Headlines about "Ret plans - admin"

Gathered from the web by the editors at BenefitsLink.com.
401(k) Plan Sponsors Less Confident That Employees Will Be Financially Prepared for Retirement (PDF)
"84 percent of polled executives responsible for [401(k)] plans say only some or very few employees will be financially prepared for retirement, a new Deloitte survey reveals. . . . To encourage plan participants to make better use of their 401(k), nearly half of plan sponsors (49 percent) are offering features that automatically increase participants' contribution levels. However, nearly two-thirds (64 percent) of plan sponsors report that fewer than 10 percent of participants take advantage of this opportunity." (Deloitte; International Foundation of Employee Benefit Plans; International Society of Certified Employee Benefit Specialists)

Deloitte's 2011 401(k) Benchmarking Survey (PDF)
68 pages. 'While plan sponsors and fiduciaries are generally aware of the fees charged for the administration of their plans, the possibility exists that many will be surprised by the sum total of costs." (Deloitte)

[Opinion] A Closer Look at the Braden v. Wal-Mart Case: How Not to Run a 401(k) Plan
"The Wal-Mart case is the poster child for the way in which a 401(k) plan should not be run: plan investment options bearing excessive and entirely unnecessary costs, undisclosed conflicts of interest, lack of meaningful disclosure of costs to plan participants (which was actually part of the agreement between plan fiduciaries), and, I'd argue, an apparent absence of any serious fiduciary mindset on the part of the plan sponsor fiduciary and the trustee fiduciary." (Morningstar Advisor)

[Guidance Overview] Estoppel in ERISA: Simple Mistakes Can Lead to Costly Litigation
"Even if the participant ultimately fails in proving the elements of estoppel, defending against such claims is costly and time-consuming. Accordingly, employers and plan administrators should take the following steps to protect themselves from these types of claims: . . . ." (Employee Benefits Law Report)

[Guidance Overview] DOL Finalizes, Delays 401(k) Fee Disclosure Rules
"The final regulations 'strongly encourage' service providers to offer plan fiduciaries a 'guide' or summary of their disclosures. The DOL included a sample guide as an appendix to the final rule. Debate about whether to require such a summary disclosure is rumored to have delayed the release of the final rules. For now, the summary is voluntary, but the DOL strongly hinted that it may make the summary mandatory in future regulations." (Benefits in Brief)

[Guidance Overview] Final ERISA Section 408(b)(2) Regulations Include Significant Differences from Interim Rules
"These regulations make several significant changes . . . including: [1] Excluding certain frozen IRC Section 403(b) plans issued before January 1, 2009 from coverage under the regulations; [2] Enhancing the information relating to 'indirect compensation' required to be disclosed; [3] Adding certain investment-related disclosures to facilitate compliance with DOL regulations under ERISA Section 404(a); [4] Extending the effective date to July 1, 2012. This has the effect of delaying the effective date of most participant-level disclosures under ERISA Section 404(a) to August 30, 2012." (Practical Law Company)

New Treasury Rules Ease Purchase of Annuity With 401(k)
"J. Mark Iwry, an official at the Treasury department, said the department hoped in particular to foster a workplace market for 'longevity insurance,' something much discussed in policy circles but that employers rarely make available to workers when they retire." (New York Times; free registration required)

Who's on The Hook for Decisions Made in Your 401(k)?
"If you are a business owner, on the Board of Directors or serve on the Plan Investment Committee, follow the line of questions from a 'hypothetical deposition' directed to you and picture how you would answer the questions." (Forbes)

[Official Guidance] Rev. Rul. 2012-3: Application of Survivor Annuity Requirements to Deferred Annuity Contracts Under a Defined Contribution Plan (PDF)
"Issue: How do the qualified joint and survivor annuity ('QJSA') and the qualified preretirement survivor annuity ('QPSA') rules, described in ?? 401(a)(11) and 417 of the Internal Revenue Code, apply when a deferred annuity contract is purchased under a profit-sharing plan in the situations described below?" (U.S. Internal Revenue Service)

