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September 20, 2005
Today's sponsor: ASPPA-- Working for America's Retirement (tm)

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2005 ASPPA Annual Conference * Nov 6 - 9 * Washington, DC

Each year, there are new regulations and legislation, new products and services and new opportunities to increase your knowledge and enhance your business. Take part in this learning opportunity with more than 1,500 of your professional colleagues

ASPPA. For the Serious Retirement Plan Professional.


(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Assistant Secretary Ann L. Combs' Statement on Additional DOL Guidance on Hurricane Katrina Issues (PDF)
Excerpt: "[The EBSA] has received inquiries concerning the application of rules governing participant contributions and loan repayments and the furnishing of blackout notices to employers and plans in areas affected by the Hurricane." (U.S. Department of Labor)

ERIC & Deloitte's Comparison of Significant Pension Reform Proposals as of September 19, 2005
33 pages. Excerpt: "[The chart is an] updated side-by-side of the pension funding and hybrid plan legislation moving through Congress. The side-by-side was prepared for ERIC by Deloitte Consulting. It outlines ERIC's proposals for pension funding and hybrid plan reform and compares the bills that have been approved by the House Education and Workforce, Senate Finance, and Senate Health Education Labor and Pensions committees." (The ERISA Industry Committee)

Text: Mutual Funds - Potential Benefits, Oversight Challenges of SEC's Revised Examination Approach
Excerpt: "This report assesses (1) changes SEC has made to, or is planning for, its mutual fund exam program; (2) key aspects of SEC's quality control framework for routine fund exams; and (3) the adequacy of SEC's oversight of NASD and the New York Stock Exchange in protecting shareholders from mutual fund sales abuses. [Highlights are at http://www.gao.gov/highlights/d05415high.pdf.]" (U.S. Government Accountability Office)

Small Businesses Have Options on Putting Retirement Eggs in More than the 401(k) Basket
Excerpt: "Conventional wisdom asserts that most small companies cannot afford to offer retirement plans. If they do - so the conventional wisdom goes - it will be the most bare-bones 401(k), with the employee contributing all the money." (The New York Times; one-time registration required)

FEI-Baruch CFO Outlook Survey - September, 2005 -- Questions about 401(k) Plan Design (PDF)
Page 18 of 33 pages. Survey participants indicated which of the following features or offerings are present in their 401(k) plan: Auto-enrollment; Auto-increase; Lifestyle funds; Stable Value Funds; and, Personalized investment advice. (Financial Executives International and Baruch College's Zicklin School of Business)

John Hancock Survey Shows Company's Lifestyle Funds Outperformed Individual Investment Selections
Excerpt: "The study included 120,048 John Hancock 401(k) plan participants divided into various Lifestyle and Non-Lifestyle groups based on the investment risk inherent of the allocation strategies they selected." (PLANSPONSOR.com: one-time registration required)

Spitzer Hits The Hartford with Second Annuity Subpoena
Excerpt: "The Hartford Courant reported that the most recent Spitzer subpoena asked The Hartford about New Yorkers' purchases of variable annuities under three scenarios: when money was taken out of a 401(k) savings plan or other tax-advantaged retirement savings plan to buy the annuity; annuity purchases made within and kept in such a K plan; and, people buying variable annuities and later putting them into a 401(k) or other plan with tax advantages." (PLANSPONSOR.com: one-time registration required)

Opinion: How to Improve Teacher Benefits in Georgia at No Cost
Excerpt: "[T]here is a retirement plan that could improve the retirement savings options for many Georgia educators. This state-run plan is called the Peach State Reserves. The PSR is directed by the Georgia Merit System and is available to all state employees. The PSR bills itself as 'The Georgia Retirement Investment Plan'. Overall, the plan provides for both 403b and 457 accounts with good investment choices at very low prices." (The 403b / 457 Boondoggle Blog)

Bill Would Provide Pension Plan Breathing Room for Delta and Northwest Workers
Excerpt: "Workers for Delta Air Lines and Northwest Airlines at LaGuardia and Kennedy Airports could get some pension relief if legislation is passed to allow those bankrupt carriers to slowly pay their creditors.Thousands of workers at airports served by Delta and Northwest stand to lose their pensions now that the debt-laden airlines have sought bankrup.tcy protection." (Daily News)

Policy Brief: Senate HELP Committee Approves Pension Reform Bill on September 8, 2005 (PDF)
2 pages. Excerpt: "On September 8, 2005, the Senate Health Education Labor and Pensions (HELP) Committee approved the Defined Benefit Security Act (no bill number available) containing significant reforms to the traditional and hybrid defined benefit system. The bill adapts provisions from both the House Workforce Committee bill (H.R. 2830) and the Senate Finance Committee passed bill (S. 219)." (HR Policy Association)

CBO Cost Estimate of H.R. 2830, Pension Protection Act of 2005 (PDF)
13 pages. Excerpt: "H.R. 2830 would make changes to the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (IRC) that would affect the operations of private pension plans. It would do so mostly by changing the funding requirements for tax qualified, defined-benefit pension plans and the premiums paid to the Pension Benefit Guaranty Corporation (PBGC)." (U.S. Congressional Budget Office)

