Products September 30, 2010

SPARK Releases Final Data Standards for Retirement Income Solutions

The SPARK Institute has released final information sharing standards and data records for lifetime income solutions that are used in retirement plans.
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The information sharing standards document, “Data Layouts for Retirement Income Solutions (Version 1.0),” is posted on The SPARK Institute Web site at http://www.sparkinstitute.org/comments-and-materials.php.  The SPARK Institute will also maintain a Q&A section on its Web site to address technical questions that may arise as the standards are adopted.    

According to a news release, the standards accommodate such in-plan options as fixed deferred annuities, guaranteed minimum withdrawal benefits (GMWB), and guaranteed minimum income benefits (GMIB) solutions under several different service models followed by insurance carriers, including a recordkeeper-traded model, provider-traded  model, and guarantee administrator model.    

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“These standards will make it easier and more cost effective for recordkeepers and insurance carriers to make retirement income solutions available to plan participants,” said Larry Goldbrum, SPARK General Counsel, in the news release.  
Compliance September 30, 2010

Business Groups File Lawsuit Against SEC

Two national business groups have gone to court to challenge the new Securities and Exchange Commission (SEC) proxy access rule.
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Filing the challenge with the U.S. Court of Appeals for the District of Columbia Circuit were the U.S. Chamber of Commerce and the Business Roundtable.  The groups charged in the court document that the rule is arbitrary and capricious, violates the Administrative Procedure Act, and that the SEC failed to properly assess the rule’s effects on “efficiency, competition and capital formation.”

Specifically, the groups are accusing the SEC of having:

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  • Erred in judging the costs that proxy access would impose;
  • Ignored evidence and studies highlighting the adverse consequences of proxy access, including that activist shareholders would use the rule as leverage to further their special interest agendas; and
  • Not adequately considering state laws regarding access to the proxy and related principles.

“The SEC’s proxy access rule empowers unions and other special interests at the expense of the vast majority of retail shareholders,” said David Hirschmann, president and CEO of the U.S. Chamber’s Center for Capital Markets Competitiveness, in the news release. “This special interest-driven rule will give small groups of special interest activist investors significant leverage over a business’ activities. This will undermine a company’s ability to grow and create jobs.”

The SEC proxy access rule requires a corporation to include in its proxy materials director nominees put forward by a shareholder (or group of shareholders) who have owned 3% or more of company stock for at least three years (see SEC Beefs up Proxy Access Regs).  

The business groups’ court petition is at http://www.uschamber.com/sites/default/files/files/1009uscc_sec.pdf.

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