Pensions & Investments

ESOP Administrator
Blue Ridge ESOP Associates
in ANY STATE

Sr. Consultant, Defined Contributions
USI Consulting Group
in CT

Staff Consultant, Defined Contributions
USI Consulting Group
in CT

401(k) Plan Administrator
PASI, LLC
in CT

Retirement Plan Account Manager
M Advisory Group
in CA

Sr. 401(k) Plan Administrator & Distributions Supervisor
Loren D. Stark Company
in TX

Pension Consultant/Sales
Farmer & Betts
in FL, LA, MI, MN, MO, NC, OH, SC, TN, TX

Employee Benefits Account Manager
Celedinas Insurance Group
in FL

Retirement Plans Analyst
Edelman Financial Services
in NY

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How Does the Supreme Court?s Same-Sex Marriage Decision Affect Employee Benefits?
August 27, 2015 WEBCAST
(Frenkel Benefits, LLC)

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IRS Determination Letters After 2016: What Are the Options?
"When substantial changes are to be made to the plan (typically, for new employees), consideration should be given to adopting a whole new plan (on which a determination letter could be obtained), rather than amending the existing plan to create a new benefit structure. Plans adopting novel benefit structures may seek private letter rulings dealing with the new benefit structure.... In the event of a corporate acquisition or merger, it will become critical to obtain ironclad assurances from the seller that all retirement plans are qualified.... In some instances, it may make sense to have old plans terminated before the merger or acquisition." (Calhoun Law Group, P.C.)

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Feeling Left Out? It's Time to Get "Ahead of the Curve"

This October the nation's retirement industry elite will converge in our nation's capital to get "Ahead of the Curve" with insights from industry insiders, regulators, pundits and the nation's leading voices. It's ASPPA Annual. Join us.

PBGC Issues Proposed Regs Increasing Number of Employers Subject to Section 4010 Reporting
"The proposed regulations: [1] Limit the reporting waiver for employers with aggregate minimum plan funding shortfalls of $15 million to controlled groups with fewer than 500 participants. [2] Provide two new reporting waivers, to eliminate duplicative reporting obligations. [3] Codify the plan reporting provisions of [MAP-21], as modified by [HATFA] and PBGC Technical Updates 12-2 and 14-2. [4] Make several technical corrections, including eliminating one form of payment assumption for minimum funding purposes." (Practical Law Company)

Risk-Shifting and the Demise of the Determination Letter Program
"[T]he demise of the determination letter program results from a cost/benefit analysis where the Service has determined that it is best to shift the risk of having a compliant plan document to the plan sponsor. To lessen the risk for the plan sponsor ... Auditors will now likely spend significant time reviewing a document for legal compliance since they can no longer rely on their colleagues in the determination letter division to have done that for them. The debates that used to happen on determination letter reviews will now occur on audit, which will only increase the potential stakes of the audit itself.... Without the benefit of a determination letter, the law firms that draft plans are likely litigation targets should the IRS penalize a plan sponsor or, worse yet, disqualify a plan that is not properly drafted." (Benefits Bryan Cave)

Investment Review Checklist for 401(k) Plan Committees
"This Checklist provides a list of issues that an investment or administrative committee of a 401(k) plan governed by [ERISA] should consider, including those raised by the US Supreme Court's recent decision in Tibble v. Edison Int'l ." (Practical Law Company)

IRS Deepens Focus on Lifetime Income with Lump-Sum Ban
"While the policy change is not expected to have a major impact on plan sponsor behavior, it does have a symbolic one, and it is viewed as a broader effort by Washington regulators to encourage lifetime income.... 'The real story is probably what this says on the part of the regulators,' said Bob Collie [of] Russell Investments. 'They are trying to get ways to get people to turn lump sums into annuities, and to close leakage within defined contribution plans.' " (Pensions & Investments)

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Your input needed! GAO asking DC plan sponsors about eligibility and vesting requirements

This GAO survey examines why plan sponsors use certain eligibility and vesting requirements, how they may have changed the requirements, and how they communicate them to employees and participants. GAO estimates the survey will take about 15-20 minutes to complete; responses will be accepted until Friday July 31st .

Equities: A Sinking Allocation for Corporate DB Plans
"Corporate pension plan allocations to equity have declined to a new low ... And the fixed-income allocation has risen to a new high. At the end of 2014, the equity allocation stood at 44.45%, the lowest since S&P began tracking it in 1999, with the exception of 2008 when, in the midst of the financial crisis, it was slightly lower at 43.71%. Fixed-income allocation was 43.88%, a record high in the S&P reporting.... Not all of the reallocation out of equity has flowed to fixed income, ... Real estate and hedge funds strategies also have captured some of the reallocation to diversify growth assets." (Pensions & Investments)

