An HR & Benefits Symposium
May 14, 2015 in IL
(bswift)

Getting it Right - Know Your Fiduciary Responsibilities
May 19, 2015 in PA
(Employee Benefits Security Administration [EBSA], U.S. Department of Labor)

View All Webcasts and Conferences



[Official Guidance]

Text of PBGC Final 2015 Premium Filing Instructions (PDF)
58 pages. "Every covered plan under ERISA section 4021 must make a premium filing each year.... Electronic filing is mandatory for all plans.... This document provides information for plans paying premiums for plan years beginning in 2015, including instructions for each data element that must be reported. If you are filing for a previous year, you must follow the instructions for that year.... If you are amending a filing for a plan year that did not begin in 2015, the rules in this document do not apply. You must follow the instructions and regulations applicable for that plan year." (Pension Benefit Guaranty Corporation [PBGC])  


[Advert.]

Are you making payments to dead people?

Sponsored by Pension Benefit Information, Inc.

See how Fred stopped making payments to deceased participants using PBI's PlatinumPLUS solution with ObitPro! Contact us today for a 30 day NO CHARGE TRIAL. Call 415-482-9611 or email inquiry@pbinfo.com today ... you won't believe what you're missing!



Unraveling the Proposed Fiduciary Regs and Explaining 401(k) Plan Sponsor Fiduciary Liability
"[Fred Reish, of Drinker Biddle & Reath LLP] has a rather interesting take on this whole 'new' thing. 'While we don't know exactly what the proposed regulation will say,' he says, 'it appears safe to conclude that there will be little, if any, change to the requirements faced by RIA fiduciary advisers when they provide investment advice to 401k plans.... [T]he prudent man rule will continue to apply and, as a result, RIA fiduciary advisers will need to engage in a prudent process for selecting and monitoring the investments that are offered to participants.' ... [T]he real advantage of the Rule goes unreported. What's lost in this digressionary debate is the potential impact the Fiduciary Rule can have on plan sponsor fiduciary liability." (Fiduciary News)  

Supreme Court Could Take on Case Involving Fiduciary Burden of Proof and Damages
"[T]he Supreme Court asked for the solicitor general's opinion before deciding whether to grant the petition for review ... filed by RJR Pension Investment Committee ... [which] seeks to overturn an Aug. 4 decision by the 4th U.S. Circuit Court of Appeals ... The circuit court ruled 2-1 that a defendant has the burden of proof if there is a breach of duty, and that a fiduciary can be held liable for damages even for a prudent decision. Five other circuit courts have ruled differently, keeping the burden of proving loss causation on the plaintiffs." [Tatum v. RJR Pension Investment Comm., No. 13-1360 (4th Cir. Aug. 4, 2014; cert. pet. filed Dec. 1, 2014)] (Pensions & Investments)  

401(k) Participant Behavior in a Volatile Economy
"Using administrative tax records and household surveys, [the authors] examine how participants responded to these periods of economic expansions and contractions by documenting changes in 401(k) participation, contributions, and contribution rates from 1990 to 2009. Controlling for earnings, job changes, and other household factors, [the authors] find that workers reduce their 401(k) participation and contributions during recessions. Changes in participant behavior during the Great Recession, in particular, could lower 401(k) assets of the typical 30-year-old by as much as 8% at age 62." (Urban Institute)  

Wide Disparity in 2014 Stock Returns Shows the Importance of Diversification (PDF)
"With another calendar year in the books, investors can look back to 2014 and see the vast disparity between asset classes, with the U.S. markets leading the way for a second consecutive year. Why not then just take the simple approach of investing in the S&P 500 Index? The answer is that we don't know which asset class will be the top performer from year to year.... [A] diversified approach to investing across different regions of the world and different size companies is the best approach to meet portfolio goals." (Bronfman E.L. Rothschild)  


[Advert.]

Announcing a Revolutionary New Resource. Free Trial - Sign Up

Sponsored by Burrmont Compliance Labs LLC

ERISApedia.com is a new way to quickly find answers to the tough questions you face every day. Our revolutionary platform combines outstanding search tools and an intuitive interface. Sign-up for a free trial today or email us: sales@ERISApedia.com.



