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July 28, 2005
Today's sponsor: Penchecks, Inc.

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Banner ad for Penchecks, Inc.

The National Registry has arrived!

It is a web-based service designed to reunite plan participants with their unclaimed retirement benefits. Since going live on May 27, 2005, over 10,000 participant names with unclaimed pension benefits have already been registered. Plan Administrators and IRA custodians may register their missing participants in the National Registry's database for a nominal fee. Participants are able to check the database online. If a match is found, contact information is provided. There is no charge to individual participants to use the service to search for unclaimed retirement benefits that are owed to them. The National Registry facilitates Win-Win situations - Plan Sponsors alleviate themselves of reporting burden and fiduciary responsibility when lost participants claim their money and Former Plan Participants end up with more money!

All Automatic/Default/Missing Participant IRAs established through PenChecks, Inc. are automatically included in the National Registry database at no additional cost.

For more information, click on the link above or call (877) 462-2745.


(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
First Issue of Annual OECD Newsletter with International Private Pension Stats: 'Pensions in Focus' (PDF)
12 pages. Excerpt: "[T]he availability of an accurate, comprehensive, comparable and up-to-date body of international statistics [on privately funded pensions is] a necessary tool for policy makers, regulators and market participants. The first issue of this new OECD newsletter is an important step in that direction." (Organisation for Economic Co-operation and Development)

Overview: Senate Finance Committee-Approved Pension Bill Includes New Rules for Cash Balance Plans
Excerpt: "On July 26, the Senate Finance Committee by unanimous voice vote favorably reported out the Chairman's Mark as modified to the 'National Employee Savings and Trust Equity Guarantee Act of 2005.' The major modification to the Chairman's Mark is the inclusion of a new set of rules for cash balance plans. [Check the Tax Watch Archive at http://ria.thomson.com/taxwatch/archive.asp if this link no longer works.]" (Tax Watch via RIA)

Federal Appeals Court Says 403(b) Funds Can't Be Shielded in Bankrup.tcy
Excerpt: "A federal appeals court has ruled that a Texas educator still owes his ex-wife alimony from his 403(b) retirement account despite his having filed for US Bankrup.tcy Court protection." (PLANSPONSOR.com; one-time registration required)

Montana Governor Schweitzer Vows to Fix Public Pension Funding
Excerpt: "Gov. Brian Schweitzer promised ... that his administration will come up with a proposal to help bail out two major public pension programs facing serious financial problems. With a special legislative session expected to take up the issue later this year, Schweitzer told officials from the Public Employees Retirement System and the Teachers Retirement System that he will recommend a one-time infusion of money drawn from an estimated $300 million surplus the state had as of July 1." (AP via The Billings Gazette)

The 401(k) Connection: Serving the Corporate Retirement Market
Excerpt: "Many employers either don't know how to properly set up and run a retirement-investment plan that complies with federal ERISA law and related regulations or are afraid to do so. On the other hand, at many companies that have them, there's disenchantment. There are a lot of unhappy plan trustees, human resources staffers and participants. Enter the adviser who can take over the floundering retirement plan and solve these problems." (OnWallStreet)

Overview: Bank Pension Funds Law Passed by Greek Parliament
Excerpt: "The Greek Parliament has now passed government legislation to create a single auxiliary pension fund for the banking sector, replacing the eleven such funds currently in existence. The main aim of the exercise is to alleviate the burden on banks with the greatest pension liabilities while protecting the entitlements of employees hired before 1 January 1993, it is said." (Watson Wyatt Worldwide)

Circuit Court Case Puts Advisers and TPAs on Fiduciary Watch
Excerpt: "A recent case decided by the 10th Circuit Court of Appeals reminds advisers and other retirement plan affiliates that, no matter how good your intentions are, pleading ignorance does not absolve you of fiduciary status. In Coldesina v. Estate of Simper, a dentist created a retirement plan with the help of Gregg Simper, an agent from investment advisory company Greystone Marketing Inc, which also was a general agency for Kansas City Life Insurance Co., and Flexible Benefits ...." (The Adviser)

All But One West Virginia Public Pension Plan Is the Defined Benefit Type
Excerpt: "The state Consolidated Public Retirement Board manages seven pension systems for public employees with an active membership of 77,965 and 45,809 retirees as of July 1, 2004. All but one of the pension plans are defined benefit, meaning that retirement benefits are set by formula, based on several factors of individual employment and are paid out accordingly on an annual basis." (The Parkersburg News and The Parkersburg Sentinel)

Text of July 20, 2005, Hearing on H.R. 4391, The 'Public Servant Retirement Protection Act'
Excerpt: "[The] hearing [presented] an opportunity to understand how H.R. 4391, the 'Public Servant Retirement Protection Act,' will ensure fair treatment of government employees and how it will affect Social Security's long term financing." (U.S. House of Representatives, Committee on Ways and Means)

Alaska Public Employee Pension Reform Signed into Law: First Step to Solving Deficit
Excerpt: "[July 27, 2005] Governor Frank Murkowski signed the public employee pension reform bill (SB 141) into law during a bill signing ceremony in Anchorage. The landmark legislation creates a modern and secure retirement plan for future public employees and it takes the first and most important step to addressing the state's projected $5.7 billion dollar deficit under the existing pension plan." (The 24th Alaska State Legislature Senate Majority Organization)

