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February 9, 2004 - 13,655 subscribers
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ASC - QUALITY SOFTWARE FOR THE PENSION INDUSTRY FOR OVER 20 YEARS ASC provides complete automation for the pension office, including: DC/401(k) and DB administration and valuation systems, sophisticated Compliance Testing, DV Direct Daily Valuation, Advanced Information Manager Database (AIM), and Single-Step Processing. All ASC Technical Support Members were experienced Pension Administrators or Actuaries before joining ASC -- and most have been with ASC for over 10 years.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Investment Company Institute Eases 'Hard Close' Lobbying Position
Excerpt: "The mutual fund industry's primary trade group has asked the US Securities and Exchange Commission (SEC) to consider requiring financial intermediaries to receive trade orders by 4 p.m. rather than fund companies themselves." (PLANSPONSOR.com; one-time registration required)
Text of ASPA Comments on Proposed SEC Mutual Fund Pricing Rule
Excerpt: "[T]he proposed hard 4 p.m. close would have a significant, adverse impact on millions of retirement plan participants. In many cases, it will prevent participants from receiving the current day's prices when providing investment instructions on a business day, in effect making participants 'second class' to investors dealing directly with mutual fund transfer agents (who will not be subject to early cut-off times for investment orders)." (ASPA-- The Retirement Plan Professionals)
After the Scandals: a Hard Look at Mutual Fund Fees
Excerpt: "The mutual-fund industry, which manages $7 trillion in assets, and its lobbying organization 'are clever, well-heeled, driven, and used to getting their way,' holds John Freeman, a University of South Carolina Law School professor.... 'Skimming' is the term used by Sen. Peter Fitzgerald (R) of Illinois, who has been chairing hearings on mutual funds." (Christian Science Monitor)
Does the Expense Ratio Tell the Whole Story?
Excerpt: "Deciding whether a fund is giving investors good value is no simple matter. While almost no one argues in favor of high fees, some data used recently by regulators to assess fund fees is hard for the average investor to track. John C. Bogle, the founder of the Vanguard Group, says that a low expense ratio is the single most important factor in evaluating a fund, but that it is not the only one." (New York Times; one-time registration required)
Opinion: Don't Call Spitzer on 403(b), 457 Mutual-Fund Abuse
Excerpt: "As regulators start to investigate variable annuities, a great place to begin would be broker-sold mutual funds within retirement-plan annuity contracts. These insurance packages can be more than 10 times as expensive as non-annuity programs and are typically found in 403(b) and 457 plans offered to public employees, non-profit entities and small-business 401(k) plans." (John Wasik on Bloomberg.com)
Retirement Savings Accounts: President's Budget Proposal for FY2005 (PDF)
6 pages. Excerpt: "The President's proposed budget for FY2005 would establish Lifetime Savings Accounts (LSAs) that could be used for any type of saving and from which withdrawals could be made at any time, and Retirement Savings Accounts (RSAs) that could be used for retirement saving. Additionally, beginning in 2005, several kinds of employer-sponsored retirement plans would be consolidated into Employer Retirement Savings Accounts (ERSAs)." (Congressional Research Service)
Opinion: Retiring on a Budget
Excerpt: "In its fiscal 2005 budget, the Bush administration proposes to encourage Americans to save more by creating two private savings accounts. These new entitlements may be worthwhile, but they are also expensive. Congress should not approve them unless the president also agrees to Social Security reform." (Robert C. Pozen in the New York Times; one-time registration required)
Opinion: Administration's Retirement Proposal Would Harm Public Employee Retirement Systems
Excerpt: "Nothing in the Administration's proposal will increase savings for retirement. In fact, the net effect of LSAs would be to siphon the limited amount of available money into these new 'tax-free checking accounts' that would otherwise go toward retirement savings. The Administration's retirement proposals would cause confusion, discourage savings, and ultimately undermine financially sound government pension plans." (National Conference on Public Employee Retirement Systems)
Scandal-Ridden Milwaukee County Changes Rules for Pension Board
Excerpt: "Milwaukee County Executive Scott Walker signed a resolution Sunday that changes county Pension Board operations by revamping how members are appointed, dictating qualifications for appointees and setting term limits." (Milwaukee Journal Sentinel)
SEC Scrutiny of Pensions Consultants: the End of “Pay to Play?”
