Western Pension &
Benefits Conference -
Los Angeles Chapter
WP&BC
NEWS
A
Quarterly Publication for Pension and Benefits Professionals
WP&BC News
Winter 2005
President's Message
Hello
to all as we start into 2005 and into the “big half” of the Chapter’s
2004-2005 year.
Our
2004-2005 year has coincided with ERISA’s 30th anniversary. As
we read the headlines, everything old seems new again. Whoever thought
airlines were like Studebakers! And the Aetna HMO decision limiting state
law malpractice suits against ERISA plans is spurring new Congressional
interest in a patient’s bill of rights. Congress has passed far-reaching
legislation changing the rules for non-qualified “executive” deferred
compensation plans. Our February 8 program highlighted the problems and
complexities of new “Section 409A”, and had a good turnout. It is going
to be an interesting year, and everyone on the Steering Committee looks
forward to seeing all of our members and their guests at our meetings, to
discuss and critique the latest developments.
On the
membership front, I am delighted to report that we already have 10 new
members who were not members last year. We look forward to seeing the
Chapter continue to add new members each month. Please join me and Larry
Stein, our Membership Chair, in welcoming our new members, including some
who reactivated their past membership. Please see the list later in this
Newsletter.
Larry Stein is inviting members to volunteer to help expand our
membership, by joining the Membership Committee. Larry’s contact
information is Lstein@sempra.com,
or 213-244-2958.
It is
also good to see that our new members are taking an active role in the
Chapter, by joining our Committees. Each of us who has been involved
with any of our Committees can tell you that the time volunteered was well
rewarded, through stronger business relationships, personal friendships,
and the satisfaction of contributing to interesting and successful
programs.
Even if
you are not serving on a Committee, your input and ideas are not only
invited, they are essential for the continued vibrancy of this Chapter.
If there is a program you think would be interesting, or a speaker that
you think we should hear, please speak up. All of us on the Steering
Committee are here to listen to your ideas. Please call or email me or
any of us.
In past
years, the Chapter has sought financial sponsors for our Spring Seminar.
We are continuing to do so. However, we began reaching out to our
sponsors earlier this year, in order to give them recognition for the
entire year, not just for that one-day event. We thank Wells Fargo,
Mellon, US Trust and US Bank for their leadership role. We look forward
to seeing other sponsors join them, as we transition to this new format.
In addition, we have created an opportunity for sponsorships of individual
dinner meetings. Please see the details later in this Newsletter. These
expanded sponsorship initiatives are being “rolled out” this year, and we
hope to see these changes strengthen the valued relationships that we have
with our sponsors in future years.
Many of
last year’s Steering Committee members returned to serve for another year,
giving us a well-experienced group of leaders this year, and I want to
thank each of them for their commitment. The Committee is listed later in
this Newsletter, along with contact information. A special thanks to
Denise Feldman, our Newsletter chair and our corporate Secretary, for her
hard work on this Newsletter.
I am
especially pleased to announce that a permanent standing Committee has now
been formed, called the Program Advisory Committee. Unlike the annual
Steering Committee, whose members “come and go” each year, membership on
this Committee is not limited to an annual basis, to provide ongoing
continuity, and its membership is open. Any Chapter member can volunteer
to join this Committee. It is chartered to serve as an ongoing source of
program ideas, for our monthly meetings as well as for the annual Spring
Seminar. This Committee first met for lunch last November 30. The meeting
was as productive as it was enjoyable. Thanks to Bruce Baldwin, Summer
Conley, Susana Ryan, Peter Shapiro and Roland Simpson for the great ideas
at that “kick off” meeting.
We look
forward to seeing this new Committee grow in size and impact over the
years. It offers an opportunity for former Steering Committee members to
continue to contribute their ideas, and will give the Chapter ongoing
continuity for planning our programs. Like all new initiatives, this
Committee is a “work in process” and I will initially serve as an informal
liaison between it and the Steering Committee. Please contact me or
anyone on the Steering Committee if you are interesting in participating
on this Committee.
