| BenefitsLink Retirement Plans Newsletter |   |
October 19, 2004
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
(Click on company name or banner to learn more.)
Software for 401(k), DB and Flexible Benefits DATAIR BENEFIT ADMINISTRATION SOFTWARE for Pension, Profit Sharing, 401(k) and Cafeteria/Flexible Benefits plans. Designed for administrators and consultants. Modules include proposals, IRS-approved documents, enrollment, administration, government reporting, distribution, tax planning, and client and task management. Training and support included. For free demo versions and pricing, contact sales@datair.com or call 1-888-DATAIR4 (328-2474).
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Social Security Announces 2.7% Benefit Increase for 2005; Taxable Wage Base to Rise to $90,000
Excerpt: "[T]he maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $90,000 from $87,900." (Social Security Administration)
Satisfying the New 401(k) Automatic Rollover 'Safe Harbor' Test
Excerpt: "[A]fter March 28, 2005, if no election (or an incomplete election) has been made by the former employee, the safe harbor will protect plan fiduciaries from liability under [ERISA] when they select a financial institution to provide the IRA and choose certain investments specified under the safe harbor for the IRA." (Dana Scott Fried, Esq. via Society for Human Resource Management)
No-Brainer Funds -- Target-Maturity, Strategy, Life-Strategy, Life-Cycle -- Equal 401(k) Success
Excerpt: "Also, I cannot tell you the exact name of the fund that might be a shortcut in your retirement plan, because each mutual fund company names its funds differently. But take out your list of 401(k) mutual fund choices and hunt for any of the following words: 'target-maturity,' 'strategy,' 'life-strategy,' 'life-cycle,' 'spectrum,' 'retirement fund,' 'freedom' or something like 'asset manager.' Don't expect to find all the names. One shortcut fund is all you need." (Pioneer Press; one-time registration required)
Sample Request for Proposal (RFP) from a 401k Provider - Revised and Updated - October 18, 2004
Excerpt: "Here is an outline you can use when putting together a RFP for a 401k provider. Included in this outline are important questions you should be asking. Where appropriate, we also tell you why you should be asking these questions." (401kHelpCenter.com)
Vanguard Participants' Report Card for June 2004: Returns Remain Positive and Account Balances Rise
Excerpt: "Vanguard's semiannual evaluation of investment performance and behavior among defined contribution plan participants shows that, as a result of ongoing contributions and a modest increase in stock prices, account balances rose during the first half of 2004. Median personalized returns remained positive across one-, three-, and five-year periods. The study also shows that trading activity, while subdued, was higher than in prior years." (The Vanguard Group)
Fewer Choices for Employers in 401(k) Service Providers
Excerpt: "As I prepared the 401(k) Service Provider List* for the October 2004 issue of Employee Benefit News (which, by the way, incorrectly listed 'average plan size' as the 'number of participants'), I was struck by how few full-service national 401(k) providers are left. Scouring through internal and industry lists, we could only find 81 providers that offer full service, either themselves, or through partners nationally [list included]." (Fred Barstein via 401kExchange.com)
Delphi Among Six Companies Said to Be Examined for Pension Cost Accounting
Excerpt: "Delphi Corp., the world's largest automotive supplier, is among six big companies said to be under examination by federal regulators to determine whether they manipulated earnings by using inaccurate estimates to calculate pension costs." (Wall Street Journal via SFGate.com)
Pension Arrears Hit Record High in Japan
Excerpt: "Premiums in arrears on Japan's national pension insurance program beyond the two-year statute of limitations reached a record $7.8 billion in fiscal 2003." (UPI via The Washington Times)
The Social Security Benefits Squeeze: How Would Bush or Kerry Fix the Issue?
