Advisory Council on Employee Welfare and Pension Benefit Plans-Notice of Meeting

Image via WikipediaPursuant to the authority contained in Section 512 of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1142, the 153rd open meeting of the Advisory Council on Employee Welfare and Pension Benefit Plans will be held on October 4, 2010. The meeting will take place in C5515--Room 3, U.S. Department of Labor, 200 Constitution Avenue NW., Washington, DC 20210. Public access is available only in this room (i.e. not by telephone). The meeting will run from 12 p.m. to approximately 5 p.m.
The purpose of the open meeting is to discuss reports/recommendations for the Secretary of Labor on the issues of

(1) Healthcare Literacy,
(2) Disparities for Women and Minorities in Retirement, and
(3) Employee Benefit Plan Auditing and Financial Reporting Models.

Descriptions of these topics are available on the Advisory Council page of the EBSA web site at http://www.dol.gov/ebsa/aboutebsa/erisa_advisory_council.html.
Full Meeting Notice

Advisory Council on Employee Welfare and Pension Benefit Plans; Nominations for Vacancies

Section 512 of the Employee Retirement Income Security Act of 1974 (ERISA), 88 Stat. 895, 29 U.S.C. 1142, provides for the establishment of an Advisory Council on Employee Welfare and Pension Benefit Plans (the Council), which is to consist of 15 members to be appointed by the Secretary of Labor (the Secretary) as follows: three representatives of employee organizations (at least one of whom shall be a representative of an organization whose members are participants in a multiemployer plan); three representatives of employers (at least one of whom shall be a representative of employers maintaining or contributing to multiemployer plans); one representative each from the fields of insurance, corporate trust, actuarial counseling, investment counseling, investment management, and accounting; and three representatives from the general public (one of whom shall be a person representing those receiving benefits from a pension plan). No more than eight members of the Council shall be members of the same political party.

Members shall be persons qualified to appraise the programs instituted under ERISA. Appointments are for terms of three years. The prescribed duties of the Council are to advise the Secretary with respect to the carrying out of his or her functions under ERISA, and to submit to the Secretary, or his or her designee, recommendations with respect thereto.

The Council will meet at least four times each year. The terms of five members of the Council expire on November 14, 2010. The groups or fields they represent are as follows:

(1) Employee organizations (representing an organization whose members are participants in a multiemployer plan);

(2) employers (representing employers maintaining or contributing to multiemployer plans);

(3) accounting;

(4) insurance; and

(5) the general public.

The Department of Labor is committed to equal opportunity in the workplace and seeks a broad-based and diverse ERISA Advisory Council. Accordingly, notice is hereby given that any person or organization desiring to recommend one or more individuals for appointment to the Advisory Council on Employee Welfare and Pension Benefit Plans, to represent any of the groups or fields specified in the preceding paragraph, may submit recommendations to Larry Good, ERISA Advisory Council Executive Secretary, Frances Perkins Building, U.S. Department of Labor, 200 Constitution Avenue, NW., Suite N-5623, Washington, DC 20210, or to good.larry@dol.gov.

Recommendations must be submitted on or before September 17, 2010. Recommendations may be in the form of a letter, resolution or petition, signed by the person making the recommendation or, in the case of a recommendation by an organization, by an authorized representative of the organization. Recommendations should include the position for which the nominee is recommended and the nominee's full name, mailing address, phone number, and e-mail address. The recommendation also must state that the candidate will accept appointment to the Council if offered. Nominees will be contacted to provide information on their political affiliation and their status as registered lobbyists. Nominees should be aware of the time commitment for attending meetings and actively participating in the work of the Council. Historically, this has meant a commitment of 15-20 days per year.

FR Doc 2010-18897

H.R. 3799: To amend title XVIII of the Social Security Act to improve prescription drug coverage under... (GovTrack.us)

To amend title XVIII of the Social Security Act to improve prescription drug coverage under Medicare part D and to amend the Public Health Service Act, the Employee Retirement Income Security Act of 1974, and the Internal Revenue Code of 1986, to improve prescription drug coverage under private health insurance, and for other purposes.

