| BenefitsLink Retirement Plans Newsletter |   |
January 26, 2005
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
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(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Overview: Final DOL Regulations and IRS Guidance on Automatic Rollover Requirements (PDF)
5 pages. Excerpt: "If plan sponsors decide to continue the automatic distribution of benefits worth more than $1,000 but not more than $5,000, and if a participant does not make a distribution election to receive such amounts, such amounts automatically must be rolled over to an 'individual retirement plan' that is selected by the plan sponsor and that satisfies the DOL requirements." (Gardner Carton & Douglas LLP)
Overview: IRS Issues Defined Contribution Distribution Method Alterations Regulation
Excerpt: "Final regulations regarding how certain distributions in defined contribution plans can be eliminated without coming into conflict with anti-cutback provisions have been issued by the Internal Revenue Service (IRS). The regulation - T.D. 9176 - contains amendments that were added to Section 411(d)(6)(E) under the Economic Growth and Tax Relief Reconciliation Act of 2001. They become effective immediately." (PLANSPONSOR.com; one-time registration required)
A Towers Perrin Proposal for Pension Funding Reform (PDF)
10 pages. Excerpt: "In just under 12 months, temporary funding relief for defined benefit plans -- now in its third year -- will expire. As consulting actuary to many of the employers who sponsor these plans, Towers Perrin urges plan sponsors, the Administration, Congress and the PBGC to work together to permanently resolve the regulatory framework governing pension funding." (Towers Perrin)
GAO Keeps PBGC in 'High Risk' Status
Excerpt: "The federal government's watchdog agency has decided to keep the federal private pension insurance single-employer program on its list of 'high risk' items that require more Washington oversight. The Government Accountability Office (GAO) made the designation about the Pension Benefit Guaranty Corporation (PBGC) in a report issued Tuesday. " (PLANSPONSOR.com; one-time registration required)
Opinion: Wisconsin and Oregon Are Models for State Public Employee Pension Plans
Excerpt: "California policy-makers like to think of themselves as national leaders. But when it comes to public employee pensions, our state legislators would do well to consult two of their less flashy peers: Wisconsin and Oregon. Wisconsin because it is the home of the most comprehensive survey of state retirement benefits, .... Oregon because our neighbor to the north had a worse pension mess than ours and recently took steps to correct it." (Whittier Daily News)
Pensions for Managers at SBC Back to Traditional Plans -- Hybrid Plans Will be Frozen
Excerpt: "Some 55,000 SBC managers, including those who were covered under newer types of hybrid pensions, are being offered only traditional pensions that guarantee a monthly stream of benefits, SBC said Tuesday. Some of the managers were covered under pensions similar to the cash-balance plans that have been challenged in court as discriminatory against older workers. Those plans will be frozen, accruing interest but no new company contributions." (Chicago Tribune; one-time registration required)
Bush to Offer Social Security Details in State of the Union Speech on February 2
Excerpt: "President Bush ... assured Republican lawmakers on Tuesday that he would offer new details about his aims for Social Security ... in next week's State of the Union speech to counter a rising tide of criticism from opponents." (Reuters via Yahoo! News)
Opinion: Tim Russert's Meet the Press Should Meet the Facts on Social Security Trust Funds
Excerpt: "Tim Russert's Meet the Press interview on Sunday with House Ways and Means chairman Bill Thomas perpetuated two basic misapprehensions. One is that Social Security's trust funds will begin to decline in 2018. The actual projection of Social Security's trustees is that in 2018, the trust funds will amount to $5.3 trillion, growing to $6.6 trillion by 2028." (The Century Foundation)
Opinion: Social Security Benefit Tinkering Myths Exposed
Excerpt: "The Bush administration has hinted it may support some reduction in future Social Security benefits to help finance the estimated multi trillion-dollar transition to a privatized system. Some Republican leaders, such as former House Speaker Newt Gingrich, warn this could be political suicide for the party. History, however, does not support this assumption." (The Washington Times)
Employers Are Concerned Over Inadequacy Of Employees' Retirement Saving
Excerpt: "As many employees continue to underutilize their 401(k) plans, companies are becoming increasingly concerned that their employees are not up to the challenge of assuming responsibility for their own retirement savings, according to a survey recently conducted by Hewitt Associates. To address these concerns, employers are stepping up their efforts in 2005 to educate and make it easier for employees to effectively participate in their 401(k) plans." (Spencer Benefits Reports)
