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OneAmerica Financial Partners
in IN

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Continental Benefits Group, Inc.
in NJ

Sr. Director, Rollover Education Center
John Hancock
in MA

Retirement Services Product Manager
Insperity
in TX

Administrator / Account Executive
Alliant Insurance Services
in NJ, NY

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Shore Tompkins Actuarial Resources, LLC
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Practicing Before the IRS: Circular 230 from A to Z
RECORDED
(IRS [Internal Revenue Service])

Benefits Technology & Communications
December 16, 2014 WEBCAST
(Employee Benefit News)

How to Complete a VCP Application
December 16, 2014 WEBCAST
(ASPPA [American Society of Pension Professionals & Actuaries])

Offsetting the Spikes in Generic Drug Prices: Health Plan/PBM Strategies
January 27, 2015 WEBCAST
(Atlantic Information Services, Inc)

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NIPA [National Institute of Pension Administrators]

Text of IRS Publication 4810: Specifications for Electronic Filing of Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefit (PDF)
40 pages. "The purpose of the publication is to provide the specifications for electronically filing Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits, with the Internal Revenue Service. This publication must be used to prepare current and prior year Form 8955-SSAs. Generally, the boxes on the paper forms do correspond with the fields used for the electronic record; however, if the form and field instructions do not match, the guidance in this publication supersedes the form instructions." [Revised November, 2014; released online December 10, 2014.] (Internal Revenue Service [IRS])

[Advert.]

Attend, Learn, & Enjoy the Sun this January -- LA Advanced Pension

This must-attend event combines the best of ACOPA's Advanced Actuarial Conference and the LA Regional Conference, and will include hands-on learning about current regulatory, legislative, actuarial, and consulting topics from session leaders. CE's available.

Text of IRS Notice 2014-78: Weighted Average Interest Rates, Yield Curves, and Segment Rates Applicable for December, 2014 (PDF)
"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under Section 417(e)(3), and the 24-month average segment rates under Section 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate ... The rates in this notice reflect the application of Section 430(h)(2)(C)(iv), which was added by [MAP-21] and amended by [HATFA]." [Also available: Recent corporate bond yield curve spot rates spreadsheet.] (Internal Revenue Service [IRS])

Qualifying Longevity Annuity Contracts: Answers to Frequently Asked Questions (PDF)
8 pages. 20 Q&As, including: "What is the impact of 'required minimum distribution' rules on QLAC purchases under these regulations? ... Is there a limit to the amount that may be paid as QLAC premiums within a 401(k) or similar plan or IRA and still meet the requirements of these regulations? ... What happens if a contract holder accidentally exceeds this limit?.... What is the impact of a Roth IRA on the amount an individual can place in a QLAC? ... Are these regulations a 'safe harbor' for plan sponsors with regard to offering annuity products in their retirement plans? ... Are there any conflicts between these Treasury regulations and [DOL] rules? ... Do these regulations apply to defined benefit plans?" (Defined Contribution Institutional Investment Association [DCIIA])

Understanding the New Once-per-Year 60-Day Rollover Rules for IRAs and the Exclusion for Trustee-To-Trustee Transfers
"The IRS has declared that it will begin to enforce the new aggregation-based IRA rollover rules in 2015, with a special transition rule that will still allow old 2014 rollovers to cause a 1-year waiting period for just the accounts that were involved and not all IRAs. Nonetheless, going forward advisors and their clients will need to be more cautious than ever not to run afoul of the rules when engaging in multiple 60-day rollovers over time -- or better yet, simply ensure that IRA funds are only moved as a trustee-to-trustee transfer to avoid the rules altogether!" (Michael Kitces in Nerd's Eye View)

Text of Proposed Multiemployer Pension Reform Act of 2014 (PDF)
161 pages; as introduced by Reps. Kline (MN) and Miller (GA). Summary provided by the House Committee on Rules : "Addresses pension reforms in two areas. First, the bipartisan pension reforms in Division O will permit trustees of severely underfunded plans to adjust vested benefits, enabling deeply troubled plans to survive without a federal bailout; require approval by plan participants of any proposed benefit adjustments that take effect, with a fail-safe mechanism for those plans that present a systemic risk the multiemployer pension system; provide participant protections to safeguard the most vulnerable retirees, including disabled retirees and individuals age 75 and older; give the [PBGC] the authority to take earlier action to help save failing plans, thereby reducing potential future costs; and adjust the premium structure in order to place the PBGC on more firm financial ground. Second, the bipartisan amendments in Division P amend the rules relating to PBGC enforcement and the rules governing certain charity and nonprofit pension plans. Also provides for the budgetary treatment of these divisions." (U.S. House of Representatives)

[Advert.]

Join a free web briefing on December 11

With daily emails, a user-friendly website, and web briefings, Mercer Select members stay informed about key benefit, comp and HR issues. Sign up for a free web briefing on Dec. 11 at 1 pm ET, or for a free demo or guest membership .

