Headlines about "Actuarial - misc"

Gathered from the web by the editors at BenefitsLink.com.
A Tax Revolt Is Quietly Brewing in Some States
Excerpt: "These and other battles come at a time when many states are struggling to cope with tough economic times." (Wall Street Journal via Baltimore Sun)

Phased Retirement Encouraged by PPA, But Companies Slow to Adopt
Excerpt: "Hewitt recently surveyed more than 140 midsize to large employers and found that only 5 percent have formal phased retirement programs. While not many consider it a major need now, three times as many said it might be valuable in five years as the exodus of boomers from the workplace increases." (Martha Hamilton, published by AARP BulletinToday)

[Opinion] The Failure of COPA - College of Pension Actuaries
Excerpt: "There is a pension tsunami about to destroy retirement as we know it in this country and it's coming from four main fronts: 1) The 401(k) is not a pension plan. . . . 2) People will live longer . . . . 3) Multiemployer (union sponsored) plans are about to all go bankrupt simultaneously. 4) Government plans are not subject to ERISA . . . ." (nj.com)

Government Workers Have Greater Access to Benefits, DOL Data Show
Excerpt: "According to the [Bureau of Labor Statistics] release, access to and participation in retirement and medical care benefits were greater in government employment than in private industry." (PLANSPONSOR.com)

Report Says Jacksonville FL Police and Fire Pensions Are Too Expensive
Excerpt: "Jacksonville's pension plans need drastic improvements and could better serve city taxpayers by being replaced by other types of retirement benefits, including 'defined contribution' programs similar to 401(k) plans, a nonprofit organization's analysis concludes." (Florida Times-Union)

Europe Tries to Handle Political Fallout of Pension Cuts
Excerpt: "Social Security is known as the 'third rail' of American politics, and fiddling with retirement benefits can prove politically fatal in Europe too. Yet, in recent months and years some Europeans have tried to defuse the time bomb posed by millions of retirees receiving government benefits." (New York Times)

[Official Guidance] Final IRS Regs: Mortality Tables for Determining Present Value and Certain Pension Funding Computations (PDF)
17 pages. Excerpt: "Section 1.430(h)(3)–1, which provides generally applicable mortality tables, applies to plan years beginning on or after January 1, 2008. Section 1.430(h)(3)–2, which provides rules regarding the approval and use of substitute mortality tables, applies to plan years beginning on or after January 1, 2009. Taxpayers may rely on the provisions of § 1.430(h)(3)–2 for plan years beginning during 2008. For example, taxpayers can use the exceptions contained in § 1.430(h)(3)–2(d)(1) from the general rule that all controlled group members must use substitute mortality tables in order for any controlled group member to use substitute mortality tables . . . if those mortality tables were approved by the IRS under the procedures set forth in Rev. Proc. 2007–37." (Internal Revenue Service)

[Guidance Overview] PBGC Does Not Guarantee Post-Bankruptcy Filing Date Benefits
Excerpt: "Consistent with changes made by Pension Protection Act (PPA), PBGC has proposed regulations to provide that, when a single-employer pension plan terminates during the contributing sponsor's bankruptcy proceedings, the bankruptcy filing date will be treated as the plan's termination date for purposes of determining the benefits guaranteed by PBGC. 73 FR 37390 (July 1, 2008)." (Deloitte via BenefitsLink.com)

[Opinion] SEC Issues Compliance Alert About Sloppy Valuation Process
Excerpt: "According to the SEC website, a ComplianceAlert letter highlights results of examiners' audits in an attempt to 'encourage' institutions to better their current compliance and supervisory efforts. In its July 2008 letter that starts 'Dear Chief Compliance Officer,' the SEC staff provides a laundry list of concerns . . . ." (Pension Risk Matters)

