| BenefitsLink Retirement Plans Newsletter |   |
February 10, 2005
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Text: Treasury's Budget Explanation of Proposed LSAs/RSAs/ERSAs/IDAs (PDF)
14 pages. Excerpt: "The proposed effective date allows sufficient time to establish the regulatory and operational infrastructure for IDA programs, including regulations making it practical for exempt persons to serve as program sponsors. Thus the credit could generally be claimed for taxable years ending after December 31, 2006, and beginning before January 1, 2014. The credit would apply with respect to the first 900,000 IDA accounts opened after December 31, 2006, and before January 1, ...." (U.S. Department of the Treasury via American Benefits Council)
Overview: Bush Administration Proposal Would Radically Change Defined Benefit Pension Funding (PDF)
12 pages. Excerpt: "On February 7, the Bush Administration, as part of its 2005/2006 budget submission to Congress, proposed an overhaul of the funding rules for private sector single-employer defined benefit plans, generally effective for 2006 plan years. The proposal also would significantly increase Pension Benefit Guaranty Corporation (PBGC) premiums, especially for underfunded plans, make changes that affect the operations of the PBGC, expand employee disclosure and government ...." (Mellon Financial Corporation)
Overview of the Key Pension Proposals Included in the Bush Budget for Fiscal Year 2006
Excerpt: "[The budget proposal] includes more details on the administration's defined benefit funding proposal and on previously released proposals relating to hybrid pension plans and retirement savings. Other provisions would promote health information technology, encourage a national marketplace for health insurance, help individuals and small businesses obtain health insurance coverage, eliminate the income restrictions for adoption benefits, and permanently extend ...." (Watson Wyatt Worldwide)
White Paper: Proposal to Create a Corporate Bond Spot Yield Curve for Pension Discounting (PDF)
14 pages. Excerpt: "The Administration proposes to replace the current law method with a schedule of rates drawn from a spot yield curve of high grade corporate bonds. Discounting future benefit cash flows using the rates from the spot yield curve is the most accurate way to measure a plan's liability because, by matching the maturity of the discount rate with the timing of the obligation, it properly computes today's cost of meeting that obligation." (U.S. Department of the Treasury via U.S. Department of Labor)
UAL Halts Some Pension Pay to Pilots -- Some Could Lose Up to 40% of Retirement Benefits
Excerpt: "United Airlines is halting some pension payments to its retired pilots while a Chicago bankrup.tcy court resolves a dispute over when and how the pilots pension plan will be terminated." (Crain's Chicago Business)
Multiemployer Plans Task Force Comments on Amortization Relief Delay under IRC 412(e) (PDF)
1 page. Excerpt: "On behalf of the American Academy of Actuaries' Multiemployer Plans Task Force, I would like to thank you and your colleagues for giving us the opportunity to discuss with you the issues around amortization relief for multiemployer plans under IRC Section 412(e). As discussed, some multiemployer plans are facing funding deficiencies that could be relieved if granted an extension under 412(e)." (American Academy of Actuaries)
Issue Brief: Principles of Pension Funding Reform for Multiemployer Plans (PDF)
12 pages. Excerpt: "The American Academy of Actuaries' Multiemployer Plans Task Force has identified several principles that any revision of pension funding rules for multiemployer plans should address. The purpose of this issue brief is to provide background material on multiemployer plans (including their current funding structure) and to examine these principles: ...." (American Academy of Actuaries)
American Academy of Actuaries' Comments on Proposed IRS Regs for Phased Retirement (PDF)
4 pages. Excerpt: "The current qualified-plan rules do not facilitate, and in some cases impede, phased retirement. Therefore, we do appreciate the efforts the IRS has made to simplify the administration of a phased retirement program. For example, the proposed regulations: require only periodic checking of the work schedule, allow a compensation alternative ..., and do not require an adjustment in the benefit unless the work schedule is one-third more than expected." (American Academy of Actuaries)
Overview of Action Required for New Automatic Rollover Rules (PDF)
