An online, clickable version of this newsletter is available at: http://benefitslink.com/2007/2007_12_03_retirement.html =========================================================== BenefitsLink Retirement Plans Newsletter (Plain Text Format) December 3, 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_12_03_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 ---------------------------------------------------------- November 30, 2007 Special Edition of 'Employee Plans News' from IRS (PDF) http://www.irs.gov/pub/irs-tege/se113007.pdf 2 pages. Contains links to documents published on BenefitsLink last week; no analysis or additional details are included in this IRS publication. Excerpt: "This Special Edition announces Revenue Procedure 2007-71 which provides model plan language that may be used by public schools to either adopt a written §403(b) plan or to amend its §403(b) plan to reflect the requirements of the Internal Revenue Code and final 403(b) regulations. Also, the 2007 Cumulative List is published." (Internal Revenue Service) ----------------------------------------------------------- (b) NEWS ---------------------------------------------------------- Pension Bill Technical Corrections Likely to Live Up to Name; Only Minor Modifications Predicted http://www.workforce.com/section/00/article/25/23/99.html Excerpt: "In fact, there's not much momentum for bill modifications, which would tweak an underlying measure requiring companies to fund 100 percent of their pension liabilities, curb credit balances and limit the smoothing of interest rates. As of early December, House and Senate committees had not voted on correction bills. They could still be attached to other tax legislation." (Workforce Management) ---------------------------------------------------------- Some Large Pension Funds Lowering U.S. Stock Holdings http://timesunion.com/AspStories/story.asp?storyID=643906&category=BUSINESS&newsdate=12/3/2007 Excerpt: "While some public pension funds are bucking the trend by keeping their U.S. stock holdings steady, industry consultants say the clear majority -- many still wary of the stock market selloff at the start of this decade -- are cutting back." (Wall Street Journal via TimesUnion.com) ----------------------------------------------------------- (c) SUMMARIES OF GUIDANCE; FILED COMMENTS ---------------------------------------------------------- Overview: Proposed IRS Regulations Provide Clarity For Automatic Enrollment Programs http://www.groom.com/Proposed_IRS_Regs_Clarity_Automatic_Enrollment.html 8 pages. Excerpt: "[W]hile many employers will decide to convert their auto-enrollment arrangement into either an EACA or a QACA, or both, in order to take advantage of the special features associated with them, there is no requirement that an automatic enrollment arrangement be either an EACA or a QACA. In fact, the preemption of state laws prohibiting the deduction of amounts from an employee's paycheck without written consent applies to all auto-enrollment arrangements, without regard to whether the auto-enrollment arrangement is an EACA or a QACA or uses a default investment that is a QDIA." (Groom Law Group) ---------------------------------------------------------- Overview: Enhanced Disclosure and New Prospectus Delivery Option Proposed for Mutual Funds (PDF) http://www.sablaw.com/files/tbl_s10News/FileUpload44/17837/FinServProspectusDeliveryOptionProposed.pdf 12 pages. Excerpt: "As the [SEC] release noted, the proposed rule amendments 'have the potential to revolutionize the provision of information to millions of mutual fund investors who rely on mutual funds for their most basic financial needs.'" (Sutherland Asbill & Brennan LLP) ---------------------------------------------------------- Overview: Revised Form 5500 and Related Regs Issued for 2009 http://hr.cch.com/news/pension/120307a.asp Excerpt: "The key aspects of the issuance are the adoption of the Form 5500-SF, the revision of reporting requirements for 403(b) plans, the creation of separate Schedules SB and MB to replace the Schedule B to report actuarial information, the elimination of IRS-only schedules, and the expansion of fee reporting in Schedule C." (CCH Pension and Benefits) ---------------------------------------------------------- DOL Issues Final Default Regulations: Many Questions Answered, Many Questions Remain http://www.groom.com/DOL_Issues_Final_Default_Regulations.html Excerpt: "[W]e have had a number of conversations with DOL staff who have advised us that the DOL intends to issue a list of Q&As in the near term that will provide further guidance in this area. . . . The attached article sets forth a discussion of the PPA's provisions related to default investments, the basic framework of DOL's regulation, and a discussion of some of the more significant regulatory provisions and the problems identified by our clients." (Groom Law Group) ----------------------------------------------------------- (d) TRENDS, SURVEYS, RESEARCH ---------------------------------------------------------- Pennsylvania's Pension Plans on the Edge http://local.lancasteronline.com/4/213178 Excerpt: "Pennsylvania's pension system is heading over a cliff in 2012. How steep the drop is, and how hard the landing will be, remain the multibillion-dollar questions." (Lancaster Online) ---------------------------------------------------------- Study Finds Plan Participants Do Better with Self-Directed Investments When They Seek Advice http://www.washingtonpost.com/wp-dyn/content/article/2007/12/01/AR2007120100130.