SUMMER 2014
THE ONE PAGE MAGAZINE
New Treasury Regulation
Provides New Lifetime
Income Options for Defined
Contribution Plans
The U.S. Treasury Department issued final
regulations that pave the way for defined
contribution plans – including 401(k) plans
and IRAs – to provide participants with a new
option for insuring against longevity risk.
One of the ideas that has emerged among
academics and industry thought-leaders is to
create a new product that has come to be known
as a “longevity annuity.”
Companies like MetLife have made these products
available in the retail marketplace. Demand has
been growing, but is still limited. A major barrier,
however, is that regulatory restrictions made it
unattractive to use these products where they
made the most sense – in qualified retirement
plans. This ruling changes that.
To read the article on Forbes visit:
www.forbes.com/sites/jeffreybrown/2014/07/01/
new-treasury-regulation-provides-new-lifetimeincome-option-for-defined-contribution-plans/
—Forbes, 7/1/14
Early Baby Boomers
Comfortable with
Retirment Income
New York’s Non-Profit
Revitalization Act Of 2013
Changes The Governance
of Private Colleges,
Universities and Schools
Effective July 1, 2014, New York’s Non-Profit
Revitalization Act, (the Act) fundamentally
changes the governance of non-profit private
colleges, universities and schools and other
charitable organizations. New York, which
labored under cumbersome and antiquated
regulatory statutes, has created a simpler method
of creating new non-profit entities. It has also
adopted many of the best governance practices
already employed by private schools in New
York State and many other reforms long sought
by charitable enterprises and their counsel.
Non-profit organizations can now incorporate,
dissolve and merge more easily. Boards are
permitted to use modern technology like Skype
and videoconferencing to communicate and
hold meetings and may enter into significant
transactions without court approval. The Act
also provides critical oversight and governance
reforms to prevent fraud and improve the public
trust, including stricter oversight of insider deals,
more substantial financial oversight requirements,
conflict-of-interest policies, and whistleblower
policies.
Read the full article at: www.lexology.com/library/
detail.aspx?g=adf7b640-a0f6-4eb2-885d-dc0f186058aa
—Greenberg Traurig LLP, 7/18/14
Retirement Accounts Hold
Record Balances
The recent stock run-up is doing wonders for
retirement savings.
The average balance in a Fidelity Individual
Retirement Account (IRA) rose 15% on an
annual basis in the second quarter to $92,600
-- an all-time high.
In the same period, the average balance in a
Fidelity 401(k) account also set a record, up
nearly 13% annually to $91,000.
The mutual fund giant credited 77% of the gains
to a surging stock market, and 23% to employee
and employer contributions.
For the full article click here: www.ksat.com/content/
pns/ksat/news/2014/07/18/money-fidelity-401kbalances.html
—Patrick M. Sheridan, 7/18/14
Recent retirees and those about to retire are
relatively comfortable and confident in their
retirement income, said a survey conducted by
Brightwork Partners for T. Rowe Price Group.
The survey was conducted to mark the first retirements
of the oldest baby boomers, who turned 65 in 2011,
said Anne Coveney, senior manager of thought
leadership at T. Rowe Price Group, who led the
study for the firm.
To read the article on pionline.com visit:
www.pionline.com/article/20140730/
ONLINE/140739984/early-baby-boomerscomfortable-with-retirement-income-8212report?utm_campaign=ramp_rss&utm_source=_
rss&utm_medium=rss
— Rob Kozlowski, pionline.com, 7/30/14
Interest in Defined-Benefit Grows Among
Small Business Owners
According to the most recent statistics provided by the U.S. Department of Labor Employee Benefits Security
Administration, published in a June 2013 report, the number of defined-benefit plans had dropped from
about 180,000 in 1985 to fewer than 50,000 in 2011.
However, despite the steep drop-off, financial advisors at Wells Fargo Advisors, Raymond James and other
wealth management firms say that interest in such plans is climbing among one important sector: small
business owners.
6 | SUMMER 2014
For the full article click here: www.onwallstreet.com/news/small_business/interest-in-defined-benefit-growsamong-small-business-owners-2689676-1.html
— Miriam Rozen, OnWallStreet, 7/1/14