Employer that sold division not exempt from withdrawal liability under MPPAA

An employer was not exempt from withdrawal liability under the Multiemployer Pension Plan Amendments Act (MPPAA) because the purchaser of one of its operating divisions lacked the obligation to contribute substantially the same number of contribution base units to the pension fund post-sale as the employer had contributed pre-sale, according to the U.S. Court of […]

Presumption of prudence shields fiduciaries from liability for continued investment in employer stock

The U.S. Court of Appeals in Atlanta (CA-11) has adopted the presumption of prudence standard for determining fiduciary liability attendant to continued investment in employer stock. However, the court also noted that rebutting the presumption does not require fiduciary knowledge of the company’s imminent financial collapse. Home Depot structured its plan as both an eligible […]

PSCA survey reports increase in use of target date funds, Roth option by 403(b) plans

The latest 403(b) plan sponsor survey from the Plan Sponsor Council of America (PSCA) found a greater use of target date funds and a significant increase in the adoption of a Roth feature. The survey, which was sponsored by the Principal Financial Group®, shows more stability and less uncertainty among 403(b) plan sponsors. “The engagement […]

Spencer’s Benefits Reports NetNews – June 29, 2012

About this Newsletter The Spencer’s Benefits Reports is a summary of the week’s news items posted in the WHAT’S NEW pages of Spencer’s Benefits Reports Online. For questions regarding this email service, contact Customer Service at (800)449-9525. NetNews Subscription Want to receive these Newsletters via E-mail? Sign Up / Unsubscribe hr.cch.com Resources Online Store Customer […]

Reid proposes to attach pension funding provisions to student loan bill

In a letter to House Speaker John Boehner (R-OH) and Senate Minority Leader Mitch McConnell (R-KY), Senate Majority Leader Harry Reid (D-NV) has offered to attach two pension funding provisions to pay for the estimated $6 billion cost of a one-year extension of student loan rates, which are scheduled to double on July 1, 2012. […]

EPCU finds compliance errors in SEP plans

The “SEP Plan Compliance Check” project conducted by the IRS’s Employee Plans Compliance Unit (EPCU) has found errors made by both Simplified Employee Pension (SEP) plan sponsors and the financial institutions filing the SEP-IRA contribution information. The EPCU project focuses on determining the accuracy of information reported on Forms 5498 and compliance with regard to […]

Pension & Benefits NetNews – June 26, 2012

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EP plan examinations reveal common operational errors in SIMPLE IRAs, SARSEPs

In the latest issue of Retirement News for Employers, IRS Employee Plans (EP) has revealed common operational errors made by plan sponsors of SIMPLE IRA plans and SARSEPs. If a plan failure is significant, the plan will be ineligible for salary deferrals, and employer plan contributions will be nondeductible. The IRS estimates that there are […]

PBGC intends to request OMB approval of revisions of information collection in PBGC’s QDRO booklet

The PBGC has given notice that it intends to request that the Office of Management and Budget (OMB) approve revisions of the information collection in the PBGC booklet entitled “Qualified Domestic Relations Orders & PBGC,” which provides guidance on how to submit a proper qualified domestic relations order to the PBGC. The current OMB approval […]

Participants’ right to sue for fiduciary breach under ERISA does not require joinder of trustees

Plan participants’ right to bring suit under ERISA §502(a)(2) and (3) for breach of fiduciary duty is not conditioned on a pre-suit demand on plan trustees or joinder of the trustees, the U.S. Court of Appeals in Philadelphia (CA-3) has ruled. Requiring fiduciaries to sue themselves as a condition of participant relief would subvert the […]