| BenefitsLink Retirement Plans Newsletter |   |
April 14, 2005
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| Immerse Yourself in ERISA Title 1 Issues |
| April 25 - 26, 2005 * Washington, DC Get the latest regulatory and legislative updates on ERISA at "The DOL Speaks 2005 Employee Benefits Conference." Every session will feature both public and private sector speakers presenting their unique perspective on Title 1 issues. Featured Speaker: U.S. Secretary of Labor Elaine L. Chao |
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Overview: Proposed Roth 401(k) Regulations
Excerpt: "The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) included a provision for 'Roth 401(k)s.' The Internal Revenue Service has proposed regulations implementing Roth 401(k)s and providing guidance on certain recordkeeping and administrative issues. In this article we will review, briefly, the basics of Roth 401(k)s and the IRS proposal." (Chicago Consulting Actuaries, LLC)
401(k) Statistics from the Fortune 100 Employers (PDF)
5 pages. The study consists of four charts on 401(k) availability, employer stock investment, and matching contributions, and was published December 2004. (Watson Wyatt Worldwide)
Initiatives Impact Insurance Companies' Annual Disclosure Obligations to Employee Benefit Plans (PDF)
2 pages. Excerpt: "Through recent initiatives, the insurance industry and regulators are demanding that insurers and brokers provide greater disclosure of commissions and similar fees. Changes in the securities industry and retirement plan marketplace, designed to assure greater transparency in the fees charged to employee benefit plans subject to the Employee Retirement Income Security Act of 1974 as amended ERISA), may also impact these disclosure obligations." (Porter, Wright, Morris & Arthur LLP)
Re-Examining Insurance Companies' Annual Disclosure Obligations to Employee Benefit Plans
Excerpt: "Insurance companies providing coverage to employee benefit plans governed by the Employee Retirement Income Security Act of 1974 (ERISA) have a legal duty to furnish plan administrators with accurate information annually about commissions and fees paid to brokers, agents, and other persons. Plan administrators rely, often exclusively, on insurers to provide such information, which plan administrators are required to disclose on Schedule A of the Form 5500 Annual Return/Report ...." (Porter, Wright, Morris & Arthur LLP)
30% of Financial Executives Confident Workers Will Retire with Sufficient Assets, Survey Shows
Excerpt: "Just 30 percent of financial executives are confident that their workers will retire with sufficient assets, according to a new survey of 200 executives by Hewitt Associates. More than 70 percent, on the other hand, believe that their employees' ability to retire comfortably is connected to their organization's ability to manage its workforce effectively." (CFO.com)
Savings Tax Break Costs Exceed Actual Savings, According to Eugene Steuerle of the Urban Institute
Excerpt: "A tax system researcher is calling on lawmakers to revamp the U.S. retirement savings incentive system. '[T]otal personal saving by households is now below the annual revenue cost of subsidizing retirement and pension plans,' C. Eugene Steuerle ... said Tuesday at a retirement savings hearing organized by the U.S. Senate Special Committee on Aging. [A] copy of Steuerle's testimony [is] at http://aging.senate.gov/public/index.cfm?Fuseaction=Hearings.Detail&HearingID=62" (National Underwriter)
The Pension Benefit Guaranty Corporation Restructures and Adds Department
Excerpt: "The Pension Benefit Guaranty Corp. has reorganized its corporate structure, creating a new Insurance Program Department and making several personnel changes. In a statement, the agency said the changes are designed to improve customer service and its ability to respond to developments in the current business environment." (Business Insurance)
Benefit Estimates Depend on Who Calculates Them: Quotes Reflect Stand on Social Security Reform
Excerpt: "Debate over Social Security has spawned an array of websites that calculate benefits -- and a multitude of answers. Enter the same age, income and retirement date into Internet Social Security calculators and you get different results, each suiting its creator's stand on President Bush's plan for individual investment accounts." (USA TODAY)
Heritage Foundation's Web-Based Personal Retirement Account Calculator Boosts Bush Reform Plan
Excerpt: "Workers would receive a higher rate of return under President Bush's plan for personal retirement accounts than they would under the existing Social Security system, according to calculations by the Heritage Foundation. The rate comparisons will be available on an Internet calculator that will go online today at the conservative think tank's Web site [http://www.heritage.org/research/features/socialsecurity/OWCWelcome_new.asp]." (The Washington Times)
Links to Items on Executive Comp, Benefits in General
Securities and Exchange Commission Expected to Delay Options Expensing Rule Start Date