Multiemployer Pension Plans: Withdrawal Liability Is Mounting
"At least four plans, through their actuaries, have dramatically reduced the interest rate assumption to calculate withdrawal liability. Rather than using the plan's assumed rate of return, typically 7-8 percent, they have adopted the PBGC long term interest rate of slightly more than 3 percent to calculate the unfunded vested benefit liabilities and, hence, withdrawal liability. These interest rate changes are increasing the amount of withdrawal liability by 200-400 percent depending on the methodology used ... Employers in critical plans need to understand and manage this mounting withdrawal liability before it becomes so great that it exceeds the net worth of a company." (Ford & Harrison LLP)

2014 Annual Survey of Public Pensions
"Statistics are available at the national level and for individual states.... Total assets increased 12.8 percent, from $3.3 trillion in 2013 to $3.7 trillion in 2014. Earnings on investments grew 40.6 percent, from $382.2 billion in 2013 to $537.5 billion in 2014. Contributions grew 8.4 percent, from $153.7 billion in 2013 to $166.6 billion in 2014.... Total payments grew 5.6 percent, from $258.3 billion in 2013 to $272.9 billion in 2014. The total number of beneficiaries increased 3.2 percent, from 9,263,846 people in 2013 to 9,561,562 in 2014." (U.S. Census Bureau)

SEC Faces Its Own Debate on Fiduciary Advice Standards
"Transcripts from a tough SEC hearing called earlier this month show it's not just the Department of Labor considering changes to the application of the fiduciary standard.... Like the DOL, the SEC says its rulemaking is meant to tamp down on a variety of investor abuses and service provider conflicts of interest believed to be harming millions of investors inside and out of retirement plans." (PLANSPONSOR)

Will Trial Lawyers Be the Sole Beneficiaries of a Watered-Down Fiduciary Rule?
"When hiring a financial advisor, 401k plan sponsors have a fiduciary duty to assess 'the reasonableness of the compensation (direct and indirect), and determine any conflicts of interest that may impact the service provider's performance.' A [Best Interest Contract Exemption (BICE)] will almost certainly make these assessments more difficult.... [T]he BICE will also be a bad deal for the financial advisors fighting to keep their variable compensation. The complex BICE requirements will make compliance expensive and give fodder to trial lawyers looking to prove excessive 401k fees due to conflicted investment advice.... [T]hese advisors will have a tougher time competing with fee-only advisors that won't need to have their clients sign a complicated BICE disclosure document." (Employee Fiduciary)

Is CalPERS California Dreamin'?
"CalPERS' investment results are all about beta. As long as the U.S. and global stock markets surge higher, they're fine, but if a long bear market develops, their beneficiaries and contributors are pretty much screwed. The same goes on all over the United States which why the trillion dollar state funding gap keeps getting bigger and risks toppling many state plans over if another financial crisis hits global markets." (Pension Pulse)

Looking Past Due Diligence for Benefit Plans in Mergers and Acquisitions (PDF)
"Corporate transactions involving the sale or purchase of another company or division are complex events. While employee benefit plans generally are considered in these transactions, the time and attention devoted to these plans are often minimal. This exposes the parties to additional risks, both in terms of direct costs and in long term administrative complexities. This article will review the various risks that often are undiscovered during the standard due diligence process. Health plans and retirement plans, including multiemployer plans, and executive compensation plans are all considered." (Benefits Quarterly, published by the International Society of Certified Employee Benefit Specialists [ISCEBS])

States Begin to Issue Guidance on Marriage Benefits
"Some states mention the payroll issues in their guidance and some states do not. All the states that issue guidance generally focus on income tax issues and sometimes other issues, such as pensions." [Article includes a summary of guidance issued by Alabama, Kentucky, Louisiana, Michigan, Nebraska, North Dakota, and Ohio.] (Wolters Kluwer Law & Business)

Access to Retirement and Medical Benefits by Occupation, March 2015
"Retirement benefits were available to 66 percent of private industry workers in the United States in March 2015.... Among workers in management, professional, and related occupations in private industry, 80 percent had access to retirement benefits -- compared with 39 percent in service occupations.... Medical care benefits were available to 69 percent of private industry workers in March 2015. Within private industry, 87 percent of workers in management, professional, and related occupations had access to medical care, compared with 41 percent in service occupations." (U.S. Bureau of Labor Statistics [BLS])

Deloitte and Penbridge Advisors Announce Enhanced Strategic Alliance Deloitte

Employee Fiduciary Launches Financial Advisor Directory Employee Fiduciary, LLC

Business and Employee Groups, Public and Private Sector Join Forces to Repeal the 40 Percent Tax on Health Benefits aka "Cadillac Tax" American Benefits Council

Society of Actuaries Launches Refreshed Brand Society of Actuaries

Redhawk Wealth Advisors Names Rick Keast President Redhawk Wealth Advisors, Inc.

TPA At-a-Crossroads Video Series Highlights Challenges and Solutions Unique to TPAs TPA Resources, LLC

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