| BenefitsLink Retirement Plans Newsletter |   |
October 5, 2004
Today's sponsor: Actuarial Systems Corporation
(Click on company name or banner to learn more.)
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)
Overview of Survey Results of the 47th Annual Survey of Profit Sharing and 401(k) Plans from PSCA
Excerpt: "PSCA's 47th Annual Survey of Profit Sharing and 401(k) Plans reports on the 2003 plan year experience of 1,161 profit sharing and 401(k) plans. Together, these plans hold over $412 billion in plan assets and include more than 3.4 million participants. Of the 1,161 respondent plans, 67 are profit sharing plans, 616 are 401(k) plans, and 478 are combination profit sharing/401(k) plans." (Profit Sharing/401(k) Council of America)
Employee Plans Team Audit for Large Plans: IRS Powerpoint Presentation Including Selection Criteria
The presentation provides history and background and key features. (American Benefits Council)
Employee Plans Team Audit for Large Plans: List of Top 10 Audit Issues (PDF)
Excerpt: "The following EPTA 'Top Ten' items include issues which can be identified during the planning and initial stages of the Examination." (American Benefits Council)
Overview: Final Regulation for Automatic Rollover Safe Harbor and Guidance for Missing Participants
Excerpt: "The DOL has issued a final regulation that establishes a safe harbor under which fiduciaries of ERISA pension plans, including most 401(k) plans, will be deemed to have satisfied their fiduciary responsibilities in connection with automatic rollovers of certain mandatory distributions." (Employee Benefits Institute of America)
What Is the Difference Between Financial Advice, Education, Coaching and Counseling?
Excerpt: "Answer: Many times, we find that companies choose financial education as an overall program and then offer financial counseling and/or coaching services as one component of the education program. Financial education is broad-based and appropriate for all employees, ... because education can cover any financial topic. Financial education is meant to provide an employee with unbiased information and guidance that will help them to make a financial decision." (Achieving Financial Finesse Archive via Workindex.com)
Overview: Roth 401(k): President's Proposal Would Make Such Accounts Available January 1
Excerpt: "This May is the three-year anniversary of the Economic Growth Tax Relief and Reconciliation Act of 2001 (EGTRRA, passed May 26, 2001)--yet we still face another year-and-a-half before the newly designed provisions for a Roth 401(k) take effect on January 1, 2006." (Financial Advisor)
PBGC to Take Over Kaiser Aluminum's Pension Plan
Excerpt: "The Pension Benefit Guaranty Corp. is assuming responsibility for Kaiser Aluminum's pension plan, which covers active and retired employees at some of Kaiser's facilities represented by the United Steelworkers of America. The PBGC took over managing Kaiser's salaried employee pension plan in December 2003 and the inactive pension plan in June 2004." (Houston Business Journal via bizjournals.com; one-time registration required)
Summary of Bush Administration's Pension Funding Proposals (PDF)
1 page. Excerpt: "[I]t is clear that the Bush Administration is committed to proposing a corporate bond yield curve as the mandated discount rate for pension funding purposes. Administration teams have been working with bond experts to construct a corporate bond yield curve that they believe would be appropriate for pension funding purposes. This yield curve may apply for all minimum contribution rules (i.e., not solely for the 'current liability' funding rules first enacted in 1987)." (The ERISA Industry Committee)
Pension Failures Foil 6-Figure Retirements, Too
Excerpt: "People who retire early or earn more can feel singled out precisely for their success. In the most recent count, in 1999, those people accounted for 7 or 8 percent of those relying on the agency, but that percentage is expected to rise when the retirees of the last few years are counted." (The New York Times; one-time registration required)
Federal Reserve Bank Official Thinks Raising Social Security Retirement Age May Help Save System
Excerpt: "Raising the age at which Americans can collect full Social Security benefits may be the best way to protect the long-term health of the system, a Federal Reserve leader said Monday. As people live longer and have fewer children, the nation's pension system must make tough choices, said William Poole, president of the Federal Reserve Bank of St. Louis." (AP via The Washington Post; one-time registration required)
Links to Items on Executive Comp, Benefits in General
US Airways to Cut Hundreds of Jobs and Benefits of Executives and Retirees
Excerpt: "US Airways Group Inc. plans to eliminate 'hundreds' of management and nonunion jobs and cut top executives' pay by between 5 and 10 percent, .... The carrier also is reducing the number of paid holiday days for executives by 20 percent and replacing sick and vacation leave with a paid time off system based on seniority. In addition, the airline is slashing its contribution to the managers' retirement plan to 3 percent from as much as 13 percent, ...." (The Washington Post; one-time registration required)
2004/2005 United States Benefit and Employment Guidelines Available for Purchase from Mercer
Excerpt: "The ... Guidelines contain extensive analyses and narrative reports on employment conditions, statutory employee benefits and typical employer benefit practice. .... The Statutory Benefits Reports detail the benefits and contributions required by law. With this information, executives are in a position to assess the full employment costs in each country. As a result of the significant changes that benefits regulations undergo, the report is completely updated each year." (Mercer Human Resource Consulting; one-time registration required)