[Official Guidance] Rev. Rul. 2012-2: Rollover from Qualified Defined Contribution Plan to Qualified Defined Benefit Plan to Obtain Additional Annuity (PDF)
"Issues: [1] Does a qualified defined benefit pension plan that accepts a direct rollover of an eligible rollover distribution from a qualified defined contribution plan maintained by the same employer satisfy ?? 411 and 415 of the Internal Revenue Code in a case in which the defined benefit plan provides an annuity resulting from the direct rollover that is determined by converting the amount directly rolled over into an actuarially equivalent immediate annuity using the applicable interest rate and the applicable mortality table under ? 417(e)? [2] How does the result vary if the defined benefit plan applies different conversion factors for purposes of calculating the annuity resulting from the amount directly rolled over?" (U.S. Internal Revenue Service)

[Official Guidance] Text of IRS Notice of Hearing on Discussion Draft of IRS Regs on 'Indian Tribal Government Plan' Status
Reschedules a public hearing from June 5 to be July 10, and extends the period for the submission of public comments. (U.S. Internal Revenue Service)

[Official Guidance] Text of IRS Notice of Hearing on Discussion Draft of IRS Regs on 'Governmental Plan' Status
Reschedules a public hearing from June 5 to be July 9, and extends the period for the submission of public comments. (U.S. Internal Revenue Service)

[Official Guidance] Proposed IRS Regs on Longevity Annuity Contracts
"This document contains proposed regulations relating to the purchase of longevity annuity contracts under tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and eligible governmental section 457 plans. These regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9). The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs." (U.S. Internal Revenue Service)

[Official Guidance] Treasury Fact Sheet: Helping American Families Achieve Retirement Security by Expanding Lifetime Income Choices (PDF)
"[T]he new package of proposed regulations and rulings makes it easier for pension plans to offer workers a wider range of choices as to how to receive their retirement benefits by [1] Making it easier to offer combination options that avoid an 'all-or-nothing' choice, such as the option to take a portion of an individual's plan benefit as a stream of regular monthly income payable for life, while perhaps taking the remainder in a single lump-sum cash payment; [2] Enabling employer plans and IRAs to offer an additional option in the form of 'longevity annuities' -- which permit employees to use a limited portion of their account balance to provide lifelong retirement income beginning at age 80 or 85, protecting those who live beyond average life expectancy from running out of savings; [3] Making clear that employees receiving lump-sum cash payouts from their employer's 401(k) plan can transfer some or all of those amounts to the employer's defined benefit pension plan (if the employer has one and is willing to allow this) in order to receive an annuity from that plan (giving employees access to the defined benefit plans' relatively low-cost annuity purchase rates); and [4] Resolving uncertainty as to how the 401(k) plan spousal protection rules apply when employees choose deferred annuities (including longevity annuities) from their plans." (U.S. Internal Revenue Service)

[Official Guidance] Text of Final 408(b)(2) Regs on Fee Disclosures to Plan Fiduciaries by Covered Service Providers (PDF)
109 pages. 'This document contains a final regulation under the Employee Retirement Income Security Act of 1974 (ERISA or the Act) requiring that certain service providers to pension plans disclose information about the service providers' compensation and potential conflicts of interest. These disclosure requirements are established as part of a statutory exemption from ERISA's prohibited transaction provisions. This regulation will affect pension plan sponsors and fiduciaries and certain service providers to such plans." (U.S. Employee Benefits Security Administration)

[Guidance Overview] Second DOL 'Fact Sheet'; Description of Major Changes to Final Fee Disclosure Rule
"The final rule's effective date has been extended to July 1, 2012, to allow additional time for compliance." (U.S. Employee Benefits Security Administration)

