An online, clickable version of this newsletter is available at: http://benefitslink.com/2006/2006_05_03_retirement.html =========================================================== BenefitsLink Retirement Plans Newsletter (Plain Text Format) May 3, 2006 =========================================================== We thank and invite your attention to today's sponsor: www.ftwilliam.com =========================================================== Q. What did over 300 leading-edge TPA/Consulting Firms discover last year? (Advert.) http://benefitslink.com/modperl/a_d.cgi?a_d=2006_05_03_retirement (Click on above address, or copy and paste it into your web browser, to learn more.) A. www.ftwilliam.com Sign-up for our free on-line demo and find out how www.ftwilliam.com can make your life easier (and save you money). * Easy to learn and use. * Outstanding technical support. * 12 High quality plan documents including DB, ESOP and 403(b). * Email completed 5500s to clients via PDF. * 55Autofill* (automatically download prior year 5500 information). * Extensive on-line error correction. * Link directly to our systems via spreadsheet upload, or for sophisticated users, with our xml-based ftwLink. Email us at sales@ftwilliam.com or call Holly Roussel at 800.596.0714. * Patent pending (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) ---------------------------------------------------------- Listing of IRS Published Guidance for January 2006 -- April 2006 http://www.irs.gov/retirement/content/0,,id=96685,00.html Excerpt: "The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. " (U.S. Internal Revenue Service) ---------------------------------------------------------- Overview: Pensions and Retirement Plan Enactments in the 2005 State Legislatures http://www.ncsl.org/programs/fiscal/pensun05.htm Excerpt: "The goal of this report is to help researchers and policy makers know how other states have addressed issues that could arise in any state. .... This report is organized according to the topics that legislatures addressed in 2005, listed at the end of this introduction. The remainder of the introduction identifies the focal issues of 2005." (National Conference of State Legislatures) ---------------------------------------------------------- Commentary: The Funding Crisis in Municipal Pensions http://www.contingencies.org/mayjun06/commentary_0506.asp Excerpt: "Unfortunately, many municipalities in America face the consequences of underfunded pension plans, escalating benefit costs, and reduced income on investments. It's a situation that must be addressed immediately, before a crisis ensues." (Contingencies) ---------------------------------------------------------- Retirement Income Security Programs -- Avoiding the Train Wreck http://www.contingencies.org/mayjun06/retirement_0506.asp Excerpt: "An actuarial train wreck is fast approaching. The wreck will occur when the dearth of defined benefit pension plans, coupled with the lack of adequate retirement savings, collides with ever-improving life expectancies of our nation's baby boomer and future retiree generations. We foresee a time in which our elderly will be out of income options and devoid of income protection insurance." (Contingencies) ---------------------------------------------------------- Overview: Final Regulations on Abandoned Defined Contribution Plans http://benefitslink.com/articles/washbull060501a.html Excerpt: "The DOL has issued three separate final regulations: ...." (Deloitte's Washington Bulletin via BenefitsLink.com) ---------------------------------------------------------- Opinion: Positive News about Defined Benefit Pension Plans (PDF) http://benefitslink.com/articles/20060502_hc_foster.pdf 2 pages. Excerpt: "[P]ositive signs have emerged over the past few months for defined benefit pension plans at what may be the high point of the Section 401(k) fad, including: The public's repudiation of the Bush Administration's Social Security 'private accounts,' Heightened interest in retirement plans by university and think tank groups ... Frequent references in the nightly newscasts to the loss of pension benefits that can never be replaced by Section 401(k) plans ..." (H.C. Foster & Company) ---------------------------------------------------------- New Retirement Savings Plan Is Portable for School Workers http://www.bristolpress.com/site/news.cfm?newsid=16574014&BRD=1643&PAG=461&dept_id=10486&rfi=6 Excerpt: "Saving