Distributions - misc (BenefitsLink.com)Headlines re Distributions - misc, gathered by BenefitsLink.comSenators Ask for PBGC Benefits' Calculation Probe- (Found July 8, 2008 ) Excerpt: "Citing a recent situation in which the nation's private-sector pension insurer demanded repayments from retirees after the agency had miscalculated pension benefits, a group of U.S. senators called for an agency investigation." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=42137 Guidance Overview U.S. Supreme Court Rules Disability Benefit Formula That Credits Younger Workers with Additional Years of Service Does Not Violate t- (Found July 8, 2008 ) Pages 4-6 of 11 pages. Excerpt: "The Court's opinion saves the imputing of service tied to pension eligibility from being deemed per se unlawful. Because of the numerous factors and qualifications referred to in the majority opinion, it is unclear, however, how broadly its reasoning and rule may apply beyond this context." (Proskauer Rose LLP)http://www.proskauer.com/news_publications/newsletters/erisa/2008_07_01/_res/id=sa_PDF/114... Guidance Overview IRS Provides Tips for Correcting Erroneous 401(k) Plan Hardship Distributions- (Found July 8, 2008 ) Excerpt: "In order to find such a mistake, the IRS recommends that plan sponsors review: (a) the plan document to determine when distributions may occur; (b) each plan distribution and its related documentation showing the reason for the distribution; and (c) whether distributions designated as hardship distributions were made in accordance with the terms of the plan." (Wolters Kluwer)http://hr.cch.com/news/pension/070208a.asp Anheuser-Busch to Cut Lump-Sum Payouts- (Found July 8, 2008 ) Excerpt: "Anheuser-Busch Cos. will change the way it calculates lump-sum pension payouts that will mean a reduction in payouts of about 5 percent to 6 percent in 2009 and about 15 percent by 2012, according to an internal memo addressed to salaried employees from Tim Farrell, vice president of corporate human resources. The change will affect only salaried employees." (Workforce Management; free registration required)http://www.workforce.com/section/00/article/25/62/74.php Official Guidance Text of IRS Revenue Ruling 2008-40: Transfers from Tax-qualified Plan to Nonqualified Foreign Trust or Puerto Rican Plan (PDF)- (Found July 8, 2008 ) 9 pages. Certain transition relief is provided; also discusses application of section 410(b) minimum coverage rules to employees in Puerto Rico and other possessions of the United States. Excerpt: "HOLDINGS: 1. A transfer of amounts from a trust under a plan qualified under 401(a) to a nonqualified foreign trust is treated as a distribution from the transferor plan. 2. A transfer of assets and liabilities from a qualified plan to a plan that satisfies section 1165 of the Puerto Rico Code..http://benefitslink.com/IRS/revrul2008-40.pdf Official Guidance Text of PBGC Proposed Regs: Termination of Single-Employer Plan While Sponsor in Bankruptcy (PDF)- (Found July 8, 2008 ) 15 pages. Excerpt: "This is a proposed rule to implement section 404 of the Pension Protection Act of 2006. Section 404 amended Title IV of ERISA to provide that when an underfunded, PBGC-covered, single-employer pension plan terminates while its contributing sponsor is in bankruptcy, sections 4022 and 4044(a)(3) of ERISA are to be applied by treating the date the sponsor's bankruptcy petition was filed as the termination date of the plan. . . .Thus, under the 2006 amendments, when a plan..http://benefitslink.com/pbgcregs/E8-14813.pdf The Best Way to Take a Pension - A Lifetime of Monthly Checks Usually Beats a Big Lump Sum- (Found July 8, 2008 ) Excerpt: "According to an analysis by T. Rowe Price, you have nearly a 30% chance of depleting a $300,000 lump sum by age 85, assuming you invest in a diversified stock and bond portfolio and withdraw $2,000 a month. Live to 90 and the likelihood hits 57%. As Oxnard, Calif. actuary Steve Vernon notes, 'Not good odds for such an unpleasant outcome.'" (CNNMoney.com)http://money.cnn.com/2008/06/30/pf/retirement/best_pension.moneymag/ Guidance Overview IRS Proposed Regs Extend DB Plan Accrual Rules for Plans with Two or More Formulas- (Found July 8, 2008 ) Excerpt: "The IRS has issued proposed regulations that refine and extend defined benefit (DB) plan accrual rules for plans with two or more benefit accrual formulas, such as converted cash balance plans. The proposed rules provide a limited exception to the requirement to aggregate accrued benefits under all statutorily prescribed benefit accrual formulas." (Wolters Kluwer)http://hr.cch.com/news/pension/070108a.asp Airline Pilots Retirement Lawsuit- (Found July 8, 2008 ) Excerpt: "The BLT (Blog of Legal Times) has posted an update on litigation by pilots against the FAA over the mandatory retirement age. Let me give you the background before that update to give the issue context." (Workplace Prof Blog)http://lawprofessors.typepad.com/laborprof_blog/2008/05/airline-pilots.html |