[Official Guidance] DOL 'Fact Sheet' on Final Regs on Service Provider Disclosures Under ERISA Section 408(b)(2)
"The final rule reflects a number of technical and other changes . . . including the following: . . . Expansion of the information that must be disclosed concerning a [Covered Service Provider's] receipt of indirect compensation to include a description of the arrangement between the payer and the CSP pursuant to which indirect compensation will be paid; Conformance of investment-related disclosures for covered plans' designated investment alternatives to the requirements of the Department's participant-level disclosure regulation; and A separate provision for the disclosure of changes to investment-related information, which must be updated at least annually." (U.S. Employee Benefits Security Administration)

[Guidance Overview] DOL Publishes Final 408(b)(2) Fee Disclosure Regs; Treasury Publishes Regs on 'Lifetime Income' Options
"[T]he U.S. Departments of Labor and the Treasury today announced two executive actions designed to help enhance security for millions of Americans saving for retirement. The measures will expand transparency in the 401(k) plan marketplace and broaden the availability of retirement plan options so that Americans can maximize their ability to save responsibly and securely." (U.S. Employee Benefits Security Administration)

[Guidance Overview] New IRS FAQs on Form 8955-SSA Remind Practictioners to File Late Forms as Soon as Possible
"The most recent update on January 24, 2012 added the following . . . FAQs which relate to missing the Form 8955-SSA filing deadline: [1] What should I do if I missed the filing deadline for Form 8955-SSA? You should submit your form as soon as possible after the missed deadline." (McKay Hochman Company, Inc.)

Unraveling The Mystery of 401(k) Disclosures
"Sponsors will be required to present information about the investment options in the retirement plan in a chart that allows plan participants to compare fees and expenses . . . . Plan sponsors can use a model chart developed by the Labor Department or they can develop their own." (MarketWatch)

Retired Federal Workers Wait for System Fix
"for the retirees who wait many months to get a full annuity, 'unacceptable' might be too mild. And Congress is increasingly anxious to see real improvement, not just plans to make things better, in a retirement program that does not treat federal employees with the respect they deserve." (Washington Post)

Use of TPAs to Outsource Benefit Plan Administation Increased Substantially During Past Four Years (PDF)
"[R]oughly two in five plan sponsors (37%) say they are increasing the use of third party administrators (outsourcing benefits administration) to some extent in order to manage costs. Among those using this strategy, 65% indicate it has been successful in achieving desired cost savings." (Prudential)

New Fee Disclosure Solution Released By NEA, NTSAA & ASPPA Joint 403(b) Taskforce
"Partners of the 403(b) Transparency Taskforce including the National Education Association (NEA), the National Tax Sheltered Accounts Association (NTSAA) and The American Society of Pension Professionals & Actuaries (ASPPA) today launched the 403(b) Model Disclosure Form -- the first ever transparency standards for disclosure of fees and services in the public school 403(b) marketplace." (American Society of Pension Professionals & Actuaries)

403(b) Model Disclosure Form (Jan. 2012)
"This form is designed to provide [you, a 403(b) plan participant,] with the ability to easily compare detailed information regarding the investment options available to you. It is designed to provide you with a snapshot of the critical information needed when selecting an investment, including the services to be provided to the participant, the fees to be charged to the participant, investment information, the commissions payable to the persons who provide services to the plan, and other payments to third parties." (ASBO, NEA & NTSAA Joint 403(b) Taskforce)

PBGC Intends to Revise 2013 Filing Procedures and Instructions, Requests Comments
Includes a summary of the proposed revisions. 'The Pension Benefit Guaranty Corporation (PBGC) proposed submission of information collection regarding payment of premiums. Comments are due April 2, 2012." (International Foundation of Employee Benefit Plans)

[Guidance Overview] IRS to Hold Phone Forum March 6: '401(k) Questionnaire Interim Report'
"The 401(k) Questionnaire Interim Report, its next steps, and current issues found in 401(k) audits will be discussed by Monika Templeman, Director of Employee Plans Examinations, along with IRS staff members Janice Gore and Rhonda Migdail. Email specific issues that you would like addressed to ep.phoneforum@irs.gov by February 17." (U.S. Internal Revenue Service)

Employee Benefits Developments, January 2012
Various rulings, opinions, and cases are summarized. (Hodgson Russ LLP)

[Guidance Overview] Headlines in Employee Benefits Law E-Alert, January 2012 (PDF)
The newsletter covers select compliance deadlines and reminders, and retirement plan, health and welfare plan, and general developments. (Reinhart Boerner Van Deuren s.c.)

