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August 11, 2005
Today's sponsor: ASC & The ASC Institute

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ASC-- YOUR PREMIER SOURCE FOR RETIREMENT PLAN SOFTWARE, DOCUMENTS & EDUCATION

For over 25 years ASC has helped pension professionals build their businesses by turning advances in technology into opportunities to increase efficiency and profitability. ASC Software includes DC/401(k) and DB administration and valuation systems, Compliance Testing, DV Direct Daily Valuation, Gemini Participant & Plan Sponsor Web Access, AIM-- Case Management Database and Single-Step Processing. The ASC Institute offers Retirement Plan Documents, Education for pension professionals and ERISA Compliance Consulting. Contact us today!

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of Final Anti-Cutback Regulations Under Section 411(d)(6), Effective Friday, August 12, 2005
Excerpt: "This document contains final regulations providing guidance regarding the anti-cutback rules of section 411(d)(6) of the Internal Revenue Code, which generally protect accrued benefits, early retirement benefits, retirement-type subsidies, and optional forms of benefit under qualified retirement plans.... These regulations are effective on August 12, 2005." (Internal Revenue Service)

Text of Proposed Changes to Anti-Cutback Regulations Under Section 411(d)(6), Reflecting Heinz Case
Excerpt: "The proposed regulations would address the interaction between the anti-cutback rules of section 411(d)(6) and the nonforfeitability requirements of section 411(a), and would also provide a utilization test under which certain plan amendments would be permitted to eliminate or reduce certain early retirement benefits, retirement-type subsidies, or optional forms of benefit. These proposed regulations would generally affect sponsors of, and participants in, qualified retirement plans." (Internal Revenue Service)

PRC Working Paper: The Role of 401(k) Accumulations in Providing Future Retirement Income (PDF)
27 pages. Excerpt: "Defined contribution (DC) plans are increasingly being offered as the primary employer-sponsored pension, so it is of interest to ask whether DC accumulations are likely to yield sufficient income in retirement. This chapter uses the EBRI/ICI 401(k) Accumulation Projection Model to explore alternative future scenarios for retirees having had 401(k) plans available over a full working career." (Pension Research Council)

Capital Market Update: Funded Ratio for Benchmark Plan Bounces Back in July (PDF)
4 pages. Excerpt: "The monthly Capital Market Update is designed to support our clients in the ongoing financial management of their U.S. retirement plans. Towers Perrin has been tracking the asset/liability performance of a hypothetical benchmark pension plan since 1990. This report reviews how capital market performance affected pension plan financing, with a focus on linked asset/liability results." (Towers Perrin)

Book: Social Security Programs and Retirement around the World: Fiscal Implications
Excerpt: "The ... papers [listed on the target page], preliminary drafts unless otherwise noted, will become chapters in the conference volume. They have not yet been subjected to the formal review process of the NBER." (National Bureau of Economic Research)

How Well Has Chile's Retirement Program Aged?
Excerpt: "Viewed as one of the world's most innovative pension systems when it was created a quarter century ago, the Chilean retirement program is receiving new scrutiny as participants begin to reach retirement age, and President Bush promotes elements of the plan as a way to reform Social Security in the United States." (Wharton School of the University of Pennsylvania)

Milestones in 70-Year History of Social Security in the United States
Excerpt: "Social Security turns 70 Sunday. Here are milestones in the history of old-age pensions and Social Security: ...." (Scripps Howard via Blackenterprise.com)

Links to Items on Executive Comp, Benefits in General

Overview: Proposed Treasury Regs Regarding Use of Electronic Media for Benefit Communications (PDF)
3 pages. Excerpt: "In addition to the [proposed] requirements ..., electronic benefit communications must: (a) continue to meet any other requirements of the Code (e.g., timing, content, etc.); and (b) be as understandable in electronic form as if they were provided on paper." (Gardner Carton & Douglas LLP)

Shareholder Groups Keeping Pressure on Morgan Stanley to Link Executive Pay with Performance
Excerpt: "The controversy surrounding the huge compensation packages awarded top Morgan Stanley executives may soon start an all out war between the legendary investment firm's board of directors and officials at two shareholder groups, NEWSWEEK has learned." (Newsweek via MSNBC.com)

Union Sues Boeing Over Early Retirement Benefits Lost as a Result of Sale of Division
Excerpt: "The Society of Professional Engineering Employees in Aerospace is suing Boeing Corp. to force it to reinstate early retirees' medical and pension benefits for union members that were lost when the Chicago-based aircraft manufacturer sold its commercial aircraft division in Wichita to Canadian investment firm Onex Corp." (Business Insurance)

Paper in Progress: Employee Benefits and Two-Earner Households -- A Research Prospectus (PDF)
5 pages. Excerpt: "Employer-provided benefits are an essential part of workers' total compensation package. Once known as 'fringe' benefits, their costs to employers and value to employees are now often quite substantial. The main employer benefits are health insurance and pensions. It is well known that health insurance and pension plans affect many dimensions of worker choices: part-time vs. full-time work, self-employment vs. traditional employment, retirement age, etc." (U.S. Employee Benefits Security Administration)

Overview: IRS Issues Rev. Rul. on Rules Governing Exercise of Certain Nonstatutory Stock Options (PDF)
2 pages. Excerpt: "On August 2, 2005, the U.S. Internal Revenue Service (IRS) issued an advance copy of Revenue Ruling 2005-48, defining the term 'substantially vested' under Internal Revenue Code (I.R.C.) section 83 with respect to the exercise of certain nonstatutory stock options." (KPMG LLP)

Benefits Vernacular and How Many Acronyms Do You Know and Love?
Excerpt: "[Ms Grenier] was thinking ... about all of the acronyms that benefits professionals utilize when they 'talk shop.' .... Anyway, here is a list and [she is] sure there are more, so email [her] ones that come to mind, and [she] will add them: ...." (Attorney B. Janell Grenier via Benefitsblog.com)

Newly Posted Press Releases

Survey: Half of U.S. Employers Plan To Allow Employees To Carry Over Unused Flexible Health Care Spending Account Money
(Deloitte)

ERIC and Deloitte Receive Results of Flexible Spending Arrangement Survey
(ERIC (ERISA Industry Committee))

New Great-West Healthcare Pharmacy Program Complies with 2006 HSA Regulations; Implementation Well Ahead of Mandated Jan. 1 Deadline
(Great-West Life & Annuity Insurance Company)

Schwab Introduces Participant Retirement Tool For Clients Of Third Party Administrators
(Metrics Partners)

National Investment Managers Acquires Stephen H. Rosen & Associates, Inc. Retirement Consulting, Pension Plan Design And Administration Services
(National Investment Managers Inc.)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Retirement Operations Manager
for JELD-WEN, Inc.
in OR

Sr. Analyst - Due Diligence
for ING US Financial Services
in CA

HR Specialist
for Hewitt Associates
in FL

Relationship Manager
for CitiStreet
in NJ



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