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The
Savitz Organization is a full-service employee benefits firm. We
work in partnership with our clients to optimize the design, financing
and delivery of their retirement and health care programs. Based
in Philadelphia, with offices in Atlanta and Boston, we have been
servicing clients nationwide for over 40 years. We work with a
broad range of both large and small employers, including public
and private corporations, tax-exempt entities and multi-employer
groups.
Visit us at www.savitz.com. |
Now That Open Enrollment Is Over...A 2009 Game Plan to Comply With Regulatory Changes
Many new regulatory changes require health and welfare plan compliance now or in the near future. As the new administration begins rolling out its initiatives, we're seeing this list grow. For instance, the signing of the American Recovery and Reinvestment Act (also known as the "Stimulus Bill") into law on February 17 adds significantly to employers' "to do lists". It's time to clear your desk and seize the opportunity to review your programs and optimize them from the standpoint of compliance, administration, and design. |
Deferred
Compensation Compliance Under 409A
Although
the new rules for deferred compensation plans were initially issued several
years ago, more stringent compliance is in order beginning in 2009. Following
a few years of transition relief and good faith compliance, now it is important
to make sure your plans are operating in full compliance. |
Retiree
Benefit Integration
In
recent years many companies have trimmed back their retiree benefits – both
pension and medical – especially for future employees and recent hires.
But even in those cases, retiree benefit administration does not disappear
overnight. Most employers are still faced with managing plans for legacy
retirees and long-tenure employees. One way to reduce costs and improve service
is to ensure optimal integration of pension and retiree health plan administration. |
Pension
Funding Relief
The
Pension Protection Act (PPA) of 2006 was landmark legislation that completely
revamped the defined benefit plan funding rules. The genesis was, at least
in part, the adverse economic conditions that existed early in this decade.
Dubbed the “perfect storm”, the combination of historically low
interest rates and significant asset losses severely depressed plan funding
levels and heightened the scrutiny of pension funding rules. Unfortunately,
we are currently embroiled in an economic climate that makes the “perfect
storm” seem like a summer squall. |
IRS
Correction Programs
If
you provide a tax-qualified retirement plan for your employees, it is almost
inevitable that at some point something will go awry. For one, there are
so many rules – and they are quite complex! Unless every aspect of
your plan is managed by professionals, it is quite a challenge to get everything
right all the time. The good news is that the IRS has established a program
which allows plan sponsors to fix most errors and avoid significant adverse
consequences. |
Changes
to Distribution Requirements for 2009
If
nothing else, 2008 will be known as the year in which the financial markets
ravaged the security of our retirement savings in an unprecedented fashion.
To allow retirees to avoid selling assets while the market is down, the recent
pension relief law waives the requirement for defined contribution plans
to make 2009 Required Minimum Distributions (age 70½ distributions). |
Multi-employer
Plan Funding Relief
A
law called WRERA (the “Worker, Retiree and Employer Recovery Act of
2008”), signed into law in December, offers some funding relief to
sponsors of multiemployer pension plans, providing time to recover from recent
market declines. Note that Trustee authorization is required to take full
advantage. Trustees should also keep in mind that the relief from WRERA will
only last a year and should look ahead to 2010 and beyond. |
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| The
intended audience of this email Newsletter consists of clients,
and other contacts, of The Savitz Organization. It provides general
information which may be of interest to employers. It is not intended
to be relied upon as complete information, nor should it be relied
upon as specific tax or legal advice. While every attempt is made
to ensure accuracy, we do not warranty the accuracy of the information.
To the extent this email message concerns tax matters, it is not
intended to be used and cannot be used by a taxpayer for the purpose
of avoiding penalties that may be imposed under the Internal Revenue
Code or applicable state or local tax law provisions. |
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