Disclosure to Participants

[Guidance Overview] Simple Mailing Mistakes Could Now Be HIPAA Violations Under New HHS Fundraising Rules
Excerpt:"The new regulations propose strengthening the language regarding the opt-out notification, stating that CEs must provide individuals with a'clear and conspicuous'opportunity for the individual to elect not to receive future fundraising communications."(AIS Health.com)

[Guidance Overview] Proposed DOL Update to Regs for Prohibited Transaction Exemption Requests
Excerpt:"The proposed regulation contains a number of'important substantive amendments,'according to the preamble to the regulations. Many of the changes involve the information that must accompany the exemption request. Several changes improve the notification to interested parties that the request has been made."(Wolters Kluwer)

Target Date Funds to SEC: Yes on More Disclosure, No on Changing Names
Excerpt:"Fund managers and other experts say that target-date funds need to increase the amount of information they provide investors to understand their investment risk. But they don't want the Securities and Exchange Commission to change the way the funds are named."(Financial Planning)

Public Comments on Reasonable Contract or Arrangement Under Section 408(b)(2): Fee Disclosure Interim Final Rule
The page links to the 44 comments received by DOL. (U.S. Employee Benefits Security Administration)

[Guidance Overview] Guidance and Model Notices Issued on Reviews of Health Benefit Claims (PDF)
2 pages. Employer actions are suggested. (Milliman)

[Guidance Overview] A $327 Million Stock Option Mistake
Excerpt:"A case decide[d] this week by the U.S. Court of Appeals . . . demonstrates the high sta[k]es of stock plan miscommunications. In Bell v. Pfizer Inc. . . ., a 2-1 majority of the Court held that Pfizer did not breach its fiduciary duties under [ERISA] by making potentially misleading statements, albeit unintentional, to an employee about her ability to exercise millions of dollars in stock options."(Michael Melbinger via Winston&Strawn LLP)

[Guidance Overview] DOL's Interim Final Fee Disclosure Regulations (PDF)
6 pages. (Buck Consultants)

[Guidance Overview] Service Provider Fee Disclosure Regulations: Initial Disclosures
Excerpt:"The [covered service provider] must make compensation disclosures relating to four different categories of compensation: (1) direct compensation; (2) indirect compensation; (3) compensation paid among related parties; and (4) compensation for contract termination."(SunGard Relius)

[Guidance Overview] 401(k) Participant at Fault in Account Withdrawal Dispute
Excerpt:"A federal judge in Oklahoma has cleared a 401(k) plan administrator of wrongdoing in a dispute over whether the employer should be forced to repay the participant for funds his ex-wife took out of his account."(PLANSPONSOR.com)

Comments Endorse Fee Disclosure Flexibility, Additional Compliance Time
Excerpt:"A number of the commenters submitting to [EBSA] touched on the issue of whether those covered by the rule being required to comply on an EBSA-prescribed form would prove overly costly or too difficult to develop within the rule's time frame."(PLANSPONSOR.com)

[Guidance Overview] SEC's Proposed Revisions to Mutual Fund Distribution Fees and Disclosure (PDF)
7 pages. Excerpt:"The Proposal has widespread implications not only for mutual funds and their boards of directors and investment advisers, but also for broker-dealers and other financial intermediaries that sell fund shares or service fund shareholder accounts."(Morgan, Lewis&Bockius LLP)

[Guidance Overview] Fee Disclosure Regulation: DOL Provides Leverage for Plan Sponsors
Excerpt:"The Regulation thus shifts the balance of power between the plan fiduciary who is charged with understanding fees that its plans will pay and the service providers that generate those fees. Although a plan fiduciary retains responsibility if it uses plan assets to pay unreasonable fees, the Regulation enhances the fiduciary's ability to obtain the information it needs to determine reasonableness."(Jones Day)

[Opinion] Vanguard CEO Comments on Target-Date Fund Proposals on Fund Names and Marketing (PDF)
7 pages. Excerpt:"In particular, we support the use of charts and graphs to help investors better understand a fund's current target asset allocation, a fund's projected asset allocation upon reaching the target date, and a fund's projected final asset allocation. At the same time, we believe that the SEC could achieve its objectives more effectively by taking a more streamlined and tailored approach to improving disclosure in TDF marketing materials."(The Vanguard Group, Inc.)

