AGENDA (2016)

THURSDAY, JANUARY 21, 2016

7:45 a.m. – 8:30 a.m.
Registration and Continental Breakfast
8:30 a.m. – 8:40 a.m.
Welcome & Introductions

8:40 a.m. – 10:20 a.m.

General Session 1: Ethics
During this fun and lively session, we will discuss ethics lessons from infamous sporting scandals. The lessons learned from these scandals will be compared to general business ethics, Circular 230 and our codes of conduct. What can a retirement plan professional learn from the Chicago Black Sox, Nancy Kerrigan and Tonya Harding, Deflate-gate and FIFA? Come to this session and find out! Some of the ideas we will explore using sport scandal analogies will include:
  • How to keep perspective and do the right thing when a lot is at stake.
  • The duty to disclose wrongdoing by other professionals.
  • Acting with courtesy and respect.
Norman Levinrad, EA, FSPA, MAAA, President and Chief Actuary, Summit Benefit & Actuarial Services, Inc., Eugene, Ore.
Karen Smith, President, Nova 401(k) Associates, Houston, Texas 
10:20 a.m. – 10:35 a.m.
Beverage Break
10:35 a.m. – 11:50 a.m.
Concurrent Workshops
Workshop 1: Variable Annuity Plans
Variable annuity plans offer participants lifetime income while offering the employer investment protection. New hybrid regulations clarify some aspects of these plans. Issues unique to these plans are illustrated. Find out if VAPs are the panacea some claim they are. Upon completion of the session, attendees will be able to answer these key questions:
  • What is a variable annuity plan?
  • Is it really a cash balance plan without the preservation of capital rule?
  • What hidden problems exist for sponsors of such plans?
Andrew Ferguson, FSA, Partner, Altman & Cronin Benefit Consultants, LLC, San Francisco, Calif.
James E. Holland, Jr., FSPA, FCA, MAAA, ASA, EA, Chief Research Actuary, Cheiron, Inc. McLean, Va.
Workshop 2: 415 MASDs
This session will take an in-depth look at calculating the limitations under Code Section 415 on benefits provided by defined benefit pension plans with an emphasis on Multiple Annuity Starting Dates (MASDs). Topics will include the calculation of the limitations as they pertain to lump sums and other forms of distributions, and adjustments to benefit limitations for annuity starting dates before age 62 and after age 65. This session assumes the audience is familiar with the basic rules of Section 415 for defined benefit plans. Upon completion of the session, the attendee will be able to:
  • Describe the 415 limits for defined benefit plans.
  • Compute the defined benefit 415 limits.
  • Discuss, with examples, the defined benefit 415 limits with emphasis on MASDs.
Richard A. Block, ASA, FSPA, MAAA, Actuary, Block Consulting Actuaries, Inc., El Segundo, Calif.
Michael B. Preston, FSPA, MAAA, EA, President, Preston Actuarial Services, Inc., Orland, Calif.
Workshop 3: Mission Impossible – VCP/EPCRS Update
This program will discuss the informal IRS Voluntary Closing Agreement (VCA) program, explain how it differs from the Employee Plans Compliance Resolution System (EPCRS), and use case studies to demonstrate the types of failures that don’t qualify for EPCRS but can be corrected through a closing agreement. This session will also provide an overview of the revisions that were made to the EPCRS Revenue Procedure in 2015. After attending this session, participants should be able to:
  • Understand the basics of the IRS new program to handle plan failures that cannot be fixed in EPCRS.
  • Be able to identify the types of failures and types of solutions that are available under VCA but not under EPCRS.
  • Be equipped to help your clients take advantage of the corrections available under EPCRS.
Thelma Diaz
Marcel P. Weiland, Attorney, Chang Ruthenberg & Long, Folsom, Calif.
11:50 a.m. – 12:50 p.m.
Lunch
12:50 p.m. – 2:05 p.m.