money for retirement can be difficult and daunting for many workers, but for Bristol public school employees, that task has likely gotten a bit easier. Assistant to Superintendent for Business William Smyth said the Board of Education has adopted a new 457(b) deferred compensation plan, providing an added option for its employees' retirement savings." (The Bristol Press) ---------------------------------------------------------- Alaska to Investigate Actuaries' Role in Public Pension Fund Shortfall http://www.journaltimes.com/articles/2006/05/03/ap-state-wi/d8hc1od80.txt Excerpt: "The state is planning to take a better look at the role a former consultant may have played in a $6.9 billion shortfall in Alaska's pension systems." (AP via JournalTimes.com) ---------------------------------------------------------- Puerto Rico: Retirement Fund Trustees Can Be Based Off Island but Distributions Face Higher Tax Rate http://www.watsonwyatt.com/us/news/globalnews2.asp?ID=15993&nm=Latin%20America/Caribbean%20-%20Puerto%20Rico Excerpt: "A recently enacted law that amended Puerto Rico's Internal Revenue Code allows trusts with trustees and/or paying agents based on the island to apply a reduced income tax withholding rate on lump sum distributions." (Watson Wyatt Worldwide) ---------------------------------------------------------- US Airways Pilot Retirees' Suit Against PBGC Dismissed http://fuguerre.wordpress.com/2006/05/03/pilot-retirees-suit-against-pbgc-dismissed/ Excerpt: "Retired U.S. Airways pilots' lawsuit against the Pension Benefit Guaranty Corporation alleging errors in the calculation of estimated benefits under their terminated pension plan has been dismissed by the D.C. appellate court, which found that the retirees had not yet exhausted administrative remedies. [Boivin v. U.S. Airways, No. 03cv02373jr]" (Pensions & Benefits Weblog) ---------------------------------------------------------- Overview: Fiduciary Duties of Parties Involved in Distributing SEC Settlement Proceeds to Plans http://hr.cch.com/news/pension/050306a.asp Excerpt: "An independent distribution consultant (IDC) appointed by the Securities and Exchange Commission (SEC) to develop and implement a plan to distribute mutual fund settlement proceeds correcting trading irregularities, but with no control over plan assets, is not a fiduciary, according to an EBSA field assistance bulletin." (CCH Pension & Benefits) ---------------------------------------------------------- Overview: Fiduciary Duties Regarding Proceeds from Late-Trading and Market Timing Settlements http://benefitslink.com/articles/washbull060501.html Excerpt: "[T]he Department of Labor's Employee Benefits Services Administration (EBSA) has provided guidance to its regional offices with respect to the specific ERISA roles and duties of the 'independent distribution consultants,' 'intermediaries,' and plan fiduciaries who will be involved in this distribution. Field Assistance Bulletin No. 2006-01, April 19, 2006 (FAB No. 2006-01)." (Deloitte's Washington Bulletin via BenefitsLink.com) ---------------------------------------------------------- Employee Ownership Update for May 2, 2006 http://www.nceo.org/columns/cr204.html NCEO Executive Director Corey Rosen discusses a case in which a district court ruled that fiduciaries of Delta Airline's ESOP did not have a duty to diversify out of Delta stock even though the company was under great financial pressure; ESOPs in companies that operate schools; and the Employee Ownership Innovations Awards, awarded to four outstanding employee-owned companies at the NCEO's annual conference. (National Center for Employee Ownership) ---------------------------------------------------------- DB Plan Sponsors Hedging their Bets on Hedge Funds: Pension Plans Expected to Invest $300 Billion http://www.benefitnews.com/retire/detail.cfm?id=8990 Excerpt: "To shore up pension coffers, defined benefit plan sponsors are increasingly willing to roll the dice and take their chances with hedge funds. So enamored are plan sponsors that one study reports institutional investors will pour nearly $300 billion into hedge funds by 2008, up from $5 billion a decade ago." (Employee Benefit News) ---------------------------------------------------------- Overview: What the New Trustees' Report Shows about Social Security http://www.cbpp.org/5-1-06socsec.htm Excerpt: "On May 1, the Social Security Board of Trustees released the 66th annual