---

---

[Guidance Overview]
DOL Provision of Some Form 5500 Relief for 403(b) Plans (PDF)
3 pages. Excerpt: "In response to concerns expressed by many in the 403(b) community, including a June 16, 2008 letter from the Groom Law Group, that the new Form 5500 requirements for the 2009 plan year, including the audit requirement for large plans with 100 or more participants, would be difficult or impossible for many tax-exempt employers to meet, the Department of Labor ('DOL') has issued Field Assistance Bulletin 2009-2, providing transition relief for plan administrators of 403(b) plans who are otherwise required to first comply with expanded annual reporting requirements for the 2009 plan year." (Groom Law Group)


[Guidance Overview]
403(b) Plan Termination: Illusion or Reality?
Excerpt: "When the IRS included a plan termination provision in the proposed regulations, sponsors wishing to terminate their 403(b) plans anxiously anticipated awaited the issuance of the final 403(b) regulations. However, the excitement over the new provision was short-lived as subsequent and inconsistent statements by IRS officials regarding plan termination caused 403(b) practitioners to wonder if the plan termination provision was an illusion. In applying the IRS's interpretation of the provision, 403(b) sponsors, in many circumstances, will determine that they are not able to effect plan termination unless they have the cooperation of 100% of their plan participants." (SunGard)


[Guidance Overview]
Tenth Circuit Determines That Elimination of a Pension Plan's Death Benefit Does Not Violate ERISA's Anti-Cutback Rule
Excerpt: "Under the anti-cutback rule of ERISA Section 204(g), and the parallel anti-cutback rule under the Internal Revenue Code Section 411(d)(6), an employer generally cannot amend it's pension plan to eliminate or reduce: an accrued benefit earned prior to the amendment; an optional form of payment, as to benefits earned prior to the amendment; or a retirement-type subsidy or early retirement benefit, as to benefits earned before the amendment and, in the case of a retirement-type subsidy, for which the service requirements are met either before or after the amendment. But is a death benefit, or a plan feature which pays out a lump sum actuarial equivalent of the death benefit at retirement, protected from elimination by the anti-cutback rule? The Tenth Circuit Court of Appeals says 'no' in Kerber v. Qwest Pension Plan, No. 08-1387 (10th Cir. 2009)." (Stanley D. Baum of Eaton & Van Winkle)


Feds Say Adviser Embezzled from Union Pension Funds
Excerpt: "The president of AA Capital Partners embezzled $24 million from union pension funds, federal prosecutors say. John Orecchio siphoned $24 million from the $169 million he controlled for five pension funds, according to the criminal information. Orecchio allegedly embezzled the money from 2002 to 2006, as investment manager at AA Capital. He and AA Capital had control over the unions' ERISA plans and 'full discretion over the investment and re-investment of funds,' prosecutors said." (Courthouse News Service)


Pension Freezes Continue Among Fortune 1000 Companies in 2009
Excerpt: "From 2008 to 2009, the number of Fortune 1000 firms sponsoring a frozen defined benefit (DB) pension plan increased by 4 percent. The freeze rate has remained relatively constant over the last two years, as plan sponsors continue to seek ways to lower expenses, especially in the current economic downturn." (Watson Wyatt Worldwide)


National Save for Retirement Week Resolution Introduced in House
Excerpt: "A resolution recognizing National Save for Retirement Week (NSRW) has been introduced in the House of Representatives. H Res. 647 was sponsored by Rep. Allyson Schwartz (D-PA) and Rep. Sam Johnson (R-TX) and designates Oct. 18-24, 2009, as a week set aside for 'raising public aware of the various tax-preferred retirement vehicles.'" (ICMA-RC)


Proposed Changes to Required Minimum Distributions
Excerpt: "Legislation that would alter Required Minimum Distributions (RMD) from pension plans has been introduced in both the Senate and the House. H.R. 2021, led by Rep. John Boehner (R-OH), would extend the suspension of RMD requirements through 2012. It was referred to the House Committee on Health, Employment, Labor, and Pensions. Legislation from Sen. Olympia Snowe (R-ME) would grant a waiver of RMD payments through 2010. S. 157 was referred to the Committee on Finance. A bill to permit 2008 RMD payments to be repaid, H.R. 939 . . . ." (ICMA-RC)


Prudential Calls for Stable Value Funds to Be Included As QDIAs
Excerpt: "Testifying before the U.S. Department of Labor's ERISA Advisory Council, James King, Jr., vice president and head of Prudential Retirement's Stable Value Markets Group, urged that stable value products be classified as a qualified default investment alternative (QDIA) for employee retirement plans. King testified that stable value products minimize risk by investing in high quality securities and pointed out that in 2008, every stable value fund produced a positive return for the year." (planadvisor)


