The CMS Disclosure Report needs to be done online by March 1, 2009 if you are a calendar year plan. If you need to issue a Creditable Coverage Disclosure Notice after January 1, 2009, use the new form that is available online at the CMS website.

Click here for more information.

Deb Thompson joined SKA on January 1, leaving Miller Canfield.  (Along with Deb came “a player to be named later.”) Deb, Nancy Keppelman and Bob Stevenson are all fellows of the prestigious American College of Employee Benefits Counsel (ACEBC.) (And they aren’t even the smart people at SKA!)  When Deb sent ACEBC her new contact information, one of our colleagues replied “Congratulations. A strong team gets stronger.”  We agree. We invite you to review our updated roster info, which reflects Deb, Andrew Stumpff and the returning prodigal, Mickey Bartlett. We think we’ve made better roster moves than Joe Dumars (Pistons; don’t you hate the Billups for Iverson deal?), Matt Millen (Lions, enough said!) or Dave Dombrowski (we thought the Tigers had won the pennant….last February.) We admit that our friend Ken Holland (Red Wings) may be on a par with SKA after the Hossa deal. Oh, and let’s not forget “our player to be named later.” When we invited Deb to join our firm, we didn’t know that Deb would bring a bulldog with her, and by bulldog, we mean a real bulldog. If you stop by and see us, don’t be surprised if our newest member of the firm, Tootsie, greets you at the door with her tail wagging.

Click here to view our current scorecard.

401(k) plans have become primary retirement vehicles. Unlike defined benefit plans, where employers recognize investment risks and returns, participants in 401(k) plans rise or fall with investment results. Many 401(k) plans, especially “bundled” arrangements from banks, brokers, and insurance companies, are subject to hidden charges, and perhaps excessive investment fees, that reduce participants’ investment returns. Also, with participants directing their investments, Congress and regulators want participants to get unconflicted investment advice, not just general information. Lawsuits have commenced against plan sponsors and mutual fund companies such as Fidelity, seeking redress for alleged excessive fees, bad investments and hidden costs.

Under President Bush, the DOL issued some rules on fee disclosure and on participant education. Some remain in place and require immediate compliance, others are on hold by the Obama administration. (They’re on hold because they may not do enough for participants.)

Regardless of the status of new rules, the trend is clear: plan sponsors risk lawsuits, and disserve their employees, by failing to ask hard questions of investment and administration providers, by failing to disclose costs and information to participants, and by failing to help participants with investment choices. 

For more information on the rules and recommendations, click here.

Click here for more information.