September 1, 2005 Today's sponsor: www.ftwilliam.com (Click on company name or banner to learn more.)
Text: Disaster Relief Relating to PBGC Deadlines in Response to Hurricane Katrina in LA, MS, and AL Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the major disasters declared by the President of the United States on account of damages from Hurricane Katrina in Louisiana, Alabama, and Mississippi." (Pension Benefit Guaranty Corporation) Text: Disaster Relief 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) Commentary on the DOL Mandate for E-filing of Form 5500 Excerpt: "On August 30, 2005 the Department of Labor's Employee Benefits Security Administration published a proposal that would require all Form 5500 filings due for reporting years beginning after 2006 be filed electronically." (form5500help.com) A Towers Perrin Proposal for Pension Funding Reform - Part III (PDF) 12 pages. Excerpt: "With less than four months to go before temporary funding relief for defined benefit plans expires, Congress and other interested parties are focusing on three major reform proposals: the Bush administration's package, the Pension Protection Act of 2005 (H.R.2830) and NESTEG (S.219) -- a measure unanimously approved by the Senate Finance Committee shortly before Congress adjourned for its August recess. All of these proposals represent progress toward a new and more ...." (Towers Perrin) Will Proposed Pension Reforms Save the System, or Cause More of Corporate America to Opt Out? Excerpt: "It is 2005 and the pension system is in crisis -- again. Just as in the mid-1990s, Congress and columnists are warning of the imminent demise of the defined-benefit retirement plan. And again, thanks are due to the failure of a few companies -- mostly in the airline industry -- to meet their obligations. Back then it was TWA. Today, United Air Lines leads the roster of bad apples. But this time, the government seems determined to step in, and a revolution in how companies calculate ...." (CFO Magazine) Overview: Guidance on Valuation of Life Insurance Contracts in Employee Benefit Arrangements (PDF) 3 pages. Excerpt: "On August 29, 2005, the Internal Revenue Service and the Treasury completed a two-year project to provide guidance on the valuation of life insurance contracts in employee benefit arrangements. The final regulations were issued under Internal Revenue Code sections 402, 79 and 83 regarding the amount of taxable income recognized on the distribution or transfer of a life insurance contract." (Sutherland Asbill & Brennan LLP) Overview: Eliminating Optional Forms of Pension Benefits (PDF) 2 pages. Employers can now streamline defined benefit pension plan design and administration by reducing the number of distribution and early retirement offerings. (Milliman) ESOPs Are Good For Business Excerpt: "An annual survey from the Employee Ownership Foundation shows that a company's decision to become employee owned via an Employee Stock Ownership Plan (ESOP) relates to greater company performance and greater wealth creation for company owners." (PLANSPONSOR.com: one-time registration required) Overview: Amendments to 'QPAM' Exemption Should Simplify Compliance (PDF) 3 pages. Excerpt: "Recently, the U.S. Department of Labor ('DOL') adopted amendments to the 'QPAM' exemption from the ERISA prohibited transaction restrictions. Except as noted [in this overview], these amendments are effective August 23, 2005. In general, the amendments will make it easier to satisfy the requirements of the exemption and, thus, to comply with the ERISA prohibited transaction restrictions." (Kirkpatrick & Lockhart Nicholson Graham LLP) Overview: United Kingdom Company Pension Scheme Rebates Need to Rise by £2 Billion Excerpt: "National insurance rebates paid to employers and members of company pension schemes that are contracted-out of the State Second Pension need to be raised by at least 25 percent, according to Watson Wyatt." (Watson Wyatt Worldwide) Overview: Exceeding the Maximum IRA Contribution Limit -- Potential for Double Taxation Excerpt: "Excess contributions to a traditional IRA occur for a variety of reasons. In most situations, the removal of an excess contribution is not taxable, whether an IRA owner removes the excess amount by his/her federal income tax return due date, plus extensions, or after. There is a potential for paying income taxes twice on an ineligible IRA contribution if it exceeds the maximum allowable contribution for a tax year and it is removed after the tax return due date." (Bankers Systems Retirement Plan Services) Overview: IRS Changes Rules Regarding Timing of Determination and Opinion Letter Applications (PDF) 8 pages. Excerpt: "On August 26, 2005, the Internal Revenue Service(IRS) published Revenue Procedure 2005-66, which substantially changes the deadlines for submitting tax-qualified retirement plans to the IRS for a review of their tax-qualified status." (Kirkpatrick & Lockhart Nicholson Graham LLP) Commentary -- Memorable Benefits Quote: 'Accrued