Survey: The Public Response to the Consequences of Social Security Private Accounts (PDF)
41 pages. Excerpt: "This survey found that, while majorities have favorable views of Social Security and want the program to remain much as it is, there are still substantial concerns about whether benefits will be there for younger generations. Because of this uncertainty, the public wants the program to be strengthened, but they do not see private accounts as the way to do this." (AARP)
Links to Items on Executive Comp, Benefits in General
Survey Results Summary: Domestic Partner Benefits Up, Signing Bonuses Down in 2005
Excerpt: "The number of employers offering domestic partner benefits is on the rise, but so are health care deductibles, according to the annual BLR Survey of Employee Benefits. The annual survey for 2005 shows that the number of employers offering benefits to domestic partners has increased over the past two years, with 13% offering such benefits in 2003 compared to 19% in 2005 for exempt and nonexempt office employees." (PLANSPONSOR.com; one-time registration required)
As Benefits for Veterans Climb, Military Spending Feels Squeeze
Excerpt: "With the wars in Iraq and Afghanistan badly straining its forces, the Pentagon is facing an awkward problem: Military retirees and their families are absorbing billions of dollars that military leaders would rather use to help troops fighting today." (Wall Street Journal via SFGate.com)
Help Wish Dave Baker's Wife, Lois, a Happy Birthday
Help me wish my wife, Lois, a happy birthday! It's one of those 'black balloon' birthdays, but prudence dictates that I don't reveal which one. Drop her an email at lois@fibergypsy.com. Thanks! (Dave Baker, Publisher of BenefitsLink.com)
Newly Posted Events
Communicating your ESOP
Nationwide on June 1, 2005
presented by National Center for Employee Ownership
ESOP Feasibility: Beyond the Basics
in Missouri on March 14, 2005
presented by National Center for Employee Ownership
ESOPs as a Business Transition Tool
Nationwide on March 9, 2005
presented by National Center for Employee Ownership
Floating Rate Notes as an ESOP Investment Choice
Nationwide on April 6, 2005
presented by National Center for Employee Ownership
Handling the Repurchase Obligation
Nationwide on May 17, 2005
presented by National Center for Employee Ownership
Insurance Brokers - The Impact of Allegations of Corruption
Nationwide on January 27, 2005
presented by West LegalEdcenter
Is an ESOP Right for You?
in California on March 9, 2005
presented by National Center for Employee Ownership
Is an ESOP Right for You?
in California on March 23, 2005
presented by National Center for Employee Ownership
Is an ESOP Right for You?
in Colorado on April 5, 2005
presented by National Center for Employee Ownership
Is an ESOP right for you?
in Idaho on April 6, 2005
presented by National Center for Employee Ownership
Is an ESOP right for you?
in Oregon on April 7, 2005
presented by National Center for Employee Ownership
Is an ESOP right for you?
in Pennsylvania on April 14, 2005
presented by National Center for Employee Ownership
Is an ESOP right for you?
in California on May 24, 2005
presented by National Center for Employee Ownership
Pension Focus 2005 Conference
in Missouri on May 12, 2005
presented by Pension Consultants, Inc.
S Corporation ESOP's
Nationwide on March 22, 2005
presented by National Center for Employee Ownership
Share Equity: Create Value 2005 Conference
in California on April 20, 2005
presented by National Center for Employee Ownership (NCEO) and the Beyster Institute
Newly Posted Press Releases
CPI Enhances Plan Sponsor Internet Site with Conversion Status Features
(CPI Qualified Plan Consultants, Inc.)
ComplianceAid, LLC releases free "HIPAA Reference and Best Practices Quick Guide – Portability Notices."
(ComplianceAid, LLC)
Newly Posted or Renewed Job Openings
Principal Administrative Analyst
for University of California, Office of the President
in CA
Retirement Plan Coordinator
for American Funds
in VA
Defined Contribution Consultant
for Medium Size Midwestern Consulting firm
in OH
Senior Implementation Specialist
for CitiStreet
in NJ
Team Leader - US Outsourcing
for Mercer Human Resource Consulting
in IL, MA
Pension Account Coordinator
for Benefits Resource Group
in OH
Benefits Project Manager
for Hewitt Associates
in IL
Pension Administrator
for Boyce & Associates, Inc.
in AZ
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Copyright 2005 BenefitsLink.com, Inc.; except that you may reprint this newsletter in full (including this sentence) without obtaining our permission.
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Editor and Publisher: David Rhett Baker, J.D.
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