DATAIR Employee Benefit Systems, Inc.

Benefits Educator (Retirement Benefits; 403(b) Plans)
General Board of Pension and Health Benefits
in ANY STATE, IL

Junior Pension Administrator
AKT Retirement Plan Services
in AK

Pension Benefits Analyst
Towers Watson
in MA

Pension Benefits Consultant
Towers Watson
in MA

Benefit Consultant
Arthur J. Gallagher & Co.
in IL

Distribution & Contribution Specialist
My Benefits, LLC & First Party Administrator, LLC
in GA

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Healthy Wealth: Everything from HSAs to 401ks
November 12, 2015 WEBCAST
(Healthcare Trends Institute)

2016 Pension Update: Change is Constant. Now What?
November 18, 2015 WEBCAST
(Findley Davies, Inc.)

Introduction to Withdrawal Liability
December 8, 2015 WEBCAST
(Jackson Lewis LLP)

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[Official Guidance]

Draft of IRS 2015 Form 5500-EZ (PDF)
Draft as of Nov. 4, 2015; not for filing. "This form is required to be filed under section 6058(a) of the Internal Revenue Code. Certain foreign retirement plans are also required to file this form[.]" (Internal Revenue Service [IRS])  

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[Guidance Overview]

PBGC Premiums to Increase Again in 2016
"For plans with unfunded benefit liabilities, all contributions to the plan will generally offset the premium, in effect giving an automatic 3.0% return on the contribution (with the limited exception of plans that hit the premium cap of $500 per participant). Plan sponsors should consider the impact on PBGC premiums when deciding what level of contributions to deposit to the plan." (Watkins Ross)  

Impact of Interest Rate and Mortality Assumption Changes on De-Risking Activity
"Many, perhaps most, pension sponsors will have updated their GAAP mortality assumption by 2016.... IRS will not be adopting new mortality tables for lump sum calculations until 2017 ... So, for 2016 at least, there will be a mismatch for many employers. Lump sums paid out will, for accounting purposes, be valued using the new mortality tables, but the amount of cash paid out will be determined using the old tables. The result: the amount of liabilities written off will be greater than the amount of the lump sums paid out." (October Three Consulting)  

Handling a Frozen Pension Plan: Termination Strategy
"While interest rates remain near historic lows and, thus, measured pension liabilities remain high, some plan sponsors, particularly sponsors of frozen plans, have decided on (or are considering) plan termination. In this article we discuss the financial factors affecting a decision to terminate or not terminate a frozen plan, comparing the cost of buying annuities with the 'book value' of the plan plus ongoing overhead costs." (October Three Consulting)  

Upcoming Deadlines for Qualified Retirement Plan Amendments and IRS Filings
" 'Cycle E' plans will generally need to be amended and restated no later than January 31, 2016. If a Cycle E plan has discretionary amendments, those amendments still must be adopted by December 31, 2015 (for calendar-year plans)." (Alston & Bird LLP)  

[Advert.]

Developing an Effective Financial Wellness Program

November 9 -- Providing worksite financial education can empower your employees to reach their financial goals and raise their financial well-being, leading to a more satisfied and engaged workforce. BenefitsLink discount.

The DOL's Conflict of Interest Project: The Public Debate and Its Implications for the Final Rule (PDF)
10 pages. "With the public record closed, the Department turns to finalizing what is arguably the most significant regulatory action within the retirement industry in the past 40 years. This article describes themes that emerged from the comment letters and testimony from the regulated community regarding the proposed expansion of the fiduciary-duty rules. The article also anticipates changes the Department may make before issuing a final rule in the coming months." (Ropes & Gray LLP via Bloomberg BNA Tax Management Compensation Planning Journal)  

EBSA Fiscal Year Enforcement Results: Over $696.3 Million Restored to Plans and Participants (PDF)
"In FY 2015, EBSA closed 2,441 civil investigations with 1,640 of those cases (67.2%) resulting in monetary results for plans or other corrective action ... In FY 2015, EBSA closed 275 criminal investigations.... During FY 2015, EBSA received 590 applications from Qualified Termination Administrators and closed 207 applications with terminations approved, with 205 plans making distributions of $13.8 million directly to participants pursuant to termination.... In FY 2015, EBSA's Benefits Advisors closed more than 201,000 inquiries and recovered $402.9 million in benefits on behalf of workers and their families through informal resolution of individual complaints." (Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL])  

Pension Finance Watch, October 2015
"Portfolio returns were strong in October, as equity markets recovered after two down months. Fixed income yields and liabilities remained stable. The Towers Watson Pension Index moved up 4.2% for the month, to 74.2 -- and is up over 3% for the year." (Towers Watson)  

myRAs Now Available Nationwide
"The accounts have the same contribution limits and withdrawal rules as private-sector Roth IRAs.... [S]ingle individuals must have an adjusted gross income below $131,000, or married couples filing jointly no more than $193,000 ... Contributions for 2015 may not exceed the lesser of $5,500 (plus a $1,000 catch-up contribution for individuals 50 years of age or older) or 100% of compensation." (Journal of Accountancy)  