Concurrent Workshops
Workshop 4: 3 Years Down the Road – Train Staff to Recognize Opportunities to Add Revenue
We will illustrate through case studies ways that your administrative staff can open the door to additional revenue from your existing clients. Perhaps your owner-only defined benefit plan suddenly has employees that will soon be eligible. Adding a profit sharing plan can significantly reduce overall costs for the client. Maybe owners wish to contribute more than is available under a 401(k) plan. Adding a cash balance pension plan to a 401(k) can significantly boost contributions for keys, and frequently generate a higher percent of overall contributions for keys. Sometimes the correct answer is to add not one more plan, but two more plans. After attending this session, participants should be able to:
  • Generate additional business with existing clients.
  • Learn why two plans are better than one.
  • Understand which clients may benefit from adding a cash balance plan.
G. Neff McGhie, III, MSPA, President, Sierra Pension Services, Inc., Reno, Nev.
Lynn Young, MSPA, Enrolled Actuary, Pinnacle Plan Design, LLC, Phoenix, Ariz.
Workshop 5: Advanced DB & Combo Testing
This session will deal with advanced issues under Code Sections 401(a)(4) and 410(b). The speakers will look at different types of plan designs, the use of restructuring and the use of multiple plans to achieve what one plan cannot. Upon completion of the session, the attendee will be able to:
  • Describe DB/DC with minimum gateway example.
  • Share knowledge of primary DB example.
Lawrence Deutsch, FSPA, MAAA, EA, Owner, Penguin Consulting and Design, Ltd, Fallbrook, Calif.
Kurt F. Piper, FSPA, MAAA, ASA, Owner & Chief Actuary, Piper Pension & Profit Sharing, Venice, Calif.
Workshop 6: Roth — Good Deal or Not: Mathematical Projections, Conversions
There is much confusion about when Roth contributions are advantageous for a participant. This session will take a look at projections based on various fact patterns to illustrate the end result. After attending this session, participants should be able to:
  • Know how Roth contributions fit into the benefits equation.
  • Learn about situations in which Roth contributions make the most sense.
William C. Grossman, ERPA, QPA, APA, GFS, MBA, Education Consultant, McKay Hochman Consulting, Division of DSTRS, Butler, N.J.
2:05 p.m. – 2:20 p.m.
Beverage Break
2:20 p.m. – 3:35 p.m.
Concurrent Workshops
Workshop 7: Informal DB
Join your colleagues for a discussion of the topic of the moment — whatever that might be. This is an audience participation workshop where you bring your questions and we all explore possible answers, alternatives and solutions. After attending this session, participants should be able to:
  • Identify the issue presented by an actuarial colleague.
  • Analyze the issue presented and describe the options available to address it.
  • Assess what is the most appropriate option to address an issue and apply the solution to a specific situation.
Steve Levine
Mary Ann Rocco, EA, MSPA, Owner, Mary Ann Rocco, EA Consulting Actuary, Huntington Beach, Calif.
Workshop 8: Defined Benefit Regulatory Update
We can’t know what new regulations will be out in advance of this conference, but we do know that there will be concerns and questions about guidance that has been issued. This session will provide an overview of recent IRS/Treasury guidance impacting defined benefit plans and highlight areas of concern. Upon completion of the session, attendees will be able to:
  • Summarize key elements of the guidance that has been released by the IRS and Treasury in the last year.
  • Identify the situations in which the recent changes in the guidance may affect their clients.
  • Describe the effects changes in the guidance may have to their clients.
Judy A. Miller, MSPA, Director of Retirement Policy, American Retirement Association; Executive Director, ASPPA College of Pension Actuaries, Arlington, Va.
 
Workshop 9: Advanced Non-Discrimination Testing

There are many options available to us when we run discrimination testing. We will review some of the more creative options that can make your failing test pass. After attending this session, participants should be able to:

  • Gain familiarity with advanced testing options.
  • Identify potentially abusive plan designs.