Rate of Return Crucial in Retirement Plans
Excerpt: "Generous return assumptions came under fire recently from Berkshire Hathaway Chairman Warren E. Buffett. In his annual letter to shareholders, Mr. Buffett observed that the average Standard & Poor's 500 member sponsoring a pension plan assumes annual returns of 8 percent. Considering that their average plan allocates 28 percent to bonds and cash, which typically do not earn more than 5 percent, Mr. Buffett calculated the remaining 72 percent invested stock and other asset categories would have to earn 9.2 percent to meet the 8 percent goal." (Pittsburgh Post-Gazette)

[Guidance Overview] IRS's Proposed Regulations on Applying Accrual Rules to 'Greater of' Formulas
Excerpt: "Making good on its earlier promise, the IRS on June 17, 2008 released proposed regulations on applying the IRC § 411(b) accrual requirements (aka, the 'anti-backloading rules') to defined benefit plans that pay benefits based on the 'greater of' two or more separate benefit formulas." (Deloitte via BenefitsLink.com)

Defined Benefit Pension Plan Freezes Affect Millions of Participants - May Pose Retirement Income Challenges (PDF)
62 pages. Excerpt: "This report examines (1) the extent to which DB pension plans are frozen and the characteristics of frozen plans; and (2) the implications of these freezes for plan participants, plan sponsors, and the PBGC." (U.S. Government Accountability Office)

GASB Issues Proposal on Required Contributions for OPEBs
Excerpt: "The Governmental Accounting Standards Board (GASB) has issued for comment a proposed Technical Bulletin, 'Determining the Annual Required Contribution for Postemployment Benefits.' According to a GASB announcement, the document will clarify that the use of actual known amounts for purposes of calculating the annual required contribution (ARC) adjustment relating to pensions and other postemployment benefits (OPEB) is consistent with the intent of existing standards." (PLANSPONSOR.com; free registration required)

Next Round of Pension Accounting Rules Will Include More 'Granular' Information About Assets
Excerpt: "The Financial Accounting Standards Board met on Wednesday to discuss its project on post-retirement benefit obligations, focusing on how to update disclosures about plan assets. The meeting was part of FASB's effort to rework guidance on FAS 132(R), Employers' Disclosures About Pensions and Other Postretirement Benefits, to improve transparency about the types of assets held in plans." (CFO.com)

Senators Seek Probe of PBGC Benefit Calculations
Excerpt: "The group -- which includes Sen. Barack Obama, D-Illinois, the presumptive Democratic candidate for president -- asked the Government Accountability Office to investigate how the PBGC initially estimates benefits due and why there have been, in some cases, lengthy delays in final benefit determinations. In addition, they want the GAO to examine the extent to which benefits calculations change between the initial and final determinations." (Workforce Management; free registration required)

Mercer Asks Court to Drop Charges in Milwaukee Pension Suit
Excerpt: "Mercer has filed a motion for summary judgment asking a district court to dismiss all claims against it in a lawsuit claiming the firm was negligent in its role as actuary to the Milwaukee County pension plan. The county, the Milwaukee County Employees' Retirement System, and its governing Pension Board, sued Mercer for its alleged role in the enactment of a BackDROP provision." (Mercer LLC)

National Association of State Retirement Administrators Supports Amending PPA's Cap on Interest Credits for Public Plans (PDF)
Page 1 of 8 pages. Excerpt: "[NASRA] supports legislation that would allow public plans to set their own interest crediting rates. This provision was recently included in H.R. 6382. Although bill was dropped on June 26, there is hope that it will be brought up again when Congress returns from its July recess." (Gabriel Roeder Smith & Company)

Senators Ask for PBGC Benefits' Calculation Probe
Excerpt: "Citing a recent situation in which the nation's private-sector pension insurer demanded repayments from retirees after the agency had miscalculated pension benefits, a group of U.S. senators called for an agency investigation." (PLANSPONSOR.com; free registration required)

[Guidance Overview] U.S. Supreme Court Rules Disability Benefit Formula That Credits Younger Workers with Additional Years of Service Does Not Violate the ADEA (PDF)
Pages 4-6 of 11 pages. Excerpt: "The Court's opinion saves the imputing of service tied to pension eligibility from being deemed per se unlawful. Because of the numerous factors and qualifications referred to in the majority opinion, it is unclear, however, how broadly its reasoning and rule may apply beyond this context." (Proskauer Rose LLP)