We are
especially enthusiastic about our upcoming “Spring Summit”. Mark your
calendars for Tuesday April 26, and remember to enroll early, for
discounts ! Summer Conley has put together a tremendous series of programs
for the day, highlighted by Insurance Commissioner Garamendi as luncheon
speaker.
I look
forward to seeing each of you, and your guests, at the rest of our
meetings this year. Thanks for your continued support and involvement.
Copyright 2005,
Western Pension & Benefits Conference,
Los Angeles Chapter
2005 ANNUAL SPRING SUMMIT Tuesday
April 26th - MARK YOUR CALENDAR
2005 ANNUAL
SPRING SUMMIT - The theme of the 2005 Summit is
"A
CHECK-UP FOR YOUR PLANS"
which is
designed to provide plan sponsors with information to help keep their plans in
compliance and up to date. The day will be filled with presentations by a
variety of industry experts, including government speakers, who will provide
useful information and helpful tips regarding ongoing as well as new
requirements for employee benefit plans.
Keynote address by
California Insurance Commissioner John Garamendi
8:15 – 8:45 Continental Breakfast &
Registration
8:45 – 9:00
Welcome and Introduction to Spring Summit
9:00 – 10:15 Session I
A. IRS Audit Issues for Qualified Plans Craig Moore, Internal Revenue Service
Employee Plans Group Manager
B. S Corp ESOPs – Are Sponsors IRS Targets?
Roland G. Simpson, Esq., Roland G.
Simpson, A Law Corporation
10:30 – 11:45 Session II
A.
Executive Compensation Plan 2005 Check-Up Linda B. Griffey, Esq. and Elizabeth K. Simon,
Esq., O’Melveny & Myers LLP
B.
ERISA Litigation Update David E. Gordon, Esq., Clark Consulting/
Pearl Meyer & Partners
12:00 – 1:15 Luncheon
Speaker -
Insurance Commissioner John Garamendi
1:30 – 2:45 Session III
A.
2005 Compliance Update for Health & Welfare Plan Sponsors Patricia S. Cartwright, Mercer Human
Resource Consulting
B.
DOL Plan Audit Concerns Billy Beaver, U.S. Department of Labor
and Alex Brucker, Esq., Brucker
Morra
3:00 – 4:15 Session IV
A.
Post-Enron Fiduciary Issues Frank H. Smith, Jr., Esq., Seyfarth Shaw
LLP
and Charles E. Wert, U.S. Trust Company, N.A.
Manages the most complex and largest institutional
trust accounts. Increases account profit through building sales and cross
selling other business products to existing customer base and external
sourcing of related professional networks. Ensures customer satisfaction
through designing Institutional Trust plans that meet customer needs.
Ensures plan designs meet compliance requirements. Coordinates all fund
transfer securities movements and requests. Monitors transactions, cash
flows and account activity. Delivers statements and coordinates benefit
payments. Reviews with management all capital changes, receipt of
notification for voluntary offerings and cash and trade activity. Collects
fee delinquencies. Ensures the accurate establishment, administration and
operation of the accounts. May act as a team lead for Inst Trust Account
Managers and Trust Assistants.
Qualifications: Qualified candidates will have
proven excellent customer service skills, be well organized and will
collaborate well with partner groups to best serve the customers.
This position is located in Los Angeles, California.
* * * * * * * * * *
Staff Attorney
Strong, stable, division of publicly traded company
located in Los Angeles County is seeking Employment Law and ERISA attorney
for its growing legal department. Position offers challenging work in a
dynamic and collegial environment.
Qualified candidates please forward resume ASAP in
strict confidence to
Sharon E. Gerber, Esq. by email: seg@jzsearch.com or
by fax to (323) 655-1530.
PLEASE REFERENCE "IN-HOUSE ERISA ATTORNEY" IN
SUBJECT LINE OF SUBMISSION. We will contact you if your background is a
fit prior to submitting your resume.
