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June 15, 2005
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Too Much Information: Are You Giving Your 401(k) Plan Participants too Many Choices?
Excerpt: "Is it possible to give 401(k) participants too much information? Apparently, it is-- particularly if they are offered too many investment choices. Of course, that begs the question: How much is too much?" (Plan Sponsor via Reish Luftman Reicher & Cohen)

Summary: Smith-Conrad Defined Contribution Legislation: Retirement Savings and Security Act of 2005
Excerpt: "The bill addresses automatic enrollment, the Saver's Credit, and annuities." (The ERISA Industry Committee)

More Firms Move Toward Automatic 401(k) Enrollment
Excerpt: "More companies now automatically enroll workers into plans and some are setting workers' contributions to automatically rise each year, according to a new survey by Hewitt Associates, the global human-resources and benefits-consulting firm in Lincolnshire, Ill." (Investor's Business Daily, Inc.)

U.S. Pension Agency Director Urges Overhaul of Defined Benefit Plan Bailout Rules
Excerpt: "The nation's top pension regulator called Tuesday for Congress to repeal the law that allows financially strapped businesses to hand off costly pension obligations to the federal government. Bradley D. Belt, executive director of the government's Pension Benefit Guaranty Corp., said it is 'fundamentally unfair' that current law allows ailing companies to shortchange payments to their pension plans and later make his agency responsible for paying those benefits to retirees." (The Indianapolis Star)

Régie des Rentes du Québec Released Working Paper on the Funding of Defined Benefit Pension Plans
Excerpt: "The purpose of the Working Paper is to consult with pension plan sponsors, members and retirees as well as other interested parties on developing permanent, long-term regulatory solutions to enhance the security of pension benefit promises and to allow pension plan sponsors more flexibility in meeting their funding obligations. This new regulatory approach is intended to build on the temporary measures proposed by Bill 102 ...." (Watson Wyatt Worldwide)

U.S. Senators Grassley and Baucus Demand PBGC Underfunding Data
Excerpt: "Two key US Senators have asked the Pension Benefit Guaranty Corporation (PBGC) for more information about hundreds of underfunded pension plans, which the lawmakers say they need to help craft pension reform measures. Senator Charles Grassley (R-Iowa) and Senator Max Baucus (D-Montana), ..., said they are seeking more information about the health of defined benefit plans as reported to the PBGC in 2003 and 2004, according to a Reuters report." (PLANSPONSOR.com; one-time registration required)

Final PBGC Regs on Benefits from Terminating Single-Employer Plans with July 2005 Valuation Dates (PDF)
2 pages. Excerpt: "The Pension Benefit Guaranty Corporation's regulations on Benefits Payable in Terminated Single-Employer Plans and Allocation of Assets in Single-Employer Plans prescribe interest assumptions for valuing and paying benefits under terminating single employer plans. This final rule amends the regulations to adopt interest assumptions for plans with valuation dates in July 2005." (Pension Benefit Guaranty Corporation)

Welcome to new BenefitsLink advertiser Benxl Technologies
Excerpt: "BenXL's web-based products make plan setup and DB plan administration efficient and easy to use for even the most complicated plan, in the most complex infrastructure." (BenefitsLink.com)

Overview: Simplified and Expanded EBSA Voluntary Fiduciary Correction Program
Excerpt: "The Employee Benefits Security Administration (ESBA) recently proposed changes to the Voluntary Fiduciary Correction (VFC) Program. Although the changes are not yet final, plan fiduciaries can use the revised and expanded VFC program immediately. The VFC program provides relief from ESBA enforcement actions and certain penalties for employers, plans and plan fiduciaries for specific fiduciary breaches under the Employee Retirement Income Security Act of 1974 (ERISA)." (McDermott Will & Emery)

Alabama State Pension Fund Settles Enron Suit for $49 Million
Excerpt: "The Retirement Systems of Alabama, the state's pension fund, received $49 million today from five investment banks in the settlement of a lawsuit related to the fall of Enron. The settlement repays 86% of the $57 million loss. The five banks involved in the settlement, none of which admitted wrongdoing, were Merrill Lynch & Co., Citigroup Inc., JP Morgan Chase & Co., Credit Suisse First Boston LLC and Bank of America Corp., ...." (PLANSPONSOR.com; one-time registration required)

Issue in Brief: Mandatory Social Security Coverage of State and Local Workers: Perennial Hot Button (PDF)
9 pages. Excerpt: "This Issue in Brief analyzes the arguments for and against mandating Social Security coverage for newly hired state and local workers. The case against mandatory coverage centers on the issue of higher costs for state and local governments. The case for coverage rests on issues of equity and better protection for state and local workers. That is, mandatory coverage would better distribute the burden of paying for the system's legacy debt and would improve benefits; ...." (Center for Retirement Research at Boston College)

Commentary: Federal District Court Holds Provision of Pennsylvania's MVFRL Preempted by ERISA
Excerpt: "There's a very interesting subrogation opinion just issued by the Eastern District of Pennsylvania: Benefit Concepts v. Carmelann Macera." (Attorney B. Janell Grenier via BenefitsBlog.com)

Overview: IRS Proposes Rules on Retirement Plan Benefits and Contributions (PDF)
2 pages. Excerpt: "The IRS has released proposed rules on the limitations on benefits and contributions for retirement plans, putting together in one comprehensive document numerous statutory and regulatory pronouncements that have been issued since 1981." (Milliman)

