| BenefitsLink Retirement Plans Newsletter |   |
April 21, 2005
Today's sponsor: ASPPA • Working for America's Retirement™
(Click on company name or banner to learn more.)
| Your Love/Hate Relationship with the Final 401(k) Regulations |
| Recently, the IRS issued new 401(k) regulations aimed at consolidating prior guidance into one easy-to-access location.
Please join Ilene Ferenczy, April 27 at 12 noon, for a discussion of the provisions with special attention to what has changed and how those changes need to be accommodated.
ASPPA. For the Serious Retirement Plan Professional |
| (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) |
Overview of What You Need to Know About the New Bankrup.tcy Reform Bill
Excerpt: "IRA Exemption: Congress acted to fix a nagging problem: some bankrup.tcy courts were giving away the debtor's IRAs to the creditors. Now, if an IRA is tax exempt, it's also exempt from the debtor's bankrup.tcy estate, up to $1,000,000 plus eligible rollover amounts. This exemption amount may be increased 'if the interests of justice so require.'" (Faegre & Benson LLP)
Overview: New Bankrup.tcy Law -- Good News for Tax Exempt Retirement Plans and Participants
Excerpt: "The new bankrup.tcy law, signed by the President on April 20, 2005, provides broad protections for benefits under tax-exempt retirement funds. Basically, here is how the law will operate: The new bankrup.tcy law will effectively pre-empt states from opting out of the 'federal exemption list' relating to 'tax-exempt retirement' funds." (Ice Miller)
States Work to Close $260 Billion Public Pension Funding Gap
Excerpt: "As the debate grows over the future of Social Security, officials in most of the states are struggling with a $260 billion gap in another frayed retirement safety net: public pension programs." (AP via Pittsburgh Post-Gazette)
U.S. Senate Bill Would Let Airlines Defer Pension Payments
Excerpt: "Delta Air Lines, Northwest Airlines and other U.S. carriers could defer pension payments to resolve shortfalls and avoid bankrup.tcy under a bill introduced Wednesday in the U.S. Senate. The proposal allows airlines to spread across 25 years payments that are due within four years, Sen. Johnny Isakson, R-Ga., said in a prepared statement." (Star Tribune; one-time registration required)
ASPPA Comments Sent to PBGC on Proposed Rule on Liability Pursuant to Section 4062(e) of ERISA
Excerpt: "These comments address the following issues, .... ASPPA recommends that the PBGC issue additional guidance on a variety of interpretive issues relating to ERISA §4062(e). ASPPA recommends that the PBGC create a regulatory exemption from ERISA §4062(e) liability for small plans (generally, those with fewer than 500 participants)." (American Society of Pension Professionals & Actuaries)
Three Opinion Articles on Disclosure, Brokers and Fiduciary Standards, and the State of the PBGC
Excerpt: "There are three separate articles presented [on the target page]: Louisiana First State Mandating Consultant and Manager Disclosure; Trust Me, I'm No Fiduciary; and PBGC Boss Sees No Pension Fraud or Mismanagement." (Benchmark Advisory Services, Inc., and Benchmark Financial Services, Inc.)
Overview: IRS and Treasury Provide Heinz Case Suspension of Benefits Guidance
Excerpt: "On April 18, the Internal Revenue Service ... and U.S. Treasury Department ... released Rev. Proc. 2005-23 which provides guidance to plans affected by a U.S. Supreme Court decision regarding plan amendments that add or expand a suspension of benefits provision. In Central Laborers' Pension Fund v. Heinz, 124 S.Ct. 2230 (June 7, 2004), the Supreme Court held that a plan amendment that expanded the reasons for suspension of benefit payments retirees had already accrued could not ...." (American Benefits Council)
Journal Article: What Are the Limitations on QDROs?
Excerpt: "This article will discuss the Congressional intent behind the establishment of QDROs and the limitations that should be recognized in their use today." (Leslie A. Kulick via Journal of the Missouri Bar)
Fact Sheets on the United Kingdom's New Pensions Framework
Excerpt: "[The left side of the target page] contains a series of factsheets outlining the requirements of the Government's new pensions legislation. These are organised into a number of themes: Plan Design, Governance, Finance and Investment, Administration, Winding up, and Communications." (Watson Wyatt Worldwide)
Letter to the Editor of The Washington Post: Avoiding Britain's Pension Problems
Excerpt: "An April 11 Business story said that President Bush's Social Security proposal 'closely echoes' Britain's individual account system. However, Britain created a decentralized system in which individuals can choose from an almost limitless number of options in which to invest their state pension funds. This program is referred to as 'contracting out' and is made up of private accounts in the private sector with private investment firms. [John Shadegg, U.S. Representative (R-Ariz.)]" (The Washington Post; one-time registration required)
Survey Finds Women Showing Retirement Confidence Problem
Excerpt: "American women apparently have a crisis of confidence when It comes to their preparations for living a comfortable retirement. A news release about the latest Transamerica Small Business Retirement Survey said that despite similar plan participation rates, female workers are less confident that they will be able to retire in a lifestyle they would consider comfortable and have less money saved for retirement compared to male workers ($71,800 for women versus $122,700 for men)." (PLANSPONSOR.com; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Overview: Making the Most of the International Accounting Standard, IAS 19, Exercise
Excerpt: "[T]he implementation of the new international accounting standard, IAS 19, ... will affect the way companies listed on a European Union stock exchange will be required to account for the cost of their employee benefit arrangements .... Anyone ... responsible for compliance with this standard will be required to undergo an annual accounting exercise .... .... In this article, we explore some of the ways the IAS 19 exercise can be structured to achieve [worthwhile] outcomes." (Watson Wyatt Worldwide)
Overview: SEC Postpones Compliance Dates for FASB 123 Accounting for Share-Based Payment (PDF)
Excerpt: "The impetus behind the SEC's decision was in response to feedback received by companies and accounting firms regarding the difficulty implementing Statement 123R mid-year with respect to comparisons between fiscal quarters." (Kutak Rock LLP)
Survey Data Show Need for Personalized Benefit Statements
Excerpt: "The survey, conducted by Wells Fargo companies Acordia and Bryan, Pendleton, Swats & McAlister, reveals that the best way to communicate the costs of benefits to employees is through personalized benefit statements." (The Adviser)
The Brave New World of Deferred Compensation (PDF)
8 pages. Excerpt: "The American Jobs Creation Act of 2004 established a new tax regime for nonqualified deferred compensation arrangements, effective January 1, 2005. .... This article will first provide a summary of the tax rules and doctrines applicable to deferred compensation practices that led to the provisions of the act. It will then provide an overview of the major aspects of the new rules, taking into account Notice 2005-1." (Benefits & Compensation Digest via International Foundation of Employee Benefit Plans)
Newly Posted Events
New 401(k) Regulations, Default Rollovers, RMDs and the New 6-Year Document Update and Submission Cycle
in New York on May 5, 2005
presented by ASPPA Benefits Council of New York
Newly Posted Press Releases
Secretary of Labor Elaine L. Chao Testifies on Association Health Plans
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)
Newly Posted or Renewed Job Openings
Investment Consultant
for Stanley, Hunt, Dupree and Rhyne (a subsidiary of BB&T Corporation)
in NC
Account Executive - Retirement Services
for Principal Financial Group
in IN
401(k) Investment Analyst/Consultant
for 401(k) Advisors
in CA
Actuary (Enrolled)
for Emjay/Great-West
in WI
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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