The proxy access rule, which has been percolating at the SEC for years, requires companies to include the names of all board nominees (even those not backed by the corporation) to be listed on the ballots provided to shareholders’ annual meetings.  Shareholders, either individually or as a group, must own at least 3% of the firm’s stock in order to nominate somebody.   And the companies will now have to pay the costs of a campaign to oust a member of the board of directors.  In the past, those opposing a director had to pay those costs themselves.

Time will tell as to whether this new proxy access rule will stand.  I think it’s a great idea…and I’ll keep you posted.  Until next time, here’s to good planning

Last week, Walmart asked the U.S. Supreme Court to overturn that lower court’s ruling.  The company claims the 9^th Circuit’s ruling is at odds with previous rulings by the high court.  Walmart attorneys, of course, say if the Court of Appeals ruling is allowed to stand, it will have huge implications for other businesses.   Not promoting or paying women equally with their male counterparts?  Yeah…I’d say we’re all interested in that.  The Supreme Court should decide whether they’ll hear the case later this year.  Hang in there, gals!   Until next time, here’s to good planning!

The federal agency responsible for monitoring this activity is the U.S. Labor Department’s Employee Benefit Security Administration.  They’ve really had their hands full in the last few years.  One recent case involved Eric C. Mitchell & Associates, Inc. in Bedford, New Hampshire.  Seems the plan’s trustee, Eric C. Mitchell, directed more than $20,000 of employee contributions into the company’s accounts for regular business operations.  Then there is Explore General which snatched $70,000 in employee contributions and $100,000 in employer matches. 

To protect yourself, monitor your account statements (on paper and online) to guarantee that your dough is getting to your account.  If you think your employer is having money trouble, be especially vigilant in your review.  Companies have 7 days to deposit the employee contributions.  If they seem to be consistently late, don’t hesitate to call the Labor Department:  1-866-444-3272.  Until next time, heres to good planning!

Direct compensation is paid directly from the 401(k) plan; indirect compensation comes from sources other than the plan sponsor (your employer) and goes to the 401(k) record-keeper, investment manager, etc., for things like sales charges, redemption fees, surrender charges, etc.  There are a number of moving parts to every 401(k).  Each gets its cut.  More than 50 million Americans are saving for retirement in a 401(k) plan.  These plans vastly outnumber the number of pension plans (defined benefit).

And that 1%?  The Government Accountability Office reports that a 1% difference in 401(k) fees can cut your retirement assets by almost 20%.   Fees do matter.  And on July 16, 2011, you’ll be able to see just how much your employer’s plan costs.  In the meantime, find out what the expenses are for the funds you’re currently holding in your account.  If it’s not on your statement, call the fund company and ask for a prospectus.  That’ll tell you everything you need to know.  Good luck.  Until next time, here’s to good planning!

   ·     You can do it online at www.annualcreditreport.com/cra/index.jsp .  This site is run by the Federal Trade Commission (FTC)

   ·    You can call:  1-877-322-8228

   ·    You can get a request form at the web site above and mail it to:  Annual Credit Report Request Service, P. O. Box 105281, Atlanta, GA  30348-5281

Don’t wait for an unpleasant surprise.  Know what on your credit report and stay in control of your finances.   Until next time, here’s to good planning!

They’ve been ordered to pay customers $203 million, to reimburse them for multiple overdraft fees.  If you were a Wells Fargo customer, your online checking account would show your checks coming into your account in chronological order.  But, in reality, the bank had changed it policies to process checks, debit card transactions and bill payments from the highest dollar amount to the lowest.  That meant, if you had a modest balance in your account, you would be much more likely to bounce checks.  In many cases, some customers would have overdraft fees amounting to hundreds of dollars in one day.  Now, of course, the best way to avoid overdraft fees is to have enough dough in your account.  But during tough times, a lot of people are on the edge.  Bank records reportedly showed that nearly 40% of the bank’s overdraft revenue was coming from four percent of its customers. 

Judge William Alsup has ordered Wells Fargo to reverse overdraft fees charged to customers from November 15, 2004 through June 30, 2008.  The bank changed it’s policy earlier this year, but is appealing the decision (because they want more bad publicity).  Until next time, here’s to good planning!

So, why’s the IRS dropping the debt indicator?  Since refunds can be direct deposited into a taxpayer’s bank account fairly quickly, the Agency figures it can still withhold a refund if back taxes are owed, and the Feds can move the money quickly…sometimes within ten days.   It may also reduce the number of refund anticipation loans, which would be a good thing, Martha.  I’m old fashioned.  I mail in my returns…and will continue to do so until it’s no longer an option.  Until next time, here’s to good planning!

The MA Department of Revenue estimates consumers may save between $20 and $23 million.    That’s certainly a chunk of money I’m sure the state could use, but tax revenues are bound to be significantly higher through the increased economic activity that’s bound to be generated.  The state has done this for several years and it’s always a popular move.  It’s especially popular with the Retailers Association of Massachusetts which has hailed the move as an important stimulus in this tough economy.  19 states are having a sales tax holiday this year according to the Federation of Tax Administrators. 

So, make a list of the bigger ticket items that you need….and happy shopping!  Until next time, here’s to good planning!

Some employers will be moving toward the “spousal carve out” plan.  If your spouse can get coverage through his/her employer, then your employer may deem him/her ineligible or add a surcharge to your coverage.  Actually, I’ve seen that already for domestic partners coverage.  Eliminating ineligible dependents can save companies between 4% and 6% of their annual health care premiums.  That’s not chicken feed. 

So, going forward, you may see a request for a copy of your marriage license…or divorce decree.  Apparently, some employees continue to claim their ex-spouse on their health coverage, even though the divorce paperwork says otherwise.  Some divorces require continued coverage for the ex.  Bottom line, don’t try to fudge coverage for someone.  If your company has a code of conduct, you might end up losing your job.  Is it worth losing your job just to cover your daughter-in-law?  Until next time, here’s to good planning!

There are roughly 2,000 net winners in the Madoff scam.  Picard says about half of them could wind up getting sued.  They, of course, aren’t jumping at the chance to give up what they believe was their money so that it can be turned over to those who kept their funds with Madoff until the ship sank.  Even though Picard’s impending suits have been approved by a bankruptcy judge, some of the net winners have appealed that judge’s decision. 

More than $1.5 billion has been recovered thus far and another $15 billion is being pursued from Bernie’s brother, sons and a number of those “feeder funds” that funneled dough into the scam.  Picard says he will exempt those who can prove that returning some of the money will create a hardship.   It’s a tough situation.  Until next time, here’s to good planning!