Excerpt: "EBIA Comment: Viewed against prior-year statistics, the high number of [Delinquent Filer Voluntary Compliance] Program filings received for FY 2009 -- which has nearly doubled in a few years' time -- is notable. (For more information, see our Checkpoint Newsstand article.) One contributing factor may be the addition of an online penalty calculator and payment option, which has made the DFVC Program easier to use." (Employee Benefits Institute of America)

2009 was a challenging year for employers and employees. 

From our vintage point, we are seeing more employers than in recent years finding it necessary to return excess 401(k) contributions to Highly Compensated Employees by the March 15 deadline or provide a supplemental 100% vested contribution called a Qualified Non-Elective Contribution, a/k/a “QNEC”.

 

Unfortunately, passing 401(k) discrimination tests is not as easy as it was for Bill and Ted passing  their history test in the 1989 classic comedy, Bill & Ted’s Excellent Adventure. If you missed it (it comes around from time to time on cable), Bill S. Preston, Esq. played by Alex Winter and and Ted Logan played by Keanu Reeves are two high school slackers that use a time machine to go back in time to bring back a group of famous historical figures to use in their presentation. 

 

Those illustrious individuals, shown above, that were thrust into 1989 California (and what a trip that was) included Napoleon Bonaparte, Billy the Kid, Socrates, Sigmund Freud, Ludwig van Beethoven, Genghis Khan, Joan of Arc, and Abraham Lincoln.

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Reforms Proposed for Reg FD Compliance Week (subscription) The committee, co-chaired by AARP Financial President Richard Hisey and TIAA-CREF's head of corporate governance, Hye-Won Choi, was formed last June to give ...

In "It's Time for Swaps to Lose Their Swagger," New York Times reporter Gretchen Morgenson points the finger at regulators for not doing enough to stem the tide of moral hazard with respect to credit default swaps. While this superstar financial analyst rightly points out that risk transference continues to favor "high octane" traders and cost taxpayers and shareholders plenty, I don't agree that more "one size fits all" regulation is the answer. There is simply no evidence that a greater quantity of statutes will bridge the gap between risk management and reward. I don't have to be a behavioral expert to know that financial traders are motivated by the money they can make in a relatively short period of time. New rules beget changed incentives and often times perverse behavior. Does the law of unintended consequences ring a bell? Let's undo all the bad rules in place and focus on incentives that count. Start with bonuses that take into account the risk cost associated with expected return. Risk budgetize trading payouts.

If I'm playing by the rules, doing a great job of risk controls and acting in good faith on behalf of the proper constituencies, why should I be forced to pay for others' folly? Wouldn't my money and time be better spent on trying to encourage prudence on the part of industry participants, while informing the market at large how much my organization is doing right? For those who are in the vanguard of excellent risk management, take a bow. Get out the megaphones. Let the world know!

In December 1994, I was honored by the

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Excerpt: "[In a conversation with Kathy Elliott, (a CPA specializing in 403(b) audits)] we went into more detail on my blog on 403(b) plan disqualification. In talking about what now seems to be the obvious, Kathy pointed out the absurdity of 'disqualifying' an entire 403(b) plan: the employer suffers little direct tax sanction, and the burden of the employer's errors are borne by the employees. There is no 'stick' to the 'carrot and stick' combination that makes 401k plans work, according to Kathy." (Robert J. Toth, Jr.)

Our friends at Employee Benefit News Legal Alert published one of those "must read" articles. Attorney Cynthia Marcotte Stamer writes Tough Times Are No Excuse for ERISA Shortcuts.

Ms. Stamer correctly points out that irrespective of the business hardships that plan sponsors are facing, the Department of Labor (DOL) will aggressively pursue enforcement if they perceive that a plan sponsor has failed take the necessary steps to protect plan participants.

Here are three key points she makes:

1. Many employers don't understand their fiduciary responsibilities and potential liabilities associated with sponsoring a retirement plan.
2. Plan sponsors frequently incorrectly assume that they can rely upon retirement plan service providers to ensure that their fiduciary responsibilities are being met.
3. Plan sponsors in other cases don't realize that they meet ERISA's functional definition of a fiduciary.

For comprehensive and understandable resources on what this "fiduciary stuff" is all about, check out The Fiduciary Education Campaign, a compliance assistance initiative of the Employee Benefits Security Administration (EBSA), the DOL agency responsible for fiduciary oversight.

Employee Benefit News Legal Alert is just one of the free

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SEC Tinkers With Variable Annuity Prospectus Compliance Reporter Kotapish said early attempts at variable annuity summary prospectuses have been heavy with cross-references to the larger prospectus documents, ...

IRS to Mail 401(k) Compliance Questionnaires Planadviser.com Other IRS reviews have shown significant 401(k) noncompliance from a lack of internal controls at the plan sponsor. According to the alert, ...

Excerpt: "Although the new regulations governing 403(b) plans are already in effect, many plan sponsors admit to not fully understanding certain compliance requirements. The TIAA-CREF Institute said its survey found nearly three-quarters (74%) of respondents believe they are fully compliant with the new regulations. However, nearly half (45%) say they have difficulty understanding the regulations." (PLANSPONSOR.com)

ERISA compliance: 55% of firms wide open for big fines CFODailyNews.com A recent study gives powerful incentive to check-in with your Benefits department to be sure you're in compliance with the Employee Retirement Income ...

