Income Guarantees in Defined Contribution Plans Outlines key ERISA and tax code considerations involved in an employer considering to purchase annuities with 401k assets. The rules will be quickly evolving as the Employee Benefit Security Administration and the IRS develop rules intended to make the purchase of annuities and other insurance guarantees simpler and much more effective. Source: Businessofbenefits.com
Perceptions of Retirement Preparation Is a significant portion of us right on track to retire with the nest eggs we'll need? Or, are American workers doomed to work-'til-we drop because we're perennial under-savers? Get used to this kind of confusion. As 77 million baby boomers head toward retirement, more and more financial firms are shifting their focus to the distribution/withdrawal stage of an investor's life as opposed to his/her asset accumulation savings stage. The race is on to come with a formula, process, or products that can ease boomers' twin worries about retirement: 1) Will I be able to afford the lifestyle I want? and 2) How can I be sure I don't run out of money? Source: Foxbusiness.com
Basic Principles of the Blackout Notice A blackout period is defined as a period of more than three-business days during which a participant has been "temporarily suspended, limited or restricted" from any one of the following: directing or diversifying assets credited to their account, obtaining a distribution, or obtaining a loan. This article covers the basics. Source: McKay Hochman
The Impact of Automatic Enrollment in 401k Plans on Future Retirement Accumulations This EBRI study analyzes plan-specific data of 1,000 large defined contribution plans for salaried employees in 2005 and 2009 to compare a sub-sample of plan sponsors that did not have auto-enrollment in 2005 but that had adopted it in 2009. Study found that the average change was positive under auto-enrollment in each of the following three categories: the first-tier match rate, the effective match rate and the average total employer contribution rate. Source: Employee Benefit Research Institute
Hartford Fee Lawsuit - Court Grants Preliminary Approval of Settlement On March 3, 2010, the district court in Connecticut granted preliminary approval of the proposed settlement in Phones Plus, Inc. v. Hartford Life Insurance Co. Under the settlement, Hartford will pay approximately $14 million and will make several changes to its basic plan documents, group annuity contracts and funding agreements. Hartford also will provide to its current and future plan customers additional disclosures regarding revenue sharing. Source: Groom Law Group
IRS Addresses HEART Changes for Employers The Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART) provided tax breaks and incentives for military personnel and affected how employers treat the wages and benefits of employees on military leave. In Notice 2010-15, the IRS addresses various HEART provisions, including those affecting differential wage payments, survivor and disability retirement benefits and certain plan distributions. Source: Buck Consultants
403(b) Arrangements - Title I Exemption ASPPA and NTSAA filed comments with the DOL regarding the "limited involvement" safe harbor exemption from Title I of ERISA for certain 403(b) arrangements offered by 501(c)(3) organizations. Relief was requested for arrangements which may now be subject to Title I as a result of the guidance provided by FAB 2010-01. Source: ASPPA |