Delphi's Pension Shift to PBGC Riles, and Worries, Retirees
Excerpt: "Delphi Corp. retirees worried Wednesday that their income will be cut after the federal government said it will take over the supplier's pension plans, which cover 70,000 workers and retirees. Many details were unclear, but the effects on current and future UAW hourly retirees should be minimized. General Motors Co. said it would help fill the gap between government maximums and what retirees were promised." (Detroit Free Press)


Measure Retirement Plan Success with Replacement Ratios
Excerpt: "Plan sponsors who look at retirement 'outcomes' can better identify if participants are on track to achieve retirement goals. They also may better gauge if they are fulfilling their fiduciary role. Financial professionals can help plan sponsors by providing participant and plan level calculations to determine retirement readiness. . . . A simple and effective way to help participants determine income needed in retirement is through a replacement ratio calculation. This easy-to-use calculation shows the percentage of working income needed to maintain the same standard of living in retirement (typically 60%-90%)." (planadvisor)


Appellate Court Sends Annuity Rule Back for SEC Do-Over
Excerpt: "A federal appellate court has sent back to the U.S. Securities and Exchange Commission (SEC) a 2008 rule governing fixed indexed annuities (FIAs) that the court said was improperly passed. The U.S. Court of Appeals for the D.C. Circuit issued the order in a challenge to Rule 151A that states that FIAs are not annuity contracts and, therefore, are subject to federal securities laws instead of being solely subject to state regulations. The SEC had agreed to define annuity contracts and optional annuity contracts as securities so it could better police the fast-growing market, applying to indexed annuities issued on or after January 12, 2011." (PLANSPONSOR.com; free registration required)


Mediator to Decide School Officials, Union 403(b) Dispute in Indiana
Excerpt: "In Indiana, Tippecanoe School Corp. (TSC) officials and representatives of Tippecanoe Education Association met with a state mediator to discuss an impasse over teacher contract language. The Lafayette Courier & Journal reported the two parties disagree on whether the district's new 403(b) retirement plans should be negotiated as part of the master teacher contract or whether the district should have full control over changes to the plans. TSC adopted its provider and plan in December." (PLANSPONSOR.com; free registration required)


Retirement Plans Not Targets of Proposed Consumer Panel, Frank Says
Excerpt: "Concerns that a new consumer watchdog agency proposed by the Obama administration could play a role in overseeing retirement plan products are unfounded, Rep. Barney Frank, D-Mass., said today at a press conference on Capitol Hill. Mr. Frank, chairman of the House Financial Services Committee, said legislation pending before his committee to create the Consumer Financial Protection Agency would not affect products -- such as mutual funds -- already regulated by the SEC. 'This (the CFPA legislation) does not affect Securities and Exchange Commission jurisdiction,' Mr. Frank said. He also said the CFPA would not play a role in regulating 401(k) plans or annuities." (Pensions & Investments)


ERISA Advisory Council Debates More Stable Value Rules
Excerpt: "The Department of Labor's ERISA Advisory Council should endorse the use of standard wraps -- contracts provided by insurers or banks to protect stable value funds from interest-rate fluctuations -- to ease the due-diligence burden of plan sponsors that offer stable value funds to their participants, Jason Scott, managing director at Financial Engines, said today in testimony before the council. Mr. Scott also recommended the council endorse the 'timely and routine disclosure' of a stable value fund's market value relative to book value to plan sponsors and participants." (Pensions & Investments)


[Opinion]
Dismantling Public Pensions Would Hurt More Than Help
Excerpt: "USA TODAY publishes a NIRS letter to the editor response to the editorial. 'It's unfortunate that USA TODAY's July 13 editorial pits workers with some hope of retirement against the most vulnerable workers those lacking pensions.' The editorial implied that 'defined benefit' plans no longer exist in the federal government and have evaporated in the private sector." (National Institute on Retirement Security)


[Opinion]
Testimony before the ERISA Advisory Council Working Group on Promoting Retirement Literacy and Security by Streamlining Disclosures to Participants and Beneficiaries (PDF)
5 pages. Excerpt: "Thank you for the opportunity to testify on this critical retirement security issue. The Council believes that streamlining existing and future disclosure requirements and implementing rules that make better use of modern technology - and leaves room for future technological developments - will go a long way toward improving employees' understanding of their retirement plans and promoting retirement literacy and retirement security." (American Benefits Council)


[Opinion]
Retirement Income Solutions: The Next Big Thing?
Excerpt: "Insurers and investment manages are touting their retirement income wares, but plan sponsors should think carefully before they add these products to their plans. Insurance companies and investment managers are betting that retirement income products (commonly known as in-plan annuities) are the next big thing in defined-contribution plans. In the past several years, product development in this arena has flourished, creating a myriad of different solutions for guaranteeing income in retirement through DC plans." (Workforce Management; free registration required)