Anheuser-Busch to Cut Lump-Sum Payouts
Excerpt: "Anheuser-Busch Cos. will change the way it calculates lump-sum pension payouts that will mean a reduction in payouts of about 5 percent to 6 percent in 2009 and about 15 percent by 2012, according to an internal memo addressed to salaried employees from Tim Farrell, vice president of corporate human resources. The change will affect only salaried employees." (Workforce Management; free registration required)

[Official Guidance] Text of PBGC Proposed Regs: Termination of Single-Employer Plan While Sponsor in Bankruptcy (PDF)
15 pages. Excerpt: "This is a proposed rule to implement section 404 of the Pension Protection Act of 2006. Section 404 amended Title IV of ERISA to provide that when an underfunded, PBGC-covered, single-employer pension plan terminates while its contributing sponsor is in bankruptcy, sections 4022 and 4044(a)(3) of ERISA are to be applied by treating the date the sponsor's bankruptcy petition was filed as the termination date of the plan. . . .Thus, under the 2006 amendments, when a plan terminates while the sponsor is in bankruptcy, the amount of benefits guaranteed by PBGC and the amount of benefits in priority category 3 are fixed at the date of the bankruptcy filing rather than at the plan termination date. This will, in most cases, reduce the amount of guaranteed benefits and the amount of benefits in priority category 3." (Pension Benefit Guaranty Corporation)

John W. Livick v. The Gillette Company; The Gillette Company Retirement Plan
Excerpt: "The Question: Does the Employee Retirement Income Security Act (ERISA) require that a plan pay benefits beyond those provided in the plan document when a company representative and an online benefit calculator provided a mistaken benefits estimate?" (PLANSPONSOR.com; free registration required)

[Guidance Overview] Treasury Security Rate Set for Computing Current Plan Liability for June 2008
Excerpt: "For pension plan years beginning in June 2008, the IRS has released the corporate bond weighted average interest rate, the permissible range of interest rates used to calculate current plan liability and to determine the required contribution under Code Sec. 412(l) for plan years through 2008, and the current corporate bond yield curve and related segment rates for the purpose of establishing a plan's funding target under Code Sec. 430(h)(2)." (CCH Incorporated)

[Guidance Overview] PBGC Issues Final Premium Payment Guidance (PDF)
Excerpt: "These developments affect sponsors of qualified defined benefit plans that are subject to PBGC premium requirements, including cash balance plans and multiemployer plans. Governmental plans and plans sponsored by churches that do not elect to be covered by ERISA ('non-electing church plans') are not subject to these rules." (Prudential Retirement)

Pension Restructuring Cuts Deep Into Steelworkers' Pockets
Excerpt: "[A 55-year-old steelworker] wonders whether he will ever retire since learning in March that his monthly pension benefit will be cut by more than two-thirds to less than $300. He is an unintended victim of a steel company's reorganization after promising benefits it couldn't afford, and a federal policy that cheated him out of his 30-year pension by a matter of weeks." (Chicago Tribune)

Handy Resource Page for Joint Board for the Enrollment of Actuaries Is Published by IRS
Information available includes: News from the Joint Board; Enrolled Actuary Information; Joint Board Examination Program; and, Renewal of Enrollment. (Internal Revenue Service)

Retires Steelworkers' Pensions Slashed by PBGC
Excerpt: "Hundreds of retired steelworkers from the former Republic Technologies International are being notified their pensions will be cut, in some cases by as much as 75 percent, to less than $300 a month, due to new calculations by the federal agency that guarantees employer-paid pensions." (Chicago Tribune)

