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June 7, 2005
Today's sponsor: ASPPA • Working for America's Retirement™

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Meeting Midway Conference

July 24-27, 2005 * San Diego, CA

Health and welfare issues * 401(k) plans
Employee compensation * Actuarial pension issues
Health Savings Accounts * Legal & fiduciary issues

You don't want to miss this one! Register online today.
Brought to you by WP&BC and ASPPA.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Time Is Ripe for 401(k) Sponsors to Revisit Provider and Recordkeeper Contracts
Excerpt: "As defined-contribution plans continue to become the retirement savings vehicle of choice for employers, competition among the record keepers servicing these plans is expected to increase. [And,] as consolidation among 401(k) plan record keepers gains momentum, it might be a good time for plan sponsors to renegotiate the fees they pay." (Workforce Management; one-time registration required)

Consultants Seek 401(k) Fee Equality
Excerpt: "The practice of allowing some 401(k) plan participants to bear a greater burden of the record-keeping and trustee costs than others is a potential fiduciary violation that could lead to lawsuits, plan consultants warn. The problem arises in open-architecture plans when plan sponsors do not always use the lowest-cost share class of funds available. In those cases, investors in the higher-expense share class funds may be unfairly shouldering a disproportionate part of the plan expenses." (Investment News; registration or subscription required)

Overhaul of Pension Funding Rules Sought by Congress and White House
Excerpt: "Fearing that airlines and other struggling industries could present the country with its next S&L crisis, Congress and the White House are pushing an overhaul of pension-funding rules .... The heads of three major airlines were called to appear Tuesday before the Senate Finance Committee. Its leaders are alarmed that the Pension Benefit Guaranty Corp. the federal agency that insures private pension plans already has a $23.3 billion deficit because of defaults." (AP via ABC News)

Is Your Pension in Peril? One Expert Says the Concern Is Overblown
Excerpt: "In fact, the notion that most Americans' pensions are in jeopardy is overblown. .... [M]ost corporate pensions aren't in danger of immediate collapse, and most people in those pensions are going to get their full benefit. So we definitely have a situation on our hands that requires reform in the way corporate pensions are funded. But, in my opinion at least, we don't have a crisis where we're going to see huge numbers of companies defaulting on their pensions anytime soon." (CNN Money)

A Towers Perrin Proposal for Pension Funding Reform: Part II (PDF)
10 pages. Excerpt: "With temporary funding relief for defined benefit plans set to expire at year-end, the Bush administration's package of funding reform proposals is an important step toward resolving some of the problems that threaten the survival of our voluntary private pension system." (Towers Perrin)

Follow-Up Letter to Sen. Ted Kennedy after Testimony on the PBGC and Pension Funding Reform (PDF)
Excerpt: "Dear Senator Kennedy, We appreciate the opportunity to respond to your question following the April 26, 2005 hearing of the Subcommittee on Retirement Savings and Aging on PBGC Reform: Question: The American Academy of Actuaries has proposed a number of solutions to tighten existing pension funding rules. How would these proposals compare with what the Administration is proposing in terms of improving pension funding levels?" (American Academy of Actuaries)

Big Pension Plans Fall Further Behind: Congress Looks for Long-Term Solution
Excerpt: "The Senate Finance Committee and a subcommittee of the Senate Health, Education, Labor and Pensions Committee are holding hearings today on various aspects of the pension system and Thursday on protecting pensions from fraud. On Thursday, the House Budget Committee is holding a hearing on the PBGC's liabilities." (The Washington Post; one-time registration required)

Pension Loopholes Helped United Airlines Hide Troubles
Excerpt: "Loopholes in the federal pension law allowed United Airlines to treat its pension fund as solid for years, when in fact it was dangerously weakening, according to a new analysis by the agency that guarantees pensions. That analysis is scheduled to be presented at a Senate Finance Committee hearing today." (The New York Times; one-time registration required)

United Kingdom Pension Proposal Requires Employee Input Before Changes Made to Plans
Excerpt: "The U.K. government plans to require that employers consult with employees before making any major changes to their occupational pension plans. The Department for Work and Pensions published a consultation paper Monday outlining its plans. .... The consultation paper can be viewed at www.dwp.gov.uk." (Business Insurance)