Overview: Senate HELP Committee Approved Defined Benefit Security Act September 8th
Excerpt: "[T]he Senate Health, Education, Labor and Pensions (HELP) Committee approved the Defined Benefit Security Act (DBSA). The DBSA is the fourth proposal to enter the pension reform debate, following the administration's proposal released earlier this year, the Pension Protection Act (PPA) approved by the House Education and the Workforce Committee on June 30, and the National Employee Savings and Trust Equity Guarantee Act (NESTEG) approved by the Senate Finance Committee on July 26." (Watson Wyatt Worldwide)

Life After Working for the Federal Government: When to Retire Depends on Age and Service Years
Excerpt: "After more than 20 years of working in the government, there's one date inevitably circled with thick red pen on any federal employee's calendar: the day you become eligible to retire." (National Journal Group Inc. via GovExec.com)

Phased Retirement for Faculty: Often a Win-Win Situation (PDF)
9 pages. Excerpt: "Older faculty members increasingly are interested in phased retirement plans, which allow them to ease into retirement and avoid an abrupt separation from their institutions. Institutions are interested in such programs as a mechanism that can provide more predictability about the nature and timing of retirements, .... This TIAA-CREF Institute /Trends and Issues/ report synthesizes some key data about phased retirement plans based on several papers ...." (TIAA-CREF Institute)

ESOP Trustee Secretly Takes Over Company by Purchasing the ESOP's Stock
Excerpt: "The US District Court for the Western District of Tennessee found that an Employee Stock Ownership Plan (ESOP) trustee breached his fiduciary duties under ERISA when he purchased all of the ESOP's stock and did not disclose his purchase." (PLANSPONSOR.com: one-time registration required)

Financially Illiterate, Not Preparing for Retirement? A Nonprofit Foundation Wants to Help
Excerpt: "'We have an economy, a society, where people are encouraged to buy today, even if they don't have the funds for it,' said William L. Anthes, the president and chief executive of the group, the National Endowment for Financial Education, based in Greenwood Village, Colo. 'People aren't owning up to the personal responsibilities they should to take care of themselves and their future. The three-legged stool - Social Security, private pensions and savings - is broken.'" (The New York Times; one-time registration required)

Do the Federal Government's Thrift Savings Plan Retirement Plan Offerings Measure Up?
Excerpt: "In this week's column, I'll discuss the quality of the options in the TSP, and also suggest some model portfolio allocations for government and military personnel. In short, I'd call the plan a winner, and well worth investing in if Uncle Sam is your employer." (Christine Benz via Morningstar, Inc.)

The Cost of Managing the Federal Thrift Savings Plan Continues to Shrink
Excerpt: "The Thrift Savings Plan is cheap and getting cheaper. TSP officials announced Monday that by fiscal 2007, the 401(k)-style retirement savings plan's budget will drop by about 25 percent from three years before." (GovExec.com)

Why Women Face a Retirement Income Crisis and What They Can Do About It
Excerpt: "Make retirement savings a priority. If you're dreaming, however subconsciously, that you'll be bailed out by Prince Charming or a lottery ticket, you need to wake up and smell the espresso. (Read Barbara Stanny's terrific book, 'Prince Charming Isn't Coming: How Women Get Smart About Money,' if you need more convincing.)" (MSN Money)


Links to Items on Executive Comp, Benefits in General

Letter to FASB re: Definition of 'Grant Date' under FAS 123R (PDF)
2 pages. Excerpt: "On behalf of the HR Policy Association, I am writing to urge the Financial Accounting Standards Board ('FASB) to reverse the FASB staff's recently articulated view on the definition of 'grant date' under Statement of Financial Accounting Standards No. 123 (as revised, 2004) ('FAS 123R'). We believe that the staff's interpretation would create significant unintended consequences that significantly outweigh any accounting benefits that are produced." (HR Policy Association)

CRS Report: Older Workers: Employment and Retirement Trends, Updated September 14, 2005 (PDF)
19 pages. Excerpt: "This report begins by describing the change in the age distribution of the U.S. population that will occur between 2005 and 2025 and summarizing the historical data on the labor force participation of older workers. This discussion is followed by an analysis of data from the Census Bureau's Current Population Survey on employment and receipt of pension income among persons age 55 and older. Employment trends among older workers are then discussed in the context of data ...." (Congressional Research Service via The ERISA Industry Committee)

Benefits Explanation Can Hit More than Language Barriers
Excerpt: "Few realize that many Spanish-speaking employees have strong negative and erroneous beliefs about the U.S. financial system. In order to change their thinking and persuade them that retirement plans are, in fact, in their best interest, these beliefs must be addressed and clarified." (Denver Business Journal via bizjournals.com; one-time registration required)

Overview: Congress Passes Katrina Tax Relief Bills (PDF)
2 pages. Excerpt: "Both Houses of Congress approved emergency tax relief for individuals affected by Katrina by voice vote on September 15, 2005.Both bills contain a series of employee benefit provisions designed to ease access to assets held in tax-qualified employee benefit plans for employees affected by Katrina on a temporary basis." (Dow, Lohnes & Albertson, PLLC)

