January 27, 2005 Today's sponsor: BeneCom Associates, LLC (Click on company name or banner to learn more.) BeneCom Associates, LLC, for one-stop benefit communications Since 1992, BeneCom has produced benefit communications, including enrollment materials, SPDs, benefit statements, newsletters and more, for companies large and small, nationwide. So if you've been looking for an independent benefit communications specialist, look no further. Click above for more information, or give us a call at (860) 674-2626, Ext. 11. We're here to help. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Text of Proposed Revised Regs Concerning Disclosure of Relative Values of Optional Forms of Benefit (PDF) 15 pages. Excerpt: "This document contains proposed regulations that would revise final regulations that were issued on December 17, 2003, under section 417(a)(3) of the Internal Revenue Code concerning content requirements applicable to explanations of qualified joint and survivor annuities and qualified preretirement survivor annuities payable under certain retirement plans." (Internal Revenue Service) Advice Coaxes 401(k) Participants to Save More, According to Study on Participant Behavior Excerpt: "Investors who received personalized 401(k) advice last year boosted their savings and frequently opted for managed accounts, a study of participant behavior by Schwab Corporate Services shows." (BenefitNews Connect) Individual 401(k) Plans Beginning to Catch on with Self-Employed and Small Business Owners Excerpt: "Known by various names such as solo 401(k)s, self-employed 401(k)s and individual 401(k)s, these plans combine the best elements of profit sharing and traditional 401(k) plans to offer a double dose of tax savings. First available in 2002 but becoming more popular only now, these plans are designed for self-employed individuals or small-business owners with no employees other than their spouses." (Humberto Cruz via South Florida Sun-Sentinel) Overview: Required Minimum Distribution -- Distribution Period Following Death of the Participant Excerpt: "The determination of the required minimum distribution (RMD) following the death of the participant is dependent on three factors: whether the participant dies before or after the required beginning date (RBD), the participant's designated beneficiary (or, if there is a designated beneficiary), and the plan (or IRA) terms." (SunGard Corbel) IRA Tax Forms: An Individual's Responsibility Excerpt: "Have you ever wondered what an IRA owner's IRS reporting requirements might be? Are these requirements an extension of the reports an IRA custodian/trustee provides? An individual reports the majority of his/her traditional IRA and Roth IRA activity on his/her federal income tax return, generally IRS Form 1040, U.S. Individual Income Tax Return." (Bankers Systems, Inc.) Chile's Retirees Find Shortfall in Private Plan Excerpt: "Under the Chilean program ... the promise was that such investments, by helping to spur economic growth and generating higher returns, would deliver monthly pension benefits larger than what the traditional system could offer. But now that the first generation of workers to depend on the new system is beginning to retire, Chileans are finding that it is falling far short of what was originally advertised under the authoritarian government of Gen. Augusto Pinochet." (The New York Times; one-time registration required) Uncovering and Understanding Hidden Fees in Qualified Retirement Plans Excerpt: "Modern fee structures, as they relate to qualified retirement plans, are a relatively new phenomena, having been developed over the last thirty years. The objective of this paper is to explore the five specific types of fees that are frequently considered to be 'hidden' because of their difficulty in being recognized, quantified and monitored. It will also address their historical genesis and development, significance to a retirement plan's overall operational structure, ...." (401khelpcenter.com) Privatization Fix for Social Security Is Worse than Doing Nothing Excerpt: "In December 2001, a Bush Administration commission introduced three possible plans for privatizing the existing federal Old Age, Survivors, and Disability Insurance (OASDI) program, commonly referred to as Social Security. Plan 2 is the model that Bush Administration officials have consistently favored in public discussions. Contrary to administration rhetoric that action taken now will protect younger workers when they retire, Plan 2 would leave younger workers worse off than if ...." (The Economic Policy Institute) Audio: Middle-Aged Americans Weigh Social Security Options Excerpt: "In the second of three reports on how different generations view Social Security, NPR's John Ydstie talks with middle-age Americans about a system that's been a bedrock of U.S. retirement -- and politics -- since its creation." (All Things Considered via National Public Radio) Opinion: Ten Myths about Social Security Excerpt: "The current debate over privatizing Social Security has been marred by numerous myths perpetuated by both privatization's advocates and the media. The Century Foundation looks at 10 commonly accepted assertions and points out why each has little to do with reality." (The Century Foundation) Links to Items on Executive Comp, Benefits in General Opinion: Bush Plan Poses Tough 'Safety Net' Questions for Workers Who Become Disabled Excerpt: "If individual investment accounts become an integral part of Social Security, as President Bush is proposing, what will happen to workers who become disabled before they retire?" (The New York Times; one-time registration required) Pennsylvania to Address Taxation of Nonqualified Deferred Compensation Excerpt: "The Pennsylvania Department of Revenue has recently withdrawn PIT Policy No. 112. This notice, which was issued by the Pennsylvania Department of Revenue last December, required employers to begin withholding on elective deferrals under nonqualified deferred compensation arrangements effective April 1, 2005." (Buchanan Ingersoll PC) Hewitt Federal Legislation Quick Guide Updated January 25, 2005 Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates) Newly Posted Events HIPAA Portability for Beginners Nationwide on January 13, 2005 presented by Employee Benefits Institute of America Inc. (EBIA) Section 409A - New Rules for Executive and Deferred Compensation Nationwide on February 3, 2005 presented by Ballard Spahr Andrews & Ingersoll, LLP Newly Posted Press Releases Plan Sponsor Forum 2005: Digging deeper with the right tools; A workshop for 401(k) Fiduciaries (Caterpillar Investment Management Ltd.) Newly Posted or Renewed Job Openings Pension Administrator for The Nolan Company in KS Internal Sales-Special Markets for TRANSAMERICA in CA Payroll and Benefits Manager for San Francisco Ballet in CA Internal Sales Associate for American Express Tax & Business Services in IL Benefits Administrator for Symetra Financial in WA Vice President of Consultant Relations for CitiStreet - A State Street and Citigroup company in FL, MA Retirement Plan Administrator for Locally owned Third Party Administration Firm in OK Benefits Service Representative for Phelps Dodge Corporation in AZ Institutional Trust & Custody Relationship Manager for U.S. Bank in CA Sr. Implementation Consultant for AIG VALIC in TX Handy Links:
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