[Guidance Overview] D.C. Requires Employers to Withhold D.C. Tax on Retirement Plan and IRA Distributions to D.C. Residents (PDF)
"Unlike withholding in some other jurisdictions, the D.C. legislation requires withholding from distributions from IRAs, as well as pension, profit sharing and tax sheltered annuities (403(b) plans); withholding is mandatory, not voluntary." (Saul Ewing LLP)

A Retirement Plan Sponsor's Guide to Choosing a Third Party Administration Firm
"With fee disclosure regulations to be effective on April 1, 2012, many retirement plan sponsors like you may be on the lookout for hiring a new third party administrator (TPA) after they find out [that] the fees they are actually paying to the old one are unreasonable. Even if you are not looking for a new TPA, as a plan fiduciary, you need to shop around your plan to other TPAs in order to make sure you are exercising your fiduciary responsibility prudently by confirming that the fees you pay to the TPA are reasonable for the services provided." (The Rosenbaum Law Firm P.C. via JD Supra, LLC)

[Official Guidance] Second Quarter Update to the 2011? 2012 IRS Priority Guidance Plan (PDF)
"The second quarter update to the 2011-2012 plan reflects 14 additional projects that have become priorities and/or guidance we have published during the period from October 1, 2011 through December 31, 2011 of the plan year. In addition, the update reflects one project we have closed without publication because the statute was subsequently repealed." (U.S. Internal Revenue Service)

[Guidance Overview] IRS Extension of Transition Relief for Puerto Rico Qualified Plans to Participate in U.S. Group Trusts and Deadline to Transfer Assets
"There are now two separate deadlines: First, in recognition of the fact that Puerto Rico adopted a new tax code in 2011 with significant changes to the requirements for qualified retirement plans, the IRS has extended the general deadline to December 31, 2012, for dual-qualified plans to make transfers to Puerto Rico-only plans, in order to give plan sponsors time to consider the effect of the changes made by the new tax code." (The Bureau of National Affairs, Inc.)

[Guidance Overview] Significant Compensation and Benefit Due Dates for 2012 (PDF)
"This Compliance Calendar assumes a plan administered on a calendar year basis by an employer with a calendar fiscal year." (Aon Hewitt)

Many Defined Contribution Plan Executives Unclear on Plan Data
"A review by Pensions & Investments . . . of recent surveys on DC plan management, behavior and governance shows the percentages of 'don't know' or 'not sure' answers from financial and human resources executives can reach high double digits." (Business Insurance)

AMR Retirees Ask to Participate in Bankruptcy Case
"A group of non-union AMR retirees asked a federal bankruptcy judge to let them participate in the bankruptcy case of AMR, American Airlines and other AMR subsidiaries." (PLANSPONSOR.COM)

PBGC Responds to American Airlines' Letter on Employee Pensions
"The American letter also downplayed the pension cuts that would occur if American's plans are terminated and PBGC benefits are substituted. Although the figure appears nowhere in the management letter, the airline itself estimates that some 13,000 current or retired employees will have their pensions cut." (Pension Benefit Guaranty Corporation)

PBGC Responds to American Airlines' Letter on Employee Pensions
"The Pension Benefit Guaranty Corporation today pushed back on misleading statements to American Airlines employees by its management about their pension plans. 'American Airlines is telling their workers and retirees not to worry, but they should,' said J. Jioni Palmer, PBGC's director of communications." (Pension Benefit Guaranty Corporation)