[Guidance Overview] New Retirement Plan Fee Disclosures: Getting Ahead of the July 16, 2011, Deadline
Excerpt:"Although the Schedule C fee reporting rules and the new fee disclosure regulations are similar, the disclosure and reporting requirements imposed by the fee disclosure regulations place significant new burdens on service providers to disclose the fees they expect to receive from retirement plans. In addition, plan sponsors must confirm that proper disclosures are made. Accordingly, both retirement plan sponsors and retirement plan service providers need to be prepared to identify, track and properly disclose compensation paid for services provided to retirement plans."(Thompson Hine LLP)

SEC's Cease-and-Desist Order Against State of New Jersey Relating to Disclosure Regarding Pension Plan Obligations
Excerpt:"This alert focuses on lessons and concerns for state and municipal issuers arising from the Order."(Nixon Peabody LLP)

[Opinion] NAIRPA Comments on Target Date Funds: Focused Disclosure Key for Investor Understanding
4 pages. Excerpt:"Essentially one size does not fit all when it comes to disclosure of the risk, volatility, age horizon, asset allocation or glide path of TDFs. Specifically this disclosure is relevant to three types of investors who constitute roughly two-thirds of the TDFs market -- (1) the plan sponsor or fiduciary, (2) the active participant, and (3) the default participant. Each of these investors has different concerns and needs . . . ."(National Association of Independent Retirement Plan Advisors via American Society of Pension Professionals&Actuaries)

[Guidance Overview] PSCA Comment Letter on the Interim Final Rule on Reasonable Contract or Arrangement Under Section 408(b)(2): Fee Disclosure
4 pages. (Profit Sharing / 401k Council of America)

[Opinion] Comments of Congressional Chairmen to Regarding Interim Final Regulations on ERISA Section 408(b)(2) Fee Disclosure Requirements (PDF)
6 pages. (Congress of the United States via American Benefits Council)

[Guidance Overview] Service Provider Fee Disclosure Regulations: Service Provider Categories
Excerpt:"The fiduciary/registered investment adviser category consists of three sub-groups: (1) plan fiduciaries; (2) fiduciaries to investment contracts, products, or entities that hold plan assets; and (3) registered investment advisers."(SunGard Relius)

Lawmakers'Letter Urges Keeping 408(b)(2) Disclosures Simple
Excerpt:"A letter to [EBSA] from five key lawmakers urges the agency to require service providers covered by proposed fee disclosure regulations to make their disclosure in a single, clear document."(PLANSPONSOR.com)

[Guidance Overview] Guidance Provided on Federal External Review Procedures for Self-Insured Plans; Model Notices Issued
Excerpt:"Though this latest guidance provides self-insured plans a fuller picture of what satisfying the external review rules will entail, the resulting compliance burden is daunting, given how soon these changes go into effect."(Employee Benefits Institute of America)

[Guidance Overview] Overview for Plan Sponsors and Fiduciaries of New Requirements for Service Provider Arrangements
Excerpt:"The regulations impose information disclosure requirements on providers of certain types of services to certain types of ERISA plans. The regulations also explain what are reasonable termination provisions for services contracts."(McGuireWoods LLP)

[Opinion] Council Comments Regarding Interim Final Regulations on ERISA Section 408(b)(2) Fee Disclosure Requirements (PDF)
13 pages. (American Benefits Council)

[Guidance Overview] Court Orders Rehired Lucent Technologies Employee Readmitted to DB Plan
Excerpt:"[A U.S. District] ruled that committee members had ignored a section of the plan documents for the Lucent Retirement Income Plan . . . allowing such re-entry to the service-based DB program if Lucent rehired a temporarily laid-off employee within three years."(PLANSPONSOR.com)

[Guidance Overview] Internal Claims and Appeals and External Review Process under Health Care Reform (PDF)
4 pages. (Reinhart Boerner Van Deuren s.c.)