---

---

Links to Items on Executive Comp, Benefits in General

[Guidance Overview]
Proposed Executive Compensation Reform from Department of the Treasury
Excerpt: "If approved, the Securities and Exchange Commission will be required to adopt (1) regulations that will determine the appropriate independence standard to apply under the new rules and (2) rules directing the national securities exchanges and national securities associations to prohibit the listing of securities of companies that do not comply with the new independence standards." (Wilson Sonsini Goodrich & Rosati)


[Guidance Overview]
New Executive Compensation Rules for TARP Recipients; Guidelines for Future Legislation
Excerpt: "The IRS has issued Interim Final Regulations on the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 ('EESA'), and the American Recovery and Reinvestment Act of 2009 ('ARRA'), generally effective June 15, 2009. The rules implement an increasingly restrictive executive compensation regime for financial institutions that received government funds under the federal TARP program but have not yet repaid them to the government. Original speculation that the Treasury would set a hard cap on annual compensation for top executives of such entities, such as $500,000, however, proved to be unfounded. The regulations establish what has been called a 'pay czar' to help enforce the provisions of the law and Treasury further has announced its intention to seek legislation that would apply similar restrictions to all publicly traded companies." (Tax Management Inc.)


ERISA and Same-S.ex Benefits: An Article
Excerpt: "Janice K. McClendon (Stetson), co-chair of the AALS Section on Employee Benefits, has posted on SSRN her article from a few years ago in the New Mexico Law Review: A Small Step Forward in the Last Civil Rights Battle: Extending Benefits under Federally Regulated Employee Benefit Plans to Same-S.ex Couples." (Workplace Prof Blog)

---

Webcasts and Conferences

Ethics in Representing Employee Benefit Plans
Nationwide on September 1, 2009
presented by American Society of Pension Professionals & Actuaries (ASPPA)

Health Plan Design and Trends
in Illinois on August 27, 2009
presented by WEB - Chicago West

PPA: The Second Year
Nationwide on August 5, 2009
presented by American Society of Pension Professionals & Actuaries (ASPPA)

Preparing for the Roth 2.0 Market: Advanced Roth Conversion Strategies & Considerations
Nationwide on August 5, 2009
presented by Convergent Retirement Plan Solutions, LLC

Preparing for the Roth 2.0 Market: Roth Reporting and Administration
Nationwide on August 6, 2009
presented by Convergent Retirement Plan Solutions, LLC

Preparing for the Roth 2.0 Market: The Art & Science of Roth Conversion Optimization
Nationwide on August 4, 2009
presented by Convergent Retirement Plan Solutions, LLC

Preparing for the Roth 2.0 Market: Roth Conversions Overview
Nationwide on August 5, 2009
presented by Convergent Retirement Plan Solutions, LLC

Rehired Employees: Understanding the Rules
Nationwide on August 18, 2009
presented by American Society of Pension Professionals & Actuaries (ASPPA)

What! I Can't Get My Lump Sum? A Discussion of the Restricted Distribution Rules
Nationwide on August 11, 2009
presented by American Society of Pension Professionals & Actuaries (ASPPA)

( Click to post your webcast or conference )

---

Press Releases

Pension Plan Freezes Continue at Steady Pace Among Fortune 1000 Companies, Watson Wyatt Analysis Finds
Watson Wyatt

Flexible Schedules for Hourly Workers Becoming More Prevalent
WorldatWork

PBGC To Assume Delphi Pension Plans
Pension Benefit Guaranty Corporation (PBGC)

Segal Releases Study of Multiemployer Defined Contribution Plans
The Segal Company

ftwilliam.com Announces Promotions and New Additions to Its Staff
ftwilliam.com

Inspira Looking to Acquire IRA Recordkeeping Business
Inspira

Families and Work Institute Releases Findings on Impact of Recession on Employers
Families and Work Institute

( Click to post your press release )

---

Employee Benefits Jobs

Director of Programming
for Industry Leader in the Benefits /Life Insurance Community
in PA

Inside Sales Consultant
for Decimal, Inc. (www.theonline401k.com)
in CA

Assistant Director
for 1199SEIU Family of Funds
in NY

( Click to post your job opening | View all jobs | RSS feed of all jobs )

---

EmployeeBenefitsJobs.com (Sponsor)

(Click on banner to learn more.)

---

Handy Links:

• View Today's Active Message Threads
• Using the Web for Employee Benefits Research (hypertext article)
• Employee Benefits Library

---

---

Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!

Sign-up form is at https://benefitslink.com/newsletter (free).

---

This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151

David Rhett Baker, J.D., Editor

Copyright 2009 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.

Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/

Other useful links:

• How to Sponsor an Issue
• Privacy Policy
• Archive of Previous Newsletters