Back ground: Effective for plan years beginning after December 31, 2006, the IRS proposed regulations under Code Sec. 401(a)(35) which had a significant impact on diversification requirements for defined contribution plans and public employer securities. The regs most significantly affected issues such as: Divestment rights, Employee Stock Ownership Plan “ESOPs”, Pooled investment vehicles, and Restrictions on: diversification rights, employer securities, Benefits, Elections, Direct/Indirect restrictions.
Effective on or after January 1, 2009, The Treasury Department and IRS released REG-136701-07 These were intended to clarify the scope of the rule with respect to restriction, and expanded definitions of when employer securities are traded in an official securities market.
Fast forward to Q4 2009 and companies are still grappling with this issue. The Knowledge Group is assembling a panel of plan experts to help plan sponsors & companies understand what’s new and how to comply. The speakers will share their expertise in a two-hour LIVE Webcast which will include a live Q&A opportunity for the audience and a best practices panel.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
(Please note, your State Bar or Accounting Board will make the final determination with respect
to continuing education credit.)
Advance Preparation: Print and review course materials
Course Code: 093886
Richard L. Menson
Partner, (Former Chair, Joint Committee on Employee Benefits of the American Bar Association)
David Levine
Principal
Mike Boro
Principal, Human Resource Services Practice
Erin Turley
Partner, Co-chair, ESOP Task Force
Robert Walter
Principal and Benefit Consultant
Richard L. Menson, Partner, (Former Chair, Joint Committee on Employee Benefits of the American Bar Association), McGuireWoods LLP
** Speaker Agenda to be added soon.. **
Erin Turley, Partner, Co-chair, ESOP Task Force, Morgan, Lewis & Bockius LLP
Every defined contribution (which is not an ESOP) that holds publicly traded securities must provide:
Each individual must have the right to direct the plan to divest employer securities allocated to the individual’s account that are attributable to employee contributions or elective deferrals and to reinvest an equivalent amount in other investment options.
Each individual who is a participant who has completed at least three years of service, an alternate payee of a participant who has completed at least three years of service, or a beneficiary of a deceased participant must be permitted to elect to direct the plan to divest employer securities allocated to the individual’s account and to reinvest an equivalent amount in other investment options.
Other investment options must consist of at least three investment options, other than employer securities, to which the individuals may direct the proceeds from the divestment of employer securities, each of which is diversified and has materially different risk and return characteristics.
A plan holds a publicly traded security if any member of the controlled group of corporations which includes the employer (determined by applying section 1563(a), except substituting 50 percent for 80 percent) has issued a class of stock that is a publicly traded employer security.
Annual notice required to be given to participants advising of such diversification rights and advising of the importance of diversifying the investment of retirement account assets.
David N. Levine, Principal, Groom Law Group, Chartered
- Amendments for 401(a)(35) diversification and the PPA amendment deadline.
- Informational documents for participants - SPDs, SMMs, etc.
- Other communications for participants.
Robert Walter, Principal and Benefit Consultant, Buck Consultants, An ACS Company
** Speaker Agenda to be added soon.. **
Mike Boro, Principal, Human Resource Services Practice, PricewaterhouseCoopers
** Speaker Agenda to be added soon.. **
- CFOs
- Financial Officers
- Employee Benefits and Executive Compensation Practicing Lawyers
- Compensation and Benefits Consultants
- Stock Plan Consultants
- HR Executives
- Benefits Managers
This is a must attend event to everyone to hear and understand the up-to-the-minute and most relevant updates on defined contribution plans.
- Detailed guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A