[Guidance Overview] Required Cafeteria Plan Amendments
Excerpt:"Internal Revenue Code Section 125 requires that a cafeteria plan be in writing and be adopted on or before the first day of the first plan year to which it relates. This applies to amendments to the plan as well. In proposed regulations issued in 2007, the IRS stated that if a cafeteria plan does not comply with applicable requirements regarding content and timing of adoption, then the plan is not a cafeteria plan and all employees'elections of non-taxable benefits are not effective."(Fisher&Phillips LLP)

[Guidance Overview] Model Notices for PPACA's Claims and Appeals Regulation and Interim Guidance on the Federal External Review Process (PDF)
6 pages. Excerpt:"On August 23, 2010, [DOL, HHS, and Treasury] jointly released model notices that non-grandfathered plans and health insurance issuers may use to satisfy new requirements under [PPACA] regarding adverse benefit determinations and appeals of adverse benefit determinations."(Groom Law Group)

SEC's Target Date Fund Proposal Garners Little Response
Excerpt:"The low number of responses is interesting given the fact that target date funds'prominence in retirement portfolios continues to grow. Today, according to the SEC, assets of target date funds registered with the SEC total approximately $270 billion."(Investment Advisor)

[Guidance Overview] Service Provider Fee Disclosure Regulations: Covered Plans and Service Providers
Excerpt:"What service providers are covered by the regulations? A'covered service provider'is a service provider that: (1) enters into a contract or arrangement with a covered plan; (2) reasonably expects to receive $1,000 or more in direct or indirect compensation; and (3) provides services to the plan in one of the categories described in the regulations."(SunGard Relius)

SEC Adopts Changes to Proxy Access Regs
Excerpt:"The new rules require companies to include the nominees of significant, long-term shareholders in their proxy materials, alongside the nominees of management, a change the SEC says is designed to facilitate the ability of shareholders to exercise their traditional rights under state laws to nominate and elect members to company boards of directors."(PLANSPONSOR.com)

Dodd-Frank Meets ERISA: The Impact of Wall Street Reform on Plan Investments
Excerpt:"Paraphrasing the words of the President -- for all those employee benefit plan fiduciaries who are wondering what Wall Street reform means for you, here's what you can expect. . . . Nevertheless, there are a few steps plan fiduciaries should consider taking now, and some things to keep in mind for the future. Please view the linked ['Pension&Benefits Reporter'] article for further discussion."(Groom Law Group)

[Opinion] Debating Target-Date Funds'Tricky Labels
Excerpt:"In an effort to improve the way the funds are labeled, the Securities and Exchange Commission has proposed a number of changes, such as requiring a table that illustrates how funds shift from risky investments to more conservative ones and disclosing information about how the funds will look on the target-date in a prominent in marketing materials, adjacent to the name of the fund."(The Wall Street Journal)

[Opinion] PSCA Comments on SEC's Proposed Rule on Advertising and Marketing Target-Date Funds
2 pages. (Profit Sharing / 401k Council of America)

[Opinion] BrightScope Comments on SEC Target-Date Fund Naming / Marketing Proposal (PDF)
4 pages. (BrightScope)

Lawmakers Respond to SEC Proposed Rules for Target-Date Funds
Excerpt:"In the letter, [the three Senators] recommended that the SEC both broaden the application of the rule to non-mutual funds and require the inclusion of additional disclosures in marketing materials [and] they urged the SEC, together with the Department of Labor, to remind plan fiduciaries of their duty to prudently select and monitor target-date funds offered to participants in defined contribution pension plans."(PLANSPONSOR.com)

Charts and Graphs Are Good, but Don't Change Target-Date Fund Names, Says Industry
Excerpt:"[It was also] suggested that text accompanying the chart would state explicitly that the asset allocation could change from what the chart illustrates based on changes in the managers'assumptions as to retirement readiness, longevity and market risk."(PLANSPONSOR.com)

Comment Period Extended on FASB Proposal Affecting Multiemployer Plan Withdrawal Liability Disclosure
Excerpt:"For employers contributing to multiemployer pension plans, the proposal would require disclosure of potential liability on withdrawing from such plans ? even if withdrawing is only a remote possibility ? if that liability would severely impact the employer."(Mercer LLC)

