= <= /o:p>

Newsletter

JUNE 2011 &nbs= p; &= nbsp; &nbs= p; &= nbsp; Volume 28 - Number 1

<= /o:p>

This newsletter is addressed to our clients, their attorneys, accountants and other professional advisors. Citations may be included for those who want to refer directly to the sou= rce material. IN THIS ISSUE: <= o:p>

The Internal Revenue Service= Has Released Form 8955-SSA. The long awaited replacement for the Form 5500 Schedule SSA, to report participants with a deferred vested benefit, has been released.

Final Participant Fee Disclosure Regulations Issued by= the Department of Labor. New annual and quarterly notices are required next year for defined contribution plans with participant directed investment accounts.

The Internal Revenue Service (IRS) Has Released Form 8955-SSA.

The purpose of IR= S Form 8895-SSA is to report plan participants with a deferred vested benefit to= the Social Security Administration (SSA). Participants with a deferred vested benefit are participants that have terminated employment with the plan sponsor and still have a vested account balance or benefit in the plan. T= he SSA uses this information to notify participants, after they file for soc= ial security benefits, that they may still have a retirement benefit in the p= lan.

Prior to the 2009= year, participants with deferred vested benefits were reported on the Form 5500 Schedule SSA. However, starting with the 2009 year, Form 5500 must be fil= ed electronically with the Department of Labor (DOL) and the entire electron= ic filing can be viewed by the public on the DOL website. The information on= the SSA is not public information so it must now be filed separately with the Internal Revenue Service.

Please note that = the IRS has just released the 2009 version of the 8895-SSA and not the 2010 version. However, the plan may file a single 8895-SSA for both years and report participants required to be reported for the 2009 and 2010 years together on the 2009 version of the form. IRS has extended the due date o= f the 2009 and 2010 Form 8895-SSA to the later of January 17, 2012 or the due d= ate that regularly applies to filing the form.

Final Participant Fee Disclosure Regulations Issued by= the Department of Labor (DOL)

The DOL issued participant fee disclosure regulations to ensure that participants in self-directed individual account plans have the information they need to make informed decisions a= bout the management of their accounts and the investment of their plan assets.=

The DOL’s position is that when a plan gives investment responsibilities to participants, plan fiduciaries must take steps to ensure that participants are made aware of their rights and responsibilities regarding the managem= ent of their individual accounts, and are provided with sufficient information regarding fees, expenses and investments.

The regulations a= pply to participant-directed defined contribution plans subject to ERISA, which are not otherwise exempt from the disclosure requirements. IRA, SEP, and SIMPLE IRA plans are exempt. Go= vernmental and church plans are exempt unless the church plan affirmatively elects to be subject to ERISA. Owner-only plans that are eligible to file Form 5500-EZ are not subject to ERISA and, as such, are also exempt.=

The participant f= ee disclosure regulations require annual and quarterly disclosures. The annu= al disclosure must include:

1. &nbs= p; Explanation of circumstances= under which participants may direct their investments;

2. &nbs= p; Explanation of limitations on investment direction under the plan terms;

3. &nbs= p; Description of plan terms re= lating to exercise of voting and similar rights applicable to investments in a d= esignated investment alternative;

4. &nbs= p; Identification of any design= ated investment alternatives under the plan;

5. &nbs= p; Identification of any design= ated investment manager;

6. &nbs= p; Description of any brokerage window, self-directed brokerage account or similar arrangement;

7. &nbs= p; De= scription of general administrative expenses, such as recordkeeping, legal, 5500 preparation, testi= ng, etc, that may be charged against the participants’ individual accou= nts; and

8.= Description of individual expenses that may be charged against = an individual participant’s account, including fees for participant lo= ans, distributions, brokerage windows, commissions, front or back-end loads or sales charges, redemption fees, transfer fees and similar shareholder expenses, and optional rider charges in annuity contracts.

The quarterly disclosure must include:

1.= Administrative expenses: the dollar amount of the fees and expenses for general plan administrative services that were actually charged to the participant’s account during the preceding quarter, including:=

a.= A general description of the services to which the fees relate, su= ch as plan administration.

b.= And, if applicable, an explanation that, in addition to the fees a= nd expenses paid directly by the plan for general administrative services, s= ome of the plan’s administrative expenses for the preceding quarter were paid from the total annual operating expenses of one or more of the plan’s designated investment alternatives such as through revenue sharing arrangements.

2.= Individual expenses: the dollar amount of the individual expenses actually charged to the participant’s account during the preceding quarter a= nd a description of the services to which the charges relate, such as loan processing fees, brokerage window fees, etc. These quarterly disclosures = of individual expenses include brokerage commissions and other investment fe= es related to designated investment alternatives.

The new rules apply for plan years beginning after Oct= ober 31, 2011. For calendar year plans the new regulations are applicable for = plan years beginning in 2012.

P= acific Retirement Plans, Inc. Provides Full

C= onsulting, Administration & Actuarial Services

·= Profit Sharing & 401(k) Plans	·= Target Benefit Pension Plans
·= Age Based and Comparability Plans	·= Money Purchase Pension Plans
·= Defined Benefit Pension Plans	·= Employee Stock Ownership Plans

216 N. San Mateo Drive<= span style=3D'font-size:8.0pt;mso-bidi-font-size:10.0pt;font-family:Arial'>= ·<= /span>= San Mateo, CA 94401<= o:p>

Phone (650) 696-9600 · Fax (650) 340-1226 · Email PRP@PRPlans.com

V= isit our Website www.prplans.com