September 7, 2005 Today's sponsor: DATAIR Employee Benefit Systems, Inc. (Click on company name or banner to learn more.)
Brief Overview of Advance Planning for 401(k) Plans and 403(b) Programs (PDF) 2 pages. Excerpt: "Due to recent regulatory developments, employers that sponsor 401(k) plans or offer 403(b) programs may need to plan ahead for potential changes to plan operations or plan documents. This publication addresses a few of these items." (The Prudential Insurance Company of America) Recent Actions Involving the San Diego Public Pension Plan Excerpt: "City Attorney Michael Aguirre said the council can remove any appointee for cause and that Preovolos had been insubordinate and allowed pension funds to be used to protect illegal employee benefits. Aguirre has argued benefit boosts granted in 1996 and 2002 are improper." (The San Diego Union-Tribune) Legislator Calls for State Pension Audit in Alaska Excerpt: "Rep. Mike Kelly is calling for a legislative audit of the state's pension retirement systems to determine how the programs ended up with a $5.7 billion shortfall. The Fairbanks Republican made the request Tuesday in a letter to Rep. Bruce Weyhrauch, chairman of the House Ways and Means Committee, which is conducting public hearings around the state on how to address the systems' unfunded liability." (Fairbanks Daily News-Miner) Senate Bill Proposes New PBGC Levy on Bankrupt Employers Excerpt: "Employers in bankrup.tcy whose pension plans are taken over by the Pension Benefit Guaranty Corp. would have to pay a huge new premium to the PBGC after they emerge from bankrup.tcy under legislation to be taken up by a Senate committee this week." (Business Insurance) Overview: Final Regs Attack Abusive 'Springing Value' Life Insurance Policies Transferred to Employees Excerpt: "IRS has issued final regs that seek to shut down 'abusive' transactions involving life insurance policies designed to have a low cash surrender value when transferred from a Code Sec. 412(i) retirement plan to an employee." (Pension & Benefits Week via RIA) Bulger Brother Pension Cases Could Set Costly Precedent for Massachusetts Retirement System Excerpt: "A pair of pension cases involving two of the Bulger brothers -- William and Jackie -- is moving through the courts with the potential to set precedent and trigger larger payouts for retirees in the state's public employee pension systems." (AP via The Boston Globe) IRS Grants Relief Regarding Certain Employee Plan Contributions Excerpt: "The Internal Revenue Service, the Department of Labor's Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation officials announced today their agencies are providing relief in connection with certain employee benefit plans because of damage in the Gulf Coast area caused by Hurricane Katrina." (U.S. Internal Revenue Service) DOL Hurricane Recovery Assistance Web Site Excerpt: "President George W. Bush has declared major disasters for impacted areas in Louisiana, Mississippi, Florida, and Alabama. The U.S. Department of Labor is supporting efforts in these communities in coordination with the U.S. Department of Homeland Security, the agency that is actively managing federal assistance to these affected communities in an effort to expedite response efforts and save lives." (U.S. Department of Labor) Overview: IRS Finalizes New Employee Plan Determination Letter Procedures Excerpt: "The Internal Revenue Service (IRS) recently finalized procedures for a new system of staggered remedial amendment periods and new procedures for retirement plan sponsors seeking IRS approval of amendments to file determination letters to ensure tax code compliance." (McDermott Will & Emery) Overview: IRS Releases New SIMPLE IRA Plan Documents Excerpt: "The IRS recently released new versions of its model Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) plan agreements -- Form 5304-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) -- Not for Use With a Designated Financial Institution and Form 5305-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) -- for Use With a Designated Financial Institution." (Bankers Systems, Inc.) The Best Place for Retirement Funds Excerpt: "Turns out location, location, location isn't just about real estate. Professor Daniel Bergstresser discusses his research on optimal asset location strategies." (Harvard Business School Working Knowledge Newsletter) NYC's Comptroller, Thompson, Active on Corporate Governance Fronts Excerpt: "Acting on behalf of the five New York City pension funds, Thompson announced first that four corporations have agreed to beef up their workplace human rights policies. According to Thompson's first news release the four agreed to improve their policies to ensure that their overseas suppliers respect workers' human rights, as sought in the New York City funds' shareholder proposals." (PLANSPONSOR.com: one-time registration required) IRS Weighted Average Interest Rate Table Updated for September 2005 Weighted average for September 2005: 4.91% (U.S. Internal Revenue Service) IRS Composite Corporate Bond Rate Table Updated for September 2005 Corporate Bond Weighted Average Interest Rate = 5.84 for September 2005 (U.S. Internal Revenue Service) Links to Items on Executive Comp, Benefits in General Same Sex Marriage Wins Vote in California Excerpt: " California lawmakers on Tuesday became the first in the country to legalize same-sex marriage, with the State Assembly narrowly approving a bill that defines marriage as between 'two persons' instead of between a man and a woman." (The New York Times; one-time registration required) The 2005 Top 250: Long-Term Incentive Grant Practices for Executives (PDF) 33 pages. Excerpt: "Key findings [include]: Although stock option usage slid from 99% of companies in 2003 to 90% in 2005, it was still well ahead of restricted stock, the second-most popular vehicle used by 66% of companies in 2005, up from 49% in 2003." (Frederic W. Cook & Co.) Overview: DOL Proposes Mandatory Electronic Filing of Form 5500s Excerpt: "The DOL has now issued a proposed regulation that would mandate electronic filing of the Form 5500 via the Internet. The proposed regulation would apply for plan years beginning on or after January 1, 2007, with the first electronically filed forms due in 2008." (Employee Benefits Institute of America Inc.) Newly Posted Events A Bold New Approach to Healthy Benefits Design: Shifting from Cost-Shifting to an Outcomes-Based Benefits Strategy in Texas on September 28, 2005 presented by Dallas-Fort Worth Business Group on Health Findings From Annual Survey Of Employer Health Benefits To Be Released Nationwide on September 14, 2005 presented by Kaiser Family Foundation Newly Posted Press Releases Gilsbar, Inc. Fully Operational Post Hurricane (Gilsbar, Inc.) Benefits Conferences Scheduled for New Orleans Relocate to Dallas, Texas -- Conference Host Donates to New Orleans Hospitality Industry (International Foundation of Employee Benefit Plans) Newly Posted or Renewed Job Openings 401k/Tiered Plan Administrator for The Pension Group, Inc. in CA Contract to Perm Benefits Administrator for The Rosen Group in NJ External Sales Representatives - Florida & Northern California for PENSCO Trust Company in CA, FL Senior Health and Welfare Consultant for Leader in Health and Welfare Consulting in OH, PA Health Care and Group Benefits Attorney for Mercer Human Resource Consulting in DC Employee Benefits Sales Consultant, ESG for CUNA Mutual Group in WI 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: |