BenefitsLink
Retirement Plans
Newsletter		To BenefitsLink home page Fill your job openings fast by advertising on BenefitsLink

June 8, 2005
Today's sponsor: ASPPA • Working for America's Retirement™

(Click on company name or banner to learn more.)
Banner ad for ASPPA • Working for America's Retirement™

Order the ERISA Outline Book Today

The ERISA Outline Book, 2005 edition, is available— only from ASPPA! This book is a MUST for all pension professionals’ libraries.

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)
GUST Program Closure on June 15, 2005 - Questions and Answers Posted 06/07/2005
Excerpt: "On May 9, 2005, the IRS issued Announcement 2005-36 indicating that the GUST program for new defined contribution (DC) pre-approved plans ... will close on June 15, 2005. Thus, opinion and advisory letter applications for DC pre-approved plans postmarked after June 15, 2005 will be returned. The IRS will announce the closing of the GUST program for defined benefit pre-approved plans and determination letters (i.e., letters issued to adopting employers' plans) at a later date." (U.S. Internal Revenue Service)

Employee Plans News 'News Flash' -- GUST Program Closure: June 15, 2005 (PDF)
1 page. Excerpt: "On May 9, 2005, the IRS issued Announcement 2005-36 indicating that the GUST program for new defined contribution (DC) pre-approved plans (i.e., master and prototype (M&P) and volume submitter (VS) plans) will close on June 15, 2005. Thus, opinion and advisory letter applications for DC pre-approved plans postmarked after June 15, 2005 will be returned." (U.S. Internal Revenue Service)

It Was U.S. Idea to Shed Pensions, Tilton Says; Tried to Keep Them, United Boss Testifies
Excerpt: "The possibility of United Airlines dumping its employee pension plans was raised more than a year ago by federal agencies investigating the carrier's application for a government-backed loan to help its exit from bankrup.tcy, .... During loan negotiations, it was clear some government staffers reviewing the application 'were of the view that the defined-benefit plans would have to be terminated for us to be financeable and, ultimately, viable,' Tilton said." (Chicago Tribune; one-time registration required)

Testimony on Defined-Benefit Pension Plans: Current Problems and Future Challenges (PDF)
14 pages. CBO Statement of Douglas Holtz-Eakin, Director, before the Committee on Finance, United States Senate, June 7, 2005. (U.S. Congressional Budget Office)

Pension Cuts at United Airlines Stun Retirees
Excerpt: "The alarm some workers feel about the United Airlines decision is magnified by its timing: They see health benefits and pensions put in jeopardy just as official Washington considers altering yet another cornerstone of retirement security - Social Security. 'They're assaulting retirees all over the country because they are defenseless,' says Jim Norby, president of the National Retiree Legislative Network, a Washington D.C.-based non-profit that advocates for seniors." (NorthJersey.com)

Grassley to Back Airline Pension Funding Extension
Excerpt: "The chairman of the Senate Finance Committee says he will back legislation to give commercial airlines more time to fund their pension plans, though not as long as the airlines had been seeking." (Business Insurance)

Tighter Funding Rules Urged at Congressional Hearing for Pension Plans
Excerpt: "Congress should tighten and clarify rules requiring employers to fund traditional pension plans, and it should compel companies to tell workers the true financial condition of their plans, the head of Congress's Government Accountability Office told a Senate panel yesterday." (The Washington Post; one-time registration required)

At Senate Hearing, Airline Executives Say They'll Need More Pension Relief
Excerpt: "The Finance Committee members directed their complaints at the chief executives of three major airlines - United, Northwest and Delta - .... Senator Ron Wyden, a Democrat of Oregon, asked each executive to pledge that he would not permit executive pensions to be protected while everyone else's benefits were reduced. Each executive - Douglas M. Steenland of Northwest Airlines, Gerald Grinstein of Delta Air Lines and Glenn F. Tilton of United Airlines, a unit of UAL - made the pledge." (The New York Times; one-time registration required)

Defined Benefit Pension Plan Funding Rules Revision Essential Component of Comprehensive Reform
28 pages. Testimony by David M. Walker, comptroller general of the United States, before the Senate Committee on Finance, June 7, 2005, hearing. Highlights are at http://www.gao.gov/highlights/d05794thigh.pdf. (U.S. Government Accountability Office)

When Does a Roth IRA Owner File IRS Form 8606 for Nondeductible IRAs?
Excerpt: "When does a Roth IRA owner file IRS Form 8606, Nondeductible IRAs? Does she file it every year as she would for nondeductible traditional IRA contributions? Answer: No. A Roth IRA owner only files Form 8606 if he/she has a taxable Roth IRA distribution. In general, no Roth IRA distribution is taxable after a Roth IRA owner has held his/her Roth IRA assets for more than five years and he/she is age 59½ or older." (Bankers Systems, Inc.)

