July 11, 2005 Today's sponsor: Employee Benefits Institute of America (EBIA) (Click on company name or banner to learn more.)
Circular 230's New Disclosure Language Excerpt: "Retirement plan practitioners may well be affected by the newly effective regulations governing practice before the IRS (contained in Circular 230). The regulations generally affect the content of the advice practitioners can provide to plan sponsors. In certain cases, the regs introduce new disclosure language requirements." (McKay Hochman Co., Inc.) Why Do So Many Plan Participants and Consumers Choose Frills When Plain-Old Will Do? Excerpt: " For their 401(k), many workers simply accept the contribution rate and the investment choices their company picks for them.... At companies where 401(k) enrollment is automatic, about 85 percent of workers sock away money for retirement in the plan ... More companies are moving to automatic-enrollment plans for precisely this reason." (New York Times; one-time registration required) Some 403(b) Issues Still Remain After Promulgation of Regulations Excerpt: "The [proposed 403(b) regulations said they] would become effective in plan years beginning after December 31, 2005. We hope to see the final regulations in the next few months. However, there is an extensive list of outstanding issues regarding these regulations." (McKay Hochman Co., Inc.) Opinion: Multibillion-Dollar Gamble Put GM Pension Funds on the Road to Independence Excerpt: "GM launched [Project] Alpha in 2003 with an enormous gamble. It borrowed $13.5 billion with the biggest bond offering ever by a U.S. company and put that money (and $5 billion more from selling its stake in Hughes Electronics) into its pension funds. The Hughes cash was used for the funds' short-term needs; the borrowed cash was earmarked for Project Alpha investments." (Allan Sloan in the Washington Post; one-time registration required) Don't Overlook 'Net Unrealized Appreciation' Rules When Distribution Includes Company Stock Excerpt: "[M]any retirees and advisors make a fundamental mistake: They roll the qualified plan, rich in employer stock, into an IRA. Often retirees and advisors assume rolling into an IRA is the only option available." (Advisor Today) Congressional Pensions Set Lawmakers Up for Life: 'Platinum Parachute' Excerpt: "Social Security is still a heated topic in [Washington], with President Bush and Congress proposing reforms to ensure its continued solvency. But then they don't have to rely on the program for their personal well-being in retirement. " (Salt Lake City Tribune) The Value of Your Public Sector DB Plan (PDF) 12 pages. Excerpt: "This brochure is intended to highlight the importance of your Defined Benefit Plan and why it is so valuable to you." (National Council on Teacher Retirement) Arkansas Pension Boards Now Must Report Gifts from Investment Advisors Excerpt: "A new state law requires local police and fire pension boards to disclose gifts they receive from their investment advisors.Act 2094 of 2005, which refers to establishing fiscal accountability and ethical guidelines for local police and fire pension boards, was approved by both the State Senate and House of Representatives, and signed into law by Gov. Mike Huckabee." (The [Russellville AR] Courier-News) Strengthening Social Security by Raising the Normal Retirement Age Excerpt: "Raising the retirement age could substantially improve the financial outlook for Social Security, the Academy's Ron Gebhardsbauer testified at a recent congressional hearing." (American Academy of Actuaries) University of California Nurse-Employees Authorize Strike Over Pension Plan, Salary Excerpt: "[S]ome nurses fear that even the pension plan is at risk, and want a secure plan guaranteed by the new contract.... UC spokesman Noel Van Nyhuis said the union's fears are unfounded and that there has been no decision to replace the nurses' pension plans with 401ks." (The Daily Bruin) California Utility Workers Claim Bias in Pension Changes Excerpt: "Employees of the Southern California Gas Company have sued the utility, arguing that changes it made to its pension fund in 1998 violated federal and state laws against age discrimination, as well as a federal provision requiring companies to notify workers in advance of changes that reduce benefit accruals." (New York Times; one-time registration required) Another Question is Answered in the Who's the Employer Q&A Column How do the new post-severance compensation rules apply to Who's the Employer issues? (BenefitsLink.com) Updated Section 415 Regulations-- an In-Depth Review (Part 2 of 2) Excerpt: "This article will examine the proposed rules under Section 415(b), applicable to defined benefit (DB) plans." (Deloitte) It's July 2005. Do You Know Where Your Pension Is? Do You Even Have One? Excerpt: "[W]ill those idle masses [of retiring baby-boomers] be able to afford those plaid pants, much less the attendant golf carts, when that gusher is scheduled for release? Perhaps not, when you consider all the grim news on the pension front." (New York Times; one-time registration required) Links to Items on Executive Comp, Benefits in General Overview: Recent Guidance on Selecting and Monitoring Service Providers Excerpt: "Below is a summary of the guidance along with suggestions for steps plan fiduciaries should take." (McDermott Will & Emery) Newly Posted Events 2007 Annual Conference in California on October 21, 2007 presented by ASPPA (American Society of Pension Professionals & Actuaries) Great Lakes Benefits Conference in Illinois on May 3, 2007 presented by ASPPA (American Society of Pension Professionals & Actuaries) Great Lakes Benefits Conference in Illinois on May 3, 2007 presented by ASPPA & IRS The 401(k) SUMMIT in California on February 25, 2007 presented by ASPPA (American Society of Pension Professionals & Actuaries) The 401(k) SUMMIT in Florida on February 10, 2008 presented by ASPPA (American Society of Pension Professionals & Actuaries) The 401(k) SUMMIT in California on March 22, 2009 presented by ASPPA (American Society of Pension Professionals & Actuaries) Newly Posted or Renewed Job Openings Plan Consultant/Senior Administrator for Boyce & Associates, Inc. in AZ 401(k) Enroller/Contractor - Bilingual for Transamerica in ANY STATE Benefits Outsourcing Manager for Client of Jan Hufnell, Certified Personnel Consultant, Hufnell, Inc Benefit Recruiters in PA Benefit Specialist for Towers Perrin in CT Employee Benefits Tax Group - Manager for Deloitte Tax LLP in IL Retirement Plan Administrator for Benefit Design & Administration, Inc. in VA Corporate Recruiter for Healthcare Consulting Firm in TX Manager, Client Services for BISYS Retirement Services in PA Senior Account Executive for Motivano (provider of the SmartFlex benefits debit card) in FL Health & Welfare Products Manager for Administaff in TX Human Resources Support Specialist for CitiStreet in FL Human Resources Contact Center Manager for CitiStreet in FL 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:
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