RIA Special Study -- Tax Relief for Victims of Hurricane Katrina (PDF)
4 pages. Excerpt: "This RIA Special Study summarizes the relief available to Hurricane Katrina victims, and where applicable, includes cross-references to more detailed coverage. It is updated to reflect the latest developments." (Federal Taxes Weekly Alert Newsletter)

Hewitt Federal Legislation Quick Guide Updated as of September 13, 2005
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates)

Katrina And Employee Benefits: How Plans, Governments, Insurers Are Responding
Excerpt: "In the aftermath of Hurricane Katrina, scores of issues have arisen surrounding how to provide employee benefits to those employees affected by the storm. Here is a recap of how some employer-provided plans, insurance carriers, and the government are dealing with employer-provided benefits affected by Katrina." (Spencer Benefits Reports)

Practitioner's Forum Discussion on Medical Reimbursement Accounts in Profit-Sharing Plans
Excerpt: "The following is a transcript of an informal discussion of employee benefit practitioners held in Washington, D.C. on August 3, 2005. The topic focuses on the significance of Rev. Rul. 2005-55, 2005-33 I.R.B. 284, which was issued by the IRS on July 28, 2005, and held that certain medical reimbursement accounts in profit-sharing plans do not satisfy the qualified plan vesting requirements." (BNA's Tax Management Inc.)


Newly Posted Events

401(k) Plans
in Washington on September 27, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

401(k) Plans
in Oregon on October 11, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

401(k) Plans
in Ohio on October 18, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

401(k) Plans
in Minnesota on October 25, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

AFP Annual Conference
in Texas on October 9, 2005
presented by Association for Financial Professionals

Cafeteria Plans
in Washington on September 28, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

Cafeteria Plans
in Oregon on October 12, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

Cafeteria Plans
in Ohio on October 19, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

Cafeteria Plans
in Minnesota on October 26, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

COBRA Compliance for Group Health Plans
in Washington on September 30, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

COBRA Compliance for Group Health Plans
in Oregon on October 14, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

COBRA Compliance for Group Health Plans
in Ohio on October 21, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

COBRA Compliance for Group Health Plans
in Minnesota on October 28, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

ERISA Compliance for Health & Welfare Plans
in Washington on September 29, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

ERISA Compliance for Health & Welfare Plans
in Oregon on October 13, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

ERISA Compliance for Health & Welfare Plans
in Ohio on October 20, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

ERISA Compliance for Health & Welfare Plans
in Minnesota on October 27, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HIPAA Portability, Privacy & Security
in Washington on September 30, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HIPAA Portability, Privacy & Security
in Oregon on October 14, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HIPAA Portability, Privacy & Security
in Ohio on October 21, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HIPAA Portability, Privacy & Security
in Minnesota on October 28, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HSAs, HRAs, and Consumer-Driven Health Care
in Washington on September 29, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HSAs, HRAs, and Consumer-Driven Health Care
in Oregon on October 13, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HSAs, HRAs, and Consumer-Driven Health Care
in Ohio on October 20, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

HSAs, HRAs, and Consumer-Driven Health Care
in Minnesota on October 27, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)


Newly Posted Press Releases

U.S. Labor Department Extends Annual Reports Deadline After Hurricane Katrina Hits Florida
(U.S. Department of Labor, Employee Benefits Security Administration)

U.S. Labor Department Extends Time and Areas Covered by Reporting Relief for Areas Hit by Hurricane Katrina
(U.S. Department of Labor, Employee Benefits Security Administration)

Culpepper Launches Compensation Survey for Life Sciences
(Culpepper and Associates, Inc.)

Shifts in Older Americans' Total Wealth, 1992-2002
(Employee Benefit Research Institute (EBRI))

Survey Shows Some Employers May Be Missing Cost-Saving Opportunity Available Through Medicare Part D
(Towers Perrin)

IE-Engine Changes Its Name to HighRoads; Poised to Improve How Companies Buy and Manage Employee Benefits with Proven Model for Lowering Costs and Sustaining Quality
(HighRoads, Inc.)


Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)

Jim Schaefer
(Uniprise Strategic Solutions)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Pension Consultants/Administrators
for Northern NJ Mid-Size Pension Consulting Firm
in NJ

401k Account Executive
for BISYS Retirement Services
in PA

Compliance/Conversion Specialist
for Employee Benefits Firm
in MD

Compliance Consultant
for American United Life Insurance Company
in IN

Client Services Consultant- St. Louis Regional Office
for American United Life Insurance
in MO

Actuarial Analyst IV
for Stanley, Hunt, DuPree and Rhine a subsidiary of BB&T Corporation
in NC

Senior Employee Benefits Daily Administrator
for Stanley, Hunt, DuPree, and Rhine, a subsidiary of BB&T Corporation
in NC

Director, Institutional Relationship Management
for BISYS Retirement Services
in PA

Sr. Employee Benefits Attorney
for CitiStreet
in NJ

Benefits Assistant II
for University of California - Los Angeles
in CA

Employee Benefits
for Primary Consulting, Inc.
in ANY STATE




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