Administration Looks to U.K. for Retirement Savings Model
"The Obama administration is monitoring the automatic enrollment retirement savings strategies being pioneered in other countries as it launches its own myRA program ... J. Mark Iwry, Treasury's deputy assistant secretary for retirement and health policy, [said] that the administration is monitoring retirement innovations around the globe and is particularly interested in the approach being developed in the U.K.... By statute, all employers in the U.K. must automatically enroll eligible employees in an approved retirement savings system, a NEST product, or a traditional pension -- and make annual contributions." (Bloomberg BNA)  

Florida Governmental DB Plans to Adopt New DC Plans for Insurance Premium Tax Dollars
"Lowell Walters, an attorney at GrayRobinson with a focus on governmental retirement plans, [provides in this article his comments] about events affecting the handling of deferred retirement option program (DROP) and insurance premium tax (IPT) dollars related to Florida governmental defined benefit plans. Lowell suggested that because of recent IRS investigations into governmental defined benefit (DB) plans and new 2015 State of Florida legislation, many current DB plans should establish additional defined contribution (DC) plans for their members." (Montgomery Retirement Plan Advisors)  

[Opinion]

Automatic Plan Features, Planning Tools, Mobile Apps -- What's Next in the Retirement Industry? (PDF)
"[W]hat's the next step for the US retirement plan providers and plan sponsors? Digitalization? Should they follow the footsteps of global insurance and pension players and invest in digitalization initiatives -- leveraging analytics, decision management, the Internet of Things and smart machines to supplement manual efforts to re-emphasize the importance of retirement savings? Will this help the US retirement industry in driving growth and differentiation for adaptable and personalized customer experiences for plan participants and boost their retirement savings?" (Altaf Darzi)  

[Opinion]

ERIC Comment Letter to IRS on Notice 2015-49: Use of Lump Sum Payments to Replace Lifetime Income Being Received by Retirees Under DB Plans (PDF)
"ERIC seeks clarification that the amendments contemplated in [Notice 2015-49] apply only to retiree lump-sum window offerings that, absent the change in the regulation, would be considered to be an increase in annuity benefits to pay increased benefits that result from a plan amendment under Treasury Regulation Section 1.401(a)(9)-6, Q&A-14(a)(4). Specifically, ERIC requests that the Agencies make clear that the anticipated change in the regulations would not prohibit the payment of lump sums that are permitted in other contexts, including, for example: [1] in connection with a plan termination... [2] at the time that the participant retires ... [3] upon the participant's death ... and [4] after restrictions on a plan's ability to offer lump-sum distributions cease to apply under either the funding-based restrictions under Section 436 of the Code or the so-called 'high-25' restrictions under Section 401(a)(4)." (The ERISA Industry Committee [ERIC])  

[Opinion]

How We Got from There to Here in the Fiduciary Wars
"Retirement plans qualified under [ERISA] are governed by a dizzying array of regulations and laws that require great expertise and knowledge to master. This complexity includes the framework of securities law that applies to those providing 'advice' to sponsors of retirement plans. The term advice is placed in quotes here because pretty much everyone who has something to say about the goings-on in the retirement plan industry fails to mention that the [SEC] has affirmatively chosen not to enforce certain laws already on the books. The repeated failures to exert leadership -- nay, even more basically, to enforce the law -- has largely contributed to the current fiduciary wars." (W. Scott Simon in Morningstar Advisor)  

[Opinion]

Pension Fix by Congress May Backfire
"[I]nsurance companies will tell you now is the right time to de-risk your DB plan and companies struggling with their pension costs are doing the rational thing by offloading future pension obligations onto them.... The problem here isn't with companies, which are acting very rationally, it's with the national retirement policy." (Pension Pulse)  

Workers Satisfied with Benefits, But Fears of Future Affordability Rise Dramatically
"Two-thirds of US workers (66%) report satisfaction with current health coverage available to them, yet concern about the future affordability of those benefits is rising dramatically. Only 41% see health care as affordable five years from now vs. 62% today ... [The survey] also shows strong satisfaction with retirement benefits (60%) -- which ranks second to pay in importance to employees. But notable is employees' rising concern about the cost of health care in retirement; 32% today -- up from 24% five years ago -- say saving for health care expenses in retirement is a top priority." (Mercer)  

Rising Healthcare Costs Are Keeping Self-Employed from Reaching Retirement
"Over half (55 percent) say they are behind in saving for retirement and 48 percent say the inability to predict income is a problem with 41 percent saying they do not make regular contributions to savings. The majority (69 percent) do not have a specific savings goal in mind, nor do they have a backup plan for what to do if they don't have enough when they retire. Seventy-six percent simply say they'll continue working if they can't save enough and 51 percent count on social security or government pensions." (TD Ameritrade)  

[Opinion]

Pay-for-Performance: The Executive Compensation Myth
"The concept of pay-for-performance has attained a sense of inevitability, woven into the fabric of American capitalism. But in practice, pay-for-performance has some known drawbacks. Compensation plans tend to focus on short-term metrics. Some executives myopically focus on quarterly earnings. Tying pay to short-term accounting targets encourages earnings management and other shady practices." (The New York Times; subscription may be required)  

Haynes and Boone Continues Employee Benefits Practice Expansion With Addition of Experienced Practitioners in Dallas and Houston
Haynes and Boone, LLP

Survey on DOL's Proposed Fiduciary Rule
DST

OEM America Adds Kashable to its PEO Portfolio; Brings Financial Wellness to Thousands of Employees
Kashable

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