report on the program's financial and actuarial status. The report projects that Social Security's trust fund reserves will be exhausted in 2040, one year earlier than last year's projection. After that year, Social Security will be able to pay 74 percent of scheduled benefits, rather than full benefits." (Center on Budget and Policy Priorities) ---------------------------------------------------------- Savings: Yesterday, Today and Tomorrow http://www.forbes.com/finance/2006/05/02/retirement-savings-plan-cx_sr_0503retire.html Excerpt: "Most people understand the importance of planning for retirement, but many flub the timing and start saving and investing for retirement late in life. This means they end up with little savings in their mid-60s and must work longer than they would prefer or are forced to develop a taste for cat food and ketchup after calling it a career." (Forbes.com) ---------------------------------------------------------- Opinion: Richard Quinn Asks Himself the Tough Questions on Retirement http://www.benefitnews.com/retire/detail.cfm?id=9000 Excerpt: "The last time I tried this, we (that is me and me) chatted about health care issues. This time it will be pensions and retirement." (Employee Benefit News) ---------------------------------------------------------- Commentary: Annual Social Security Trustees' Report Has Privatizers Salivating http://www.socsec.org/commentary.asp?opedid=1285 Excerpt: "The Social Security Trustees have released their annual report on the state of the system. It presents a forecast similar to last year, but very slightly worse. If nothing is done in the next 34 years to adjust Social Security benefits and taxes, the system will be unable to meet its full obligations after 2040." (The Century Foundation) ---------------------------------------------------------- Overview: Time to Make EGTRRA, Other Changes Official (PDF) http://www.whdlaw.com/admin_uploads/internal_publications/wh205%20empbenlr.pdf Page 2 of 2 pages. (Whyte Hirschboeck Dudek S.C.) ---------------------------------------------------------- The Movement from DB to DC Plans: The Effect of Congressional Action on Cash Balance Plans (PDF) http://www.segalco.com/publications/spotlight/may06CB.pdf 2 pages. (The Segal Company) ---------------------------------------------------------- Saver Summit Delegates Delve Into Retirement Challenges http://www.benefitnews.com/retire/detail.cfm?id=8996 Excerpt: "We all know the media view of life after retirement: svelte and smiling retirees in designer clothing posing in settings that suggest a life of contented leisure. Ban it, participants in the 2006 Saver Summit suggested. Workers would be better served with factual images of unplanned retirements, however ugly, says summit delegate Della Williamson, vice president of NAGDCA." (Employee Benefit News) ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- A Summary of the 2006 Annual Social Security and Medicare Trust Fund Reports (PDF) http://www.ssa.gov/OACT/TRSUM/tr06summary.pdf 22 pages. Excerpt: "Each year the Trustees of the Social Security and Medicare trust funds report on the current status and projected condition of the funds over the next 75 years. This message summarizes the 2006 Annual Reports." (U.S. Social Security Administration) ---------------------------------------------------------- Overview: Financing and Solvency of Social Security http://www.aarp.org/research/socialsecurity/financing/dd137_oasdi.html Excerpt: "The Trustees of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) programs project in their 2006 report that the combined trust funds are sufficient to pay full benefits for the next 34 years, until 2040." (AARP) ---------------------------------------------------------- Benefits Briefs: Legal Developments Affecting Employee Benefits -- March 2006 (PDF) http://www.nixonpeabody.com/linked_media/publications/bb_march2006.pdf 5 pages. Excerpt: "In this issue: More Tax Troubles for Stock Options; Smokers' Rights -- Snuffed by ERISA?; Spouses as Preferred Beneficiaries; Waiver of Benefits Not Permitted; Crazy Cases" (Nixon Peabody LLP) ---------------------------------------------------------- Special Report: Compensation (PDF) http://www.workforce.com/tools/reports/WorkforceManagementSpecialReportCompensation.pdf 7 pages. Excerpt: "This special report on compensation describes how companies as varied as TIAA-CREF, Payless ShoeSource and TriQuint