[Guidance Overview] PPA: IRS Provides Guidance on 2008 Distribution Rules (PDF)
Excerpt: "The Pension Protection Act of 2006 (PPA) includes several provisions relating to payments made from various types of pension plans that became effective for distributions made on or after January 1, 2008. On March 5, 2008, the IRS released Notice 2008-30, providing guidance regarding the following provisions: Rollovers to Roth IRAs; Payment of gap period income on excess deferrals; Qualified Optional Survivor Annuities (QOSAs); and Calculation of lump sum benefits in defined benefit plans." (Prudential's Pension Analyst)

American Academy of Actuaries' Response to NYT Article, 'Actuaries Scrutinized on Pensions' (PDF)
1 page. Excerpt: "The American Academy of Actuaries, an association of 16,000 U.S. actuaries, recognizes the importance of the issues raised by Mary Williams Walsh in her May 21 article, 'Actuaries Scrutinized on Pensions.'" (American Academy of Actuaries)

[Guidance Overview] In Conflict Between Plan Document and SPD, SPD Prevails to Participant's Detriment
Excerpt: "In Kolpacke v. CSX Pension Plan, No. 07-1959 (CA6, May 21, 2008), the 6th Circuit affirmed the district court's grant of summary judgment in CSX's favor, stating that Kolpacke had failed to show that CSX had arbitrarily and capriciously applied the terms of the pension plan in calculating Kolpacke's estimated benefits. Unlike most ERISA opinions from the 6th Circuit, the Court's entire opinion is two paragraphs long and does not provide any detail." (Pension Protection Act Blog)

Federal Government's Long-Term Liabilities Total $57.3 Trillion
Excerpt: "The federal government's financial obligation to cover the lifetime benefits of people eligible for government programs increased by $2.5 trillion last year to $57.3 trillion, largely due to rising Medicare obligations" (KaiserNetwork.org)

[Opinion] The Questions Candidates Should Answer About Social Security Reform (PDF)
Excerpt: "This guide has been written by the American Academy of Actuaries' Social Insurance Committee for the general public, including journalists, policymakers, and citizens to use as they evaluate candidates' proposals during the 2008 election cycle. The Academy is a nonpartisan, non-profit organization of actuarial professionals. While the Social Insurance Committee does not specifically endorse or oppose any of the reforms discussed in this guide, the committee strongly believes that Congress and the administration must take action to reform Social Security, and that action is needed sooner rather than later." (American Academy of Actuaries)

Analysis of Social Security Trustees' Report (PDF)
8 pages. Excerpt: "The findings in the 2008 Social Security trustee's report demonstrate the need for timely and effective action to make Social Security solvent and sustainable, says an Academy issue brief." (American Academy of Actuaries)

International Survey of Actuarial Issues and Practices
Excerpt: "The role of the health actuary is different from one country to another. This survey, prepared by Milliman in partnership with the International Actuarial Association Health Section, examines the many actuarial practices and work issues around the world, identifying the many similarities and differences." (Milliman)

[Opinion] New Book Explains How 'Pension Monster' of Unfunded Benefit Liabilities Guts GM, Halts NYC Subways, Bleeds San Diego
Excerpt: "Pensions resemble a reverse neutron bomb: They gut cities and factories, yet leave armies of retirees standing, unscathed and ready for that Caribbean cruise. If you don't believe me, dip into Roger Lowenstein's troubling financial fable, 'While America Aged.' The three narrative histories presented here outline how pensions drove General Motors Corp. to the brink, brought New York subways to a halt, and turned sunny San Diego into Enron-by-the-Sea." (James Pressley on Bloomberg.com)

[Opinion] San Francisco Has Plan for Stemming Retiree Health Benefit Costs, But It Could Be Better
Excerpt: "The good news about San Francisco's Proposition B is that it represents a rare effort by a local government to confront its daunting long-term liability for its retirees. Governments at all levels have been ignoring a fiscal time bomb: Their binding promises to provide workers with lifetime health care benefits, without putting away any money to prepare for the cost. The bad news about Proposition B is that it is more complicated and less effective than it could have been." (San Francisco Chronicle)