Design and Implementation Issues in Swedish Individual Pension Accounts (PDF)
19 pages. Excerpt: "Sweden's new multipillar pension system includes a system of mandatory fully funded individual accounts. The Swedish system offers contributors more than 600 fund options from a variety of private-sector fund managers. However, in the most recent rounds of fund choice, more than 90 percent of new labor market entrants have not made an active choice of funds and thus have ended up in a government-sponsored default fund." (Social Security Bulletin)

Hearing: A Pension Double Header -- Reforming Hybrid and Multi-Employer Pension Plans
Target page for the June 7, 2005, hearing with links to the witness testimony of Randy G. DeFrehn; Timothy P. Lynch; Jeffrey Noddle; John Ward; William F. Sweetnam, Jr.; Ellen Collier; and, David Certner. (U.S. Senate Committee on Health, Education, Labor, and Pensions)

President Misleads on Social Security Rate of Return, Says Center on Budget and Policy Priorities
Excerpt: "As with any type of insurance, a 'rate of return' is an inappropriate standard for measuring the value that these features of Social Security provide. For example, when one buys automobile or homeowners insurance, one is not looking for a good rate of return, since one's money will be returned only if one has an accident or one's home is vandalized or damaged in a fire or other such event." (Center on Budget and Policy Priorities)

Social Security Benefits: Who Gets What -- Simple, Yet So Complicated
Excerpt: "The fight over the future of Social Security has a new rallying cry: Help the widows. Widows have come to symbolize a larger group of seniors who are having trouble making ends meet." (USA TODAY via Yahoo! News)


Links to Items on Executive Comp, Benefits in General

Overview: United States Supreme Court Approves 'Disparate Impact' Age Discrimination Claims (PDF)
2 pages.Excerpt: "On March 30, 2005, the U.S. Supreme Court, in Smith v. City of Jackson, concluded that, in addition to prohibiting intentional discrimination, the Age Discrimination in Employment Act ('ADEA') covers employee lawsuits challenging facially neutral plans or policies that have a disproportionate adverse impact on older workers. The Court, however, also afforded employers a broad defense to these 'disparate impact' claims. [Originally published April 8, 2005.]' (Haynes and Boone, LLP)

Overview: New Bankrup.tcy Law Affects Benefit Plans
Excerpt: "Effective date. The ... provisions of the new law will become effective on October 17, 2005. Bankruptcies filed before that date will be subject to existing law." (Faegre & Benson LLP)

Workplace Improves Benefit Offerings for G.ay, Transgender Employees, Rights Group Says
Excerpt: "The workplace is becoming friendlier for g.ay and transgender employees, according to a report released today by the Human Rights Campaign, a national advocacy group. According to the report, 'The State of the Workplace for Les.bian, G.ay, Bise.xual and Transgender Americans 2004,' at least 8,250 employers provided domestic partner benefits at the end of 2004, a 13 percent increase over the previous year." (The Washington Post; one-time registration required)

Commentary: Right to Contribution or Indemnity under ERISA
Excerpt: "Can a plan fiduciary who has been deemed liable under a plan seek either contribution or indemnification from a co-fiduciary of the plan under ERISA? The question was thoroughly discussed in the recent Opinion and Order issued by the federal district court in Houston approving the $85 million partial settlement on behalf of the Enron participants." (Attorney B. Janell Grenier via BenefitsBlog.com)

Overview: ERISA Fiduciary Responsibility and Liability (PDF)
23 pages. Excerpt: "[The document is in question and answer format:] Who Is A Fiduciary? What Are Settlor Functions Versus Fiduciary Activity? What Is The Significance of Being A Fiduciary? What Is The Duty of Loyalty? What Is The Prudence Standard? What Is The Duty of Disclosure? What Is The Duty To Monitor? How To Select Plan Fiduciaries? What Special Issues Are Raised By Investing In Employer Stock? How Can You Limit Fiduciary Liability?" (Dechert LLP)

Model Compensation Disclosure Schedule for Plan Sponsors Sent to EBSA
Excerpt: "The disclosure schedule we have developed ... provides information about a service provider's receipt of compensation, including revenue sharing, in connection with its services to a 401(k) plan. The disclosure schedule is intended to address all service providers that are compensated by unaffiliated parties in connection with a plan. [The 2-page model is at http://www.ici.org/statements/cmltr/05_dol_disclos_sched.pdf.]" (Investment Company Institute)


Newly Posted Events

Avoiding Pitfalls in Medicare Part D Implementation: Audio Conference
Nationwide on June 30, 2005
presented by MCOL

