June 17, 2005 Today's sponsor: APSCREEN, Employee Locator (Click on company name or banner to learn more.)
Senate Bill for Automatic Enrollment Should Swell Assets, but Could Confuse Employees Excerpt: "The bill, introduced by Senator Kent Conrad (D-ND) and Senator Gordon Smith (R-OR), would promote automatic enrollment, expand credits for low- and moderate-income workers, allow employees to transfer balances from flexible spending accounts to their retirement accounts and allow for direct deposit of tax refunds." (The Adviser) Section by Section Explanation of the Retirement Savings and Security Act of 2005 (PDF) 24 pages. Excerpt: "Under the proposal, a section 401(k) arrangement would be treated as meeting the ADP nondiscrimination test if the arrangement constitutes an automatic contribution trust ('ACT'). An ACT is an arrangement under which (1) eligible employees automatically contribute the applicable percentage of compensation (or a higher percentage) until the employee elects otherwise and (2) specific employer contribution, vesting, and notice requirements (described below) are satisfied." (Senators Gordon H. Smith and Kent Conrad via American Benefits Council) Summary of the Social Security Reform June 14, 2005, Hearing (PDF) 4 pages. Excerpt: "On June 14, 2005, the House Ways and Means Subcommittee on Social Security held its fifth day of hearings on Social Security reform. The hearing focused on the impact of the aging population on Social Security's finances as well as on options to improve overall retirement security and encourage individuals who want to work at older ages." (Benefits Group of Davis & Harman LLP via American Benefits Council) Audio: Demographer Ken Dychtwald Offers New Perspectives on Retirement Excerpt: "Baby boomers have a new perspective of retirement. As life expectancy increases so does the desire to stay active and possibly even employed. Demographer Ken Dychtwald talks about trends in retirement in the U.S. and worldwide." (Morning Edition via National Public Radio) Overview: Representative Boehner Introduction of Pension Funding Reform and Hybrid Plan Bills (PDF) 4 pages. Excerpt: "Two important pieces of pension legislation have recently been introduced in Congress. The Pension Protection Act .... is designed to ensure better funded plans, avert the possibility of a taxpayer bailout of the Pension Benefit Guaranty Corporation ..., and encourage [the sponsorship of] defined benefit plans. The Pension Preservation and Portability Act ... was introduced ... to clarify that cash balance plans do not ordinarily discriminate against older employees ...." (Buck Consultants via Mellon) S&P 500 Pension Costs Unchanged Despite Improved Investment Performance, Mercer Study Shows Excerpt: "Mercer based its analysis primarily on information contained in the 10-K reports filed by companies in the S&P 500 for the 2004 fiscal year. The study provides benchmarking data against which pension plan sponsors can compare their plans' performance. An executive summary of the report, How Does Your Retirement Program Stack Up?, is available online. The full report will be available this summer." (Mercer Human Resource Consulting; one-time registration required) Reporting and Disclosure Compliance Checklist 2005 for Retirement Plans that Are Subject to ERISA (PDF) 36 pages. Compliance Checklist 2005 for Defined Benefit Plans, Defined Contribution Plans, and 403(b) Plans that are subject to ERISA. (Prudential Retirement) Reporting and Disclosure Compliance Checklist 2005 for Plans that Are Not Subject to ERISA (PDF) 14 pages. Compliance Checklist 2005 for Governmental and Nonelecting Church Plans, Non-ERISA 403(b) Programs, 457 Plans, and other Nonqualified Executive Benefit Plans that are not subject to ERISA. (Prudential Retirement) ABI Calls for Automatic Inclusion in United Kingdom Company Pension Schemes Excerpt: "The Association of British Insurers (ABI) has called for legislation obliging employers to automatically include workers in company pension schemes unless they specifically request to be left out. The move, which would reverse the current practice of including employees in company pension schemes only if they ask to join, forms the centerpiece of an