Delaying retirement past 65 doesn’t guarantee income adequacy: EBRI

If baby boomers and Gen Xers delay their retirement past the age of 65, many of them still would not have adequate income to cover their basic retirement expenses and uninsured health care costs, according to a study by the Employee Benefit Research Institute (EBRI) based on data from its Retirement Security Projection Model®. A […]

Aon Hewitt Study Shows Record-High Participation In DC Plans Driven By Automatic Enrollment

from Spencer’s Benefits Reports: In 2010, 75.8% of eligible employees participated in their company’s defined contribution retirement plan, according to a survey of 120 large companies by Aon Hewitt. This rate is higher than in 2009 (73.7%) and is the highest level since Aon Hewitt began tracking this data in 2002. According to Aon Hewitt, […]

EBSA To Align Applicability Dates For Fee Disclosure Rules With Fiduciary Disclosures

from Spencer’s Benefits Reports: The Department of Labor’s Employee Benefits Security Administration (EBSA) has proposed to align the applicability dates for its retirement plan fee disclosure rules with its fiduciary-level fee disclosure interim final rule. The notice was published in the in the June 1 Federal Register. EBSA published an interim final ERISA Sec. 408(b)(2) […]

IRS grants tax relief to victims of flooding in Mississippi

The IRS has announced tax relief for taxpayers who reside or have a business in the federal disaster area of Adams, Bolivar, Claiborne, Coahoma, DeSoto, Humphreys, Issaquena, Jefferson, Sharkey, Tunica, Warren, Washington, Wilkinson, and Yazoo counties in Mississippi affected by flooding beginning on May 3, 2011. The relief extends until July 5, 2011 deadlines for […]

IRS releases draft 2009 Form 8955-SSA

The IRS has posted a draft version of 2009 Form 8955-SSA on its website. Comments on the draft form may be submitted to the IRS on its website. The IRS asks that the word “DRAFT” be included in the comments. The draft Form 8955-SSA, the Social Security Administration’s ERISA Form 8955-SSA 2-D Barcode Standards, IRS […]

Participants may consider surrender charges when determining taxable value of life insurance policies distributed from nonqualified plan

Participants in a terminated nonqualified plan were required under Code Sec. 402(b) to pay tax on the fair market value of the life insurance policies distributed to them, but the surrender charges of the policies, as well as other factors, could be considered in determining FMV, the U.S. Tax Court has ruled in Schwab v. […]

Mercer provides checklist for sponsors of defined benefit plans

Mercer has developed a “checklist” to help defined benefit (DB) plan sponsors address challenges they are facing in today’s environment. The checklist is also beneficial for plan sponsors who are looking to improve their administrative processes and/or are contemplating moving their DB plan to a new co-sourced or outsourced relationship, according to Mercer. Administering DB […]

Funding Status Of Multiemployer Plans Slowly Improving

from Spencer’s Benefits Reports: The average funded percentage of multiemployer plans increased slightly to 89% for plan years ending Dec. 31, 2010, compared with 86% for plan years ending Dec. 31, 2009, according to the Segal Company. However, the percentage is much lower than the 97% funded percentage for plan years ending Dec. 31, 2007. […]

High Court vacates and remands case involving improper notification of cash balance conversion

ERISA §502(a)(1)(B) does not authorize the relief provided by a district court for a plan administrator’s notice failures concerning the conversion of a defined benefit plan to a cash balance plan, according to the U.S. Supreme Court in CIGNA Corporation v. Amara. However, the Court found that ERISA §502(a)(3), which permits “appropriate equitable relief” for […]

IRS grants tax relief to victims of severe storms, tornadoes, straight-line winds, and flooding in Tennessee

The IRS has announced tax relief for taxpayers who reside or have a business in the federal disaster area of Dyer, Lake, Obion, Shelby, and Stewart counties in Tennessee affected by severe storms, tornadoes, straight-line winds, and flooding on April 19, 2011. The relief extends until June 30, 2011 deadlines for filing most returns, including […]