ASPPA Rolls Out Professional Services Directory of ASPPA Members, Available for Use by Public
Excerpt: "Please select the professional services that you require, then you may select to search by zip code and mile radius or city, state and mile radius. . . . Please select one or more services . . . : 401(K)/Defined Contribution Services; Actuarial and Defined Benefit Services; Compliance and Fiduciary Services; Investment Services' [ASPPA membership information is online at http://www.asppa.org/membership/member_join.htm] (American Society of Pension Professionals and Actuaries)

[Opinion] Letter to FASB on Proposed Staff Position on Disclosure of Retirement and Other Post-Retirement Benefits (PDF)
5 pages. Excerpt: "As the chief investment officers for 110 major private-sector retirement plans, CIEBA members recognize the desirability of increased transparency and comparability in the financial statements of public companies. However, we posit that the proposals contained in this FSB will not lead to a meaningful increase in transparency and may reduce comparability." (Committee on Investment of Employee Benefit Plan Assets)

[Guidance Overview] 'Issueman' Tackles the New VEBAs: There is Much to Say
Benefits attorney Steven J. Sacher encounters his cynical old friend Issueman on a bench in D.C.; in this amusing and insightful 6-page account and transcript of their conversation, Issueman has a great deal to say and ask about the legal aspects of VEBAs for retiree healthcare liabilities. An excellent overview. (Reprinted from the BNA Pension & Benefits Reporter)

[Guidance Overview] Calculating Lump Sums After PPA
Excerpt: "In our view, retaining the traditional approach to determining actuarial equivalence is perfectly defensible. To suggest that a result is wrong because it produces an answer 0.05% different from another approach is to impute a false level of precision to these calculations generally. All approaches require some kind of judgment about within-year mortality." (JPMorgan Chase & Co.)

[Guidance Overview] Analysis of PBGC's Final Rule Implementing Variable-Rate Premium Changes (PDF)
9 pages. Excerpt: "PBGC premium rules continue to undergo significant change, with dollar consequences that are on the rise for many plans. Understanding not only the PPA statutory changes slated to go into effect starting with the 2008 plan year, but also PBGC's final rule implementing these and other changes to its regulations, will greatly help the practitioner in providing affected clients with the advice they need." (The Bureau of National Affairs, Inc. via Keightley & Ashner LLP)

[Opinion] PAPO = Pension Actuary Pecking Order
Excerpt: "Pension actuaries are a little like doctors, less about 5 years of advanced pre-training and fewer malpractice worries since we've sufficiently complicated simple concepts to dissuade even trial lawyers from wading through our rationales. We've had this regulatory lattice since ERISA in 1974 with changes periodically when either the government needs money or a spate of plans fail." (John Bury via nj.com)

The Role of Actuarial Audits in Performing Due Diligence (PDF)
3 pages. Excerpt: "This article discusses actuarial audits as a due diligence tool for plan trustees. High quality actuarial work can do much to ensure the long-term soundness of a pension plan. Similarly, low quality actuarial work, left undiscovered, can undermine a plan's financial security in a fairly short time." (Gabriel Roeder Smith & Company)

[Guidance Overview] PBGC Issues Final 'Variable-Rate Premium' Regulations to Implement PPA Changes Effective for Plan Years after 2007
Excerpt: "The PPA did not change the variable-rate premium (VRP) rate: it continues to be $9.00 for each $1,000 (or fraction thereof) of unfunded vested benefits (UVB). However, the PPA repealed the 'full-funding exemption' and made certain other changes designed to conform the VRP to the new funding rules. These latter changes are the primary focus of the regulations." (Deloitte via BenefitsLink.com)

[Guidance Overview] Final PBGC Regulations for Calculating the Variable-Rate Premium also Revise Filing Deadlines
Excerpt: "In addition to having to pay a flat-rate, per-capita premium to the Pension Benefit Guaranty Corporation (PBGC),1 sponsors of single employer pension plans must pay a variable-rate premium (VRP), which depends on the value of their unfunded vested benefits. The Pension Protection Act of 2006 (PPA'06) changed the funding rules on which the VRP is based and eliminated the full-funding limit exemption from the VRP." (The Segal Group, Inc.)

