| BenefitsLink Retirement Plans Newsletter |   |
March 16, 2005
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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)
Comments: Proposed Regulations for Distributions from Pension Plan under Phased Retirement Program
Excerpt: "This document addresses all of ASPPA's comments on the Proposed Regulations except those relating to the selection of a normal retirement age. A separate document addresses the proposed rules regarding normal retirement age." (American Society of Pension Professionals & Actuaries)
Overview: IRS Proposes Regulations for Roth 401(k) Programs Starting in 2006
Excerpt: "The 2002 tax law (known as 'EGTRRA') included a provision allowing qualified 401(k) plans and 403(b) plans to permit participants to designate some or all of their contributions as 'Roth contributions' for plan years beginning in 2006 or later. The IRS recently published its first round of guidance on Roth contributions. (The IRS only addressed Roth 401(k) contributions, so the rest of this Alert will not discuss 403(b) plans.)" (Faegre & Benson LLP)
Overview: How Can the Qualified Joint and Survivor Annuity Provisions Be Eliminated from Plans?
Revised 03/15/05. Excerpt: "A profit sharing, 401(k) or stock bonus plan which holds no account balances that include amounts received as the result of a merger with or amendment from a money purchase, target benefit plan or defined benefit plan may eliminate the QJSA if the following four requirements are met: ...." (McKay Hochman Co., Inc.)
Alaskan State Senators Propose DC Plans for Public Employees
Excerpt: "Two Alaskan state senators have introduced a bill that would create defined contribution retirement plans for public employees, following the lead of other states such as California." (PLANSPONSOR.com; one-time registration required)
Greenspan Spells Out Cost of Social Security Reform
Excerpt: "Alan Greenspan, the Federal Reserve chairman, told a Congressional panel on Tuesday that Social Security reform required benefit cuts." (Financial Times; registration may be required)
Technical Tip: Reporting Late Deposit of Participant Loan Payments
Excerpt: "The following question and answer are from the DOL/EBSA website: Can delinquent transmittal of participant loan repayments be included on Line 4a of Form 5500, or must they be reported as nonexempt prohibited transactions on Line 4d and Schedule G? DOL Response: In Advisory Opinion 2002-02A, the Department stated that participant loan repayments paid to or withheld by an employer for purposes of transmittal to an employee benefit plan are sufficiently similar to participant ...." (Reish Luftman Reicher & Cohen)
Senate Splits in Test Vote on Social Security Reform
Excerpt: "President Bush's plan to overhaul Social Security fared poorly on Tuesday in a test vote on Capitol Hill, with the Senate splitting 50 to 50 on a nonbinding measure declaring that Congress should reject any Social Security plan that would require 'deep benefit cuts or a massive increase in debt.'" (The New York Times; one-time registration required)
Fact Sheet: President Bush's Savings Proposals (PDF)
2 pages. Excerpt: "[On March 8, 2005], Treasury Secretary John Snow joined Senator Craig Thomas and Representative Sam Johnson to announce the Save Initiative, an effort sponsored by Senator Thomas in the Senate and Rep. Johnson in the House to pass legislation enacting three of the President's key savings proposals, Retirement Savings Accounts (RSAs), Lifetime Savings Accounts (LSAs), and Employer Retirement Savings Accounts (ERSAs)." (Department of the Treasury via The ERISA Industry Committee)
Links to Items on Executive Comp, Benefits in General
NYC Law on Equal Benefits Struck Down
Excerpt: "A state appeals court Tuesday struck down a law barring the city from doing business with companies that provide benefits for employees' spouses but not for their g.ay partners. The state Supreme Court's Appellate Division in a 5-0 ruling declared the equal benefits law illegal because it ``expressly excludes a class of potential bidders for a reason unrelated to the quality or price of the goods or services they offer.'" (AP via The New York Times; one-time registration required)
Nonqualified Deferred Compensation: The Effect of Section 409A Now and in the Future (PDF)
27 pages. Excerpt: "This booklet (published on January 7, 2005) is intended to help you understand the new law, the guidance that the Treasury Department and the IRS have issued so far, what questions remain and, most importantly, what considerations and actions you as an employer should be taking to ensure that your compensation programs remain effective and competitive, while complying with these new income tax requirements." (Deloitte's Global Employer Rewards)
IRS Issues Final Stock Option Settlement Terms
Excerpt: "A final announcement has been made by the Internal Revenue Service (IRS) regarding the settlement incentive for companies and executives who transferred stock options to avoid taxes." (PLANSPONSOR.com; one-time registration required)
Company Breached Fiduciary Duty by Sending Employee Incorrect Benefits Statements