Excerpt: "The economics of pension consulting will be radically altered by the elimination of 'pay-to-play' practices. Stated, disclosed fees will rise as 'kick-back' schemes are exposed and pensions will benefit as consultant objectivity is enhanced.... Here's how the fee game is played: The consultant bids as low a stated annual fee as necessary to land the pension client. Some firms (notably consultants within wirehouses) even offer to provide the service for free." (The Benchmark Companies)
Harsh Market Puts a Freeze On Pensions
Excerpt: "While rebounding investment markets pushed the median year-to-date returns for pension plan assets up to 12.6% through the third quarter, some 15% of pension sponsors have frozen plan benefits following three consecutive years of asset losses." (BenefitNews.com)
More on the Elapsed Time Regulations
Excerpt: "In a previous post, I discussed how the 'elapsed time' regulations were recently challenged and upheld in a Ninth Circuit case. Thanks to Kirk Maldonado (of the well-known 1987 DOL plan expense Information Letter) for providing some helpful background for these regulations: ..." (Attorney B. Janell Grenier on BenefitsBlog)
'Life Cycle' Funds Can Keep Their Balance Over Time
Excerpt: "[T[hese new funds typically are targeted to a certain year in the future. The investor picks a fund with a target year close to his or her anticipated retirement, begins investing, and the fund does the rest. When the target year is far in the future, the fund will typically hold a majority of its assets in stocks, less in fixed income. Periodically, it will rebalance, to prevent any asset class from becoming overweighted ..." (Washington Post)
Seven Reasons Americans Save So Little
Excerpt: "Lulled by easy credit, rising home prices and a what's-the-point mentality, we're saving less and less. Here's why -- and why some say it might not be the crisis it seems." (MSN.com)
Links to Items on Executive Comp, Benefits in General
Retirement-age Boomers Are Heading Back To Work
Excerpt: "AARP ... found that 70 percent of workers surveyed who were not yet retired planned to work during their retirement years or never retire. And about 50 percent expected to be working in their 70s." (Des Moines Register via AZCentral.com)
Opinion: Executive Pay, Hiding Behind Small Print
Excerpt: "Summary pay tables, required by the Securities and Exchange Commission since 1992, help investors see where their hard-earned money goes. But three areas cry out for reform by regulators: deferred compensation, supplemental executive retirement plans and executive payouts when a company undergoes a change in control." (New York Times; one-time registration required)
Newly Posted Events
A Multi-Disciplinary Exploration of Prescription Drug Issues Symposium
in California on May 21, 2004
presented by Society of Actuaries
Managing the Risks of Pension Plans in Today’s Uncertain Environment
Nationwide on February 4, 2004
presented by Hewitt Associates LLC
Long-Term Investment Strategies of Qualified Plan Assets Midwest Pension Council
in Nebraska on February 12, 2004
presented by Principal Financial Group
Cafeteria Plans
in Georgia on April 21, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability & Privacy
in Illinois on April 16, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Georgia on April 2, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Illinois on April 15, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Washington on April 1, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Illinois on April 14, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability & Privacy
in Washington on April 2, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Illinois on April 13, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Washington on April 1, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Georgia on April 22, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Washington on March 31, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability & Privacy
in Georgia on April 23, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Washington on March 3, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Georgia on April 22, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Illinois on April 15, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Consumer Choice Health Care: Reports from the Field
in District of Columbia on February 11, 2004
presented by Galen Institute
Newly Posted Press Releases
Aetna Introduces New Long-Term Care Insurance Options; Core-and-Buy-Up Features Offer Affordable Options for Small to Mid-Sized Employers; Enhanced Informal Care Benefits Offer More Flexibility
(Aetna)
Governmental Accounting Standards Board Issues Revised Exposure Draft on Employer Reporting of Other Postemployment Benefits
(Governmental Accounting Standards Board (GASB))
Newly Posted or Renewed Job Openings
401(k) Administrator
for Caribbean Pension Consultants, Inc.
in FL
Retirement Plan Administrator
for Valley Forge Consulting Corporation
in PA
401(k) Sr Plan Specialist
for BISYS Retirement Services
in PA
Administrative Assistant
for Retirement Plan Administration and ERISA Specialists
in IL
Communications Manager
for UnitedHealth Care, Hartford, CT
in CT
Senior Plan Administrator/Consultant
for WESPAC
in CA
Pension Plan Administrators/Consultants/Actuaries
for Pinnacle Plan Design, P.C.
in AZ
Benefits Administrator
for EBI
in NJ
Group Account Consultant: 04-0000343
for Wachovia Corporation
in GA
Sr. Plan Administrator
for American National Insurance Company
in TX
Group Account Consultant: 03-0028929
for Wachovia Corporation
in FL
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