3 pages. Excerpt: "The automatic rollover rules apply to mandatory cash-out distributions to participants from all qualified plans, tax deferred annuity or 403(b) plans, governmental plans (including governmental 457(b) deferred compensation plans), and church plans. The automatic rollover rule does not apply if the participant consents to payment from the plan. Distributions to surviving spouses or alternate payees are not subject to the automatic rollover requirements." (Powell Goldstein LLP)
New: 403bCompare Web Site
Excerpt: "The California State Teachers' Retirement System has recently unveiled a new retirement planning Web site that will change the way employees of local school districts, community colleges and county offices of education select their retirement savings investment options. The new 403bCompare Web site (www.403bCompare.com) enables eligible employees to pull up free, objective information about different 403(b) retirement investment products available for purchase." (California State Teachers’ Retirement System)
Snapshot: Proposed Social Security Price Indexing Would Slash Benefits
Excerpt: "The Bush Administration has spoken favorably about substituting price indexing for wage indexing, a change that was a centerpiece of Plan 2 of the President's Social Security commission. Under this change, benefits would no longer reflect improvements in the country's standard of living, but would just be indexed to prices. It is hard to overstate the effect of that substitution on hypothetical future benefits." (Economic Policy Institute)
CBO Director's Testimony on Budgetary Perspectives on the Outlook for Social Security (PDF)
9 pages. Excerpt: "Although prefunding could be carried out either by having individuals save more or by having the government save more (through smaller budget deficits or larger budget surpluses), analysts disagree about the extent to which the government could actually prefund retirement benefits, for several reasons. The experience of recent years, for instance, raises questions about the likelihood that the government would be able to maintain budget surpluses for long periods of time." (U.S. Congressional Budget Office)
Opinion: Two Issues Face Social Security, and Applying One Answer to Both Is Risky
Excerpt: "Two separate issues in the Social Security debate have, unfortunately, been lumped together. The first issue is the solvency of the system. Here there is widespread agreement that the current course is unsustainable in the long run: either benefits have to be cut or taxes have to be increased. .... The second issue, ..., is the private accounts. Such accounts may or may not be a good idea, but they have little to do with the fundamental budget problems facing Social Security." (The New York Times; one-time registration required)
Text of IRS Letter Addressing Clarification Request on Short Service Employee Memorandum (PDF)
2 pages. Excerpt: "We understand that some may question whether we are reversing positions on certain plan designs that the Service may previously have looked at favorably. However, the memorandum of October 22, 2004, is not intended to suggest that plan designs that have been consistently and repeatedly approved by the Service are now in question. That memorandum is also not intended to address any possible concerns raised by this plan design under section 401(a)(26)." (U.S. Internal Revenue Service)
Text of Treasury Budget Explanation of Cash Balance Legislative Recommendations (PDF)
4 pages. Excerpt: "All changes under the proposal would be effective prospectively. The legislative history would state that there would be no inference as to the status of cash balance plans or cash balance conversions under current law." (U.S. Department of the Treasury via American Benefits Council)
Smaller Fixes Could Bolster Social Security System, According to AARP
Excerpt: "The U.S. retirement system does not need a major overhaul or private accounts and can be stabilized through a series of smaller fixes, the nation's largest lobby group for the elderly said on Wednesday. The AARP, formerly known as the American Association for Retired Persons, said the amount of wages that can be taxed for Social Security ... should be raised from $90,000 to $140,000. The change could be phased in over about 10 years and would cut the projected shortfall by 43 percent." (Reuters via Yahoo! News)
Links to Items on Executive Comp, Benefits in General
An Overview of the Deferred Compensation Provisions of the American Jobs Creation Act of 2004 (PDF)
28 pages. Excerpt: "Among (many) other things, the American Jobs Creation Act of 2004 substantially rewrote the rules governing all sorts of deferred and executive compensation arrangements. [Mintz Levin is] pleased to provide you with a copy of a comprehensive article on the subject, ...." (Tax Management Compensation Planning Journal via Mintz Levin Cohn Ferris Glovsky and Popeo P.C.)