Overview: Social Insurance Charges Due for Cut in Hungary
Excerpt: "The government is proposing a whole series of cuts in personal and business taxes, value added tax and social charges, to be implemented in stages between now and 2010. Details should be finalised this autumn, but provisional plans include an eventual reduction from 29% to 24% in employer social security contributions, elimination of the fixed-sum health care contribution and a move to a flat rate 18% income tax." (Watson Wyatt Worldwide)

Disaster Relief Announcement Relating to PBGC Deadlines in Response to Hurricane Dennis in Alabama
Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the major disaster declared by the President of the United States on account of Hurricane Dennis beginning July 10, 2005, in Alabama." (Pension Benefit Guaranty Corporation)

Disaster Relief Announcement Relating to PBGC Deadlines in Response to Hurricane Dennis in Florida
Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the major disaster declared by the President of the United States on account of Hurricane Dennis beginning July 10, 2005, in Florida." (Pension Benefit Guaranty Corporation)

CalPERS May Sell Retirement Fund Products to Outsiders
Excerpt: "CalPERS, the biggest U.S. pension fund limited to California public employees, may use its well-known name to sell retirement fund products to outsiders for the first time, officials said on Wednesday. The CalPERS retirement products would be sold to government agencies just as mutual fund firms market 401(k) products to companies, officials said at a long-term planning meeting." (Reuters.com)

Links to Items on Executive Comp, Benefits in General

Text of Rev. Rul. 2005-55: Use of Medical Reimbursement Accounts in a Profit-Sharing Plan (PDF)
9 pages. Excerpt: "Does a profit-sharing plan fail to satisfy the requirements of § 401(a)(7) of the Internal Revenue Code if it provides a medical reimbursement account for each participant from which payments may only be distributed to reimburse the participant for expenses for medical care?" (Internal Revenue Service)

Revenue Ruling 2005-55 Addresses Profit Sharing Plans with Medical Reimbursement Accounts
Excerpt: "A new IRS Revenue Ruling says a Profit Sharing Plan violates vesting requirements and possibly other Internal Revenue Code sections if it imposes conditions on the use of amounts held in participant's accounts. Specifically, IRS RR 2005-55, considers the case of a Profit Sharing Plan which applies 25% of the employer's contribution to medical reimbursement accounts for each participant." (PLANSPONSOR.com; one-time registration required)

Overview: Board Approval Not Considered Equity Grant Date under FAS 123(R)
Excerpt: "At least one Big Four accounting firm has opined that companies cannot fix the equity grant date at which expensing would begin until the terms of the award have been communicated to employees. Most companies had previously believed the grant date to be when the Board approves specific grant levels to employees, which was also the date on which the grant price is established." (Watson Wyatt Worldwide)

Monographs from the Living to 100 and Beyond Symposium Held January 2005
At this site, you can download a single PDF of all papers from the Living to 100 and Beyond Symposium, or you can download each paper individually. (Society of Actuaries)

Letter to the Editor: Only Trustees Can Change Benefits for Pennsylvania State Employees
Excerpt: "As a state employee, I understand -- apparently better than do the Republican legislators -- that the benefits are decided by trustees of the PEBTF as my agents. These trustees now want to study the feasibility of extending benefits to employees who are in committed relationships other than conventional marriage, that is, domestic partners." (Pittsburgh Post-Gazette)

Contingent and Alternative Employment Arrangements, February 2005
Excerpt: "The proportion of U.S. workers holding contingent jobs was little different in February 2005 than in February 2001, .... Contingent workers are persons who do not expect their jobs to last or who reported that their jobs are temporary. Using three alternative measures, contingent workers accounted for 1.8 to 4.1 percent of total employment inFebruary 2005. ... In February 2001, the last time the survey was conducted, they ranged from 1.7 to 4.0 percent." (U.S. Bureau of Labor Statistics)

Newly Posted Events

Advanced IRA Rollover and Distribution Training
in Florida on November 4, 2005
presented by NF Communications, Inc.

Certified Retirement Financial Advisor Training
in District of Columbia on August 17, 2005
presented by Society of Certified Retirement Financial Advisors

Certified Retirement Financial Advisor Training
in California on October 19, 2005
presented by Society of Certified Retirement Financial Advisors

Certified Retirement Financial Advisor Training
in Florida on November 30, 2005
presented by Society of Certified Retirement Financial Advisors

Newly Posted Press Releases

Disaster Relief Announcements
(Pension Benefit Guaranty Corporation (PBGC))

Council Praises Congress For Focus On Health Care, Urges Efforts To Promote Flexibility And Choice
(American Benefits Council)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Compensation and Benefits - Manager
for Grant Thornton LLP
in CA, CO

Sales Vice President Insurance And Specialty Markets
for ING US Financial Services
in IL, MI, TX

Project Manager-Medicare
for Premier Recruiters & Associates
in VA

Defined Contribution Plan Administrator
for Federated Investors
in PA

Senior Vice President
for ING US Financial Services
in AZ

Defined Contribution Plan Administrator
for ALCOS
in MI

Senior Plan Administrator
for The Allocation Company, Inc.
in TX

2nd Vice President, Plan Administration
for New York Life Investment Management LLC
in MA

Retirement Plan Administrator US-WA-TACOMA
for Spectrum Pension Consultants, Inc.
in WA

Pension Paralegal/Legal Assistant
for Spectrum Pension Consultants, Inc.
in WA

Defined Contribution Administrator
for Established Oak Brook Administration Firm
in IL

Benefit Analyst I
for ProView
in CA

Employee Benefits Administrator (TBO)
for National TBO Practice
in NJ, NY



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