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February 23, 2005
Today's sponsor: www.ftwilliam.com

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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)
White Paper: Creating 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." (Department of the Treasury)

UAL Employees Garner Class Action Status for ESOP Suit
Excerpt: "A federal judge has given a lawsuit from the employees of United Airlines over company stock holdings class action status. The lawsuit - which alleged that company stock was held in the employee stock ownership plan (ESOP) after it was imprudent to do so - was originally filed in 2003, according to Reuters. It contended that the UAL Corp. ESOP committee and the plan trustee, State Street Bank, were aware that the stock was unstable yet still held it in the plan." (PLANSPONSOR.com; one-time registration required)

Opinion: How Corporate Fiduciaries Steal from American's Pensions
Excerpt: "The duties of a fiduciary to a pension can be summarized simply. Fiduciaries must act in the best interests of their clients. Indeed, they must place the interests of their clients even before their own. It's that simple. Yet adherence to this standard is so demanding that few of the businesses that act as fiduciaries to pensions meet it. When you think about it, the duty of care required is really almost anti-capitalist." (Edward Siedle via Benchmark Advisory Services, Inc., and Benchmark Financial Services, Inc.)

Schwarzenegger, Unions Clash Over California's Public Employee Pension Plans
Excerpt: "Gov. Arnold Schwarzenegger's proposal to overhaul the pension funds that 2.1 million California state employees have long depended on - by converting the funds into plans resembling 401(k)s - has teachers, firefighters and other workers suddenly worried about their retirement. Under the proposal, Schwarzenegger wants to replace the nation's two largest public pension systems with private retirement plans similar to the 401(k)s popular with businesses." (AP via The Washington Post; one-time registration required)

Rep. Visclosky Breaks Down President's Social Security Plan
Excerpt: "The office of U.S. Rep. Pete Visclosky, D-Ind., analyzed information released by the White House regarding the president's proposed privatization of Social Security.' (nwitimes.com)

Audio: Proposals Aim to Shore Up Social Security Funding
Excerpt: "In this first installment of a three-part series on Social Security, NPR's John Ydstie examines the system's shortfalls and possible ways to extend its long-term solvency. Among the remedies raising the retirement age; raising the tax that workers and employers pay into the system; and mandating that all federal and state workers take part in the national retirement program; or some combination." (Morning Edition via National Public Radio)

Opinion: Social Security Private Accounts, Annuities and an Inheritance to Be Passed on to Heirs
Excerpt: "Under the president's proposal, when you retired you would not be able to start spending the money in your private account until after you bought an annuity, a financial contract in which you hand over a lump-sum payment and, in return, get a monthly stream of income for life." (The New York Times; one-time registration required)

Links to Items on Executive Comp, Benefits in General

Outsourcing Can Lead to Costly ERISA Litigation: How One Employer Prevailed
Excerpt: "Many employers are continuing the trend of outsourcing certain services or functions by subcontracting with a third party. However, the process of outsourcing often ends in terminations of employment which can give rise to lawsuits and claims under ERISA and other areas of the law.* A recent 8th Circuit case--Dallas D. Register, et. al. v. Honeywell Federal Manufacturing & Technologies, LLC, 2005 WL 367319 (8th Cir. 2005)--illustrates the exposure to lawsuits that outsourcing can ...." (Attorney B. Janell Grenier via BenefitsBlog.com)

Hewitt Federal Legislation Quick Guide Updated as of February 22, 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)

IRS Settlement Program Refers to Annuities Used in Relation to Stock Options
Excerpt: "Tax regulators want to block an arrangement that some executives have used to cut taxes related to stock options. The Internal Revenue Service has unveiled a new settlement program for users of the strategy, which sometimes relies on annuities, and similar strategies in Announcement 2005-19. .... The IRS has posted the announcement at http://www.irs.gov/pub/irs-drop/a-05-19.pdf" (National Underwriter)

Survey Leads to New Benefit Benchmarking Capabilities
Excerpt: "Employee Benefit News and Milliman USA have teamed to provide a sophisticated financial tool that evaluates employer benefit programs. The tool, dubbed 'BenPulse,' assesses a firm's benefit programs relative to those of competing employers and provides vital statistics within each benefits category." (BenefitNews Connect)

Newly Posted Events

Directed Trustees -- A Safe Way Out of the Woods?
Nationwide on March 15, 2005
presented by SunGard Corbel

EGTRRA Determination Letters - Start Your Engines
Nationwide on March 29, 2005
presented by SunGard Corbel

The Future of Social Security and Implications for Higher Education
Nationwide on March 16, 2005
presented by NACUBO (National Association of College and University Business Officers)

Web Seminar on Medicare Part D for Plan Sponsors
Nationwide on February 24, 2005
presented by Hay Group

Newly Posted Press Releases

Communication Plays Critical Role In Improving Retention Power Of Health Benefits
(Watson Wyatt)

Settlement Offer Extended for Executive Stock Option Scheme
(Internal Revenue Service (IRS))

IRS Unveils Redesigned Employment Tax Return
(Internal Revenue Service (IRS))

Employees Entrust Financial Engines with $1 Billion in Assets under Management; Milestone Achieved After First 14 Weeks Offering Personal Asset Manager Program
(Financial Engines, Inc.)

AARP Suit Puts Retiree Health Benefits On The Line, Business Groups Claim
(ERIC (ERISA Industry Committee))

Revere Coalition Welcomes New Members
(Revere Coalition)

Vanguard VIPERs Added To Invest N Retire’s 401(k) Platform
(Invest n Retire, LLC)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

401(k)/Defined Contribution or Defined Benefit Account Manager
for National Retirement Services, Inc. (NRS)
in CA, NC

Senior Product Analyst-Retirement Health Services
for ICMA-Retirement Corporation
in DC

Sell only the Best of the Best - Retirement Software and Solutions
for Levi, Ray & Shoup, Inc.
in AZ, CA, CO, HI, ID, MT, NM, NV, OR, TX, UT, WA, WY

Senior Pension Accounting Manager
for CitiStreet
in MA

529 Plan Sales Representative (Northeast)
for Merrill Lynch
in CT

Senior Technical Analyst
for Fiserv Investment Support Services
in CO

Trading Desk Administrator
for TPA Firm
in FL

Plan Administrator
for TPA Firm
in FL

Internal New Business Consultant
for Great-West Life & Annuity Insurance Company
in WI



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