BenefitsCounsel

A thank you and good-bye . . .

Janell Grenier — Thu, 03 Dec 2009 03:22:52 +0000

As some of you may have heard, I have been diagnosed with a very rare and aggressive form of cancer which started in my kidney and spread to my lymph nodes. Because of that, it is with sadness that I am announcing I will no longer be writing here at Benefitsblog or any of the other blogs that I have written. I just want to thank so many who have been readers here and have emailed or called through the years. Writing this blog has been a wonderful experience which has connected me to so many people and I have enjoyed both writing as well as getting to know so many of you.

As a believer in the Lord Jesus Christ, my life rests with Him and I know that I have a home in heaven, at whatever time the Lord decides my time on earth is finished. “All the days ordained for me were written in your book before one of them came to be.” Ps. 139:16. You can read my testimony about how I came to know Jesus Christ at this location here.

I will be taking this blog down in the next month or so so print off anything you want to keep ASAP. Blessings to all of you!

RMDs for Defined Benefit Plans

Janell Grenier — Mon, 17 Aug 2009 21:53:58 +0000

The recent edition of the IRS’s Retirement News for Employers reminds employers that required minimum distributions from defined benefit plans are still required for 2009 and that the 2009 waiver does not apply to these types of plans. See also this Q & A from the IRS’s website:

Does the 2009 RMD waiver also apply to defined benefit plans?

No, 2009 RMDs are waived only from defined contribution plans (including 401(k), profit-sharing, money purchase pension, SEP, SIMPLE IRA, SARSEP, 403(b), and certain 457(b) retirement plans) and Individual Retirement Arrangements (IRAs). They are still required from most defined benefit plans. However, in some rare instances, a defined benefit plan may provide a benefit based in part on the balance of a participants separate account. This type of an account, known as 414(k) account, is treated as a defined contribution plan and is covered by the 2009 RMD waiver. Participants should contact their employer and /or plan administrator to determine their type of plan.

A Voice From the Past On Health Care Reform

Janell Grenier — Thu, 13 Aug 2009 01:20:55 +0000

Ronald Reagan Speaks Out Against Socialized Medicine

U.S. Corporate Tax Rate Is 2nd Highest in Industrialized World

Janell Grenier — Mon, 10 Aug 2009 18:04:14 +0000

From the Tax Prof Blog:

The Tax Foundation has released U.S. Lags While Competitors Accelerate Corporate Income Tax Reform:

New data from the Organization for Economic Cooperation and Development (OECD) shows that the U.S. corporate tax rate has fallen even further out of step with the rest of the industrialized world as countries such as Canada, the Czech Republic, Korea, and Sweden have cut their corporate rates in 2009, lowering the average statutory corporate tax rate of all OECD nations to 26.5%.

With a combined federal and state corporate tax rate of 39.1%, the U.S. continues to impose the second-highest overall corporate rate among industrialized countries. Only Japan’s 39.5% combined rate is higher. As the chart below indicates, the weighted average (accounting for country size) corporate rate of non-U.S. OECD nations is now below 30% for the first time in history. 2009 marks the 12th consecutive year in which the average corporate tax rate of non-U.S. OECD nations has been below the U.S. rate.

Article on Retiree Medical

Janell Grenier — Wed, 05 Aug 2009 15:09:43 +0000

For an article providing a review of recent legal developments pertaining to retiree medical, read: “Retiree Medical Litigation’s Dirty Little Secret: “Location, Location, Location!“

(Reader beware: Some might take offense at the descriptive phrase used in the article: “Shipwreck of old age. . . ”

FTC Guidance Regarding Application of Red Flags Rule to Certain Benefit Plan

Janell Grenier — Fri, 31 Jul 2009 14:53:21 +0000

The FTC has issued some Q & As which are very helpful to practitioners regarding the application of the Red Flags Rule to certain benefit plans:

Plan Loans:

12. If our company meets the definition of a

Op-Ed from Wall Street Journal on How Health Care Legislation Will Change ERISA

Janell Grenier — Tue, 21 Jul 2009 16:46:29 +0000

From the Wall Street Journal–”Repealing ERISA.” Excerpt:

ERISA allows employers that self-insure–that is, those large enough to build their own risk pools and pay benefits directly–to offer uniform plans across state lines. This lets thousands of businesses avoid, for the most part, the costly federal and state regulations on covered treatments, pricing, rate setting and so on. It also gives them flexibility to design insurance to recruit and retain workers in a competitive labor market. Roughly 75% of employer-based coverage is governed by ERISA’s freedom of purchase rules.

Goodbye to all that. The House bill says that after a five-year grace period all ERISA insurance offerings will have to win government approval–both by the Department of Labor and a new health choices commissioner who will set federal standards for what is an acceptable health plan. This commissar–er, commissioner–can fine employers that don’t comply and even has suspension of enrollment powers for plans that he or she has vetoed, until satisfied that the basis for such determination has been corrected and is not likely to recur.

One Man's Reward: Doing the Right Thing

Janell Grenier — Thu, 16 Jul 2009 14:03:30 +0000

A great story in the Boston Globe (as noted by Plan Sponsor) today: “Lappin takes hit for workers.” It describes how an owner and founder of a charity, Ronald Lappin, has restored the 401(k) balances of his employees to the tune of $5 million, after they were hit with losses resulting from the Madoff Ponzi scheme. The article notes that the restoration occurred even though Mr. Lappin’s net worth is only one-tenth of what it was before being impacted by the Madoff disaster. Excerpt:

Lappin himself lost some of his personal fortune to Madoff, and his foundation was forced to briefly close last December after $8 million of its money vanished in what investigators call the largest Ponzi scheme in history.

“I wanted to do the right thing,” Lappin said. “And, I feel, I’ve done the right thing and that to me is my reward.”

Organizational Chart of the Proposed Health Care Plan

Janell Grenier — Thu, 16 Jul 2009 02:12:16 +0000

Access it here. Read about it in this press release here. Read about the proposed legislation here.

Denial of Petition for Rehearing in Deere Case

Janell Grenier — Fri, 26 Jun 2009 18:36:21 +0000

You can read about it here at the Fiduciary Guidebook.