Congressional Leaders Hammer Out Deal to Allow Pension Plans to Cut Retiree Benefits
"The measure, which would be attached to a must-pass spending bill in the coming days, would alter 40 years of federal law and could affect millions of workers ... Some see cutting benefits preemptively as the only way to keep troubled plans such as Central States afloat. Under the agreement reached by congressional negotiators, retirees over age 75 as well as those who are disabled would be shielded from any reductions. Also, any benefit cuts would be subject to a vote of plan participants." (The Washington Post; subscription may be required)

Text of CBO Cost Estimate for the Proposed Multiemployer Pension Reform Act of 2014 (PDF)
"As posted on the website of the House Committee on Rules on December 9, 2014 (Proposed as Division O in an amendment to H.R. 83, the Consolidated and Further Continuing Appropriations Act, 2015)." (Congressional Budget Office [CBO])

ESPP Loans Can Make 401(k) Plan Loans Less Attractive
"Employees often reduce or stop saving in their 401(k) accounts after taking out a loan from that source, which can endanger their future retirement income.... [At] small companies (with fewer than 500 employees) that had both options, only 9 percent of employees took out new 401(k) loans when an ESPP was also available. At smaller companies with only a 401(k) option, 14 percent had taken 401(k) plan loans." (Thompson SmartHR Manager)

Investment Policy Statements in Retirement Plans: Are They Plan Documents?
"[This] Circuit Court decision that means not only was there a lower court case but there was an appeal. And all of this over the failure to provide a document. Plan administrators have a duty to respond to requests for documentation from participants and that includes all documents governing the operation of the plan. This would seem to include investment policy statements, which further confirms that plans should have one in writing to provide." [ Murphy v. Verizon Communications, Inc. , No. 13-11117 (5th Cir. Oct. 14, 2014)] (Fox Rothschild LLP)

[Advert.]

6th Annual Financial Advisor Retirement Symposium - April 1-2, 2015

The editors of Financial Advisor and Private Wealth magazines bring together industry experts to share insights and strategies on retirement at a conference that promises to energize advisors with new practice-building ideas. BenefitsLink Discount .

Use of TDFs Surges in 401(k)s
"From 2006 to 2012, the percentage of 401(k) plan assets invested in target date funds also saw a drastic increase. The percentage of plan assets in TDFs went from 3% in 2006 to more than 13% in 2012. Cerulli Associates ... expects those target-date assets to capture almost 90% of 401(k) contributions by 2019.... Mutual funds held 46% of 401(k) plan assets in 2012.... Mutual funds accounted for more than half of the assets in all but the largest plans, where collective investment trusts accounted for a somewhat larger share of assets than mutual funds." (ThinkAdvisor)

Target Date Funds: Why Low Cost Does Not Mean Low Risk
"The focus on cost as the primary selection criteria for target date funds continues to accelerate. Focusing primarily on cost fails to take into account three important considerations: ?[1] Decision making on cost alone is not prudent [2] Low cost usually requires risk/ reward trade-offs [3] Cost and value are not the same thing" (J.P. Morgan Asset Management)

401(k) Plans Investing Like Hedge Funds
"About 41% of 401(k) plan participants now invest in [target date funds], compared with 20% five years ago ... And among those that manage target-date funds, 14% had allocations to hedge fund strategies, up from 10.5% three years ago ... The median target date fund allocation to hedge fund strategies rose to 5% in 2013, from 1.86 percent in 2011." (CFO)

College Faculty and Staff Are Better Prepared for Retirement Than the General Population
"In addition to saving in their employer-sponsored retirement plan, 42 percent of higher education employees have saved in an IRA, compared to 34 percent of American employees overall. While 36 percent of college faculty and staff say they have met with a financial advisor, only 22 percent of the general population report the same. " [Also available: detailed survey results .] (TIAA-CREF)

Illinois' Per-Employee Retirement Contributions Are Four Times Those in the Private Sector
"Illinois' five state-run pension plans are so deep in the hole that the state -- the employer -- is now contributing ... the equivalent of 38 percent of each worker's salary in order to meet the state's pension obligations.... A typical company today contributes the equivalent of 9 to 10 percent of a worker's salary each paycheck -- some 3 to 4 percent toward the employee's 401(k) and another 6.2 percent toward his or her Social Security." (Illinois Policy Institute)

Testimony of American Academy of Actuaries at Senate Finance Committee Hearing on Social Security: Is a Key Foundation of Economic Security Working for Women? (PDF)
"[This testimony discusses] women and Social Security in four sections: [1] Gender-related factors that can cause differences in the adequacy of retirement benefits between men and women. [2] Principles upon which Social Security was built that provide a framework for discussing changes to Social Security and how the changes impact women. [3] An example of how Social Security's spousal benefit is currently impacting women. [4] A discussion of individual changes that have been considered for Social Security reform and how those changes might impact women because of the different gender-related factors." (American Academy of Actuaries)

Multiple Employer Plans Are a Marketing Play, Not a Way to Cut Costs
"MEPs are a solution to a problem that does not exist -- and they bring other potential risks to small employers.... The big fund companies want them because they are a cheap way to gather assets from small business 401k plans.... It's simply a novel way to 'bundle' 401k services -- the same tired, expensive product in a bright shiny new wrapper." (Employee Fiduciary)

Employer Costs for Employee Compensation, September 2014 (PDF)
"Employer costs for employee compensation for civilian workers averaged $32.20 per hour worked in September 2014... [B]enefits averaged $10.07 and accounted for ... 31.3 percent [of costs].... State and local government employers spent an average of $43.56 per hour worked for employee compensation in September 2014.... [B]enefits averaged $15.67 per hour worked and accounted for ... 36.0 percent [of those costs]." (U.S. Bureau of Labor Statistics [BLS])

ISS and Glass Lewis Update Policies for the 2015 Proxy Season (PDF)
"Many aspects of the new [equity plan scorecard (EPSC)] policy remain unknown, including the specific weighting of factors under each EPSC pillar as well as the 'deal breakers' that will cause ISS to oppose a proposed plan regardless of whether it otherwise achieves a passing EPSC score. Hopefully the impending Compensation FAQ will address these issues and provide a better understanding of how ISS Research will, in fact, apply this new policy." (ExeQuity)

SageView Expands in Southeast SageView Advisory Group

NCPA Endorses Bill to Increase Transparency in Generic Prescription Drug Payments National Community Pharmacists Association [NCPA]

Ascensus Announces New Institutional Partner In 1st Global Ascensus

The Online 401(k) Reemerges as Ubiquity Ubiquity Retirement + Savings

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