Spencer Benefits NetNew – May 10, 2013

 

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Featured This Week

New Reports

  • Analysis: Interest Rates For Funding Calculations, 4/13 (101.2.-7)
       

(Read Intelliconnect) »

  • Survey: Monthly Retirement Plan Interest Rates, 4/13 (101.2.-1)
       

 

(Read Intelliconnect) »

  • Analysis: Final DOL Regulations On MEWAs, 4/13 (606.1.-1)
       

 

(Read Intelliconnect) »

  • Analysis: Health Reform Rules Specify Required Preventive Care Services, 4/13 (514.1.-1)
       

 

(Read Intelliconnect) »


News

May 10, 2013

Text: EBSA, Proposed Regulation, Pension Benefit Statements

(Read Intelliconnect) »

EBSA Issues Proposed Regs On Reporting Of Lifetime Income Streams

The Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) has issued an advance notice of proposed rulemaking describing guidance under consideration that would require the accrued benefits in a participant’s defined contribution plan (e.g., a 401(k) or 403(b) plan) to be expressed on the pension benefit statement as an estimated lifetime stream of benefits in addition to being presented as an account balance. Comments are due by July 8, 2013. The proposed regulations were published in the May 8
Federal Register

(Read Intelliconnect) »

Colorado Expands FMLA Leave To Cover Civil Unions, Domestic Partners

Under a law signed by Colorado Gov. John Hickenlooper on May 3, the state has expanded the circle of family members for whom Colorado employees are entitled to take leave from work under the federal FMLA. The law will be effective following 90 days after the general assembly adjourns (which would be Aug. 7, 2013, if adjournment takes place May 8 as expected), unless a referendum petition is filed against the act. If that happens, the act would not take effect unless approved by the electorate at the November 2014 general election…

(Read Intelliconnect) »

Seventh Circuit Applies Moench Presumption At Pleadings Stage To Dismiss Stock Drop Case

A claim against retirement plan fiduciaries alleging a violation of ERISA’s duty of prudence in connection with a drop in the value of employer stock may be dismissed at the pleading stage if the participant’s allegations are not enough to overcome the Moench presumption of prudence, the Seventh Circuit U.S. Court of Appeals has held in
White, et al. v. Marshall & Isley Corporation, et al. The Seventh Circuit joins the Second, Third and Eleventh Circuits in viewing the
Moench presumption as a pleading requirement, rather than an evidentiary burden…

(Read Intelliconnect) »

May 9, 2013

Federal Interest Rates Announced For Pensions

The following interest rates have been announced for use in the operation and administration of qualified pension plans…

(Read Intelliconnect) »

Lower Health Spending Growth Is Due To Structural Health Changes

The slowdown in U.S. health spending growth rates may be due to structural changes in the health care system and not due to the economy, according to two new studies published recently in
Health Affairs. Thus, the studies assert that the slowdown could continue even after the economy picks up…

(Read Intelliconnect) »

May 8, 2013

Employer-Sponsored Retirement System Plays “Critical Role”

The employer-sponsored retirement system plays a critical role in helping American workers adequately save for retirement and offers numerous benefits not otherwise available to them, according to Aon Hewitt. Aon says that recent research shows that employees who participate in their company’s retirement savings plan are significantly more prepared than those who do not. Employees who do not contribute to their employer savings plan have an average retirement savings shortfall of 10.8 times pay, Aon reports, compared to a shortfall of just 2.2 times pay for the full–career contributor. For the average employee making $70,000, that equates to a savings shortfall of $756,000 at retirement…

(Read Intelliconnect) »

Use Of Online Calculators And Financial Advisors Boost Retirement Confidence: EBRI

The use of online calculators and retirement advisors are linked to higher levels of retirement confidence, according to research from the Employee Benefit Research Institute (EBRI). The EBRI report analyzed data from the
2013 Retirement Confidence Survey, using a modified version of the EBRI Retirement Security Projection Model (RSPM)…

(Read Intelliconnect) »

May 7, 2013

Text: IRS, Rev. Proc. 2013-25, Inflation Adjusted Amounts For HSAs

(Read Intelliconnect) »

IRS Issues 2014 Inflation-Adjusted Amounts For HSAs

The Internal Revenue Service has issued inflation adjusted amounts under Code Sec. 223 for health savings accounts (HSAs) for 2014. For calendar year 2014, the annual limitation on deductions under Code Sec. 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,300. For calendar year 2014, the limitation on deductions under Code Sec. 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,550…

(Read Intelliconnect) »

Remand To Plan Required To Determine Participant’s Access To SPD Containing Designation Information

A pension plan administration committee must reconsider its decision that, because the wrong designation form was used, a deceased participant’s putative beneficiary is not entitled to the participant’s vested benefit, the Sixth Circuit U.S. Court of Appeals has ruled in
Liss v. Fidelity Employer Services Company, LLC. On remand, the plan’s administrative committee must consider whether a summary plan description (SPD), which specifies the correct form to be used, was actually furnished to the participant…

(Read Intelliconnect) »

May 6, 2013

Employees Are Not Ready For CDHPs: Survey

Nearly three-quarters (72 percent) of the American workforce has not heard of the phrase “consumer-driven health care,” according to recent research from Aflac. The survey,
2013 Aflace WorkForces Report (AWR), noted that employees are not prepared to take greater control, handle rising costs, and make decisions regarding their health care…

(Read Intelliconnect) »

Democrats Introduce Measure In Both House, Senate To Extend FMLA Rights To Same-Sex Families

Rep. Carolyn B. Maloney (D-NY) and Sen. Richard Durbin (D-Ill) reintroduced the Family and Medical Leave Inclusion Act (S. 846) on April 25, a measure that would allow employees to take unpaid leave to care for a same-sex spouse or partner, parent-in-law, adult child, sibling, grandchild, or grandparent…

(Read Intelliconnect) »