Exploring NYSE's and Nasdaq's Shareholder Approval Requirements for Equity Compensation Plans (PDF)
Pages 2-18 of 18 pages. Excerpt: "This articles discusses these new shareholder approval requirements ...." (Benefits Law Journal via)
Employee Benefits Developments for 2005: A Checklist
Excerpt: "With the arrival of some long awaited deadlines and the introduction of various new compliance requirements, the coming months promise to be busy ones for those involved in the design and administration of employee benefit plans. The following list identifies a number of developments and issues that may require your attention. The list is not intended to be comprehensive or to provide exhaustive detail with respect to any specific requirement." (Ballard Spahr Andrews & Ingersoll, LLP)
Sustaining Sarbanes-Oxley Compliance in Year Two and Beyond (PDF)
20 pages. Excerpt: "Indeed, a replay of the year one compliance fire drill is as untenable as it is unwise: Few companies could again marshal the resources or survive the disruption. But if year two under Sarbanes-Oxley is to cause less pain and provide more gain, companies must plan, design, and implement an efficient and effective program for sustainable compliance." (Deloitte)
Overview: Proposed USERRA Regulations and USERRA Amendments of Interest to Employers (PDF)
3 pages. Excerpt: "While the federal Uniformed Services Employment and Reemployment Rights Act of 1994 ... was enacted more than ten years ago, ... there were no regulations accompanying the law. In September 2004, [DOL] issued proposed regulations in a question and answer format that seek to clarify some potential ambiguities .... The final USERRA regulations are expected in June of this year. In addition, in December 2004, Congress passed new legislation that amends portions of USERRA." (Epstein Becker & Green, P.C.)
Overview: NASD Amends Rules Governing Eligibility of Claims for Arbitration (PDF)
2 pages. Excerpt: "[The week of February 3, 2005,] NASD announced changes to the rules governing time limits on the submission of claims in arbitration. The NASD Code of Arbitration Procedure ('the NASD Code') retains the rule that claims are ineligible for submission to arbitration where six years have elapsed from the occurrence or event giving rise to the claim." (Sutherland Asbill & Brennan LLP)
Hudson County Is First in NJ to Cover Staffers' Partners
Excerpt: "Hudson County is poised to extend health and pension benefits to county employees' same-sex partners. If approved by the Board of Freeholders, the measure would make Hudson the first county in the state to offer health benefits to same-sex partners and the second to extend pension benefits, according to a list compiled by the State Division of Pensions and Benefits." (The Jersey Journal)
Newly Posted Events
ASPPA Summer Conference and Western Pension & Benefits Conference Annual Conference
in Nevada on July 16, 2006
presented by ASPPA and WP&BC
Automatic Rollovers - Implementation of the New Rules
Nationwide on March 17, 2005
presented by McKay Hochman Co., Inc.
Enroll Plus® Demo
Nationwide on February 16, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on March 30, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on April 20, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on May 18, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on May 18, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on June 15, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on July 20, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on August 17, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on September 21, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on October 19, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on November 16, 2005
presented by Newkirk Products, Inc.
Enroll Plus® Demo
Nationwide on December 21, 2005
presented by Newkirk Products, Inc.
GuidancePlus Demo
Nationwide on February 11, 2005
presented by Newkirk Products, Inc.
GuidancePlus Demo
Nationwide on February 18, 2005
presented by Newkirk Products, Inc.
GuidancePlus Demo
Nationwide on February 25, 2005
presented by Newkirk Products, Inc.
Introduction to Retirement Plans
in Illinois on June 7, 2005
presented by McKay Hochman Co., Inc.
Introduction to Retirement Plans
in Massachusetts on August 9, 2005
presented by McKay Hochman Co., Inc.
Newkirk Fund Central Demo
Nationwide on February 24, 2005
presented by Newkirk Products, Inc.
Newkirk Fund Central Demo
Nationwide on March 29, 2005
presented by Newkirk Products, Inc.
Newkirk Fund Central Demo
Nationwide on April 5, 2005
presented by Newkirk Products, Inc.