Comparing Roth and Traditional IRAs Web/Telephone Seminar
Nationwide on August 11, 2005
presented by BISYS Retirement Services

Coverdell Education Savings Accounts Web/Telephone Seminar
Nationwide on August 9, 2005
presented by BISYS Retirement Services

Fall Forum
in Georgia on September 26, 2005
presented by BISYS Retirement Services

Fall Forum
in Minnesota on October 10, 2005
presented by BISYS Retirement Services

Fall Forum
in Massachusetts on October 24, 2005
presented by BISYS Retirement Services

Fall Forum
in California on November 14, 2005
presented by BISYS Retirement Services

General Traditional IRA Distributions Web/Telephone Seminar
Nationwide on August 23, 2005
presented by BISYS Retirement Services

HIPAA Portability Regulations, New FSA (temporary) Rollover and Potential Future Benefits Guidance: Audio Conference
Nationwide on June 23, 2005
presented by MCOL

Individual(k) Plans Web/Telephone Seminar
Nationwide on August 17, 2005
presented by BISYS Retirement Services

Introduction to 401(k) Plans Web/Telephone Seminar
Nationwide on August 10, 2005
presented by BISYS Retirement Services

Introduction to Deferral Programs for Governmental and Tax-Exempt Employers Web/Telephone Seminar
Nationwide on August 31, 2005
presented by BISYS Retirement Services

Introduction to Qualified Retirement Plan Distributions Web/Telephone Seminar
Nationwide on August 24, 2005
presented by BISYS Retirement Services

Introduction to Qualified Retirement Plans Web/Telephone Seminar
Nationwide on August 3, 2005
presented by BISYS Retirement Services

IRA Beneficiary Distributions Web/Telephone Seminar
Nationwide on August 18, 2005
presented by BISYS Retirement Services

Processing Claims and Appeals for Self-Funded Health Plans, Health FSAs, and HRAs: How to Make Plan Decisions That Stand Up to Scrutiny
Nationwide on June 30, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

Two-Day IRA Workshop
in Kansas on June 9, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in Michigan on June 9, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in New Jersey on June 14, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in Oklahoma on June 14, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in Illinois on June 16, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in Texas on June 21, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in California on June 21, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in Texas on June 23, 2005
presented by BISYS Retirement Services

Two-Day IRA Workshop
in California on June 23, 2005
presented by BISYS Retirement Services

U. S. Labor Department Sponsors Seminar To Help Pension Plan Professionals Comply With Federal Law
in New York on June 24, 2005
presented by U.S. Department of Labor, Employee Benefits Security Administration


Newly Posted Press Releases

Health Savings Accounts Focus of June 8th NAGDCAST
(NAGDCA (National Association of Government Defined Contribution Administrators, Inc.))

How an Initiative to Expand Health Care Coverage In Muskegon, MI, Has Fared After More Than 5 Years
(Employee Benefit Research Institute (EBRI))

Council To Senate HELP Subpanel: Hybrid Plans Can Help Staunch The Defined Benefit System's Decline
(American Benefits Council)

The Haelan Group and Healthwise Join Forces to Inform and Empower At-Risk Healthcare Consumers
(Haelan Group, The)

Pittsburgh Business Group on Health's Prescription Drug Program Beats National Average
(Pittsburgh Business Group on Health)

July 21-22, 2005 The 3d Annual 412i Summit
(412iCompany, The)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Administrative Assistant
for Small Chicago law firm and TPA firm
in IL

Pension Administrator
for VPC Group
in VA

Benefits Manager
for The Rosen Group Inc.
in ANY STATE, PA

Employee Benefit Administrator/Relationship Manager
for The Trust Company of Knoxville
in TN

Benefits Administrator
for The Rosen Group Inc.
in ANY STATE, NJ

Pension Account Administrator II
for Alerus Retirement Solutions
in MN

Business Analyst
for BISYS Retirement Services
in PA

Broker Sales Executive
for a leading provider of products, services, and tools for brokers selling small-group employee benefits
in AZ, CA, GA, IL

ML Connect Director
for Merrill Lynch
in NJ

Retirement Planning Contact Center Manager
for LTSave, Inc.
in MA

VP, Business Development/Strategic Manager
for Merrill Lynch
in NJ

Relationship Coordinator
for Merrill Lynch
in CA

401(k) Plan Administrator
for Northeast Planning Services, Inc.
in MA




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