Sponsor: Rep. Henry Johnson [D-GA4]
Cosponsors: Russ Carnahan [D-MO3], Lloyd Doggett [D-TX25], Keith Ellison [D-MN5], Marcia Fudge [D-OH11], Patrick Kennedy [D-RI1], Mary Jo Kilroy [D-OH15], Barbara Lee [D-CA9], Timothy Ryan [D-OH17]

Text

Status:
Introduced Oct 13, 2009
Referred to Education and Labor Committee

Updated Information

Pension Protection Act of 2006: Computing Withdrawal Liability; Reallocation Liability Upon Mass Withdrawal

This final rule amends PBGC's regulation on Allocating Unfunded Vested Benefits to Withdrawing Employers (29 CFR part 4211) to implement provisions of the Pension Protection Act of 2006 that provide for changes in the allocation of unfunded vested benefits to withdrawing employers from a multiemployer pension plan, and that require adjustments in determining an employer's withdrawal liability when a multiemployer plan is in critical status. Pursuant to PBGC's authority under section 4211(c)(5) of ERISA to prescribe standard approaches for alternative withdrawal liability methods, the final rule also amends this regulation to provide additional modifications to the statutory methods for determining an employer's allocable share of unfunded vested benefits. In addition, pursuant to PBGC's authority under section 4219(c)(1)(D) of ERISA, this final rule amends PBGC's regulation on Notice, Collection, and Redetermination of Withdrawal Liability (29 CFR part 4219) to improve the process of fully allocating a plan's total unfunded vested benefits among all liable employers in a mass withdrawal. Finally, this final rule amends PBGC's regulation on Terminology (29 CFR part 4001) to reflect the definition of a ``multiemployer plan'' added by the Pension Protection Act of 2006. DATES: Effective January 29, 2009.

S. 3710: A bill to amend title XVIII of the Social Security Act and the ERISA

A bill to amend title XVIII of the Social Security Act and the Employee Retirement Income Security Act of 1974 to provide access to Medicare benefits for individuals ages 55 to 65, to amend the Internal Revenue Code of 1986 to allow a refundable and advanceable credit against income tax for payment of such premiums, and for other purposes. Introduced by Senator John Rockefeller on November 20, 2008. The bill has been referred to the Committee on Finance. Co-Sponsors include: Sen. John Kerry [D-MA] Sen. Robert Menéndez [D-NJ] Sen. Sherrod Brown [D-OH] Sen. Benjamin Cardin [D-MD]

Investment Advice--Participants and Benficiaries; Hearing

The Department of Labor will hold a hearing on the Department's proposed regulation under provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA, or the Act), and the Internal Revenue Code of 1986, as amended (Code), relating to the provision of investment advice to participants and beneficiaries of self-directed individual account plans and individual retirement accounts (IRAs). DATES: The hearing will be held on October 21, 2008, beginning at 8 a.m., EST. Persons interested in presenting testimony and answering questions at the public hearing must submit requests and certain other information (as discussed below), by 3:30 p.m., EST, October 16, 2008.

Prohibited Transaction Exemption For Services Provided in Connection With Abandoned Individual Accounts

SUMMARY: This document amends PTE 2006-06 (71 FR 20856, Apr. 21, 2006), a prohibited transaction class exemption issued under the Employee Retirement Income Security Act of 1974 (ERISA). Among other things, PTE 2006-06 permits a ``qualified termination administrator'' (QTA) of an individual account plan that has been abandoned by its sponsoring employer to select itself to provide services to the plan in connection with the plan's termination, and to pay itself fees for those services. In response to changes to the Internal Revenue Code of 1986 (the Code) enacted as part of the Pension Protection Act (PPA) of 2006, PTE 2006-06 is amended to require, as a condition of relief under the exemption, that benefits for a missing, designated nonspouse beneficiary be directly rolled over into an inherited individual retirement plan that fully complies with Code requirements. This amendment also conforms to the Department's final rule amending regulations concerning the Termination of Abandoned Individual Account Plans at 29 CFR 2578.1 (the QTA Regulation), and the Safe Harbor for Distributions from Terminated Individual Account Plans at 29 CFR 2550.404a-3 (the Safe Harbor Regulation), which appears elsewhere in this issue of the Federal Register. The amendment to the class exemption affects plans, participants and beneficiaries of such plans and certain persons engaging in such transactions. DATES: Effective Date: The class exemption is effective November 6, 2008.