[Official Guidance] Text of Technical Release on Interim Procedures for Federal External Review Relating to Internal Claims and Appeals and External Review Under PPACA (PDF)
8 pages. (U.S. Employee Benefits Security Administration)

[Official Guidance] Text of Model Notice of Adverse Benefit Determination
2 pages. (U.S. Employee Benefits Security Administration)

[Official Guidance] Text of Model Notice of Final Internal Adverse Benefit Determination
2 pages. (U.S. Employee Benefits Security Administration)

[Official Guidance] Text of Model Notice of Final External Review Decision
2 pages. (U.S. Employee Benefits Security Administration)

[Guidance Overview] New Regulations on Service Provider Fee Disclosure Obligations
Excerpt:"Because the Fee Disclosure Regulations contain a number of significant changes from the proposed regulations, the DOL published them as interim final regulations in order to permit additional comments. Interested persons can comment to the DOL until August 30, 2010."(McDermott Will&Emery)

[Guidance Overview] New Internal and External Review Requirements for Claims and Appeals Procedures under Reform
Excerpt:"Effectively, these new requirements mean that group health plans must review appeals immediately upon receipt to allow for potential interim'mini appeals'prior to the deadline for responding to the appeal. In addition, plans that currently allow for two levels of appeal might consider reducing that to one to maximize the time allowed for the above process to take place."(Jones Day)

[Guidance Overview] Guidance on Claims and Appeals Procedures for Group Health Plans Under Health Reform
Excerpt:"Under the regulations, group health plans must provide notices of an adverse benefit determination and of available internal claims and appeals procedures and external review processes in a culturally and linguistically appropriate manner, including in a non-English language if 25 percent of all participants are literate in the same non-English language (for plans with 100 or more participants, if the lesser of 500 participants or 10 percent of all participants are literate in the same non-English language)."(Davis Wright Tremaine LLP)

[Guidance Overview] Failure to Substantially Comply with Claims Procedures Proves Costly to Health Plan
Excerpt:"The plan fiduciary's failure to follow the claims regulations had a surprisingly harsh effect on the outcome in this recent claim for benefits case. Neither the standard of review nor the contractual limitations period served to deflect an award of benefits, attorneys'fees and costs in favor of the claimant."(Roy Harmon via Health Plan Law)

[Official Guidance] Text of Request by Agency for Healthcare Research and Quality for Suggestions on Measuring Health Plan Members'Health Literacy Needs (PDF)
2 pages. Excerpt:"The [AHRQ] is soliciting the submission of instruments or items that measure how well health plans and health providers address health plan enrollees'health literacy needs and how well they communicate with health plan enrollees. . . . The intent of the planned survey is to gain patients'perspective on how well health and health plan information is communicated to them by healthcare professionals and health plans."(Agency for Healthcare Research and Quality, U.S. Department of Health and Human Services)

Retirement Plan Participants Want More Help, According to 2nd Annual DC Participant Experience Study
Excerpt:"A new study finds that 60% of retirement plan participants want more personalized and effective communications, especially using current technologies such as Web sites, proactive e-mails, mobile, or on-demand videos."(PLANSPONSOR.com)

[Guidance Overview] Court Refuses to Award Penalties for Late COBRA Election Notice Without Showing of Harm or Prejudice
Excerpt:"EBIA Comment: The COBRA election notice must be'furnished'within 44 days after the qualifying event of termination of employment if the employer is also the plan administrator. The preamble to the DOL COBRA regulations, together with a number of court decisions on the subject, indicate that the notice is timely if sent within the required period."(Employee Benefits Institute of America)

Pension Fraud in New Jersey Extends Focus to Other States
Excerpt:"A spokeswoman for Gov. Pat Quinn's Office of Management and Budget, Kelly Kraft, said Illinois believed its pension disclosures were complete and accurate. The state has not hidden the fact that its pension funds have big shortfalls, she said, and there was no reason to think the S.E.C. might lodge a complaint against it, as it did with New Jersey."(The New York Times; free registration required)

[Guidance Overview] DOL Clarification of Requirements for Service Provider Fee Disclosures (PDF)
7 pages. (Kelly, Hannaford&Battles P.A.)

