Compliance

DoL Says Stock Windfall Belongs to Participants

The Department of Labor (DoL) announced it is suing the Iowa Association of Business and Industry over a stock windfall that the organization retained rather than turn over to its member companies’ benefit plans.

GAO Urges Congress to Consider 401(k) Plan Fee Disclosure

A report from the Government Accountability Office (GAO) urges Congress to amend the Employee Retirement Income Security Act (ERISA) to require more comprehensive disclosure to participants on 401(k) plan fees and business arrangements among service providers.

DoL Provides Multiemployer Plan Election Model Notice

The Department of Labor (DoL) has announced that a model notice, which may be used by employee benefit plans electing to be treated as a multiemployer plan under the Employee Retirement Income Security Act (ERISA), will be published in the Federal Register for December 1, 2006.

IRS Issues Guidance on Employer Stock Account Diversification

The Treasury Department and IRS have issued Notice 2006-107 providing transition guidance on the provision of the Pension Protection Act of 2006 (PPA) relating to diversification rights of plan participants and beneficiaries who have accounts held in publicly traded employer securities.

Guidance Provides Relief for 409A Income Reporting

The Treasury Department and the Internal Revenue Service (IRS) have issued Notice 2006-100 providing guidance to executive compensation plan sponsors and participants on how to report certain amounts deferred from executive compensation on Forms W-2 or 1009-MISC for calendar years 2005 and 2006.

Recent Pension Laws Sheds Light on Non-Qualified Plan Issues

A white paper released by National Retirement Partners, LLC and The Baker Companies discusses how the American Jobs Creation Act of 2004 (AJCA) and the Pension Protection Act of 2006 (PPA) have clarified administration and funding questions for sponsors of non-qualified benefit plans.

Fiduciary Breach Claims Must Seek Relief for Whole Plan

The US District Court for the Northern District of Ohio ruled that claims alleging a fiduciary breach by a retirement plan trustee must seek recovery for such breach on behalf of the plan as a whole, and not individual participant accounts.

FL Sheriff Sues Nationwide Over Fees

A Florida Sheriff’s Department has sued Nationwide Life Insurance Co., over allegations Nationwide’s retirement plan fees unfairly allowed the company to make a profit through a revenue sharing arrangement.

Plan Document Trumps Antenuptial Agreement

The US District Court for the Western District of Kentucky ruled that, even though the surviving spouse of a retirement plan participant waived her rights to benefits in an antenuptial agreement, the plan document dictated she receive his assets in the plan.

NASD Orders More Fines for 529 Plan Violations

The National Association of Securities Dealers (NASD) has fined Chase Investment Services Corporation of Chicago and MetLife Securities, Inc. of New York $500,000 each for failing to establish systems and procedures to supervise the sales of 529 College Savings Plans.

Map Quest

Mapping funds remains one of the central issues in maintaining 404(c) compliance

Now What?

Pension reforms pose opportunities, threats for advisers