Heartland Consulting Group, Inc.

PARTICIPANT FEE DISCLOSURES

ERISA 404(a) outlines new requirements for disclosing fees to plan participants. These requirements are effective for plan years beginning on or after November 1, 2011. Participant investment statements will be changing over the course of the year in order to comply with the new rules.

NEW ENGAGEMENT LETTERS

In addition to new participant fee disclosures, there are new requirements for fee disclosures to plan sponsors. ERISA 408(b)(2) provides guidelines for service providers/advisors to report plan fees to their clients. While we have always detailed fees within our engagement letters, we will be updating all engagement letters to include the new required disclosure language. Look for these new engagements in your mailbox during the second quarter of 2011. The new engagements will apply to all services performed on or after July 16, 2011.

WRERA AMENDMENTS

All qualified retirement plans will be required to amend their plan documents by the end of the 2011 Plan Year (2012 for governmental plans) for the Worker, Retirement, and Employer Recovery Act of 2008 (WRERA). The primary purpose of this amendment is to add required language reflecting the ability to waive Required Minimum Distributions for 2009. If Heartland Consulting Group is your document provider, we will be sending this amendment to you during the third quarter of 2011.

WHAT’S AN ERPA?

An ERPA is a new classification of individual admitted to represent taxpayers before the Internal Revenue Service on a wide variety of retirement plan matters. The ability to practice before the IRS is governed by Circular 230, which requires professional and ethical standards. Enrolled Retirement Plan Agents (ERPAs) are held accountable for their actions, and as such, will provide added assurances to employers when hiring third party administrators or benefits consultants. To become an ERPA, an applicant must demonstrate competency in retirement plan matters through a special enrollment examination, remain current with continuing education requirements, and follow the same standards as all retirement plan professionals. Heartland is pleased to announce that currently three of our staff members have attained the ERPA designation.

IN-SERVICE ROTH CONVERSION

The Small Business Jobs Act of 2010 permits qualified retirement plans to include an in-plan Roth conversion feature. Plans electing to allow this provision will enable plan participants to convert certain pre-tax account balances into an after-tax Roth account, without having to take a distribution from the plan. The participant is responsible for paying tax on any converted amounts. If you previously notified Heartland that you wish to add this feature, you will be receiving an amendment late 2011. If you did not elect this option in 2010, but wish to add it now, please contact your Heartland consultant to make the change.


		PARTICIPANT FEE DISCLOSURES ERISA 404(a) outlines new requirements for disclosing fees to plan participants. These requirements are effective for plan years beginning on or after November 1, 2011. Participant investment statements will be changing over the course of the year in order to comply with the new rules. NEW ENGAGEMENT LETTERS In addition to new participant fee disclosures, there are new requirements for fee disclosures to plan sponsors. ERISA 408(b)(2) provides guidelines for service providers/advisors to report plan fees to their clients. While we have always detailed fees within our engagement letters, we will be updating all engagement letters to include the new required disclosure language. Look for these new engagements in your mailbox during the second quarter of 2011. The new engagements will apply to all services performed on or after July 16, 2011. WRERA AMENDMENTS All qualified retirement plans will be required to amend their plan documents by the end of the 2011 Plan Year (2012 for governmental plans) for the Worker, Retirement, and Employer Recovery Act of 2008 (WRERA). The primary purpose of this amendment is to add required language reflecting the ability to waive Required Minimum Distributions for 2009. If Heartland Consulting Group is your document provider, we will be sending this amendment to you during the third quarter of 2011. WHAT’S AN ERPA? An ERPA is a new classification of individual admitted to represent taxpayers before the Internal Revenue Service on a wide variety of retirement plan matters. The ability to practice before the IRS is governed by Circular 230, which requires professional and ethical standards. Enrolled Retirement Plan Agents (ERPAs) are held accountable for their actions, and as such, will provide added assurances to employers when hiring third party administrators or benefits consultants. To become an ERPA, an applicant must demonstrate competency in retirement plan matters through a special enrollment examination, remain current with continuing education requirements, and follow the same standards as all retirement plan professionals. Heartland is pleased to announce that currently three of our staff members have attained the ERPA designation. IN-SERVICE ROTH CONVERSION The Small Business Jobs Act of 2010 permits qualified retirement plans to include an in-plan Roth conversion feature. Plans electing to allow this provision will enable plan participants to convert certain pre-tax account balances into an after-tax Roth account, without having to take a distribution from the plan. The participant is responsible for paying tax on any converted amounts. If you previously notified Heartland that you wish to add this feature, you will be receiving an amendment late 2011. If you did not elect this option in 2010, but wish to add it now, please contact your Heartland consultant to make the change.