Ret plans - design (BenefitsLink.com)Headlines re Ret plans - design, gathered by BenefitsLink.comFlorida's Double Dipping Public Employees Cost Hundreds of Millions- (Found June 24, 2008 ) Excerpt: "All of these employees are members of what's called the Deferred Retirement Options Plan or DROP. DROP guarantees public employees a lump sum payment, plus retirement benefits five years after enrolling in the program. New Port Richey State Senator, Mike Fasano says the DROP program was designed to weed out high paid public employees and then bring in new employees at lower salary. However Fasano says people are not doing that because they've found a loophole and are double...http://www.tampabays10.com/news/local/story.aspx?storyid=82536&catid=8 Guidance Overview Correction of Elective Deferral Contribution by Ineligible Employee- (Found June 24, 2008 ) Excerpt: "There is little formal guidance for this type of correction. The formal guidance that exists is in EPCRS . . . . The EPCRS process may not always be desired by the employer. Therefore, many plan documents now provide a procedure that IRS has approved to be followed." (McKay Hochman Co., Inc.)http://www.mhco.com/Charts/2008/Ineligible_Employee_Deferral_Correction_040408.htm Policy Brief: Increasing Annuitization in 401(k) Plans with Automatic Trial Income (PDF)- (Found June 24, 2008 ) 8 pages. Excerpt: "In a paper for The Hamilton Project, a diverse group of retirement experts -- William G. Gale and J. Mark Iwry of the Brookings Institution, David C. John of The Heritage Founcation, and Lina Walker of the Retirement Security Project -- propose a strategy for expanding the role of lifetime income in 401(k) plans." (The Brookings Institution)http://www.brookings.edu/papers/2008/~/media/Files/rc/papers/2008/06_annuities_gale/06_ann... Guidance Overview Beneficiary Designation Form Not Valid When Participant Did Not Sign and Date It- (Found June 24, 2008 ) Excerpt: "This case is another cautionary tale: ERISA administrators that fail to have procedures in place (or fail to follow those procedures to ensure that beneficiary designation forms are properly completed, signed, and dated before they are accepted) risk expensive and time-consuming lawsuits . . . ." (Employee Benefits Institute of America)http://www.ebia.com/weeklyguest/19418/20080704e51652ebcc312f8d15385eba481f5efa/BNL080612 Guidance Overview Plan Language Required Dismissal of Fiduciary Breach Claim Based on Alleged Misclassification of Employees as Exempt- (Found June 24, 2008 ) Excerpt: "As we learned from earlier cases (for example, the Vizcaino case against Microsoft . . .), employee misclassifications for other purposes, such as payroll tax withholding, or as here, for FLSA purposes, can have consequences for 401(k) and other employee benefit plans. While the court dismissed the fiduciary breach claim, we note that nothing in the opinion prevents the employees from renewing a claim for benefits if they are ultimately successful in making their FLSA claim, are..http://www.ebia.com/weeklyguest/19417/20080704967413565bdf1a26ba6287cfcad29fc3/BNL080612 Will Income Plans Wrapped Around 401(k)s Thrive- (Found June 24, 2008 ) Excerpt: "Industry leaders are divided on whether income options in 401(k) plans will succeed and become a popular product in the next decade. Issues of portability, cost and complexity are still hurdles these products must overcome. Their success will depend on how quickly and how fast vendors can solve these issues, industry leaders said." (Investment News; free registration required)http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080609/FREE/658250570/1018 Dubai, United Arab Emirates, to Launch Compulsory Health Care System- (Found June 24, 2008 ) Excerpt: "A compulsory health care system largely funded by employers will be launched next year by the Dubai Health Authority." (Business Insurance)http://www.businessinsurance.com/cgi-bin/news.pl?post_date=2008-06-17&id=13216 Automatic 401(k)s Finding Favor - Lockheed, Nationwide Financial Report Higher Participation- (Found June 24, 2008 ) Excerpt: "So-called automatic 401(k)s, permitted under the Pension Protection Act passed by Congress two years ago, are already having a dramatic effect, Nationwide's Chief Administrative Officer Terri Hill said at a conference in Washington last week. About 96 percent of employees are saving for their retirement, up from 74 percent two years ago, she said." (The Washington Post; free registration required)http://www.washingtonpost.com/wp-dyn/content/article/2008/06/14/AR2008061400122.html Opinion ERISA Defined Benefit (DB) Retirement Plans Aren't Dead Yet- (Found June 24, 2008 ) Excerpt: "The well-publicized problems that some companies have experienced with their pension plans gives the impression that DB plans are no longer viable alternatives as employer-sponsored retirement vehicles. However, that is not necessarily true. In the right circumstances, DB plans could be the best option for some companies." (Aiken and Aiken)http://aikenandaiken.com/blog/benefits-lawyers/54 Opinion American Benefits Council Comment Letter to IRS on Proposed 204(h) Notice Regulations (PDF)- (Found June 24, 2008 ) 4 pages. Excerpt: "This letter is submitted on behalf of the American Benefits Council . . . with respect to the proposed regulations regarding advance notice of plan amendments significantly reducing the rate of future benefit accrual." (American Benefits Council)http://www.americanbenefitscouncil.org/documents/204h_irs_comments061908.pdf |