An online, clickable version of this newsletter is available at: http://benefitslink.com/2007/2007_11_29_retirement.html =========================================================== BenefitsLink Retirement Plans Newsletter (Plain Text Format) November 29, 2007 Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. =========================================================== TODAY'S SPONSOR: DATAIR Employee Benefit Systems, Inc. Software for 401(k), Pension and Flex Administration (Advert.) http://benefitslink.com/modperl/a_d_top.cgi?a_d=2007_11_29_retirement (Click on the above address or copy and paste it into your web browser.) Pick and choose the software modules you need: DC/401(k) Proposals & Administration – DB Proposals & Administration – Retirement Plan Documents (Prototype and Volume Submitters) – Government Forms (5500s, 1099-Rs, 5300s) – Cafeteria Plan Administration & Documents – Participant Termination Calculations – FAS 132 Reporting Contact sales@datair.com or call 1-888-328-2474 ----------------------------------------------------------- (a) NEW GUIDANCE DOCUMENTS ---------------------------------------------------------- IRS Notice 2007-94: 2007 Cumulative List of Changes in Plan Qualification Requirements (PDF) http://benefitslink.com/IRS/notice2007-94.pdf Excerpt: "The 2007 Cumulative List is to be used primarily by plan sponsors of individually designed plans that are in Cycle C. An individually designed plan is in Cycle C if it is a single employer plan where the last digit of the employer identification number of the plan sponsor is 3 or 8, or it is a § 414(d) governmental plan (including a governmental multiemployer plan or governmental multiple employer plan)." (Internal Revenue Service) ---------------------------------------------------------- PBGC Technical Update 07-2: Funding-Related Determinations for Reporting Under Parts 4010 and 4043; Effect of the PPA http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/content/tu16267.html Excerpt: "PBGC interprets PPA 2006 to provide that new annual employer reporting rules apply to information years beginning after 2007. In general, this Technical Update provides that for purposes of the annual employer reporting and reportable events regulations, a plan's UVBs and vested benefits amounts (for the transition plan years covered by this Technical Update) are determined as of the relevant year-end 'testing date' using the rules for determining the VRP under the law in effect before PPA 2006. The guidance in this Technical Update generally applies (1) under the annual employer reporting regulation, to information years that begin before 2008 and (2) under the reportable events regulation, to event years that begin in 2008." (Pension Benefits Guaranty Corporation) ----------------------------------------------------------- (b) NEWS ---------------------------------------------------------- House Passes Tax Bill with Pension Provisions Benefiting Military Personnel http://hr.cch.com/news/pension/112907a.asp Excerpt: "The House has passed a package of military tax breaks for active and retired military service members with a host of provisions affecting qualified plans and IRAs. The Heroes Earnings Assistance and Relief Tax Bill of 2007 (H.R. 3997) was passed on a vote of 410 to 0. As we go to press, the Senate was expected to take up the measure. . . . The bill would make permanent the rules allowing active duty reservists to make penalty-free withdrawals from retirement plans and IRAs." (CCH Pension and Benefits) ---------------------------------------------------------- SEC Votes to Limit Shareholder Rights; Pension Fund Trustees Disappointed http://www.washingtonpost.com/wp-dyn/content/article/2007/11/28/AR2007112802196.html Excerpt: "Companies will be able to scuttle investor attempts to nominate board members under a plan adopted by a bitterly divided Securities and Exchange Commission yesterday. The move drew an outcry from key lawmakers, unions and major retirement funds . . ." (Washington Post; free registration required) ---------------------------------------------------------- New 'Pension Inspector' Free Online Resource Helps 50-Plus Seniors Monitor Retirement Plans http://californianewswire.com/2007/11/29/CNW741_004817.php Excerpt: "With the PENSION INSPECTOR, the consumer is empowered to dial up key financial and funding information about their -- or any -- qualified Plan that files a required IRS.DOL Form 5500. It is estimated that more than 30% of Defined Benefit Plans are underfunded, based upon standards developed by the IRS and Department of Labor." (California Newswire) ----------------------------------------------------------- (c) SUMMARIES OF GUIDANCE; FILED COMMENTS ---------------------------------------------------------- Overview: IRS Publishes 403(b) Model Plan, Orphan Contract