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." (Washington Post; free registration required) ---------------------------------------------------------- More 401(k) Sponsors Cutting Back on Number of Fund Options for Participants http://www.cfo.com/article.cfm/10170913/c_2984379/?f=archives Excerpt: "Retirement-plan advisers urge employers to keep their fund offerings simple so as not to scare off participants. For a streamlined but effectively diversified 401(k) offering, experts suggest choosing one or two funds from each of the following categories . . . ." (CFO.com) ----------------------------------------------------------- (e) POLICY, OPINION, ADVOCACY ----------------------------------------------------------- Is Socially Responsible Investing Part of the New Landscape for Governmental Plans? http://www.cypen.com/pubs/11-07/2007nov29.htm#article2 Excerpt: " It should come as no surprise that in a country as diverse as the United States there is limited consensus about the criteria one should employ in an SRI process, and even less agreement as to which companies are in fact socially responsible. Getting down to specifics, there are two main (and several subsidiary) reasons why agreement about importance of SRI in the abstract rapidly erodes: . . . ." (Cypen & Cypen) ---------------------------------------------------------- Ideas for 401(k) Have-Nots: How Can We Help Workers Who Are Not Covered at Work? http://www.washingtonpost.com/wp-dyn/content/article/2007/12/01/AR2007120100155.html Excerpt: "[T]here are ideas percolating that would make it easier for those who don't have access to retirement savings plans to put aside money. Some of the plans are even bubbling up in the presidential campaigns. Several groups have come up with proposals for how to make such a system work." (Washington Post; free registration required) ---------------------------------------------------------- New York Times Editorial Calls for More Investment Fee Disclosure http://www.nytimes.com/2007/12/03/opinion/03mon3.html?_r=1&oref=slogin Excerpt: " Opponents of the measure, mainly 410(k) [sic] providers, argue that more information would be more confusing. It could certainly be made that way, full of legalese and equations. But it need not be. . . . It's ridiculous to maintain that savers should be kept in the dark." (New York Times) ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- From the FTC: Summary of Comments on Private-sector Use of Social Security Numbers Summary of Comments on Private-sector Use of Social Security Numbers (PDF) http://www.ftc.gov/bcp/workshops/ssn/staffsummary.pdf 49 pages. Excerpt: "The expanded use of SSNs in the consumer identification and authentication processes . . . has a significant downside -- the increased risk that SSNs will be misappropriated by criminals to steal identities and obtain benefits in the victims' names. Indeed, the more widespread SSN usage by legitimate businesses has become, the more available and valuable SSNs are for identity thieves." (Federal Trade Commission) ---------------------------------------------------------- Overview: Severance Arrangements Under Internal Revenue Code Section 409A http://www.vonbriesen.com/resourcelibrary/FetchArticle.aspx?id=312 4 pages. Excerpt: "It is critical that employers continue to identify plans subject to Code section 409A and take steps to bring those plans into compliance. Employers must be aware that Code section 409A applies to many arrangements not traditionally considered 'deferred compensation.' This article reviews Code section 409A issues as they arise in severance arrangements." (von Briesen & Roper, s.c.) ========================================================== Newly Posted Events New Disclosure Requirements Under the Pension Protection Act Teleweb Nationwide on December 13, 2007 presented by International Foundation of Employee Benefit Plans http://benefitslink.com/events/detail.php?id=43207 Security in Numbers: SSNs and ID Theft in District of Columbia on December 10, 2007 presented by Federal Trade Commission http://benefitslink.com/events/detail.php?id=43208 Security in Numbers: SSNs and ID Theft - Webcast Nationwide on December 10, 2007 presented by Federal Trade Commission http://benefitslink.com/events/detail.php?id=43209 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases Survey Finds Many Employers Are Using Automatic Features in Defined Contribution Plans International Foundation of Employee Benefit Plans http://benefitslink.com/pr/detail.php?id=41403 Prudential to Acquire Part of Union Bank of California Retirement Book Prudential Financial, Inc. http://benefitslink.com/pr/detail.php?id=41406 HHS Names the Midwest Business Group on Health as Community Leader to Promote Health Care Transparency Midwest Business Group on Health http://benefitslink.com/pr/detail.php?id=41404 BridgeHealth International (BHI) Announces Lead Investors and Executive Management Team to Direct Medical Tourism Operations BridgeHealth International, Inc. http://benefitslink.com/pr/detail.php?id=41405 RPG Consultants To Add ETFs in 401ks RPG Consultants http://benefitslink.com/pr/detail.php?id=41407 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Defined Benefit Client Account Manager for New York Life Retirement Plan Services in NJ http://benefitslink.com/modperl/job.cgi?n=H51052 Plan Administration Specialist for Boston Financial Data Services in MA http://benefitslink.com/modperl/job.cgi?n=H51825 Pension Administrator for Estate & Pension Advisory Board, Inc. in PA http://benefitslink.com/modperl/job.cgi?n=H52965 401(k) Administrator Quiz for The Pension Group, Inc. in CA http://benefitslink.com/modperl/job.cgi?n=H53425 401(k) Distribution Specialist Trainee Quiz for The Pension Group, Inc. in CA http://benefitslink.com/modperl/job.cgi?n=H53426 Associate Pension Administrator for Alliance Pension Consultants in IL http://benefitslink.com/modperl/job.cgi?n=H53428 Sr. Compliance Representative for The National Rural Electric Cooperative Association (NRECA) in DC, VA http://benefitslink.com/modperl/job.cgi?n=H53430 Relationship Manager for Bank of Oklahoma in OK http://benefitslink.com/modperl/job.cgi?n=H53431 401(k) Plan Administrator for Northeast Planning Services, Inc. in MA http://benefitslink.com/modperl/job.cgi?n=H42796 Fund Administrator for Metropolitan Boston, MA Taft Hartley Benefit Funds in MA http://benefitslink.com/modperl/job.cgi?n=H53439 Account Manager - Retirement for Lockton Companies, LLC. in MO http://benefitslink.com/modperl/job.cgi?n=H53440 Experienced Human Resources Benefits Analyst for MTA New York City Transit (NYCT) in NY http://benefitslink.com/modperl/job.cgi?n=H53441 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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