Nationwide Executive among Top 75 Most Powerful African American Business ... Business Wire (press release) Prior to joining Nationwide, Baldwin Moody headed global compliance and legal groups at Citibank and served as chief compliance officer for TIAA-CREF. ... and more »

Excerpt: "Given that many advisers may rely upon cross-selling and rollovers to augment their plan level services, we recommend undertaking a review of current policies to ensure that such activities are consistent with regulatory and home office guidance. The list of action items [on the tartet page] provides a step-by-step analysis to determine compliance with the aforementioned pending regulations." (Reish & Reicher)

Time Warner, American Express, Lincoln Financial tax jobs greensboro Moses Cone, SchoolSystem Etc..anyone tax jobs greensboro At tax jobs greensboro Companies And texas oil field jobs You Suggest. da6527b6fb Business Tax Compliance ...

SAN FRANCISCO, CA--(Marketwire - 01/21/10) - GuardianEdge, the leader in endpoint data protection , today announced that ResCare, one of the nation's leading providers of services to people with disabilities and the elderly, has selected GuardianEdge to secure the company's more than 6,000 endpoint devices and to assist in Health Insurance Portability and Accountability Act (HIPAA) compliance ...

DST Systems and Blue Frog Solutions to Deliver Annuity Order Entry Through DST ... PR Newswire (press release) 19 /PRNewswire-FirstCall/ -- DST Systems and Blue Frog Solutions have collaborated to provide an annuity order management compliance solution to independent ... and more »

 

When I was a doctoral student, there were invariable jokes about spending lots of time in school, only to find myself out on the street, competing with other PhDs to deliver pizza and otherwise under utilize what I had learned along the way.

Keep in mind that my situation is somewhat unique. I grew up in industry before I went back for my doctorate in finance with a minor in math. I had already worked over a dozen years on various trading desks. As a result, my objectives for higher education focused more on understanding the link between theory and practice. I was not disappointed. The experience has served me well in countless ways. I honed my abilities to model, test assumptions, ask questions and connect sometimes disparate dots. Time in the classroom at many levels (undergraduate, graduate, executive, professional) gave me a firsthand crack at realizing the importance of clear communication.

Unfortunately, not everyone is enjoying the graduate school experience. According to "Another Reason to Just Say No to a Ph.D." by Gabriela Montell (The Chronicle of Higher Education,January 14, 2010), real earnings for those with a professional or doctoral degree have dropped between 1999 and 2008. Taking a look at an article by Professor William Pannapacker who writes under the name of Thomas H. Benton ( "Graduate School in the Humanities: Just Don't Go, The Chronicle of Higher Education, January 2009), it strikes me that there is a great need to drill down into what the employment statistics truly

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Excerpt: "EBIA Comment: These examination projects reflect and reinforce the IRS's concern about small plan compliance. As the IRS summary of Project #1 observed: 'The results revealed the expected -- Various issues arise with more frequency in smaller plans due to less oversight and weaker internal controls.'" (Employee Benefits Institute of America)

 

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At the December meeting of the South Ripley School Board it was unanimously approved to change the date of the January meeting from 18 to 11. This was done to keep in compliance with Indiana law requiring board reorganization by January 15.

Excerpt: "Rev. Proc. 2008-50, the most recent Employee Plans Compliance Resolution System (EPCRS), provides the correction methods for handling a plan in which a failed ADP/ACP test is not corrected in a timely manner." (McKay Hochman Co.)

Excerpt: "A large regional healthcare client requested a full compliance and investment review of its 403(b) plan to ensure it was prepared for the implementation of the final 403(b) regulations. The regulations imposed a number of new requirements on sponsors of 403(b) plans. The most significant requirement was that all 403(b) plans be in writing, which was a huge change for sponsors who had limited involvement in the operations of the plan." (Milliman)

A new study by Watson Wyatt highlights the wide-ranging variations in hybrid pension plans, reflecting the spectrum of sponsors’ workforce planning, compliance and other needs and goals. It examines eligibility requirements, definitions of applicable compensation, benefit formulas, interest rates and transition methods for cash balance plans (CBPs) and pension equity plans (PEPs).

White Paper Helps 403(b) Sponsors with Fiduciary Roles Planadviser.com ... Investment Advisors, Inc., has released a white paper about 403(b) plan compliance with statutes of the Employee Retirement Income Security Act (ERISA). ...

Excerpt: "EBIA Comment: While this quarterly newsletter (a companion to the IRS's Employee Plans News) does not delve deeply into the subjects it covers, it provides a helpful overview of recent IRS and DOL developments with links to more detailed information. The newsletter often provides insight into issues of current concern to the IRS, as illustrated by this edition's internal controls interview." (Employee Benefits Institute of America)

Miriam Krol, American Council of Life Insurers to Speak at KC's Event on ... PR.com (press release) In 1997, she was recruited by MetLife to serve as Vice President, Group Contracts and Compliance Division. Before joining ACLI, Miriam was a consultant to ...