Excerpt: "Some experts believe that Social Security is simply too difficult a problem to discuss in the heat of a presidential campaign. The issue does not lend itself to quick description, and solving it will require painful trade-offs. The last big Social Security bailout, in 1983, was the result of hard work by a bipartisan commission - and even then it barely squeaked through." (The Christian Science Monitor)
Internet Retirement Plan Firms Produce IRA Rollover Products in Response to New Regs
Excerpt: "Internet retirement plan providers are rolling out new low-balance IRA products to meet the demand being created by new Department of Labor rollover regulations. While the DoL amended the rules associated with fees for automatic IRA rollovers to make it more appealing to vendors, many industry experts feel that Internet-heavy firms are the only ones who can afford to go after these assets." (Defined Contribution News)
Links to Items on Executive Comp, Benefits in General
Full Text of Accounting Roundup, 3rd Quarter 2004 , in Review (PDF)
Excerpt: "During the third quarter of 2004, accounting standard-setters and accounting regulators issued a number of final and proposed SFASs, FSPs, EITF consensuses, GASB Statements, AcSEC SOPs, SEC rules, PCAOB rules, IASs, etc. ... affecting accounting, financial reporting, and corporate governance. This publication ... presents brief descriptions of those pronouncements, as well as ... other regulatory and professional developments in accounting and financial reporting." (Deloitte via Financial Executives International)
UAL Execs Face Cuts -- If Workers' Pensions Go, Executives' Plans to Be Slashed, Too
Excerpt: "As executives at United Airlines prepare to take a knife to the company's employee pension plans, they do so knowing they would be inflicting deep wounds on their own retirement benefits in many cases. More than 100 current and former United officials would see their pension benefits cut dramatically if the carrier ended its plans, leading to life-style changes for some but saving United tens of millions of dollars." (Rocky Mountain News)
ERISA Temporary Worker Lawsuit Settles - "SmithKline to Pay $5.2 Million to Settle ERISA Suit."
Excerpt: "According to the article, the employer has agreed 'to pay $5.2 million to settle an ERISA class action suit brought by workers who said they were improperly labeled 'temporary' and therefore denied pension benefits despite working full time for months or even years.' The lawsuit highlights the problematic issues that can arise with respect to benefits programs when a portion of the workforce is comprised of 'temporary' or 'leased employees.'" (Attorney B. Janell Grenier via BenefitsBlog.com)
Extensive Chart on New Rules Governing Nonqualified Deferred Compensation Plans (PDF)
12 pages. Excerpt: "The new rules apply broadly to deferred compensation arrangements, including both elective and non-elective arrangements and individual arrangements." (Miller & Chevalier)
Treasury Officials Promise Early Guidance and Flexibility in Transitioning to New NQDC Rules
Excerpt: "An HR Policy conference call [on 10/15] with Treasury Department officials shed light on a number of key issues regarding the new rules on nonqualified deferred compensation. We were told that, while time-based restricted stock and stock options are not covered by the new provisions, stock appreciation rights, which operate similarly, are generally covered. Also covered is the deferral of any performance-based equity compensation, such as restricted stock units or performance shares." (HR Policy Association)
American Jobs Creation Act Restricts Tax Advantages of Nonqualified Deferred Compensation Plans
Excerpt: "Under the Act, compensation deferred under nonqualified deferred compensation plans would be subject to tax (and interest assessments) in the year of deferral, to the extent not subject to a substantial risk of forfeiture (i.e., right to compensation conditioned on the performance of substantial services) and not previously included in gross income, unless the plan prohibits distributions prior to the disability, death, or separation from service of the employee." (CCH Pension & Benefits News)
Mutual Funds Have Vested Interest in the Big Pharmaceuticals Debate
Excerpt: "Who's got money riding on the outcome of the great pharmaceuticals debate? You and I do, if we have our retirement accounts invested in any of the hordes of mutual funds that own shares of Pfizer Inc., Eli Lilly & Co., Schering-Plough Corp. and the other titans of the medication trade. Who should pay how much, when and where, for the drugs that keep people alive and healthy? How can these vital products best be made available to all who could benefit?" (Bloomberg.com)
Newly Posted Events
"Must Dos" for Year End - Benchmarking Your Manager & Provider
Nationwide on November 11, 2004
presented by PLANSPONSOR
401(k) Plans
in Minnesota on November 9, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Minnesota on November 10, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Carrot or Stick: How to Motivate Employees When You Can't Afford Salary Increases
Nationwide on October 29, 2004
presented by HRTrainingCenter.com
COBRA and Cal-COBRA: How to Comply with Recent Changes in the Law
Nationwide on October 19, 2004
presented by HRTrainingCenter.com
COBRA Compliance for Group Health Plans
in Minnesota on November 12, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA For Beginners Promotion
Nationwide on October 20, 2004
presented by HRTrainingCenter.com
Compliance Certification Promotion
Nationwide on October 20, 2004
presented by HRTrainingCenter.com
Consumer-Driven Health Care & Fringe Benefits
in Minnesota on November 11, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Document Retention And Destruction
Nationwide on October 20, 2004
presented by HRTrainingCenter.com
Employee Discharge And Documentation
Nationwide on October 20, 2004
presented by HRTrainingCenter.com
ERISA Advisory Council to Hold October Teleconferences
in District of Columbia on October 27, 2004
presented by U.S. Department of Labor, Office of Public Affairs, Washington, D.C.