  • Creative structuring for lowest employee costs.
Charles D. Lockwood, Principal, ASC Institute, LLC, Englewood, Colo.
3:35 p.m. – 3:55 p.m.
Beverage Break
3:55 p.m. – 5:10 p.m.
Concurrent Workshops
Workshop 10: Other Cash Balance Issues
We start with the definition of accrued benefit and go from there. Items covered will include accrual rules, Section 415 limits, discrimination testing and late retirement issues. After attending this session, participants should be able to:
  • Learn how the 415 limit measured in a cash balance plan and how is it impacted by normal retirement age.
  • Learn how the accrual rules work in a cash balance plan.
  • Learn how account balances are handled post-NRA.
Kevin J. Donovan, CPA, EA, MSPA, Managing Member, Pinnacle Plan Design, LLC, Tucson, Ariz.
Andrew Ferguson, FSA, Partner, Altman & Cronin Benefit Consultants, LLC, San Francisco, Calif.
Workshop 11: Compensation Concerns for Sole Props & Partnerships
There are additional complexities at when the plan sponsor is not a corporation. We will review the special considerations that must be addressed. Upon completion of the session, the attendee will be able to:
  • Discuss tricky issues relating to compensation for sole proprietorships and partnerships.
  • Identify how and where deductions are taken.
  • Answer tricky deduction questions and address issues unique to sole props and partnerships.
Norman Levinrad, EA, FSPA, MAAA, President and Chief Actuary, Summit Benefit & Actuarial Services, Inc., Eugene, Ore.
Workshop 12: Hardship and Loan Documentation
What do the IRS requirements for documenting hardship withdrawals and loans mean for your clients? This interactive session will present case studies for discussion. We will also briefly discuss hardship distributions and HIPAA compliance. After attending this session, participants should be able to:
  • Understand what the new IRS hardship distribution and loan documentation requirements are.
  • Identify how documentation is handled today through case studies.
  • Benefit from practical tips on communicating with plan sponsors.
William C. Grossman, ERPA, QPA, APA, GFS, MBA, Education Consultant, McKay Hochman Consulting, Division of DSTRS, Butler, N.J.
5:10 p.m. – 6:10 p.m.
Networking Reception
FRIDAY, JANUARY 22, 2016
7:15 a.m. – 8:00 a.m.
Continental Breakfast
8:00 a.m. – 9:15 a.m.
Concurrent Workshops
 
Workshop 13: End-of-Year Valuations
PPA 2006 permits small plans to have valuation dates other than the first day of the plan year. HATFA has clarified the application of the segment rates to end of year valuations. Presenters focus on the challenges posed in determining AFTAPs and maintaining credit balances. They also address how to complete certain items on Schedule SB. Upon completion of the session, the attendee will be able to:
  • Calculate the minimum required contribution for end-of-year valuations.
  • Reflect prefunding balances in the valuation and on the Schedule SB.
  • Calculate PBGC premiums for plans with end-of-year valuation dates.
G. Neff McGhie, III, MSPA, President, Sierra Pension Services, Inc., Reno, Nev.
Lynn Young, MSPA, Enrolled Actuary, Pinnacle Plan Design, LLC, Phoenix, Ariz.
Workshop 14: PBGC Update
Speakers will provide an overview of recently published PBGC guidance, official and unofficial, on issues from coverage to premiums to required notices. After attending this session, participants should be able to:
  • Understand what recent guidance the PBGC has released.
  • Learn how such guidance affects your clients.
  • Hear other practitioners speak about their interactions with the PBGC.
Kurt F. Piper, FSPA, MAAA, ASA, Owner & Chief Actuary, Piper Pension & Profit Sharing, Venice, Calif.
Karen Smith, President, Nova 401(k) Associates, Houston, Texas 
Workshop 15: Establishing Timelines & Expectations for Smooth K TO 
Transitioning assets and administration is rarely a seamless occurrence but there are ways to make the sailing smoother. Learn ways to avoid the tempest of a takeover gone bad. Effective communication is key to the process. After attending this session, participants should be able to:
  • Implement internal practices for smooth transitions.