Don't Let Your Retirement Plan Become an Orphan
"An 'orphan plan' is defined as a plan that no longer has a plan sponsor. The sponsor may have disappeared because of bankruptcy or merger, but the primary factor leading to the 'orphan' status is that the reported plan sponsor is no longer in existence." (Fox Rothschild LLP)

[Guidance Overview] Court Finds No Proof of Benefits Interference by Duke Energy
"The 6th U.S. Circuit Court of Appeals has found no proof that Duke Energy interfered with the early retirement benefits of a laid off employee. In affirming a lower court's summary judgment ruling, the appellate court found [the] claim under [ERISA] fails because he did not made a prima facie showing of 'the existence of (1) prohibited employer conduct (2) taken for the purpose of interfering (3) with the attainment of any right to which the employee may become entitled.'" (PLANSPONSOR.COM)

ERISA Claim Based on Wal-Mart Gender Discrimination Dismissed
"A federal court dismissed a claim that Wal-Mart Stores breached its fiduciary duties in underpaying retirement plan contributions based on wages that were discriminatory against women." (PLANSPONSOR.COM)

[Guidance Overview] User Fees for Employee Plan Determination Letters Stable in 2012
"The IRS has updated its user fee schedule, generally effective February 1, 2012, for requests for various types of employee plan letter rulings and determination letters, and other matters . . . ." (Wolters Kluwer Law & Business / CCH)

[Guidance Overview] Recent Developments Affecting Puerto Rico Retirement Plans (PDF)
"First, the Governor of Puerto Rico recently signed legislation making technical amendments to the retirement plan provisions in the Puerto Ricotax code enacted in January 2011. Second, Puerto Rico issued Circular Letter 11-10 which provides guidance for amending plans and obtaining plan qualification letters. Finally, the IRS issued Notice 2012-6 which further extends the transfer deadline for U.S. qualified plans tospin off their Puerto Rico participants into a second plan." (Buck Consultants, LLC)

[Guidance Overview] A Look at Case Law for Important Plan Documentation Reminders
"Two important cases provide good reminders to plan fiduciaries about (1) the importance of documentation of fiduciary processes, and (2) accurate communication of plan design changes to participants and beneficiaries." (Ice Miller LLP)

Shielding Plan Fiduciaries from Participants' Investment Losses
"2012 is the year of a regulatory tsunami affecting plan sponsors at many different levels. As the dust settles, plan sponsors and consultants should refocus on the main issues at hand regarding defined contribution retirement plans: process and protection." (The Agbay Group)

Report on 2011 U.S. and Canadian Legislative and Regulatory Developments for Health and Retirement Plans
"Much of the activity related to health care in the U.S. was focused on the implementation of the Patient Protection and Affordable Care Act of 2010 . . . . Retirement security garnered attention with U.S. Congressional hearings, governmental reports and initiatives geared to the consumer." (International Foundation of Employee Benefit Plans)

[Official Guidance] DOL Releases Semiannual Regulatory Agenda for Fall 2011
The regulatory agenda is a listing of all the regulations DOL expects to have under active consideration for promulgation, proposal, or review during the coming six- to 12-month period. (U.S. Office of Management and Budget / U.S. General Services Administration)

Are 401k Plan Sponsors Making the Fiduciary Grade?
"It makes sense for 401k plan sponsors to . . . grade their plan on each of the Five Areas of Fiduciary Liability: 1) Regulatory Compliance ? State and Federal; 2) Independence of Providers ? Service Vendors Conflicts of Interest; 3) Integrated Investment Policy Statement; 4) Documented Investment Due Diligence; and, 5) Trustee and Participant Education." (Fiduciary News)

PBGC Updates Financial Summary for Multiemployer Plans
PBGC's financial summary offers data for the2004-2011 fiscal years for multiemployer plans. (Pension Benefit Guaranty Corporation)

PBGC Financial Assistance Payments to Multiemployer Plans, 2005-2012
PBGC updated the data set containing information on multiemployer plan financial assistance payments from 20005 through the first quarter of the 2012 fiscal year. (Pension Benefit Guaranty Corporation)

