Archive | June, 2012

Executive Compensation-IRS Provides Sample Language For Making a Section 83(b) Election

June 29, 2012

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In Revenue Procedure 2012-29, the Internal Revenue Service (the "IRS") provides sample language that may be used (but is not required to be used) for making an election under section 83(b) of the Internal Revenue Code (the "Code"). Also,…

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Employee Benefits: Breaking News-U.S. Supreme Court Upholds Health Reform, Including Individual Mandate To Buy Health Insurance

June 28, 2012

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The case is National Federation of Independent Business v. Sebelius, decided today. In a nutshell, in this case the Supreme Court upheld the 2010 Patient Protection and Affordable Care Act (the "Act"), including the provisions requiring individuals to purchase health…

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Is Your 401(k) Up To Par?

June 28, 2012

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The quality of 401(k) plans offered needs to improve or plan participants will leave the plan. These plans need to convert to a more pension fund like approach. Here are some of the other key design features and the percent of plans surveyed with that feature, according to the IRS survey:No age requirement to sign […]

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You May Be Suffering From ‘Abused Investor’ Syndrome

June 28, 2012

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No one in the financial instituions wants investors to realize that they CANNOT stock pick or market time with any consistency. NO ONE CAN. Investors would be better served with a prudent portfolio and the discipline to stay the course. Most members of the securities industry are not criminals — at least not the kind […]

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401(k) Fees Exposed in New Rules

June 28, 2012

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The new fee disclosure regulations are a great first step in improving the 401(k) plans in America. Although many firms will continue to hide fees by burying the disclosures in mountains of paper. I have heard that an insurance company fee disclosure document is 42 pages (in fine print). The next step is to automatically […]

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The Great Annuity Rip-Off.

June 28, 2012

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The brokerage firms, banks and insurance companies have a product for every situation. Right now the situation is fear and they feed this fear with ‘safe’ products. These firms make money when money moves. They do not make money if investors develop a prudent portfolio and remain disciplined to that strategy. Annuities help people believe […]

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ERISA-Ninth Circuit Rules That, Despite Express Plan Terms, Appropriate Equitable Relief Under Section 502(a)(3) Is Determined By Using Traditional Equitable Principles And Defenses

June 28, 2012

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In CGI Technologies and Solutions Inc. v. Rose, Nos. 11-35127, 11-35128 (9th Cir. 2012), the defendant, Rhonda Rose ("Rose"), was appealing the district court’s grant of summary judgment to the plaintiff, CGI Technologies and Solutions Inc. ("CGI"), in its action…

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ERISA-9th Circuit Overturns District Court’s Dismissal Of ERISA Claim For Benefits, Based On Failure To Exhaust Administrative Remedies, And Of Grant Of Insurer’s Counterclaim For Restitution of Overpaid Benefits

June 27, 2012

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In Bilyeu v. Morgan Stanley Long Term Disability Plan, No. 10-16070 (9th Cir. 2012), the plaintiff, Leah Bilyeu ("Bilyeu"), was appealing: (1) the district court’s dismissal of her claim challenging the termination of her long-term disability ("LTD") benefits under ERISA…

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No One Can Predict The Future…..No One!!

June 26, 2012

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On June 21, 2012 the financial markets sold off partially because of the Goldman Sachs sell recommendation on the S&P 500. The timeline below is further evidence that no one can predict the future, especially not the Wall Street bullies. Published: Wednesday March 21, 2012 Goldman Sachs, in a sweeping report to clients  Wednesday, said […]

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Employee Benefits-IRS Discusses Vesting And Breaks In Service In A Defined Contribution Plan

June 26, 2012

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In Employee Plans News, June 8, 2012, the Internal Revenue Service (the "IRS") reviewed a question involving vesting and breaks in service in a defined contribution plan. The question: Our 401(k) plan uses a 6-year graded vesting schedule for matching…

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