Statutory Exemption for Cross-Trading of Securities

SUMMARY: This document contains a final rule that implements the content requirements for the written cross-trading policies and procedures required under section 408(b)(19)(H) of the Employee Retirement Income Security Act of 1974 (ERISA or the Act). Section 611(g) of the Pension Protection Act of 2006, Public Law No. 109-280, 120 Stat. 780, 972, amended section 408(b) of ERISA by adding a new subsection (19) that exempts the purchase and sale of a security between a plan and any other account managed by the same investment manager if certain conditions are satisfied. Among other requirements, section 408(b)(19)(H) stipulates that the investment manager must adopt, and effect cross-trades in accordance with, written cross-trading policies and procedures that are fair and equitable to all accounts participating in the cross-trading program. This final rule affects employee benefit plans, investment managers, plan fiduciaries and plan participants and beneficiaries. DATES: Effective Date: This final rule is effective February 4, 2009.

Selection of Annuity Providers--Safe Harbor for Individual Account Plans

SUMMARY: This document contains a final regulation that establishes a safe harbor for the selection of annuity providers for the purpose of benefit distributions from individual account plans covered by title I of the Employee Retirement Income Security Act (ERISA). This regulation will affect plan sponsors and fiduciaries of individual account plans and the participants and beneficiaries covered by such plans. Also appearing in today's Federal Register is a final rule amending Interpretive Bulletin 95-1 to limit the application of the Bulletin to the selection of annuity providers for defined benefit plans. DATES: This final rule is effective on December 8, 2008.

Advisory Council on Employee Welfare and Pension Benefit Plans

Notice of Meeting Pursuant to the authority contained in Section 512 of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1142, the Working Groups assigned by the Advisory Council on Employee Welfare and Pension Benefit Plans to study the issues of (1) The spend down of retirement assets, (2) hard to value assets/target date funds, and (3) phased retirement, will hold a public teleconference meeting on September 29, 2008. Members of the public wishing to listen to the teleconference may attend in Room C5515-B, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC. The purpose of the open meeting is for each Working Group to discuss its draft report with the full Advisory Council with respect to its recommendations to the Secretary of Labor. The meeting will run from 10 a.m. to approximately 4 p.m., in the order listed above for the Working Groups. All recommendations are subject to discussion and approval by the full Advisory Council at its meeting on November 5-6. Organizations or members of the public wishing to submit a written statement pertaining to the topic may do so by submitting 25 copies on or before September 22, 2008 to Larry Good, Executive Secretary, ERISA Advisory Council, U.S. Department of Labor

Proposed Class Exemption for the Provision of Investment Advice

This document contains a notice of pendency before the Department of Labor (Department) of a proposed class exemption from certain prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974, as amended (ERISA, or the Act), and from certain taxes imposed by the Internal Revenue Code of 1986, as amended (Code). If granted, the proposed exemption would permit the provision of investment advice described in section 3(21)(A)(ii) of the Act by a fiduciary adviser to a participant or beneficiary in an individual account plan or individual retirement accounts (and certain similar plans), the acquisition, holding or sale of a security or other property pursuant to the investment advice, and the direct or indirect receipt of fees or other compensation by the fiduciary adviser (or any employee, agent, registered representative or affiliate thereof) in connection with such transactions. The proposed exemption, if granted, would affect sponsors, fiduciaries, participants and beneficiaries of participant-directed individual account plans, as well as providers of investments and investment advice-related services to such plans. DATES: Written comments on the proposed exemption should be submitted to the Department of Labor on or before October 6, 2008.