Guidance (PDF) http://www.sablaw.com/files/tbl_s10News/FileUpload44/17825/EmpBenAlertIRSPublishes403bModelPlan.pdf 4-page summary. (Sutherland Asbill & Brennan LLP) ---------------------------------------------------------- Text of ASPPA Comments on Proposed IRS Regs on Benefit Restrictions from Underfunded Pension Plans (PDF) http://www.asppa.org/pdf_files/112807BenefitRestrictionsFIN.pdf 13 pages; 20 specific recommendations. (American Society of Pension Professionals and Actuaries (ASPPA)) ---------------------------------------------------------- Pension Protection Act Provisions (And Other Changes) That Become Effective In 2008 http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=December&artYear=2007&EntryNo=7588 Excerpt: "While many of the changes imposed by the PPA are effective as of the plan year beginning on or after January 1, 2008, conforming plan amendments are generally not required to be adopted prior to the plan year beginning on or after January 1, 2009. Accordingly, where applicable, plans should be operated in compliance with the requirements described below as of the first day of the plan year beginning on or after January 1, 2008." (Proskauer Rose LLP via Metropolitan Corporate Counsel) ----------------------------------------------------------- (d) TRENDS, SURVEYS, RESEARCH ----------------------------------------------------------- Investment Returns Lower for Self-Directed Accounts When Participants Don't Ask for Help http://www.washingtonpost.com/wp-dyn/content/article/2007/11/28/AR2007112800612.html Excerpt: "Many 401(k) retirement plans offer investors access to online or over-the-phone chats with someone who can answer investment questions, and it appears that those who don't ask for help can end up with less money in their portfolios. A new Charles Schwab examination of the 401(k) plans it oversees found that investors who rely on some professional advice for investment decisions enjoy greater returns than those who go it alone." (AP via Washington Post (free registration required)) ---------------------------------------------------------- Can Your Employer's Pension Plan Afford to Provide Cost-of-Living-Adjustments? http://www.pensionrights.org/pubs/facts/cola_steps.html Excerpt: "If your pension plan is overfunded -- that is, its assets (the amount in the plan) are greater than its obligations (the amount it must pay in pension benefits), your plan may be able to afford a COLA. You can find out whether your plan has surplus assets by looking at the financial forms . . . ." (Pension Rights Center) ----------------------------------------------------------- (e) POLICY, OPINION, ADVOCACY ----------------------------------------------------------- (None today.) =========================================================== Sponsored by: ERISAdiagnostics, Inc. Introducing An ERISAdiagnostic™ - Self audit guide for 401(k) plans! (Advert.) http://benefitslink.com/modperl/a_d_center.cgi?a_d=2007_11_29_retirement (Click on the address above or copy and paste it into your web browser.) The ERISAdiagnostic™ can help you: * Prepare for an IRS audit * Prepare a report to the Board regarding operational compliance * Establish a process for monitoring plan providers by verifying the accuracy of their services and confirm assessment of agreed upon fees. The ERISAdiagnostic™ is not: * It does not constitute legal advice and should not be used as a substitute for legal advice. * An investment selection or monitoring guide. ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- Specified Employee Status Under Code Section 409A http://www.faegre.com/pdf/pdf_31679.asp Excerpt: "This article examines the six-month delayed payment rule for 'specified employees' under Section 409A. It is extremely important that specified employees be properly identified, and this article -- together with the attached Specified Employees Checklist -- provides practical guidance to help you comply with this rule." (Faegre & Benson) ---------------------------------------------------------- Separation Pay Options Under Code Section 409A http://www.faegre.com/pdf/pdf_31766.asp Excerpt: "This article examines methods for providing separation pay consistent with Section 409A, including use of the short-term deferral and safe harbor exceptions, 'stacking,' and integrating a release of claims. The attached chart provides analysis and options under various sets of circumstances related to separation pay under Section 409A." (Faegre & Benson) ---------------------------------------------------------- Modified Work Arrangements for Employees Under Code Section 409A http://www.faegre.com/pdf/pdf_31547.asp Excerpt: "This article examines the application of Section 409A to modified work arrangements -- on-call or reduced time work arrangements, consulting arrangements, leaves of