Excerpt: "A federal appeals court has ruled that a company breached its fiduciary duty by providing incorrect pension statements to an employee, and also ruled that an equitable remedy must be paid to the worker. Although the US 4th Circuit Court of Appeals agreed with a lower court's ruling that the employer was not obligated to include years of service with the employer's subsidiary in calculating pension benefits, the appeals court did disagree with the ruling that no equitable relief ...." (PLANSPONSOR.com; one-time registration required)
Facts from EBRI: Total Compensation Costs in the Private and State/Local Public Sectors (PDF)
Pages 10-12 of 16 pages. Excerpt: "Total compensation costs for state and local governments were $34.72 per hour worked in September 2004, up from $22.31 in March 1991, according to data from the U.S. Bureau of Labor Statistics (BLS). Since March 1991, total compensation costs in the state and local government sector have increased at an average annual rate of 3.3 percent." (Employee Benefit Research Institute)
Text: H.R.1058 -- Employee Benefits Protection Act of 2005 (PDF)
13 pages. Excerpt: "To amend the Employee Retirement Income Security Act of 1974 to ensure that employees are not improperly disqualified from benefits under pension plans and welfare plans based on the misclassification or reclassification of their status." (U.S. House of Representatives via American Benefits Council)
About 60 Percent of Uninsured Adults from 2000 to 2003 Belonged to the 19-to-34 Age Demographic
Excerpt: "Today, Americans ages 19 to 34 represent the largest group of adults who lack health insurance, according to a recent report by the Kaiser Commission on Medicaid and the Uninsured. .... But sudden catastrophic health costs can sometimes bankrupt the uninsured, especially young adults just starting out. And when young people opt out of the insurance pool, it means higher premiums for everyone else." (Star Tribune; one-time registration required)
Overview: New Legislation Requires Employers to Notify Employees of Their USERRA Rights (PDF)
1 page. Excerpt: "With the passage of the Veterans Benefits Improvement Act of 2004, employers now have an affirmative obligation to notify employees of their rights regarding military leave and reinstatement. The new legislation amends the 1994 Uniformed Services Employment and Reemployment Rights Act which provides reemployment protection and other benefits for veterans and employees who perform military service." (Powell Goldstein LLP)
Overview: New USERRA Notice Requirement for Employers – Effective Immediately (PDF)
2 pages. Excerpt: "Paul Zorn of Gabriel, Roeder, Smith & Company, which is an NCTR member, summarizes here the new required notice of rights and duties under USERRA." (National Council on Teacher Retirement)
Executive Summary: The Principal Financial Well-Being Index: First Quarter 2005
Excerpt: "Each employee respondent was asked to identify what benefits they would most like their employers to offer, aside from those already offered. As Table 3 shows, consistently we have seen defined benefit plans, profit sharing/bonus plans, and flexible work schedules toping the list of those desired." (Principal Financial Services, Inc.)
Newly Posted Events
Are You Ready for Roth 401(k) Deferrals?
Nationwide on July 26, 2005
presented by McKay Hochman Co., Inc.
Are You Ready for Roth 401(k) Deferrals?
Nationwide on August 16, 2005
presented by McKay Hochman Co., Inc.
Are You Ready for Roth 401(k) Deferrals?
Nationwide on October 6, 2005
presented by McKay Hochman Co., Inc.
IRS Correction Programs
Nationwide on March 30, 2005
presented by McKay Hochman Co., Inc.
The Final 401(k) Regulations
Nationwide on September 12, 2005
presented by McKay Hochman Co., Inc.
The Final 401(k) Regulations
Nationwide on November 15, 2005
presented by McKay Hochman Co., Inc.
The Proposed 403(b) Regulations
Nationwide on April 6, 2005
presented by McKay Hochman Co., Inc.
The Proposed 403(b) Regulations
Nationwide on September 8, 2005
presented by McKay Hochman Co., Inc.
The Proposed 403(b) Regulations
Nationwide on November 14, 2005
presented by McKay Hochman Co., Inc.
Newly Posted Press Releases
CompWatch® 7.13 Streamlines Workers’ Comp Tracking
(Benefit Software Inc.)
Dorsa Consulting Expands Its Services to Nonprofit Employers, Adds 403(b) Practice
(Dorsa Consulting)
Newly Posted or Renewed Job Openings
ERISA Consultant
for New York Life Investment Management LLC
in MA
Actuary, Small Plans
for Pension Planning Consultants, Inc.
in NM
ERISA Sales Consultant
for American Pensions, Inc.
in FL, SC
Retirement Plan Coordinator
for American Funds
in VA
Client Relationship Manager
for PensionTrend
in MI
Health Insurance Account Manager
for Great-West Healthcare
in AZ, CO, FL
Pension Consultant/Administrator
for Third Party Administrators, Inc.
in NH
Benefits Specialist
for American Honda Motor Co.,Inc
in CA
Sr. Plan Administrator
for Karel-Gordon & Associates
in IL
Senior Benefits Consultant
for Hewitt Associates
in LOCATION OTHER THAN U.S.
Pension Administrator
for San Diego Pension Consultants, Inc.
in CA
Compliance Manager
for ABD Insurance and Financial Services
in CA
Senior Attorney - Benefits
for Pitney Bowes Inc.
in CT
Employee Benefits-Institutional Sales Officer
for Millennium Wealth Management division of Harleysville National Bank Corp.
in PA
Enrollment Specialists
for National Automobile Dealers Association
in VA
Client Services Representative
for National Automobile Dealers Association
in VA
Health Insurance Client Service Representative
for Great-West Healthcare
in MA, NC
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