6 Critical Trends for Retirement Plans in 2012
"The six megatrends Lincoln Trust sees in 2012: New 401(k) Fee Disclosure Rules by DOL . . . 'C Suite' Sticker Shock' . . . A Refined Fiduciary Standard . . . Models vs. Target-Date Funds . . . The Rise of 401(k) Evaluation Services . . . A Call for Investment Expense Transparency." (AdvisorOne)

[Opinion] Taxing Seniors' Pensions 'Tough But Necessary' in Michigan
"Many people may not realize that Michigan was one of only a handful of states that exempted pensions from taxation in the first place. Our plan treats the income of retirees just like that of working seniors." ([Saline, MI] Patch)

Benchmarking: The Key to a 401(k) Plan Sponsor's Fiduciary Compliance Review
"Knowing how one's 401k plan stacks up against one's peer certainly places the plan sponsor on the road to fiduciary diligence. Unfortunately, far too few 401k plan sponsors conduct these fiduciary self-assessments. And that's a shame because, once the first review is completed, the others follow more easily after that." (Fiduciary News)

Federal Retirees Face Confusion, Possibly Payment Delay
"'With OPM's current backlog and the expected significant rise in retirement processing workload, the time frame for OPM to place an annuitant in interim pay may increase to 6-8 weeks after their retirement date,' according to the Army." (The Washington Post; free registration required)

American Airlines Works to Ease Employees' Pension Fears
"American Airlines says more than 90 percent of its workers with vested pensions would not see reduced benefits even if the Fort Worth-based airline terminates its pension plans." (Fort Worth Star-Telegram)

Federal Thrift Savings Plan Administrative Expenses Stay Steady
"Net administrative expenses charged to each participating federal employee's Thrift Savings Plan account were about 20 cents per $1,000 of investment in 2011, roughly the same as the figure for 2010, TSP officials said Monday." (Government Executive)

[Guidance Overview] Labor Department Offers Guidance on Electronic Disclosure But Not Much Relief
"The Release provides little relief to plan administrators who want to satisfy the disclosure requirements of the Regulation electronically but are stymied by the cumbersome requirements of the Safe Harbor as to Group 2 participants. Inexplicably, however, Method 2 in the Release is more difficult to implement than the consent procedures in the Safe Harbor for Group 2 participants." (McGuireWoods LLP)

Bankruptcy a Pension Reprieve for Some Companies
"The most controversial feature of the latest round of bankruptcies is that Hostess, Kodak and AMR want to use bankruptcy to relieve them of their pension promises. . . . AMR is expected to start the process of canceling American Airlines' pensions that cover pilots, mechanics and other workers. The PBGC says the plan has a $10 billion shortfall and wants AMR to fulfill its pension promise." (USATODAY.com)

[Official Guidance] FINRA Provides Guidance on Application of Communications Rules to DOL-Required Disclosures (PDF)
"To the extent that a firm provides information to plan participants that is required by and complies with the disclosure requirements set forth in the DOL rule, FINRA will treat the information as if it were a communication that satisfies the content and filing requirements of NASD Rules 2210 and 2211. Accordingly, firms are not required to file the information with FINRA pursuant to NASD Rule 2210(c), nor is the information subject to the content requirements of NASD Rule 2210(d), including the expense and performancerelated provisions of NASD Rule 2210(d)(3)." (Financial Industry Regulatory Authority)

The Most Important Retirement Stories of 2011
"[T]he biggest stories of 2011 could play out for years to come. So let's take a look in that rear view mirror and see if there's anything we can learn from some of the key stories we tracked . . . in 2011." (Retirement Town Hall)

Oregon Public Employees Want to Stop Name Release
"Public employees asked the Oregon legislature to block the state's pension system from releasing the names of workers and retirees. A bill is expected to be introduced as a courtesy to a coalition of public employee unions, according to the Associated Press." (PLANSPONSOR.COM)

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