ABI blueprint for tackling the UK pensions crisis." (AFX News Limited via Forbes.com) BenefitsBlog Compiles Helpful Links Regarding Pension Legislation Introduced June 6 - 10, 2005 Includes links to the text of H.R. 2830, the Pension Protection Act and the ext of H.R. 2831, the Pension Preservation & Portability Act. (Attorney B. Janell Grenier via BenefitsBlog.com) Academy Testimony at June 14, 2005, Congressional Hearing on Social Security (PDF) 12 pages. Excerpt: "Ron Gebhardtsbauer, the Academy's senior pension fellow, testified at a June 14, 2005 hearing on strengthening Social Security. The hearing was held by the House Ways and Means Subcommittee on Social Security." (American Academy of Actuaries) Summary of June 14, 2005, Hearing on the Role of the Financial Markets in Social Security Reform (PDF) 5 pages. Hearing held by the Subcommittee on Securities and Investment of the Senate Committee on Banking, Housing, and Urban Affairs. (Benefits Group of Davis & Harman LLP via American Benefits Council) Links to Items on Executive Comp, Benefits in General Overview: June 30 Deadline for Calendar Year Nonqualified Deferred Compensation Plans Excerpt: "In enacting Code §409A, Congress imposed strict deadlines on participant deferral elections made under a nonqualified plan. In general, a participant must make his/her election to defer before the beginning of the taxable year for which the compensation is payable. However, Code §409A contains a special timing rule for 'performance-based compensation.' Under the special rule, a participant can make a deferral election with respect to performance-based compensation as late as six ...." (SunGard Corbel) Article: New U.S. Law Restricts Deferral of Executive Compensation (PDF) 12 pages. Excerpt: "On October 24, 2004, the American Jobs Creation Act of 2004 became U.S. law. The Act contains many provisions, but the main provision of interest to employee benefits lawyers is one significantly restricting the ability of executives to defer compensation other than through U.S. tax-qualified plans." (Journal of the International Employee Benefits Lawyers Association via The Groom Law Group) Overview: June 30 Deadline to Elect Deferral of 2005 Performance Bonuses (PDF) 2 pages. Excerpt: "The landscape of deferred compensation has been substantially altered by Section 409A, which was added to the Internal Revenue Code by the American Jobs Creation Act of 2004 .... One of the provisions of Section 409A regulates the timing of elections to defer compensation. Generally, an individual must make an election to defer compensation for services performed in a particular calendar year no later than the end of the preceding calendar year." (Kirkpatrick & Lockhart Nicholson Graham LLP) Newly Posted Events What's New in Pharmacy Benefit Programs Nationwide on July 21, 2005 presented by International Foundation of Employee Benefit Plans Newly Posted Press Releases U.S. Labor Department Sponsors "Getting It Right" - Free Seminar To Help Plan Fiduciaries Comply With Retirement Law (U.S. Department of Labor, Employee Benefits Security Administration (EBSA)) ACLI Praises Introduction of Pension Annuity Reform Legislation (American Council of Life Insurers) Newly Posted or Renewed Job Openings Accounting Administrator in Trust Department for Associated Pension Consultants in CA Pension Professional for The Rosen Group, premier leader in placement of Benefit and Human Resource in VA Paralegal-Legal Affairs for American Express in MN Institutional Sales Representative for BISYS Retirement Services in PA ERISA/Employee Benefits Attorney for CORSARO & ASSOCIATES CO., LPA in OH Actuarial Specialist for Louis Kravitz & Associates in CA Defined Benefit Conversion Specialist for New York Life Investment Management LLC in MA Defined Contribution Forms Specialist for New York Life Investment Management LLC in MA ERISA Attorney for New York Life Investment Management LLC in MA Sales Consultant - Retirement Benefits for Diversified Investment Advisors in NC, TX Senior Consultant Health and Benefits for Health and Benefits Consulting in ANY STATE Senior Pension Administrator for Retirement Alliance, Inc. in NH Handy Links:
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