No Phone Calls Please.
1-6 years experience. Employee Benefits. Background
in tax or corporate governance is also helpful.
Advise client organizations in identifying and
resolving legal, business, and strategic issues related to qualified and
non-qualified employee benefit plans.
Draft benefit plan amendments and Employee Benefit
Committee resolutions. Review summary plan descriptions, notices of
material modification, and other benefits-related communications. Ensure
compliance with ERISA and other laws governing employee benefits.
Draft plan restatements and secure positive IRS
determination letters for qualified plans. Advise and assist during
benefit plan audits by government agencies. Advise and assist group
colleagues in employee benefit litigation.
Member of the State Bar of California, or planning
to sit for the next Bar exam. Competitive salary and comprehensive
benefits package.
We have an
exciting list of topics for this year's programs.
“WHAT
FEES ARE EATING UP MY 401(k) ACCOUNT?”
The Los Angeles Chapter is pleased to announce this
special program designed to help you understand more about plan fees
and expenses and the DOL’s current Form 5500 reporting requirements.
Our distinguished panelists are Bruce Ashton, Rick Blain and Mark
Davis.
In 1996, the DOL’s PWBA (now called
the EBSA) published a guideline to account for 401(k) plan fees and
expenses. This area is getting greater scrutiny, as an outgrowth of
the mutual fund scandals, and new rules may be adopted. Two “Working
Groups” presented reports to the DOL ERISA Advisory Committee last
fall concerning plan fees. Messrs. Ashton and Davis gave testimony
before those “Working Groups” and will share their insights.
Rick Blain recently received a
letter from the DOL in response to his private inquiry regarding the
lack of transparency in 401(k) plan fees. He will provide meeting
attendees with a copy of his letter and the DOL’s response.
Come to this meeting to learn where
the bones are buried and the current thinking regarding fees! This
impacts anyone who has anything to do with a DC/401(k) plan.
OUR SPEAKERS
Mark A. Davis
is a published author and frequent speaker at regional and national
conferences on retirement investment and educational issues. He is a
member of the LA Chapter, and has served on the Board.
Bruce L. Ashton is a Partner in the
law firm of Reish Luftman Reicher & Cohen, specializing in all areas
of employee benefits law. He is a noted author and speaker, and the
immediate past president of ASPPA, and is a member of the LA Chapter
and past Board member.
Rick Blain is an employee benefits
consultant having nearly 30 years of experience in all facets of
employee benefits. Since 1981, Rick has been an active member of the
Western Pension & Benefits Conference, and was President of the Orange
County Chapter in 2002-2004.
There are
key differences between “advisors”. Some are accountants, actuaries,
pension administrators or consultants. Others are insurance agents or
benefits specialists. There are also those who work for banks, mutual
fund companies or investment firms. While professionals in each of these
positions have merit relative to specific moving parts of a 401(k) plan,
it is important to look at the whole structure, not just the individual
parts. An effective 401(k) advisor is much like a coach, coordinating the
work of others and guiding the plan to avoid the pitfalls. An individual
with expertise in only one specific 401(k) process will not necessarily be
a good head coach. Since you have the overall responsibility for all the
different plan functions, it is important that you select someone who can
manage the whole, rather than just certain parts. This someone is your
401(k) advisor.
The role
of the 401(k) advisor is multi-faceted. The advisor should clearly define
the parameters of the specific client relationship and establish
expectations for both the client and the advisor. Then, the advisor
should provide consultation related to the evaluation and selection of
service providers. Next would be plan design consulting followed by
designing an investment policy statement. The advisor should manage the
implementation and transition of new providers. The advisor should serve
as primary contact for all aspects of plan servicing. Providing ongoing
plan reviews as well as managing employee communications and employee
investment education are additional key role for your advisor.
An
advisor will become a valuable ally in managing the company’s fiduciary
responsibility, will be a time-saving resource by relieving your
managerial duties, and will be critical to developing and maintaining a
solid strategy for your retirement plan.