Newkirk Fund Central Demo
Nationwide on April 14, 2005
presented by Newkirk Products, Inc.
Newkirk Fund Central Demo
Nationwide on April 21, 2005
presented by Newkirk Products, Inc.
Prototype Plan Seminar
in Illinois on April 19, 2005
presented by McKay Hochman Co., Inc.
Prototype Plan Seminar
in Massachusetts on May 10, 2005
presented by McKay Hochman Co., Inc.
Prototype Plan Seminar
in New Jersey on June 21, 2005
presented by McKay Hochman Co., Inc.
Prototype Plan Seminar
in Ohio on July 19, 2005
presented by McKay Hochman Co., Inc.
Prototype Plan Seminar
in Pennsylvania on August 16, 2005
presented by McKay Hochman Co., Inc.
Retirement Plan Insights - Strategic Retirement Planning Seminars
in Pennsylvania on May 24, 2005
presented by McKay Hochman Co., Inc.
Retirement Plan Insights - Strategic Retirement Planning Seminars
in Illinois on June 7, 2005
presented by McKay Hochman Co., Inc.
Retirement Plan Insights - Strategic Retirement Planning Seminars
in Missouri on July 12, 2005
presented by McKay Hochman Co., Inc.
Retirement Plan Insights - Strategic Retirement Planning Seminars
in Massachusetts on August 9, 2005
presented by McKay Hochman Co., Inc.
Retirement Plan Insights - Strategic Retirement Planning Seminars
in Ohio on October 18, 2005
presented by McKay Hochman Co., Inc.
Retirement Plan Insights - Strategic Retirement Planning Seminars
in Maryland on November 21, 2005
presented by McKay Hochman Co., Inc.
SmartStatement Demo
Nationwide on February 16, 2005
presented by Newkirk Products, Inc.
SmartStatement Demo
Nationwide on February 22, 2005
presented by Newkirk Products, Inc.
SmartStatement Demo
Nationwide on March 3, 2005
presented by Newkirk Products, Inc.
SPARK ARPS Training and Accreditation Program
in Massachusetts on March 30, 2005
presented by Society of Professional Administrators and Recordkeepers (SPARK)
The SUMMIT
in Florida on February 25, 2006
presented by ASPPA (American Society of Pension Professionals & Actuaries)
Newly Posted Press Releases
McKay Hochman Offers Automatic Rollover eSeminar
(McKay Hochman Co., Inc.)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Mullin Consulting Promotes Kevin Bachler and Heidi O'Brien
Erich J. Urbach
(Assist America, Inc.)
Newly Posted or Renewed Job Openings
Retirement Professionals
for BeneTemps, Inc.
in CT, MA, NY, RI
Pension Consultant / Administrator
for White Plains NY Mid-Sized Pension Consulting Firm
in NY
Consulting Actuary
for RSM McGladrey, Inc.
in IL
401(k)/DC Administrator
for Benetech, Inc.
in CA
Pension Administrator
for Benetech, Inc.
in CA, VA
Defined Benefit
for Constantin Control Associates
in NJ
Benefit Project Specialist
for Aon Consulting
in MD
401(k) Administrator
for Iron Administration, LLC located in North Suburban Chicago, IL
in IL
Flexible Spending Account Administrator
for ProView
in CA
Employee Benefits Premium Billing/Reconciliation Analyst
for ProView
in CA
Employee Benefits Call Center Representative
for ProView
in CA
Corporate Counsel, Corporate Services
for Charles Schwab & Co., Inc.
in CA
Actuary
for Greenbook Pension Services, Inc.
in CA
Human Resources - HR Benefits Representative
for Central Virginia Electric Cooperative
in VA
Ongoing Delivery DBP Business Analyst
for Hewitt Associates
in IL
HM Design Consultant Entry
for Hewitt Associates
in IL
Senior Benefit Consultant
for Independent Benefit Services
in MD
Employee Benefits Paralegal
for Trucker Huss
in CA
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- 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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