Pension Turbulence for Airline Employees
Excerpt: "It's not just the airline industry. Across the United States, companies feeling the squeeze from low-cost foreign competition, new technology, rising oil prices, recession and changing consumer patterns -- ranging from Rust Belt steel, textile and auto parts makers to white-collar insurance giants -- have found that when they need to save money, their 'legacy' defined benefit pension plans are one of the most convenient places to cut. [This article is adapted from 'Pension Dumping: The Reasons, the Wreckage, the Stakes for Wall Street,' by Fran Hawthorne (Bloomberg Press, April 2008).]" (NewsDay)

[Guidance Overview] Notice 2008-30 - Guidance on PPA Changes to Distribution Rules for 2008
Excerpt: "Notice 2008-30 provides guidance on distribution-related provisions of the Pension Protection Act of 2006 (PPA) that are effective in 2008, including rollovers from eligible retirement plans to Roth IRAs, additional survivor annuity options, and interest rate assumptions for lump sum distributions. The notice also provides guidance regarding plan amendments for certain gap-period earnings." (McKay Hochman Co., Inc.)

[Guidance Overview] Proposed IRS Regs Amend Notice Requirements for Benefit Accrual Reductions
Excerpt: "The IRS has issued proposed regulations which would amend the requirements for providing notice to certain affected persons when a plan significantly reduces benefit accruals. The proposed regulations set forth timing rules for ERISA §204(h) notices for plan amendments reducing benefit accruals which are permitted to be effective before the applicable amendment date, and reflect other changes to notice requirements made by the Pension Protection Act of 2006 (PPA; P.L. 109-280)." (Wolters Kluwer)

[Guidance Overview] Final PBGC Premium Payment Regs Provide Limited Waiver of Penalty to Allow Time to 'True-Up' Estimates
Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) has issued final regulations that provide for a limited waiver of the penalty for failure to pay premiums to allow large and mid-size plans time to 'true-up' estimated premium payment liabilities. Interest during the 'true-up' period, however, is not suspended." (Wolters Kluwer)

[Guidance Overview] New Multiemployer Plan Disclosure Requirements - ERISA Section 101(k) (PDF)
Pages 5-7 of 8 pages. Excerpt: "If they haven't done so already, multiemployer pension plan administrators should start gathering actuarial and financial reports prepared for their plans in prior years so they can respond quickly to requests for such information pursuant to a new provision that became effective on January 1, 2008 for calendar year plans." (Trucker Huss)

[Opinion] News That Pension Benefit Guaranty Corporation Will Diversify Portfolio to Include More Equities Ought to Concern Taxpayers
Excerpt: "The PBGC is a quasi-government agency -- a 'federal corporation' -- created in 1974 to guarantee pension benefits for U.S. workers and retirees. Operating as both an insurance business and pension fund, it is financed by corporate premiums and the assets it inherits when taking over failed pension plans. By the end of last year, the agency had amassed a $14 billion deficit, and the new policy is designed to erase that red ink with higher investment returns." (The Wall Street Journal)

[Official Guidance] Text of Final PBGC Regs on Premium Rates and Payment of Premiums for 2008, Reflecting PPA Changes (PDF)
The final rule amends PBGC's regulations on Premium Rates and Payment of Premiums. The amendments implement provisions of the Pension Protection Act of 2006 that change the variable-rate premium for plan years beginning on or after January 1, 2008, and make other changes. The related premium instructions for 2008 final e-filings (now called Comprehensive Filings) have been updated to incorporate the final rule. (Pension Benefit Guaranty Corporation)

PBGC to Publish Final Rules on Premium Rates
Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) announced it will publish a final rule to amend PBGC's regulations on Premium Rates and Payment of Premiums in the Federal Register on March 21.' (PLANSPONSOR.com; free registration required)