Benefits Are Like Chalk Marks . . . ' Excerpt: "In a recent case--DiGiacomo v. Teamsters Pension Trust Fund of Philadelphia and Vicinity, the Third Circuit grappled with the nuances of the vesting and accrual requirements of ERISA, and added its voice to an issue which has split the Circuit Courts." (Attorney B. Janell Grenier via BenefitsBlog.com) Audio: Retirement Income -- Those Who Save Are Ahead Excerpt: "Robert Siegel talks with Dallas Salisbury, president and CEO of the Employee Benefit Research Institute, about retirement planning in the United States." (All Things Considered via National Public Radio) Links to Items on Executive Comp, Benefits in General Firms Replacing Stock Options with Restricted Shares Face a Tough Sell to Employees Excerpt: "Getting information out early--even before all of the details are worked out--may help workers better understand how such changes in compensation will affect them." (Workforce Management; one-time registration required) GASB Staff Position: Classification and Measurement ... under FASB Statement No. 123(R) (PDF) 6 pages. Excerpt: "The Board directed the FASB staff to issue this FASB Staff Position ... to defer at this time the requirement of FASB Statement No. 123 ..., Share-Based Payment, that a freestanding financial instrument originally subject to Statement 123(R) becomes subject to the recognition and measurement requirements of other applicable generally accepted accounting principles (GAAP) when the rights conveyed by the instrument to the holder are no longer dependent on the ...." (Financial Accounting Standards Board) A Guide to Protecting Your Benefits When Leaving Your Job Excerpt: "[W]hile finding new employment may be getting easier, making the switch to a new employer is increasingly complicated. With changes in tax laws and a growing selection of benefits to keep track of (such as flexible spending and health-savings accounts), it's become just as critical to have a job-exit strategy as a job-hunting plan." (The Wall Street Journal via Pittsburgh Post-Gazette) Stock Options in S Corporations - It Keeps Getting More Complicated Excerpt: "[W]hat's the best program format, or vehicle, for an employee equity program? Is it stock options? Restricted Stock? An ESOP? Not-quite-real stock such as SARs? Maybe purchase plans? Over the years that the Beyster Institute has been helping business leaders to sort through these issues, we've seen popular approaches change - and change again. It's certainly understandable. Congress and the regulators periodically change the rules; trends and fads ebb and flow; and experience ...." (Leading Companies Online Magazine via Beyster Institute) Newly Posted Events AJCA: The Latest Guidance on Non-Qualified Deferred Compensation Plans in Ohio on September 20, 2005 presented by WEB (Worldwide Employee Benefits Network) Cleveland Chapter Health Savings Accounts: Are They Right For Your Organization? Nationwide on September 21, 2005 presented by Alexander Hamilton Institute Update on Retirement Plans in New York on September 12, 2005 presented by Monroe County Bar Association - Center for Education Newly Posted Press Releases Hewitt Study Shows Base Pay Increases Flat for 2006 With Variable Pay Plans Picking Up the Slack; Health Care and Energy Cost Increases Threaten Salary Gains (Hewitt Associates LLC) The Principal Financial Group Offers New Service for Group Life Insurance Beneficiaries; Financial Professionals Now Provide Investment Assistance Through Toll-Free Hotline (Principal Financial Group) InvestLink Has New Strategic Ownership (InvestLink) U.S. Department Of Labor, AICPA, And State CPA Societies Partner On Small Business Seminar Series (U.S. Department of Labor, Employee Benefits Security Administration) U. S. Labor Department Extends Annual Reports Deadline After Hurricane Katrina Hits Mississippi (U.S. Department of Labor, Employee Benefits Security Administration) Newly Posted or Renewed Job Openings Trust Officer - Retirement Benefits Group for Old Second National Bank in IL Benefits Consultant for Carilion Health System in VA Retirement Plans Consultant for U.S. Foodservice in DC, MD Employee Benefits - Customer Service Specialist for Kelley & Swain - Employee Benefits Brokerage Firm in CA Pension Analyst for Security Administrators, Inc. in NY Marketing Coordinator for American Express in AZ Participant Services Representative for New York Life Investment Management LLC in MA Enrolled Actuary, Manager for American Express in AZ Pension Administrator for Upstate SC Firm in SC Employee Benefits Attorney for Chang, Ruthenberg & Long, PC in CA Sr. Compliance Analyst for T. Rowe Price in MD Senior Compliance Analyst for Ceridian in FL Assistant Pension Administrator for Schloss & Co. Benefits Consulting Firm in Account Manager, Employee Benefits for ABD Insurance and Financial Services in CA Plan Administrator for Retirement Plan & ERISA Specialists for Small Chicago TPA & law firm in IL Handy Links:
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