Comments on the Department of Labor's Revisions to the Voluntary Fiduciary Compliance Program
Excerpt: "In particular, ASPPA welcomes the addition of the following three new 'Eligible Transactions': 1. Illiquid plan assets sold to interested parties; 2. Participant loans that violate certain plan loan restrictions; 3. Delinquent participant loan repayments." (American Society of Pension Professionals & Actuaries)

New Jersey Enlists Experts to Determine Ways to Lower Public Pension Benefit Costs
Excerpt: "Acting New Jersey Gov. Richard Codey recently created a task force to deal with the rising cost of benefits for state and local government workers. 'Each year the state's fixed costs grow larger and larger and consume more and more of the budget,' he says. The task force, which includes experts from Sharp Electronics, Goldman Sachs and Rutgers University, will examine the current laws, regulations, procedures and agreements regarding benefits of government workers." (BenefitNews Connect)

United Kingdom Pension Agency Proposes Consultation Rules for Employers
Excerpt: "The UK government has proposed regulations that would force employers to consult their workers before changing their pension plans. The draft regulations issued by the Department for Work and Pensions set out the types of changes on which employers will be required to consult workers and the criteria they will have to satisfy before a change can be implemented. [See http://www.dwp.gov.uk/lifeevent/penret/penreform/9_emp.asp for details.]" (PLANSPONSOR.com; one-time registration required)

Audio: Getting Americans to Save More
Excerpt: "David Wessel of The Wall Street Journal discusses ways that Congress is proposing to encourage Americans to save more of their money." (Morning Edition via National Public Radio)

Fourth Report of the Advisory Committee on Tax Exempt and Government Entities - June 8, 2005 (PDF)
126 pages. Excerpt: "The fourth report ... of the Advisory Committee on Tax Exempt and Government Entities ... [addresses]: Survey and Review of Existing Information and Guidance for Indian Tribal Governments, Tax-Exempt Bonds Record Retention Burden, Establishing the Enrolled Retirement Plan Agent Under Circular 230, and Project 'IMPROVE' - Informative Materials Prescribe Responsibilities and Obligations Very Early: Recommendations to Enhance the Compliance of Newly Formed Charities ...." (U.S. Internal Revenue Service)

Text: Mutual Fund Trading Abuses: SEC Procedures in Setting Penalties and Internal Controls
45 pages. Excerpt: "To assess SEC's efforts to impose penalties on violators, this report (1) discusses SEC's civil penalties in settled trading abuse cases, (2) provides information on related criminal enforcement actions, and (3) evaluates SEC's criminal referral procedures." (U.S. Government Accountability Office)

Americans' Retirement Savings Way Behind Schedule, According to Fidelity Investments.
Excerpt: "Members of the typical working American household will be able to only cover an estimated 59% of projected preretirement income with their retirement savings, according to Fidelity Investments. A Fidelity news release said that its new Fidelity Retirement Index showed that the typical working household has saved $18,750 for retirement and is expecting to cover the majority of retirement expenses through Social Security and pension benefits." (PLANSPONSOR.com; one-time registration required)

Links to Items on Executive Comp, Benefits in General

Leading Practices in Executive Compensation (PDF)
9 pages. Excerpt: "This study ... prepared for the 2005 Center for Corporate Change forum [addresses] trends and strategies in executive and board member compensation at public companies. It is informed by a detailed 2005 survey of Fortune 500 company proxies that was conducted by the Heidrick & Struggles Knowledge Management Centre (KMC) in India." (Heidrick & Struggles)

Hewitt Federal Legislation Quick Guide Updated as of June 7, 2005
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates)

Fill Out The 2005 Spencer Survey Of Benefits Managers
Excerpt: "Spencer Benefits Reports, Aspen Publishers, and CCH, Inc., are currently collecting data for their 2005 Spencer Survey of Benefits Managers and employee benefits departments. This tenth biennial survey requests information concerning compensation, organization, and functional responsibilities of corporate employee benefits departments. All survey respondents who provide an e-mail address will receive a copy of the published survey at no charge." (Spencer Benefits Reports)

Newly Posted Events

Form 5500 Workshop & Plan Audits
in New Jersey on June 14, 2005
presented by Worldwide Employee Benefits Network (WEB) - NJ

IRA Required Minimum Distributions Web/Telephone Seminar
Nationwide on August 16, 2005
presented by BISYS Retirement Services

New FSA Use-It Or Lose-It Forfeiture Rule
Nationwide on June 14, 2005
presented by International Foundation of Employee Benefit Plans

Roth IRA Distributions Web/Telephone Seminar
Nationwide on August 4, 2005
presented by BISYS Retirement Services

SEP Plans Web/Telephone Seminar
Nationwide on August 25, 2005
presented by BISYS Retirement Services

Uncovering Fraud in Your Health Plan
Nationwide on June 16, 2005
presented by International Foundation of Employee Benefit Plans

Newly Posted Press Releases

Companies Report A Record $353.7 Billion Pension Shortfall In Latest Filings With PBGC -- Agency Also Announces New Analysis Of United Airlines Pension Plans
(Pension Benefit Guaranty Corporation (PBGC))

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Senior Pension Administrator
for American Fiduciary Corporation
in MA

Benefits Manager
for Capital Group Companies, Inc.
in TX

Retirement Plan Sales Executive
for Ceridian
in CA, IL, OR, WA, WI

Benefits Director
for Ross Stores, Inc.
in CA



Handy Links:
Copyright 2005 BenefitsLink.com, Inc.; except that you may reprint this newsletter in full (including this sentence) without obtaining our permission.

Published by:

BenefitsLink.com, Inc.
https://benefitslink.com/about.html
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151

Editor and Publisher: David Rhett Baker, J.D.

Housekeeping:
If you'd like to STOP this newsletter, just click on this link: STOP sending this newsletter to me