absence, rehire situations and other employment-related changes." (Faegre & Benson) ---------------------------------------------------------- The Impact of Disability on Non-Qualified Deferred Compensation Under Code Section 409A http://www.faegre.com/pdf/pdf_31482.asp Excerpt: "This article examines the interrelationship between disability and the rules of Section 409A and discusses potential pitfalls that may be avoided with proper examination and drafting of a plan's disability definitions and procedures." (Faegre & Benson) ========================================================== Newly Posted Events 1099-R from Soup to Nuts Web Seminar Nationwide on December 19, 2007 presented by SunGard Relius http://benefitslink.com/events/detail.php?id=43204 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases Investments in Private Equity Still Worth Considering for Institutional Investors Watson Wyatt http://benefitslink.com/pr/detail.php?id=41383 Patricia Kelly Named Chief Financial Officer At The PBGC Pension Benefit Guaranty Corporation (PBGC) http://benefitslink.com/pr/detail.php?id=41385 New Schwab Data Indicates Use of Advice and Professionally-Managed Portfolios Results in Higher Rate of Return for 401(k) Participants; Younger Participants Have the Most to Gain Charles Schwab & Co., Inc. http://benefitslink.com/pr/detail.php?id=41391 Defined Contribution Plan Fee Disclosure Rules Must Follow Key Principles To Reduce Costs, Confusion American Benefits Council http://benefitslink.com/pr/detail.php?id=41386 Employers' Goal: A Transparent 401(k) System That Provides Meaningful Benefits At A Fair Price American Benefits Council http://benefitslink.com/pr/detail.php?id=41387 National Coalition on Business Launched To Preserve ERISA Standard For Health, Retirement Benefit Plans American Benefits Council http://benefitslink.com/pr/detail.php?id=41388 Prudential Financial Expands Its Retirement Business Prudential Financial, Inc. http://benefitslink.com/pr/detail.php?id=41390 Wachovia Retirement Services Earns Top Ranking in Client Loyalty Wachovia Corporation http://benefitslink.com/pr/detail.php?id=41384 Council of Institutional Investors Deplores SEC Move to Curb Investor Rights Council of Institutional Investors http://benefitslink.com/pr/detail.php?id=41389 Groundbreaking Study Reveals How Consumers Shop For Health Care Research Finds People Want Information On Cost And Quality Regence http://benefitslink.com/pr/detail.php?id=41392 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Manager Quality Control testing & 5500 for Retirement Alliance, Inc. in NH http://benefitslink.com/modperl/job.cgi?n=H53391 Pension Administrator for Retirement Alliance, Inc. in NH http://benefitslink.com/modperl/job.cgi?n=H53392 Sr compliance, testing and design specialist for Retirement Alliance, Inc. in NH http://benefitslink.com/modperl/job.cgi?n=H53393 Retirement Plan Specialist for Diversified Investment Advisors in NJ http://benefitslink.com/modperl/job.cgi?n=H53394 Retirement Plan Manager for Merrill Lynch in WA http://benefitslink.com/modperl/job.cgi?n=H53395 Client Services Representative for Midsouth Pension Consultants or Midsouth Consulting Group in TN http://benefitslink.com/modperl/job.cgi?n=H53396 Qualified Plan Administrator for Small TPA Firm in CO http://benefitslink.com/modperl/job.cgi?n=H53397 Participant Communication Consultant for Vanguard in PA http://benefitslink.com/modperl/job.cgi?n=H53398 Corporate Benefits Analyst for Phillips-Van Heusen Corporation in NJ http://benefitslink.com/modperl/job.cgi?n=H53399 Defined Benefit Actuary I for Standard Retirement Services in OR http://benefitslink.com/modperl/job.cgi?n=H53400 Retirement Plan Consultant for Plante & Moran, PLLC in MI http://benefitslink.com/modperl/job.cgi?n=H53402 Senior ERISA Consultant for Tofias PC in MA http://benefitslink.com/modperl/job.cgi?n=H51772 401(k) Plan Administrator for Tofias PC in MA http://benefitslink.com/modperl/job.cgi?n=H51774 Investment Analyst/Investment Consultant for Alerus Investment Advisors in MN http://benefitslink.com/modperl/job.cgi?n=H53404 ARS Call Center for Alerus Retirement Solutions in MN http://benefitslink.com/modperl/job.cgi?n=H53407 Post yours! http://EmployeeBenefitsJobs.com/jobs/post_help_wanted.html View all jobs http://EmployeeBenefitsJobs.com/ RSS feed http://EmployeeBenefitsJobs.com/rss/jobs.rss =========================================================== Search previous newsletters: http://benefitslink.com/search =========================================================== Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too Sign-up form is at: http://benefitslink.com/newsletter/ =========================================================== This newsletter is sent to you each workday except federal holidays. 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