[Guidance Overview] Actuarial Equivalence for Prescription Drug Plans and Medicare Advantage Prescription Drug Plans under the Medicare Drug Program (PDF)
Excerpt: "The purpose of this practice note is to provide guidance to the actuary certifying to the actuarial equivalence of a PDP or a MA-PD under the requirements of 42 CFR 423.265 and is based on interpretations of 42 CFR 423.265 and current CMS guidelines and requirements." (American Academy of Actuaries)

Practice Note on Disease Management (PDF)
37 pages. Excerpt: "Practice Notes from this work group describe what the work group believes to be the common practices of U.S. health actuaries. This Practice Note discusses some common approaches to evaluation in the disease management field." (American Academy of Actuaries)

[Official Guidance] Text of IRS Notice 2008-30: Certain Disribution-Related Provisions of PPA That Are Effective in 2008 (PDF)
10 pages. Excerpt: "This notice [provides] guidance on amending plans to require that distribution of excess deferrals includes earnings from the end of the taxable year to the date of distribution ('gap-period' earnings). . . . The sections of PPA '06 addressed in this notice are § 824 (relating to rollovers from eligible retirement plans to Roth IRAs), § 1004 (relating to additional survivor annuity options), and § 302 (relating to interest rate assumptions for lump sum distributions)." (Internal Revenue Service)

[Official Guidance] Text of IRS Notice 2008-29: Mortality Tables for Benefits to Disabled DB Plan Participants (PDF)
3 pages. Excerpt: "This notice provides guidance regarding the mortality tables that are permitted to be used to determine present values with respect to individuals who are entitled to benefits under a qualified defined benefit pension plan on account of disability. This notice reflects changes to the minimum funding requirements made by the Pension Protection Act of 2006, Pub. L. 109-280 (PPA '06). . . . Until further guidance is issued, the rules of Rev. Rul. 96-7 (including the mortality tables set forth in Rev. Rul. 96-7 as well as the rules regarding the determination of whether a benefit is payable on account of disability) apply under §§ 430(h)(3)(D) and 431(c)(6)(D)(v)." (Internal Revenue Service)

[Official Guidance] Urgent: Most IRS Enrolled Actuaries Must Mail Renewal Form On or Before March 1
The IRS notes at the target page that enrolled actuaries will not be sent an email or letter about renewal of the enrollment of enrolled actuaries. Form 5434-A (Rev. January 2008) is to be used by all individuals enrolled before January 1, 2008 who wish to have their renewal effective as of April 1, 2008; a $250 fee and reporting of continuing education hours is required. The instructions to the form say it must be 'received' by the IRS by March 1, 2008, but the target web page merely states, 'If your renewal is postmarked on or before March 1, 2008, you may begin using the '08-' prefix on April 1, 2008, even if you have not received notification of renewal by the Joint Board." (Internal Revenue Service)

[Guidance Overview] CRS Study Evaluates Effect of PPA on Lump-Sum Distributions
Excerpt: "The changes to the rules used for calculating minimum lump-sum distributions made by the Pension Protection Act of 2006 (PPA, P.L. 109-280) would tend to have the effect of substantially reducing lump-sums for younger participants, especially after 2011, and minimally reducing lump-sums for older participants, especially prior to 2011, according to a study by the Congressional Research Service (CRS)." (CCH Pension and Benefits)

[Opinion] The Case for Cash LTC Insurance Products
Excerpt: "Criticism has recently targeted innovative benefit designs such as so-called 'cash' products. Cash products pay eligible insureds cash based on standard benefit triggers, versus the standard model of reimbursing paid services. Some believe cash products cannot be actuarially sound." (National Underwriter; free registration required)

The links shown above have been gathered from the web by the editors at BenefitsLink.com. Each article's publisher is shown above in parentheses. Opinions expressed in each article are those of the article's publisher, not necessarily those of BenefitsLink.com, Inc. or any web site that displays these headlines in a "frame." You should contact the listed publisher for copyright information about any particular article or to inquire into the right to use the article in any manner.