Semiconductor are making pay for performance work. Other stories examine CEO compensation and look at the changing nature of compensation surveys." (Workforce Management; one-time registration required) ---------------------------------------------------------- UnitedHealth Halts Executive Options http://www.nytimes.com/2006/05/02/business/02unitedhealth.web.html?ex=1304222400&en=0a33d372008d3b17&ei=5090&partner=rssuserland&emc=rss Excerpt: "The UnitedHealth Group, under fire for the timing of lucrative options grants to executives, said Monday that it had discontinued equity-based awards to its two most senior managers and that it would cease other perks like paying for personal use of corporate aircraft." (Reuters via The New York Times; one-time registration required) ---------------------------------------------------------- Overview: DOL Updates Voluntary Fiduciary Correction Program http://www.seyfarth.com/index.cfm/fuseaction/news_pub.news_pub_html/object_id/5d03a6d8-12b8-449c-bced-e6ea256a26fd Excerpt: "The VFC Program is only available for the correction of certain listed transactions. The 2006 Update expands the previously listed transactions to include: ...." (Seyfarth Shaw LLP) ========================================================== Newly Posted Events 401(k) Educational Seminar With Speaker Stephen Forbes From Corbel in Connecticut on June 14, 2006 presented by National Institute of Pension Administrators-CT Chapter http://benefitslink.com/events/detail.php?id=40835 401(k) Plan Workshop Nationwide on May 4, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40840 401(k) Plan Workshop in Texas on May 12, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40841 401(k) Plan Workshop in Utah on May 12, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40842 401(k) Plan Workshop in Washington on May 12, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40843 Code Section 409A Workshop in California on June 8, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40846 Code Section 409A Workshop in Colorado on June 8, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40845 Code Section 409A Workshop in Washington on June 9, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40847 Estate Planning Considerations for Qualified Plans and IRAs in Georgia on June 15, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40848 Estate Planning Considerations for Qualified Plans and IRAs in North Carolina on June 16, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40849 Fall Forum 2006 in Illinois on September 18, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40857 Fall Forum 2006 in Georgia on October 2, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40858 Fall Forum 2006 in Maryland on October 23, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40859 Fall Forum 2006 in California on November 13, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40860 Form 5500 Preparation Workshop in New York on May 17, 2006 presented by New York Metropolitan Area Chapter - ISCEBS http://benefitslink.com/events/detail.php?id=40851 Form 5500 Workshop in Texas on May 11, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40837 Form 5500 Workshop Nationwide on May 11, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40836 Form 5500 Workshop in Utah on May 11, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40838 Form 5500 Workshop in Washington on May 11, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40839 Health & Welfare Plan Fundamentals - A One-Day Seminar in New York on May 25, 2006 presented by New York Metropolitan Area Chapter - ISCEBS http://benefitslink.com/events/detail.php?id=40850 IRA Institute 2006 - CIP in Illinois on June 19, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40862 IRA Institute 2006 - CISP in Illinois on June 19, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40861 IRA Online Institute 2006 - CIP Nationwide on May 8, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40863 IRA Online Institute 2006 - CIP Nationwide on September 11, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40864 IRA Online Institute 2006 - CISP Nationwide on May 8, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40865 IRA Online Institute 2006 - CISP Nationwide on September 11, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40866 New! Fundamentals of 401(k) and Other Qualified Plans in Texas on June 14, 2006 presented by SunGard Corbel