Investment Advice--Participants and Beneficiaries

This document contains proposed regulations implementing the provisions of the statutory exemption set forth in sections 408(b)(14) and 408(g) of the Employee Retirement Income Security Act, as amended (ERISA or the Act), and parallel provisions in the Internal Revenue Code of 1986, as amended (Code), relating to the provision of investment advice described in the Act by a fiduciary adviser to participants and beneficiaries in participant-directed individual account plans, such as 401(k) plans, and beneficiaries of individual retirement accounts (and certain similar plans). Section 408(b)(14) provides an exemption from certain prohibited transaction provisions in ERISA with respect to the provision of investment advice, the investment transaction entered into pursuant to the advice, and the direct or indirect receipt of fees or other compensation by the fiduciary adviser or an affiliate in connection with the provision of advice or the transaction pursuant to the advice. Section 408(g) describes the conditions under which the investment advice-related transactions are exempt. Upon adoption, the regulations will affect sponsors, fiduciaries, participants and beneficiaries of participant-directed individual account plans, as well as providers of investment and investment advice-related services to such plans. DATES: Written comments on the proposed regulations should be submitted to the Department of Labor on or before October 6, 2008.

Fulfilling Fiduciary Obligations Can Present Challenges for 401(k) Plan Sponsors

Concluding Observations As the retirement security of American workers increasingly depends on 401(k) plans, it is important that plan sponsors fulfill their fiduciary responsibilities in connection with such plans. Sponsors make decisions about the investment features of a 401(k) plan that carry significant fiduciary implications. Some, particularly those with small plans, may have limited time, specialization, knowledge, and ability to negotiate about service providers or investment funds. Absent a greater understanding of how sharing plan functions with their service providers or delegating functions to them may lead to confusion about fiduciary roles, some sponsors are likely to remain vulnerable to advisers or other providers whose compensation and affiliation may promote interests besides those of the plan, such as higher plan fees. Since our 2006 report, Labor has made progress on its disclosure initiatives but some important fiduciary issues have yet to be fully addressed. In our previous reports, we asked Congress to consider amending ERISA to (1) explicitly require 401(k) service providers to disclose to plan sponsors the compensation they receive from other service providers and (2) give Labor authority to recover plan losses against certain types of service providers, even if they are not currently considered fiduciaries to that plan under ERISA. While Labor has proposed a regulatory change that could eliminate some of the confusion surrounding certain fiduciary obligations, it is unclear how closely the final regulation will follow the proposed rule. We continue to believe that changes to ERISA would help Labor in its efforts to promote sponsors’ fiduciary oversight and be in the best interest of participants.

Advisory Council on Employee Welfare and Pension Benefit Plans; Nominations for Vacancies

Section 512 of the Employee Retirement Income Security Act of 1974(ERISA), 88 Stat. 895, 29 U.S.C. 1142, provides for the establishment of an Advisory Council on Employee Welfare and Pension Benefit Plans(the Council), which is to consist of 15 members to be appointed by the Secretary of Labor (the Secretary) as follows:

• Three representatives of employee organizations (at least one of whom shall be a representative of an organization whose members are participants in a multiemployer plan);
• three representatives of employers (at least one of whom shall be a representative of employers maintaining or contributing to multiemployer plans);
• one representative each from the fields of insurance, corporate trust, actuarial counseling, investment counseling, investment management, and accounting; and
• three representatives from the general public (one of whom shall be a person representing those receiving benefits from a pension plan).

No more than eight members of the Council shall be members of the same political party.

Any person or organization desiring to recommend one or more individuals for appointment to the Advisory Council on Employee Welfare and Pension Benefit Plans, to represent any of the groups or fields specified in the preceding paragraph, may submit recommendations to

Larry Good, ERISA Advisory Council Executive Secretary, Frances Perkins Building, U.S. Department of Labor, 200 Constitution Avenue, NW., Suite N-5623, Washington, DC20210. Recommendations must be delivered or mailed on or before September 1, 2008.