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[Guidance Overview]
IRS to Scrutinize Employee Classification Exclusions During EGTRRA Restatement Process
Excerpt: "The QAB states that IRS document specialists will begin enforcing these principles as part of the EGTRRA document review cycle. Therefore, it is important to watch for this and remove or clarify this type of provision so that it is in compliance when restating from a GUST to an EGTRRA document. Plan sponsors will be asked to remove or clarify plan language if a reviewer discovers a plan that includes a provision which defines an exclusion classification by reference to service." (McKay Hochman Co., Inc.)


Pomeroy Continues Filling Out Defined Benefit Funding Package Proposal
Excerpt: "A long-in-the-making package of pension reform legislation from U.S. Representative Earl Pomeroy (D-North Dakota) continues to move toward formal introduction when Congress reconvenes in September. Pomeroy on Thursday released the latest version of the bills collectively designed to help defined benefit pension plans continue to weather the funding issues arising out of the economic downturn, according to a news release from his office. Pomery included suggestions from various interested parties with whom he consulted after initially releasing the suggested bills in June 2009 (see Pomeroy Shares Pension Funding Reform Thoughts). The proposals cover both single-employer and Taft-Hartley plans. [The article provides summaries of both Title I -- Single Employer Plans Legislation and Title II -- Multiemployer Plans Legislation.]" (PLANSPONSOR.com; free registration required)


Section-by-Section Summary of Draft Pension Funding Relief Legislation (PDF)
3 pages. (American Benefits Council)


Discussion Draft of Pension Funding Relief Legislation (PDF)
102 pages. (U.S. House of Representatives via American Benefits Council)


Pension Shortfalls Not a Material Credit Concern for Insurers
Excerpt: "A Fitch Ratings special report indicates the recent decline in funded status of U.S. life and non-life insurers' defined benefit pensions plans is not a material industry concern at this time. According to a news release, Fitch estimates that the average funded status of pension plans was 73.4% at year-end 2008, down from 95.8% in 2007. This increase in the pension shortfall (defined as pension assets less the projected benefit obligation (PBO)) adds only incremental pressure on industry capital, an area already negatively impacted by deterioration in the financial markets, Fitch said." (PLANSPONSOR.com; free registration required)


Case Study: Self Correction After Audit (PDF)
At page 4 of 7-page document. Excerpt: "In order to be eligible for self correction, the employer must have in place -- at the time the error occurred -- practices and procedures which, if followed, would have prevented the error. This is true regardless of whether the defect is being corrected under the two-year correction period or outside of that period, as an insignificant defect, because 'established practices and procedures' is a threshold eligibility requirement under SCP. If an employer is attempting to use self correction after the time the plan has come under audit by the IRS, it will also have to be able to establish that the defect is 'insignificant' under all the facts and circumstances of the case. The determination of whether operational failures are insignificant is left to the discretion of the IRS, using a series of non-exclusive factors listed in Section 8.01 of the Rev. Proc." (Reish & Reicher)


Notice of Meeting: 147th Meeting of Advisory Council on Employee Welfare and Pension Benefit Plans
Excerpt: "[The open meeting] will be held on September 15-17, 2009. . . . The purpose of the open meeting is for Council members to hear testimony from invited witnesses and to receive an update from the Employee Benefits Security Administration (EBSA). The Council will study the following issues: (1) Promoting Retirement Literacy and Security by Streamlining Disclosures to Participants and Beneficiaries, (2) Stable Value Funds and Retirement Security in the Current Economic Conditions, and (3) Approaches for Retirement Security in the United States. . . . Organizations or members of the public wishing to submit a written statement may do so by submitting 30 copies on or before September 8, 2009 . . . ." (U.S. Employee Benefits Security Administration via Federal Register)


Constructing New Retirement Systems: Choosing between Insurance and Investment, Choice and Default
Excerpt: "Retirement 20/20 is the Society of Actuaries initiative to find new retirement systems (focusing on tier II) that meet the needs of stakeholders better than the existing DB/DC models. The first steps in the initiative were to identify characteristics of a successful new retirement system, by identifying the needs and risks of stakeholders in the system. What has emerged is an understanding of the tension that exists today between investment and insurance, choice and default (including how choices are structured). In addition, the Retirement 20/20 initiative has constructed a Measurement Framework that can be used to analyze how well plan designs meet the needs and risks of stakeholders in the system; in the analysis of several plans, we have brought out other features that lead to successful retirement systems. This paper summarizes what we've learned to date about the balance between investment and insurance, choice and default, highlight roles for stakeholders and suggest new ways of bringing people together to prepare for their retirement." (Pension Research Council; registration required to download fulltext of paper)