http://benefitslink.com/events/detail.php?id=40844 Population Health Management -- Valuable Lessons from the Fortune 100 Pave the Path to Health and Profit in California on May 24, 2006 presented by ArlenGroup http://benefitslink.com/events/detail.php?id=40867 Web/Telephone Seminar: Introduction to Roth 401(k)s Nationwide on June 7, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40856 Web/Telephone Seminar: IRA Beneficiary Distributions Nationwide on June 15, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40852 Web/Telephone Seminar: IRA Compliance Nationwide on June 8, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40853 Web/Telephone Seminar: IRA Fundamentals for Frontline Personnel - Part I Nationwide on June 6, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40854 Web/Telephone Seminar: IRA Fundamentals for Frontline Personnel - Part II Nationwide on June 8, 2006 presented by BISYS Retirement Services http://benefitslink.com/events/detail.php?id=40855 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases New Analysis Shows Largest U.S. Companies Continued Shift to 401(k) Plans in 2005 (Watson Wyatt) http://benefitslink.com/pr/detail.php?id=39738 CPI Qualified Plan Consultants Adds Heritage Funds to Retirement Platform (CPI Qualified Plan Consultants, Inc.) http://benefitslink.com/pr/detail.php?id=39735 CitiStreet Surveys Show Investment Advice Spurs Action Among Retirement Plan Participants (CitiStreet) http://benefitslink.com/pr/detail.php?id=39739 ftwilliam.com Announces The Release Of Form 8905 (ftwilliam.com) http://benefitslink.com/pr/detail.php?id=39734 MediKeeper to Provide Health Management Tool For All First HSA Customers (MediKeeper) http://benefitslink.com/pr/detail.php?id=39730 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Pension Administrator for Primark Benefits in CA http://benefitslink.com/modperl/job.cgi?id=H44473 Trust Administrator - Employee Benefits for Old Point Trust and Financial Services in VA http://benefitslink.com/modperl/job.cgi?id=H45317 Benefits & Retirement Specialist for Aerojet - Sacramento in CA http://benefitslink.com/modperl/job.cgi?id=H45743 Defined Contribution Plan Administrator for New York Life Investment Management LLC in NJ http://benefitslink.com/modperl/job.cgi?id=H45744 Product Manager for New York Life Investment Management LLC in NJ http://benefitslink.com/modperl/job.cgi?id=H45745 Assistant Product Manager for New York Life Investment Management LLC in MA http://benefitslink.com/modperl/job.cgi?id=H45746 Defined Benefit Client Account Manager for New York Life Investment Management LLC in MA http://benefitslink.com/modperl/job.cgi?id=H45747 Defined Benefit New Business Consultant for New York Life Investment Management in MA http://benefitslink.com/modperl/job.cgi?id=H45748 Benefits Administrator for Independent Benefit Services in MD http://benefitslink.com/modperl/job.cgi?id=H45750 Account Executive- Philadelphia for Transamerica in PA http://benefitslink.com/modperl/job.cgi?id=H45752 National Accounts Consultant for Standard Insurance Company in OR http://benefitslink.com/modperl/job.cgi?id=H45753 Administrative Assistant for McCready and Keene, Inc. in IN http://benefitslink.com/modperl/job.cgi?id=H45754 Sr. HR Representative for Entergy Corporation in LA http://benefitslink.com/modperl/job.cgi?id=H45755 Not-for-Profit / 403(b) Market Manager for Transamerica in CA http://benefitslink.com/modperl/job.cgi?id=H45756 Jr. Installation Specialist for Transamerica in CA http://benefitslink.com/modperl/job.cgi?id=H45757 Benefits Manager for Callison in WA http://benefitslink.com/modperl/job.cgi?id=H45758 Sr. Installation Specialist for Transamerica in CA http://benefitslink.com/modperl/job.cgi?id=H45759 Defined Contribution Plan Administrator for Pension Works, Inc. in VT http://benefitslink.com/modperl/job.cgi?id=H45761 Post yours! http://benefitslink.com/jobs/post_help_wanted.html =========================================================== Subscribe to the BenefitsLink Welfare Plans Newsletter, Too Sign-up form is at: http://benefitslink.com/newsletter =========================================================== Copyright 2006 BenefitsLink.com, Inc.; except that you can forward this email in full (if you also include this boilerplate part) or otherwise reprint this email in full (if you include this boilerplate part) without obtaining our permission. 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