ERISA Compliance for Health & Welfare Plans
in Minnesota on November 11, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Fighting Back! Employee Benefit Solutions That Work
Nationwide on October 27, 2004
presented by HRTrainingCenter.com
Financial and Retirement Planning Education—For Plan Participants (Part two of a two-part series)
Nationwide on November 11, 2004
presented by International Foundation of Employee Benefit Plans
Financial and Retirement Planning Education—For Plan Sponsors (Part one of a two-part series)
Nationwide on October 28, 2004
presented by International Foundation of Employee Benefit Plans
For Advisors: How PLANSPONSOR Can Help You Expand Your Business
Nationwide on October 21, 2004
presented by PLANSPONSOR
HIPAA Portability & Privacy
in Minnesota on November 12, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability - - The Hidden Secrets to Compliance
in California on November 4, 2004
presented by HRTrainingCenter.com
How to Determine & Lower Your 401(k) Plan Fees
Nationwide on November 9, 2004
presented by PLANSPONSOR
Legislative Update on Non-Qualified Deferred Compensation
Nationwide on November 10, 2004
presented by PLANSPONSOR
Pathfinder Demo for Advisors
Nationwide on October 26, 2004
presented by PLANSPONSOR
Pathfinder Demo for Plan Sponsors
Nationwide on October 19, 2004
presented by PLANSPONSOR
PHR / SPHR Recertification Suite
Nationwide on October 19, 2004
presented by HRTrainingCenter.com
Rescheduled 50th Annual Employee Benefits Conference
in Louisiana on November 30, 2004
presented by International Foundation of Employee Benefit Plans
USERRA Refresher - What Plans Need to Know
Nationwide on November 4, 2004
presented by International Foundation of Employee Benefit Plans
Workers’ Comp Update 2004
Nationwide on October 20, 2004
presented by HRTrainingCenter.com
Newly Posted or Renewed Job Openings
401(k)/Defined Contribution or Defined Benefit Compliance Analyst
for National Retirement Services, Inc.
in
Compliance Testing Consultant
for Diversified Investment Advisors
in NY
401(k)/Defined Contribution or Defined Benefit Account Manager
for National Retirement Services, Inc. (NRS)
in CA, NC
Financial Projects Administrator, Risk and Treasury - PA
for The Vanguard Group
in PA
Retirement Benefits Administrator
for AC Transit
in CA
Regulatory Compliance Attorney
for Lockton Benefit Companies
in MO
Relationship Manager (Retirement Plans) - multiple positions
for Emjay Corporation, A Great-West Company in Milwaukee, WI
in WI
Health and Welfare Benefits Attorney - Washington Resource Group
for Mercer Human Resource Consulting
in DC
Communications Consultant
for Merrill Lynch
in NJ
Vice President/Retirement Planning Consultant
for Merrill Lynch
in MI
Client Relationship Manager
for Merrill Lynch
in CO
Vice President Retirement Planning Advisor
for Merrill Lynch
in ANY STATE
Consultants
for SunGard Employee Benefit Systems
in ANY STATE
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