BenefitsLink Retirement Plans Newsletter July 6, 2005 Today's sponsor: Employee Benefits Institute of America (EBIA) (Click on company name or banner to learn more.) Explore the Seven Wonders of the Benefits Compliance World No HR or benefits professional's library would be complete without EBIA's compliance manuals. Save time and steer clear of compliance traps by joining thousands of professionals who rely on our manuals. "I know I can rely on your manuals, above and beyond any others, to be clear, concise, easy to understand, and accurate!" -Director of Flexible Benefits (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Overview of Key Steps In Setting Up a 401(k) Plan for Your Employees Excerpt: "For small business owners, a 401(k) qualified retirement plan can be a powerful tool for attracting and retaining talented employees and for helping them to achieve a secure retirement. 401(k) plans offer tax benefits as well -- for both the employer and the employee -- reports the New Jersey Society of Certified Public Accountants." (New Jersey Society of CPAs) Eight Ways to Check for 401(k) Plan Abuse Excerpt: "Outright looting of 401(k) money by dishonest bosses is rampant. The U.S. Department of Labor documented more than 1,000 cases last year of companies pocketing 401(k) employee contributions. Another thousand committed less egregious abuses. Experts suspect far more cases haven't come to light yet. 'Take an active role in managing your finances and protecting your assets,' counsels J. Steven Cowen, a financial adviser in La Jolla, Calif." (MSN Money) 403(b)ill of Rights Excerpt: "It is our goal that this document find its way into every school district, school union, and other non-profit places of employment in the land. Use it to fight for the basic investing freedoms 403(b) participants deserve. Use it to unshackle the tyranny of high-fee investment products. Use it to educate the uneducated. Make this the 403(b) document heard around the world." (bWise Guys, LLC) General Motors Wins Pension Suit: Court Backs Automaker's Bid to Recover Up to $253m from U.S. Excerpt: "A federal court has ruled in favor of General Motors Corp. in its bid to recover as much as $253 million from the federal government for one of its underfunded pension plans, a newspaper report said Wednesday. The decision, by Judge Nancy Firestone of the U.S. Court of Federal Claims, is the first of its kind, the Wall Street Journal said." (CNN Money) Letter: Secretary of Labor Elaine Chao Submits Administration's Concerns Re: Boehner Bill (HR 2830) (PDF) 4 pages. (U.S. Department of Labor via The ERISA Industry Committee) Amendment in the Nature of a Substitute to H.R. 2830 Offered by Mr. Boehner of Ohio (PDF) 182 pages. (House Committee on Education & the Workforce) Overview: Proposed Regulations on Limitations on Benefits and Contributions under Qualified Plans (PDF) 6 pages. Excerpt: "The IRS has proposed comprehensive regulations under Code Section 415. These regulations consolidate more than 20 years of guidance reflecting statutory changes in the limitations on benefits and contributions under qualified plans. In addition, the proposed regulations contain new requirements on the application of the limits on compensation used for Section 415 purposes as well as clarify the application of the limits under other circumstances ...." (Buck Consultants LLC) Testimony: Douglas Holtz-Eakin, CBO Director on Multiemployer Pension Plans, June 28, 2005 (PDF) 11 pages. Excerpt: "[The statement of Douglas Holtz-Eakin, Director, on Multiemployer Pension Plans before the Subcommittee on Select Revenue Measures, Committee on Ways and Means, U.S. House of Representatives, June 28, 2005, discusses] the financial status of and government insurance for multiemployer defined-benefit pension plans." (U.S. Congressional Budget Office) Overview of 'Understanding Social Security Reform: The Issues and Alternatives' Excerpt: "Proposals on how best to modify Social Security to ensure its long-term viability but not betray soon-to-retire baby boomers or overburden the young, proportionately smaller workforce are now front and center, thanks to President George W. Bush's push for a reform plan. The good news is the funding shortfall finally is being discussed seriously. The bad news lies in the considerable uncertainty about the best way to solve it." (Journal of Accountancy) Investment Company TIAA-CREF Challenged on Social Responsibility Issues Excerpt: "Activists challenged the nation's largest pension investment company's claims that it is socially responsible yesterday with a staged protest at its Boston headquarters. The coalition is demanding that the Teachers Insurance and Annuity Association-College Retirement Equity Fund (TIAA-CREF) divest stock held in Coca Cola and Wal-Mart." (The NewStandard) Commentary and Links to Helpful Articles on Avoiding Form 5500 Late Filing Penalties Excerpt: "[Benefitsblog] received an email recently from an individual who claimed that a post here at Benefitsblog saved him almost $5,000 in penalties for filing a Form 5500 late. The individual stated that he had depended on the Form 5500 mailing to remind him to file the form each year, but one year apparently did not receive the form from the IRS and thus did not file it. After filing the form late, the individual received a bill from the IRS for $5625.00." (Attorney B. Janell Grenier via BenefitsBlog.com) Summary of Tips on Filing Form 5500 (PDF) Excerpt: "To give employers a hand with this year's Form 5500 filing, the U.S. Department of Labor, Pension Benefit Guaranty Corporation, and the IRS have come up with some tips for avoiding the most common Form 5500 filing problems. This article is a review of those tips." (Texas Pension Consultants Benefits Bulletin) Links to Items on Executive Comp, Benefits in General Welcome to BenefitsLink advertiser Brucker & Morra Excerpt: "Brucker & Morra practices exclusively employee benefits law - a crossover area involving ERISA and tax issues, as well as family law, mergers and acquisitions, government controversy and bankrup.tcy law, to name a few. The firm creatively designs retirement plans, solves or, given the opportunity, prevents employee benefits problems, and advises and consults with plan sponsors, fiduciaries, service providers and individuals about myriad employee benefits issues and concerns." (BenefitsLink.com) Newly Posted Events HSAs: Four Misconceptions That Can Undermine a Plan Nationwide on July 26, 2005 presented by Business 21 Publishing Newly Posted Press Releases Mercer Human Resource Consulting Introduces an Innovative Retirement Shares Pension Plan to Meet Evolving Needs; New Benefit Plan Combines Defined-Benefit Security with Defined-Contribution Features (Mercer Human Resource Consulting) Aetna Enables Employers to Waive Deductible for Preventive Drugs in High-Deductible Health Plans; Program Provides Added Coverage for HSA Consumers, While Encouraging Compliance with Preventive Drug Regimens and Potentially Reducing Overall Costs (Mercer Human Resource Consulting) Mortgage Benefits Corp. Launches The Realty PPO (Mortgage Benefits Corporation) Newly Posted or Renewed Job Openings AVP of Retirement Programs for UnumProvident Corporation in ME Consulting Actuary for The Heintzberger Company in OR Client Services Lead for Stanton Group in MN Assistant Analyst Recordkeeper for J. D. Benefits, Inc. in NC Employee Benefits Intermediary Sales Director for Wachovia in IL Client Service Representative for High Point Consulting & Staffing, LLC in CA Daily Plan Administrator for TPA Firm in the Southeast in NC Actuary for APA Plan Administration, Inc. in AZ Handy Links: View Today's Active Message Threads Search BenefitsLink Using the Web for Employee Benefits Research (hypertext article) Employee Benefits Library Copyright 2005 BenefitsLink.com, Inc.; except that you may reprint this newsletter in full (including this sentence) without obtaining our permission. 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