  • Set expectations clearly for plan sponsors initially.
Virginia Krieger Sutton, Account Executive; Consultant, Johnson & Dugan/VKS Consulting, Daly City, Calif.
9:15 a.m. – 9:35 a.m.
Beverage Break
9:35 a.m. – 10:50 a.m.
Concurrent Workshops
Workshop 16: Small Plan ‘Gotchas’
Small plans can be tricky. Lawmakers and regulators create pitfalls to designs. The presentation should help you navigate those ‘gotchas’ before they attack your small plans. The panelists discuss issues based upon their practical experience. Upon completion of the session, the attendee will be able to:
  • Discuss issues regarding compensation and deductions for small plans.
  • Identify situations in which Roth 401(k) and voluntary after-tax contributions may be beneficial.
  • Identify document issues relating to small plans.
Richard A. Block, ASA, FSPA, MAAA, Actuary, Block Consulting Actuaries, Inc., El Segundo, Calif.
Stephen R. Parks, EA, MSPA, Chief Actuary, Retirement Systems of California, Woodland Hills, Calif.
Workshop 17: 436 Restrictions
PPA 2006 added Section 436 to the Code, restricting plan amendments, forcing plans to freeze benefits and limiting lump sum distributions. This session will look at the rules under Section 436 nearly 10 years after the enactment of PPA. After attending this session, participants should be able to answer these questions:
  • Should sponsors create balances, and how does Section 436 impact this decision?
  • What should plan documents say as far as restoring accruals after the AFTAP is back above required levels?
  • What can (and should) sponsors do about restricted payments?
Lawrence Deutsch, FSPA, MAAA, EA, Owner, Penguin Consulting and Design, Ltd, Fallbrook, Calif.
James E. Holland, Jr., FSPA, FCA, MAAA, ASA, EA, Chief Research Actuary, Cheiron, Inc. McLean, Va.
Workshop 18: Revolving Door Rehires
“Boomerang employees” can cause compliance concerns if there is not a complete understanding of the various rules applicable to rehires. Sometimes it is not even clear if an employee is a rehire, or never terminated service. The proper application of the various rules will be discussed. After attending this session, participants should be able to:
  • Review applicable rules for rehires.
  • Learn how eligibility and vesting rules are applied.
  • Understand the Rule of Parity and the One-Year Holdout rule.
Charles D. Lockwood, Principal, ASC Institute, LLC, Englewood, Colo.
10:50 a.m. – 11:10 a.m.
Beverage Break
11:10 a.m. – 12:25 p.m.
Concurrent Workshops
Workshop 19: Design Process from Data Collection to Illustration 
The speaker will discuss the process of designing the best retirement plan strategy for a prospective client and the issues involved. What core information should be included in the proposal? What topics should be communicated prior to and during plan implementation? Session participants will be able to:
  • Identify the best retirement strategy for prospective clients.
  • Identify key elements (issues and people) that should be included in the proposal process.
  • Better communicate the proposal results and plan provisions once implemented.
Mary Ann Rocco, EA, MSPA, Owner, Mary Ann Rocco, EA Consulting Actuary, Huntington Beach, Calif.
Workshop 20: Cash Balance Interest Credits
The speakers will discuss the various interest crediting rates allowable under IRS final regulations and discuss the pros and cons of using such rates. Examples will show traps for the unwary and how to avoid them. After attending this session, participants should be able to:
  • Identify allowable interest crediting rates for cash balance plans.
  • Learn the pros and cons of using rate of return on plan assets.
  • Learn when subsets of plan assets are a viable approach to interest crediting.
Kevin J. Donovan, CPA, EA, MSPA, Managing Member, Pinnacle Plan Design, LLC, Tucson, Ariz.