Text: Nixon Peabody's September 2004 Benefits Briefs: Legal Developments for Employee Benefits (PDF)
7 pages. Articles include: What's discrimination in the design of ERISA plans?; Elect-it-yourself tax treatment for disability benefits; Insurance companies as plan fiduciaries; Retiree health benefits--Vested or not? (Nixon Peabody LLP)
Benefits for Domestic Partners, Part II: the Legal Basics Addressed
Excerpt: "This article is Part II in a series of two articles covering the basics of domestic partnership benefits. In the first article, we discussed the definitions and practical considerations of addressing the issue of domestic partnerships. In this one, we address the legal implications." (Business & Legal Reports)
Nonqualified Deferred Compensation (NQDC) Proposed Legislation Description of Johnson Amendment
Excerpt: "The amendment makes technical changes to the proposed legislation on NQDC. The amendments are consistent with eliminating abusive arrangements and provide bright-line rules on a going forward basis for NQDC.' The full text of the 11 page amendment is at http://www.eric.org/forms/uploadFiles/32AF00000007.filename.Johnson_Amendment.pdf (The ERISA Industry Committee)
Text: Senator Baucus' Nonqualified Deferred Compensation Amendment (PDF)
24 pages. Excerpt: "Add Sections 671 and 672 from Senate-Passed H. 4520 With the Modifications As Follows: Sec. 671. Treatment of Nonqualified Deferred Compensation Plans. Sec. 672. Prohibition on Deferral of Gain from the Exercise of Stock Options and Restricted Stock Gains Through Deferred Compensation Arrangements." (The ERISA Industry Committee)
Highlights of 2004 Plan Year Form 5500 Which Has Been Issued With Minor Modifications
Excerpt: "The DOL, IRS, and Pension Benefit Guaranty Corporation have released copies of the Form 5500, Schedules, and Instructions to be used by employee benefit plans reporting on the 2004 plan year. According to the DOL press release, the 2004 Form 5500 and Form 5500-EZ are essentially unchanged from 2003." (Employee Benefits Institute of America)
Exec Summary: Global Compensation Practices: Survey by WorldatWork and Watson Wyatt Worldwide
Excerpt: "Compensation plays an important role in global, complex organizations. To that end, WorldatWork and Watson Wyatt Worldwide conducted a global compensation survey to establish a benchmark for U.S. multinationals in three key areas: global compensation structure and strategy, global tools and systems, and global compensation targets and vehicles. While the survey report results confirm several long-held assumptions ..., it also reveals some emerging trends and areas for investigation." (Watson Wyatt Worldwide)
Possible Strike Over Wages, Healthcare and Pensions Brewing at Disney
Excerpt: "The union representing half of Walt Disney World's 53,000 workers has asked members to vote against a contract proposal Friday. The Service Trades Council Union -- which represents hotel maids, parking ticket takers, character actors and others -- opposes the elimination of some overtime rights, increases in the cost of health care insurance and a plan to eliminate a pension plan for new workers." (The NewStandard)
Text: Nixon Peabody's August 2004 Benefits Briefs: Legal Developments for Employee Benefits (PDF)
6 pages. Articles include: Getting burned by ignoring people with 'colorable' claims to plan participation; Court holds that ERISA forbids a plan from recouping excess benefit payments in court; Anti-cutback rule KOs suspension of benefits amendment. (Nixon Peabody LLP)
Newly Posted Events
401(k) Plans
in Maryland on October 12, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Maryland on October 13, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Maryland on October 15, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Consumer-Driven Health Care & Fringe Benefits
in Maryland on October 14, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Maryland on October 14, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Workshop - 9 Dates/Locations Added
Nationwide on November 16, 2004
presented by SunGard Corbel
HIPAA Portability & Privacy
in Maryland on October 15, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Newly Posted Press Releases
PBGC To Protect Fruehauf Trailer Corp. Pensions
(Pension Benefit Guaranty Corporation (PBGC))
New Web Site Helps EAPs Deliver Better, More Customized Services
(Workplace Options)
Newly Posted or Renewed Job Openings
401(k) Sr Plan Specialist
for BISYS Retirement Services
in PA
Retirement Services Implementation Specialist (So. California) Bi-lingual / Spanish
for ADP Retirement Services
in CA
Retirement Services Implementation Manager (Baltimore, Atlanta, Florida or No. Carolina areas)
for ADP Retirement Services
in FL, GA, MD, ND
Participant Support Representative
for Decimal, Inc. (www.theonline401k.com/schwab)
in CA
Institutional Services Communication Specialist I
for Branch Banking and Trust Company (BB&T)
in SC
Supervisor, Year End Services
for BISYS Retirement Services
in PA
Retirement Benefits Associate
for Premier Houston Healthcare Consulting Firm
in TX
WM YTR Project Manager X1
for Hewitt Associates
in IL
HM Design Consultant Entry
for Hewitt Associates
in CT
HM Design Consultant X1
for Hewitt Associates
in IL
HM Design Consultant Entry
for Hewitt Associates
in CA
Pension Specialist
for Hogan & Hartson, L.L.P.
in DC
Senior Pension Administrator
for Retirement Alliance, Inc.
in NH
Sales/Business Development
for Retirement Alliance, Inc.
in NH
Pension Benefits Manager
for Glatfelter Insurance Group
in PA
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