Excerpt: "Federal securities regulators are expected to give companies more time to comply with new rules requiring that stock options be counted as corporate expenses, according to a news report. The Wall Street Journal reported that the Securities and Exchange Commission (SEC) is expected as early as this week to approve a plan to make the rule effective for fiscal years starting after June 15 rather than the current requirement of fiscal quarters starting after that date." (PLANSPONSOR.com; one-time registration required)
New edition of Tax and Securities Sources for Equity Compensation
The NCEO presents the new (2005) edition of Tax and Securities Sources for Equity Compensation, a collection of tax and securities source materials relevant to the study of equity compensation. This is used as a required text in the Certified Equity Professional Institute (CEPI) curriculum, and the CEPI curriculum committee selected these source materials as being essential for those involved with equity compensation. (National Center for Employee Ownership)
New edition of Beyond Stock Options
The NCEO presents excerpts from the new (third) edition of its book Beyond Stock Options, which covers benefit plans such as phantom stock, SARs, and restricted stock. The book includes annotated sample plans, which are included on the accompanying CD. (National Center for Employee Ownership)
Overview: Appeals Court Strikes Down New York City's Law that Requires Domestic Partner Benefits (PDF)
3 pages. Excerpt: "On March 15, 2005, a five-Judge panel of the New York Appellate Division, First Department, unanimously overturned New York City's 'Equal Benefits Law.' The Equal Benefits Law ... was intended to become effective on October 26, 2004 and generally would have required certain employers contracting with the City to provide employment benefits to employees' 'domestic partners' on the same terms as they provide the benefits to employees' spouses." (Kirkpatrick & Lockhart Nicholson Graham LLP)
White Paper: Analysis of the New Deferred Compensation Rules Under Section 409A (PDF)
Excerpt: "[S]utherland's White Paper provides a detailed analysis of the rules and open issues under section 409A, as well as the guidance under Notice 2005-1 and its transition rules. In particular, we note that Q&As-19 and -20 of Notice 2005-1 generally permit, for 2005 only: cancellation or reduction of deferral elections; modification of payment elections; and immediate distribution of all or a part of deferred amounts." (Sutherland Asbill & Brennan LLP)
Overview: DOL Revises Voluntary Fiduciary Correction Program (PDF)
3 pages. Excerpt: "In 2002, the Department of Labor adopted the Voluntary Fiduciary Correction Program, under which a fiduciary of an employee benefit plan may voluntarily step forward and correct certain breaches of its fiduciary duty under ERISA. Now the DOL proposes to expand and simplify the VFC Program." (Dechert LLP)
IRS Strengthens Withholding Compliance Program; Reduces Paperwork for Employers with IR-2005-45
Excerpt: "Employers will no longer be required to send copies of potentially questionable W-4 withholding forms to the Internal Revenue Service, the IRS announced today. At the same time, the IRS will step up its withholding compliance program by making more effective use of information reported on W-2 wage statements to ensure that employees have enough federal income tax withheld from their paychecks." (Internal Revenue Service)
Overtime Offer Marks Shift in Silicon Valley Away from Stock Options
Excerpt: "The change mirrors a trend throughout the technology industry, which is increasingly rewarding workers with big paychecks instead of the kind of stock-option grants that in the 1990s often translated into vast wealth. [Published March 11, 2005]" (AP via SFGate.com)
Newly Posted Press Releases
Segal Lowers 2005 Rx Cost Trend Projections
(The Segal Company)
United Benefit Advisors (UBA) Introduces Powerful New Suite of Actuarial Tools
(United Benefit Advisors)
ICC Plan Solutions Announces New Participant Statement Offering
(Metrics Partners)
More Investment Options Translates Into More Competitive Customer Service
(CPI Qualified Plan Consultants, Inc.)
Newly Posted or Renewed Job Openings
ERISA Associate
for Donaldson & Cornwell
in CA
Retirement Plan Administrator
for Primary Consulting, Inc.
in ANY STATE
Retirement Plan Analyst
for Invesmart, Inc.
in PA
Flexible Benefits Account Manager
for Leggette Actuaries, Inc.
in TX
Pension Administrator/Calculation
for The Rosen Group, leader in placement of Benefits Professionals
in VA
Sr. Implementation Consultant
for AIG VALIC
in TX
401(K) Plan Administrator
for TPA Firm in Fort Worth, TX area
in TX
Client Relations Manager
for RSM McGladrey Retirement Resources
in IL
Retirement Benefits Analyst
for Lowe's Companies, Inc.
in NC
Defined Contribution Plan Administrator
for Benetech, Inc.
in AZ
Compliance Specialist
for Benesystems
in AZ
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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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