Small Employers Have Several Choices in Retirement Plans for Workers -- A Quick Examination
Excerpt: "Only a few small businesses provide retirement benefits to their full-time employees. Others can't afford to. Case in point: Annual administrative costs for 401(k) plans can cost several thousand dollars or more. But a 401(k) plan is just one option. Before dismissing the idea of sponsoring a retirement plan, small business owners should consider all of the choices: ...." (San Francisco Chronicle)

Senators Consider Boosting Social Security Retirement Age
Excerpt: "Work till you're 69 before getting full Social Security benefits? That's one possibility _ for Americans who retire two decades or more into the future _ as Republicans on a key Senate committee review suggestions for improving the program's solvency. No decisions have been made yet, and it could be fall before the politically volatile Social Security issue reaches the floor of either the House or Senate, if then." (AP via The Washington Post; one-time registration required)

Commentary: Life at the Bottom of the Sea and the Economic Safety Net of Social Security Benefits
Excerpt: "It has become harder and harder for average Americans to move up the economic ladder and the costs of failing to move up that ladder only intensify as people grow older. One good example of the peril of inequality is the problems facing lifetime low-income workers who have health problems that force them to retire early yet who do not qualify for disability insurance. .... For them, taking early retirement benefits from the Social Security program is a last resort." (The Century Foundation)

Links to Items on Executive Comp, Benefits in General

Changes to Comply with Sarbanes-Oxley Prove Costly for Companies
Excerpt: "The Sarbanes-Oxley Act of 2002, which came in response to several corporate scandals, has made two-third of companies alter their annual pay processes, more than half change their bonus system and 42% redesign their long-term incentive plans, according to a survey by Hewitt Associates." (BenefitNews Connect)

FEI Summary of the FASB Statement 123(R) Resource Group Meeting Held May 26, 2005 (PDF)
6 pages. Excerpt: "On May 26, 2005, the FASB staff held a meeting with the FASB Statement 123(R) Resource Group ... to discuss several issues relating to the implementation of Statement 123(R), Share-Based Payment. The information [in the target page] summarizes the issues and discussion of the Group." (Financial Executives International)

Highlights of Consumer Provisions of Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005 (PDF)
5 pages. Excerpt: "Additional legislation has already been proposed to 'clean up' conflicting and unclear provisions of the Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005. No additional substantive changes are expected." (von Briesen & Roper, s.c.)

Executive Summary of the 2005 Global Equity Incentives Survey (PDF)
20 pages. Excerpt: "This Executive Summary provides an overview of the results of our 2005 Global Equity Incentives Survey Report. PricewaterhouseCoopers ... has prepared this summary to illustrate how various companies are handling the ever developing array of tax, accounting and legal regulations related to strategic human capital issues and how responses have evolved since our last survey." (PricewaterhouseCoopers)

Newly Posted Events

Fundamentals of 401(k) Plans
Nationwide on June 23, 2005
presented by SunGard Corbel

Fundamentals of 401(k) Plans
Nationwide on June 23, 2005
presented by SunGard Corbel

Fundamentals of 401(k) Plans
in Georgia on September 23, 2005
presented by SunGard Corbel

Fundamentals of 401(k) Plans
in Michigan on September 29, 2005
presented by SunGard Corbel

Fundamentals of Qualified Plans
in Minnesota on September 22, 2005
presented by SunGard Corbel

Increasing 401(k) Participation with Diverse Employee Demographics
in Texas on June 28, 2005
presented by WEB (Worldwide Employee Benefits Network) Dallas Chapter

IRA Institute
in California on August 8, 2005
presented by BISYS Retirement Services

Keeping Up With Form 5500
Nationwide on July 12, 2005
presented by SunGard Corbel

Newly Posted Press Releases

ERIC Provides Testimony on Pension Reform and Hybrid Pension Plan Bills
(ERIC (ERISA Industry Committee))

ADVICE FOR THE FIRST WAVE OF BOOMERS TURNING 59 1/2: RESIST TEMPTATION TO CASH IN RETIREMENT SAVINGS
(American Express Retirement Services)

AMERICAN EXPRESS RETIREMENT SERVICES ANNOUNCES NEW CLIENT RELATIONSHIP MANAGER FOR SOUTHEASTERN TERRITORY
(American Express Retirement Services)

Mortgage Benefits Corp. and Work & Family Benefits, Inc. Form Strategic Partnership
(Mortgage Benefits Corporation)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Employee Benefit Specialist
for The Principal Financial Group
in AL

Pension Conversion Specialist
for American National Insurance Company
in TX

DC/401(k) Administrator
for Gelman Pension Consulting, Inc.
in NY

Defined Benefit Pension Plan Administrator
for The ANGELL Pension Group, Inc.
in RI

Manager of Stockholder Services
for Publix Super Markets, Inc.
in FL

Account Manager II
for Buck Consultants, an ACS Company
in GA

Manager of Retirement Program
for Publix Super Markets, Inc.
in FL

401k Market Research Analyst
for Fidelity Investments Institutional Services Company
in CT, DC, DE, KY, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, SC, VA, VT

Benefits Manager
for Capital Group Companies, Inc.
in CA

Health & Welfare Benefits Administrator
for Dewey Ballantine LLP
in NY

Benefits/Compensation Director
for Metro-Detroit Area
in MI



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