Compliance October 17, 2005

DoL Tracking Storm Affected Plan Sponsors

October 17, 2005 (PLANSPONSOR.com) - The US Department of Labor's Employee Benefits Security Administration (EBSA) on Monday launched a Web site allowing plan sponsors who had to relocate because of Hurricanes Katrina and Rita to update their current contact data.
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A news release said the updated contact information will allow employees, plan participants and their families, as well as the many other support organizations assisting victims of the hurricanes, to reach plan administrators with questions and information related to their retirement and health benefits.

“Lack of contact information can result in participants not receiving retirement checks, knowing where to send premium payments for their health benefits, how to reach plan administrators for needed services or how to find general information about the status of their employment or benefits,” said Ann Combs, assistant secretary of labor for employee benefits security, in the news release. “This site will allow participants, their families and others to reach the administrators of those plans with their questions.”

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The Web site includes a searchable database that lists pre-hurricane contact information garnered from the Form 5500 Annual Reports filed previously by all employee benefit plans located in the affected disaster areas.   Employers/plan sponsors who wish to update or correct their contact information included on this site may do so by calling toll free 866-444-EBSA (3272) or by submitting a Verification of Contact Information Form found on  the Web site .

Employees/plan participants who need to locate their employer/plan sponsor may  search the database or contact a benefits advisor for assistance at 866-444-EBSA (3272).

Compliance October 14, 2005

UK Pension Insurer to Consider Special Pension Contributions

October 14, 2005 (PLANSPONSOR.com) - Officials at the UK Pension Protection Fund (PPF) take into account special cash contributions made by employers to make up funding deficits in their pension plans while calculating employer insurance levies.
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From April 2006, the PPF will charge a risk-based fee that will take into account the level of underfunding of an employer’s pension plan, the risk of insolvency of the sponsoring employer and the amount of benefits that the fund would have to pay if the pension plan were accepted into the PPF, Business Insurance reported.

The PPF said that as a result of public feedback, it would include the special contributions made by employers into their pension plans in its calculation of pension plan underfunding. Plus, the PPF said it would also consider the use of contingent assets – such as letters of credit – used by employers seeking to address their pension funding deficits.

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The PPF also said it would put off until March 31, 2006, a deadline for employers to provide the PPF with their valuations of pension fund assets and liabilities, as well as information about the structure of their pension plans.

The London-based Confederation of British Industry, which represents employers in the United Kingdom, welcomed the PPF’s announcement.  “It is vital, when calculating the levy, that the PPF takes into account the additional forms of security which companies are able to provide against their pension scheme liabilities,” the CBI said in  a statement .

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