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March 29, 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)
Measuring and Monitoring the Long-Term Success of Defined Contribution Plan Participants (PDF)
34 pages. Excerpt: "We utilize both asset allocation data and asset quality based upon the Unified Fiduciary Monitoring Index® to measure the real rate of return component of the overall success benchmarking system. No estimation method is perfect and the benchmark methodology we describe should be repeated at periodic intervals, generally annually, to make sure plan participants remain on track for success." (Unified Trust Company, NA)

A 401(k) Fleecing of America: Will Your Money Be There When You Need It?
Excerpt: "Last year, Department of Labor investigators found more than 1,200 instances of money missing from 401(k) accounts. Compare that to just 34 in 1995. 'This could be the tip of the iceberg,' says Karen Friedman, policy director of the Pension Rights Center." (MSNBC News)

Why Choose a One-Person 401(k) Plan Instead of a SEP? (PDF)
2 pages. Excerpt: "When it comes to retirement plans, most small business owners want the best of both worlds. They want a plan that is relatively easy to administer and maintain, but at the same time allows them to contribute the maximum amount." (Scudder Investments)

Overview: PBGC Change to Annual Filing Requirements for Underfunded Pension Plans (PDF)
3 pages. Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) issued changes to its requirements for filing of actuarial and financial information by controlled groups with underfunded pension plans. The changes are intended to improve the agency's early warning program for plans at risk of termination." (Mellon Financial Corporation)

Court Says PBGC Does Not Have Fiduciary Duty to Correct US Airways Benefit Estimation Mistakes
Excerpt: "A federal court has ruled that the Pension Benefit Guaranty Corporation (PBGC) does not have a fiduciary duty to correct the mistakes of US Airways. US Airways calculated estimated benefits before the PBGC had the chance to fully process the terminated plan and make more formal determinations; however the PBGC did not have a duty to correct mistakes made in the initial estimated benefits, US District Judge James Robertson ... ruled in a summary judgment." (PLANSPONSOR.com; one-time registration required)

Overview: DOL Proposed Rules to Allow Entities Other than Plan Sponsors to Terminate Abandoned Plans (PDF)
5 pages. Excerpt: "The Department of Labor (DOL) has issued guidance that would permit qualified termination administrators (QTAs) to terminate and distribute benefits from individual account plans that have been abandoned by their sponsoring employers. Additionally, the DOL has proposed a class exemption that would permit QTAs to select and pay fees to itself or to an affiliate for performing termination-related services for the abandoned plan." (Mellon Financial Corporation)

Jenner & Block ERISA Fiduciary and Company Stock Bulletin, March 2005 (PDF)
3 pages. (Jenner & Block LLP)

CNA Corporation Devises Web-Based Retirement Plan Calculator for Military Personnel
48 pages. Excerpt: "Military Personnel Get Retirement Calculator CNA Corporation (CNAC) researchers have devised a Web-based calculator that allows members of the military services to determine which Department of Defense retirement plan will best serve their needs. The calculator allows future retirees to determine how much they would earn under two competing retirement plans. The differing plans affect service members who joined the military after July 31, 1986 ...." (PLANSPONSOR.com; one-time registration required)

How a Tech Whiz Kid Launched the First Museum-Quality Pension Fund
Excerpt: "The idea was simple: Create a pension plan for artists by gathering a collection of their works and gradually selling them off to build a cash account. Over the course of their careers, some artists would succeed wildly; most would fail miserably. By spreading that risk of failure among a large pool of artists, Shniberg figured he could provide financial security to a group of workers unaccustomed to a safety net." (Wired Magazine)

Commentary: How Social Security Could Narrow the Rich-Poor Gap
Excerpt: "Those drafting the Social Security bill wanted to redistribute income to ... destitute retirees. They succeeded. Today's seniors are relatively flush. Now, the income gap between the rich and poor in the United States has gotten wider again. A reformed Social Security could help readjust that balance.' (The Christian Science Monitor)

Mutual Fund Redemption Fees: Retirement Plan Short Term Redemption Fee Information
Excerpt: "The United States Securities and Exchange Commission (SEC) has proposed that mutual fund companies start to assess short term redemption fees on selected funds. In the simplest terms, a fee is charged when an investor buys and sells shares within a fund within a short period of time. Each individual mutual fund company determines how the fee is calculated and what is considered 'short term'." (Invesmart, Inc.)

Simple IRA Plans for Small Businesses -- A Guide to Plan Advantages and Implemention (PDF)
11 pages. Excerpt: "A SIMPLE (Savings Incentive Match Plan for Employees of Small Employers) IRA plan offers great advantages for businesses that meet two basic criteria. First, your business must have 100 or fewer employees (who earned $5,000 or more during the preceding calendar year). In addition, you cannot currently have another retirement plan." (U.S. Department of Labor, Employee Benefits Security Administration and the Internal Revenue Service)

IRS Posts 'Simple IRA Plan Checklist' (PDF)
1 page. Excerpt: "Every year it is important that you review the requirements for operating your Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA plan. This Checklist is a 'quick tool' to help you keep your plan in compliance with many of the important tax rules. Underlined text [on the target page] will link you to Internet information." (Internal Revenue Service)

Links to Items on Executive Comp, Benefits in General

Overview: 10 Critical Steps to SFAS 123R
Excerpt: "Now that the Financial Accounting Standards Board (FASB) has mandated that public companies must expense stock option grants for financial reporting periods after June 15, 2005, companies need to prepare, advises compensation consulting firm Pearl Meyer & Partners." (SmartPros Ltd.)

Newly Posted Events

Managing Law Firm Benefit Plans - Emerging Trends and Best Practices in Benefit Planning and Design
in California on April 20, 2005
presented by ArlenGroup

Sexual Harassment? 401(k) Plan Headaches? Payroll Tax Problems?
in District of Columbia on April 5, 2005
presented by Swidler Berlin LLP

Newly Posted Press Releases

Benefit Software Inc. Helps Insurance Firms Provide Value-Added Benefit Communication Services
(Benefit Software Inc.)

Outsourcing, Rising Health Care Costs and HSAs Highlight Media Coverage in First HR Intelligence Trend Report for 2005
(Fisher Vista)

Creating Living Will a Simple Task with ARAG Legal Plan
(ARAG)

New Harris Rothenberg White Paper Helps Employers Get Their Money’s Worth Out of EAP and Work/Life Programs
(Harris, Rothenberg International (HRI))

Countdown to SFAS 123R! 10 Critical Steps Companies Should Take Today
(Pearl Meyer & Partners)

Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)

Margaret Verna
(Pension Resource Group)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

401(k) Plan Administrator
for Matthews Benefit Group, Inc
in FL

Senior Actuarial Analyst
for Conrad Siegel Actuaries
in PA

New Business Installation Administrator
for The Pension Group, Inc.
in CA

Plan Design & Document Manager
for Pension Specialists, Inc.
in CA

Pension Administrative Assistant
for North Dallas TPA Firm
in TX

Retirement Plan Service Coordinator
for Mammini Company
in CA

Plan Administrator
for Capital Investment Advisory
in FL

Senior Benefits Administrator (401k)
for SUPERVALU, the industry leader in distribution and retailing in the food industry.
in MN



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