IRS Proposes Regulations on PPA Requirements for Hybrid Plans
The IRS has proposed regulations to implement the Pension Protection Act of 2006 (PPA) requirements for hybrid plans. The regulations expand on the transitional guidance released last year in Notice 2007-6, clarifying some issues and asking for comments on others. Form 5500 in Transition
The U.S. Department of Labor’s Employee Benefits Security Administration, in conjunction with the IRS and the Pension Benefit Guaranty Corporation, recently finalized new Form 5500 regulations, making a few changes to the proposed version. DOL Releases Opinion Letter on Pension Assets and Politically Motivated Proxy Activity
Pension fiduciaries may not engage in politically motivated proxy activity, according to an opinion letter released by the U.S. Department of Labor (DOL). The letter states that fiduciaries may not introduce or support proxy resolutions unless doing so would provide a clear economic benefit to the plan. The DOL was responding to an inquiry from the U.S. Chamber of Commerce about whether a shareholder activism campaign organized by an employee organization to promote its health care agenda – and reportedly to seek disclosure of political contributions from corporate directors and officers to candidates who oppose that agenda – was compatible with ERISA. Much Talk, Little Action During 2007 Legislative Session
Mental health parity. 401(k) fees. Deferred compensation. COBRA. Carried interest. Medicare. Expatriate taxation. These are just some of the benefit and compensation issues Congress discussed last year. During 2007, lawmakers evinced a continuing desire to enact legislation that would affect employer-sponsored health, retirement and compensation programs – yet very little of that legislation passed. The year also marked the emergence of new issues that would affect plan investments. Recent Developments in Pension Plans in the Netherlands
Pension systems in developed countries are often described as having three pillars: Social Security, employer-sponsored pensions and personal savings. In the Netherlands, the first two pillars are unusually comprehensive and widespread among workers. Nonetheless, employer-sponsored pensions have undergone significant changes recently, both in benefit structures and in regulatory oversight. Influences on Workers’ Asset Allocations in Defined Contribution Accounts
Defined contribution (DC) plan participants in the private sector who are younger, better-educated, more risk-tolerant, and have an employer-sponsored defined benefit (DB) plan and a longer planning horizon, generally hold a larger share of equities in their DC accounts than other participants. Being married and in good health reduces the likelihood that a household will avoid equities altogether. These and other findings are from Watson Wyatt’s recent analysis into asset allocations in DC plans.
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