February Benefits Brief

The Importance of Clear Documentation 

The recent George v. Kraft Foods Global, Inc. decision should serve to remind plan sponsors of the importance of maintaining a clear record of the fiduciary decision-making process, including the conclusion. A recent decision in Cigna v. Amara points to the need for clarity in drafting participant communications.

A Look at Case Law for Important Plan Documentation Reminders - Ice Miller, LLP


IRS Announces Changes to the Determination Letter Process

The IRS recently published guidance updating and clarifying the procedures for issuing determination letters to qualified plans. This updated guidance is published in Revenue Procedure 2012-6, which becomes effective on February 1, 2012 for individually designed plans, and May 1, 2012 for preapproved (i.e. volume submitter and prototype) and terminating plans. The updated procedures generally seek to increase the efficiency of the determination letter program. Perhaps the most significant change emanating from this updated guidance is that the IRS will no longer make determinations related to nondiscrimination, coverage and participation requirements, but rather will focus solely on the form of the plan. The article linked below describes the updated determination letter procedures more fully.

Changes & Clarifications to the Determination Letter Program - Drinker Biddle & Reath, LLP


Understanding Revenue-Sharing and the New Fee Disclosure Rules

Callan Associates recently released the results of their "2012 Defined Contribution Trends Survey: Where Have We Come From and What Lies Ahead". The survey shows considerable confusion among plan sponsors when it comes to understanding revenue-sharing fees and how they are managed within their plan.

Plan Sponsors Lack Knowledge of Revenue-Sharing Fees - Society for Human Resource Management


Employees Want Simple Guidance on Their Retirement Plan

The ongoing market volatility has made many participants anxious about their retirement accounts. More employees are looking to their employers for simple guidance. This article outlines four ways plan sponsors can improve their participants' experience.

Four Retirement Plan Features Employers Need to Emphasize - BenefitsPro


How Well Do You Know Your Retirement Plan?

Pensions & Investments reviewed several recent surveys of plan sponsors, and found a surprising number of executives didn't understand key components of their retirement plan. Fees, target date funds, and ERISA duties were among the many areas of concern noted in their review.

DC Execs Clueless About Key Plan Data - Pensions & Investments

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