PSCA Offers Free 401(k) Day Materials
Excerpt: "No matter how tight your budget is, the Profit Sharing/401k Council of America (PSCA) has 401(k) Day materials available that will fit within it. In years past, PSCA has made portions of their annual 401(k) Day campaign available to the public; however, most materials were reserved for PSCA members only. However, PSCA has announced that this year it is making their annual 401(k) Day communication and education campaign available free to plan sponsors throughout the country." (PLANSPONSOR.com; free registration required)


An Interview with Brooks Hamilton Touching on ERISA and Pre-emption
Excerpt: "BrightScope: Why do you think judges are 'ERISA novices' as you have indicated in your writings? Brooks Hamilton: Judges 'appear' to be ERISA novices at their very best, or so it seems to me. Some may indeed even have a heartfelt bias, or perhaps an honest predisposition regarding fundamental ERISA issues, which in the altogether render them fundamentally indifferent, if not viscerally opposed, to the fiduciary standards imposed by ERISA. It must be remembered that 'Trust law' as a descendant of the Common Law was not a basic part of federalism in the first place." (BrightScope Inc)

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Links to Items on Executive Comp, Benefits in General

[Guidance Overview]
Oregon Law Requires Workplace Religious Accommodations
Excerpt: "In July, Oregon Governor Ted Kulongoski signed into law the Oregon Workplace Religious Freedom Act, according to news reports. Oregon Senate Bill 786 requires employers to allow an employee to use vacation leave, or other leave available to the employee, for the purpose of allowing the employee to engage in the religious observance or practices of the employee. In addition, the bill says employers cannot impose an occupational requirement that restricts the ability of an employee to wear religious clothing, to take time off for a holy day or to take time off to participate in a religious observance or practice." (PLANSPONSOR.com; free registration required)


National Compensation Survey: Occupational Earnings in the United States, 2008
Excerpt: "This bulletin presents estimates of occupational pay for the Nation. . . . The estimates include pay for workers in major sectors within the U.S. economy in 2008 - the civilian, private, and State and local government sectors - and by various occupational and establishment characteristics. The civilian sector, by NCS definition, excludes Federal government, agricultural, and household workers." (U.S. Bureau of Labor Statistics)


U.S. Senate Bill Bans Workplace Gender Identity and Se.xual Orientation Discrimination
Excerpt: "A proposed U.S. Senate bill would bar employment discrimination based on se.xual orientation or gender identity. A news release from Senator Jeff Merkley (D-Oregon) said the Employment Non-Discrimination Act (ENDA) said the measure would prohibit employers, employment agencies, labor organizations and joint labor-management committees from firing, refusing to hire, or otherwise discriminating against those employed or seeking employment, on the basis of their perceived or actual se.xual orientation or gender identity. Such protections are already in place prohibiting discrimination based on race, religion, gender, national origin, age, and disability. 'There is no place in the workplace for employment discrimination,' said Merkley, in the statement. 'No worker in America should be fired or denied a job based on who they are. Discrimination is wrong, period.'" (PLANSPONSOR.com; free registration required)

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Webcasts and Conferences

147th Meeting of the Advisory Council on Employee Welfare and Pension Benefit Plans
in District of Columbia on September 15, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Don't Do That With Your ESOP
Nationwide on September 15, 2009
presented by National Center for Employee Ownership

Voluntary Fiduciary Correction Program Workshop
in New Jersey on September 24, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

( Click to post your webcast or conference )

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Press Releases

Prescription Solutions Modernizes Consumer Website With New Content And Tools
Prescription Solutions

Benefit Informatics Introduces Plan Experience Summary
Benefit Informatics

( Click to post your press release )

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Employee Benefits Jobs

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in GA

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Senior Financial Controls Associate
for Milliman
in TX

Client Services Associate
for Milliman
in TX

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Handy Links:

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

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