FASB Extends Comment Period on Loss Contingencies Exposure Draft which Includes Employer Reporting for Multiemployer Withdrawal Liability
Excerpt:"The proposed amendments would lower and broaden the current disclosure threshold. Current U.S. GAAP requirements would be enhanced with additional information required. Included in the subtopics to be amended is multiemployer plan withdrawal liability disclosure information."(International Foundation of Employee Benefit Plans)

[Guidance Overview] Simple Mailing Mistakes Could Now Be HIPAA Violations Under New HHS Fundraising Rules
Excerpt:"The new regulations propose strengthening the language regarding the opt-out notification, stating that CEs must provide individuals with a'clear and conspicuous'opportunity for the individual to elect not to receive future fundraising communications."(AIS Health.com)

It's Not Just 12(b)-1 Fees, Say Critics of SEC's Approach to Mutual Fund Cost Disclosures
Excerpt:"As it attempts to crack down on 12(b)-1 fees, the Securities and Exchange Commission is ignoring a raft of mutual fund charges that investors are paying indirectly, critics contend."(Investment News)

Companies Increasingly Requiring Employees to Make More Decisions Regarding Their Benefits and Assume Greater Financial Responsibility
Excerpt:"The recession coupled with the historic passage of federal healthcare reform is dramatically changing the way companies are handling employee benefits, according to preliminary findings of a survey of employers, employees, insurance brokers and consultants by Prudential Group Insurance."(Human Resource Executive Online)

[Guidance Overview] Take Care When Calculating Pensions
Excerpt:"In Bloemker v. Laborers'Local 265 Pension Fund, the U.S. Court of Appeals for the Sixth Circuit, which covers Michigan and several other Midwest states, recently ruled that'equitable estoppel'claims may now be made against a pension benefit plan. So what is equitable estoppel? Essentially, equitable estoppel allows a court to bind a party to its intentional misrepresentations when another party unknowingly relies on those misrepresentations and is injured by that reliance."(Warner Norcross&Judd LLP)

[Guidance Overview] Interim Final DOL Regulations Requiring New Fee Disclosures by Pension Plan Service Providers
Excerpt:"The Interim Final Regulations also continue the existing rule (without revision) that no contract or arrangement is'reasonable'if it does not permit termination by the plan without penalty to the plan on reasonably short notice under the circumstances to prevent the plan from becoming locked into an arrangement that has become disadvantageous."(Proskauer Rose LLP)

[Guidance Overview] Equitable Reformation of Plan Permitted As ? 502(a)(3) Relief
Excerpt:"In the typical ERISA case, the scope of relief under ? 502(a)(3) poses a challenge for plan claimants. In Young v. Verizon, however, the plan sought relief under (a)(3) to avoid paying benefits according to a benefit formula that it contended contained an error."(Roy Harmon via Health Plan Law)

[Guidance Overview] New Regulation, Effective July 16, 2011, for Both New and Existing Arrangements Between a'Covered Plan'and a'Covered Service Provider'
Excerpt:"The regulation states:'No contract or arrangement for services between a'covered plan'and a'covered service provider,'nor any extension or renewal, is reasonable within the meaning of section 408(b)(2)'unless certain disclosures are made to the responsible plan fiduciary."(Reish&Reicher)

[Guidance Overview] Court OKs $16.5M Caterpillar 401(k) Fee Settlement
Excerpt:"According to the order, the agreement calls for the employer not to include retail mutual fund shares as core investment options in the plans, to increase employee communications about 401(k) investment options and their associated fees, and for an independent fiduciary to monitor the plans during a two-year settlementperiod."(PLANSPONSOR.com)

Appellate court rules in Verizon's favor in ERISA case
Excerpt:"Verizon Communications Inc. shouldn't be penalized for a drafting error in the preparation of a cash balance pension plan, the 7th U.S. Circuit Court of Appeals in Chicago ruled Tuesday."(Pensions&Investments; registration may be required)