2015 Millennial Research Study (PDF)
54 pages. "Nearly two-thirds (63%) of Millennials started saving for retirement before or at 25. Only 30% of Millennials are saving 10% or more through their employer sponsored retirement plan; nearly three-fourths (74%) of Millennials think they need to be saving 10% or more through their employer's retirement plan. Six out of 10 Millennials expect they will be better off financially than their parents." (The Principal Financial Group)  

Retirement Plan Sponsorship Would Be Mandatory Under Proposed New Jersey Legislation
"The bill ... would require companies that have at least 25 employees and lack a retirement plan to set up automatic deductions that workers could use to invest in an individual retirement account. The bill, modeled on an Illinois plan set to take effect in 2017, would create the New Jersey Secure Choice Savings Program, allowing private employers to deduct 3 percent from workers' paychecks. Workers would be able to opt out of the program, or to contribute a greater amount. Companies with fewer than 25 workers could join the program if they chose." (NorthJersey.com)  

[Opinion]

The Maiming of Illinois: Underfunded State Pension Systems
"Illinois' pension systems have less than 41 cents on hand for every $1 in promised retirement benefits.... Even if SB1, the 2013 'pension overhaul,' is upheld by the courts, Illinois taxpayers will still spend millions every year paying pensions to people for nongovernment work.... Unlike pensions in the private sector, Illinois government pensions are based on an employee's final, highest average salary ... It's common for employees to see huge spikes in their salaries in the years preceding retirement.... In 2011, reporters at the Chicago Tribune and WGN-TV uncovered two government union lobbyists who snuck into the public pension system after spending just one day as substitute teachers." (Chicago Tribune; subscription may be required)  


[Advert.]

6th Annual Financial Advisor Retirement Symposium - April 1-2, 2015

Sponsored by Financial Advisor

The editors of Financial Advisor and Private Wealth magazines bring together industry experts to share insights and strategies on retirement at a conference that promises to energize advisors with new practice-building ideas. BenefitsLink Discount.



Benefits in General; Executive Compensation

Rochow v. LINA, Episode 3: Sixth Circuit Acts En Banc to Vacate Disgorgement Award
"The court went on to explain that a claimant can obtain equitable relief under 502(a)(3) in addition to seeking benefits under 502(a)(1)(B) 'only where the breach of fiduciary duty claim is based on an injury separate and distinct from the denial of benefits or where the remedy afforded by Congress under Section 502(a)(1)(B) is otherwise shown to be inadequate' ... The court rejected Rochow's arguments that he had two separate injuries ... [and] explicitly held that the wrongful withholding of benefits was not a zero-sum game, in that increased earnings for LINA did not equate to a loss for Rochow... The lengthy dissent essentially held that breach of fiduciary duty is a separate claim that by definition results in a distinct injury, and therefore supports a distinct remedy." [Rochow v. LINA, No. 12-2074 (6th Cir. Mar. 5, 2015)] (Begos Brown & Green LLP)  

ERISA Equitable Relief: Sixth Circuit Reverses Rochow Decision
"Ultimately, what probably held the most sway was that Rochow's claim for breach of fiduciary duty was perceived as nothing more than a repackaged claim for a wrongful denial of benefits. In a case where the remedy of providing benefits is available, the relief for an alleged breach of duty is not always limited to providing benefits. But this decision seems to suggest that the place to look first for relief is the satisfaction of the 502(a)(1)(B) claim." [Rochow v. LINA, No. 12-2074 (6th Cir. Mar. 5, 2015)] (Fox Rothschild LLP)  

Key Differences Exist Between Long- and Short-Term Executive Incentive Awards
"According to Mercer's analysis, financial metrics are included in the majority of short- and long-term incentive awards. Non-financial metrics are fairly common in STI programs, but not LTI. The most common STI metrics are profit-based (36% of organizations use earnings per share; 49% use other profit measures) followed by revenues (47%). Total shareholder return or stock appreciation is the most common LTI metric (used by 55% of the S&P 100) followed by return on assets or return on equity (49%)." (Mercer)  

Press Releases

Labor Department Files Suit to Restore Losses to Massey Wholesale Co. Inc. SIMPLE IRA Plan in Dawson, Georgia
Employee Benefits Security Administration [EBSA], U.S. Department of Labor

US Labor Department Files Suit Against Vic International Corp. in Knoxville, Tenn. to Restore 401(k) Contributions
Employee Benefits Security Administration [EBSA], U.S. Department of Labor

National Retirement Planning Week 2015 Announced
Insured Retirement Institute [IRI]

Connect   LinkedIn logo   Twitter logo   Facebook logo

Additional useful links:

BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
Phone (407) 644-4146
Fax (407) 644-2151

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright 2015 BenefitsLink.com, Inc. — but feel free to forward this newsletter without further permission from us, if you do not modify the newsletter in any way (including this lower portion).

All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of that content. You may not alter or remove any trademark, copyright or other notice from copies of the content.

Links to websites other than those owned by BenefitsLink.com, Inc. are offered as a service to readers. The editorial staff of BenefitsLink.com, Inc. was not involved in their production and is not responsible for their content.

We are proud of our Privacy Policy.

Thanks for reading this newsletter!