Thomas J. Finnegan, MSPA, CPC, QPA, MAAA, FCA, Principal, The Savitz Organization, Philadelphia, Pa.
Workshop 21: Compliance Issues – When Molehills Became Mountains
The end result of some seemingly inconsequential errors in administration can be draconian for the plan sponsor. The focus of this session is how to effectively identify the solutions and communicate them to the plan sponsor. After attending this session, participants should be able to:
  • Know how to effectively communicate compliance failures and solutions to plan sponsors.
  • Recognize when ERISA counsel should be recommended.
  • Understand and clearly explain risks associated with alternative corrections.
Liz Hopkins
Marilyn Ryding, AIF, President, Marilyn Ryding Retirement Plan Consulting, Burbank, Calif.
12:25 p.m. – 1:25 p.m.
Lunch
1:25 p.m. – 2:40 p.m.
Concurrent Workshops
Workshop 22: Actuarial Challenges and Dilemmas
This session will identify a number of situations that we occasionally encounter but may not know how to handle. The speakers will address insurance in pension plans, real estate in plan assets, in-kind contributions and distributions, 412(d)(2) elections, actuarial increases on frozen and term vested benefits, de-risking, etc. Upon completion of the session, the attendee will be able to:
  • Incorporate insurance in an actuarial valuation.
  • Summarize issues with holding real estate in plan assets.
  • Identify the situations in which benefits must be adjusted for late retirement and state how such adjustments are computed.
Stephen R. Parks, EA, MSPA, Chief Actuary, Retirement Systems of California, Woodland Hills, Calif.
Michael B. Preston, FSPA, MAAA, EA, President, Preston Actuarial Services, Inc., Orland, Calif.
Workshop 23: Overfunded Plans
The speaker will provide a current look at pension surplus opportunities for sponsors of defined benefit plans. Also covered are the variety of options sponsors have to utilize surpluses efficiently and effectively. Practical options available to employers are discussed, from the common strategies to the lesser known ones. After attending this session, participants should be able to:
  • Identify plans with overfunding issues.
  • Identify strategies to deal with overfunded plans.
  • Identify which strategy works best based on an individual client’s situation.
Steve Levine
Workshop 24: ERISA Litigation Update 
“An ounce of prevention” is more desirable than its counterpart, especially in this fast-paced world of ERISA litigation. The land of fiduciaries, fees and filings are among a spectrum of issues being reviewed by the courts. The DOL continues to file amicus briefs in ERISA cases and pursues its own litigation arising from plan investigations highlighting service providers. Learning from these ongoing developments may prevent you from hearing the dreaded, “I’ll see you in court!” After attending this session, participants should be able to:
  • Understand recent developments in ERISA litigation.
  • Learn the differing points of view on the current state of affairs of ERISA litigation and offer DOL and defense perspectives.
  • Understand the types of remedies in breach-of-fiduciary cases under ERISA.
Liz Hopkins
R. Bradford Huss, Esq., Trucker Huss, APC, San Francisco, Calif.
2:40 p.m. – 3:00 p.m.
Beverage Break
3:00 p.m. – 4:15 p.m.
General Session 2: Ask the Experts
Come to this session to get answers to those burning questions you have about defined contribution and defined benefit plans! Participants are encouraged to submit questions prior to the conference by email to conferences@asppa.org.
Thomas J. Finnegan, MSPA, CPC, QPA, MAAA, FCA, Principal, The Savitz Organization, Philadelphia, Pa.
William C. Grossman, ERPA, QPA, APA, GFS, MBA, Education Consultant, McKay Hochman Consulting, Division of DSTRS, Butler, N.J.
James E. Holland, Jr., FSPA, FCA, MAAA, ASA, EA, Chief Research Actuary, Cheiron, Inc. McLean, Va.
R. Bradford Huss, Esq., Trucker Huss, APC, San Francisco, Calif.
4:15 p.m.
Conference Adjourns