| BenefitsLink Retirement Plans Newsletter |   |
September 21, 2005
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Retirement of Aging Workforce May Reduce Company Talent and Strain Defined Contribution Plans
Excerpt: "When employees retire, most [move assets] into their own retirement accounts .... This hasn't been a worry for most employers, since there were always new hires to pour more money into the [plan]. However, retiring baby boomers will change the hydrodynamics of many plans, because there will be more money flowing out of the plan than into it - a problem known as leakage. Sponsors are taking note of leakage because the key metric to determine the plan costs is assets under management." (Employee Benefit News)
401(k) Plan Company Contribution Matches Help Ease Pain of Other Benefit Cuts
Excerpt: "A growing number of companies are using a heftier 401(k) match to soften the blow of benefit cuts, especially when terminating or freezing an existing defined benefit pension." (Employee Benefit News)
Overview: Retirement Fund Hardship Distributions & Loans Access for Hurricane Katrina Victims (PDF)
5 pages. Excerpt: "On September 15, the IRS issued Announcement 2005-70, which expands the availability of hardship distributions and loans from specified qualified retirement plans, such as 401(k) plans, for victims of Hurricane Katrina and, in certain cases, their family members. The Department of Labor has indicated that distributions and loans made in accordance with the terms of the Announcement will not constitute a violation of Title I of ERISA." (Sutherland Asbill & Brennan LLP)
Overview: IRS & DOL Relief for Hardship Distributions and Plan Loans for Hurricane Katrina Victims
Excerpt: "In a separate announcement, the DOL has advised that it will not treat persons as having violated Title I of ERISA (which includes the fiduciary provisions) solely because they made distributions or loans as permitted by the IRS announcement." (Employee Benefits Institute of America Inc.)
Overview: DOL Issues Final and Proposed Revisions to QPAM Exemption (PDF)
2 pages. Excerpt: "The Department of Labor has finalized revisions to the ERISA class exemption that permits parties-in-interest to participate in investment transactions with a plan managed by a 'qualified professional asset manager' (QPAM). The Department has also proposed additional amendments to facilitate the use of the exemption by financial services companies for their own plans." (Sutherland Asbill & Brennan LLP)
Social Security Programs Throughout the World: Africa, 2005 -- September 2005
Excerpt: "This report, which is part of a four-volume series, provides a cross-national comparison of the social security systems in 44 countries in Africa. It summarizes the five main social insurance programs in those countries: old-age, disability, and survivors; sickness and maternity; work injury; unemployment; and family allowances." (U.S. Social Security Administration)
Overview: IRS Opens New Determination Letter System (PDF)
5 pages. Excerpt: "On August 26, the IRS issued Revenue Procedure 2005-66 , establishing a new determination letter system for individual designed and pre-approved plans. This Revenue Procedure represents the culmination of a process in which the IRS considered a number of alternatives to the current determination letter system, which many felt resulted in times of 'peak demand' followed by less active periods." (Sutherland Asbill & Brennan LLP)
EBRI Notes Article: Retirement Plan Participation: Survey of Income and Program Participation Data (PDF)
Pages 1-12 of 16. Excerpt: "This article presents updated results from the latest Survey of Income and Program Participation (SIPP) data on retirement plan participation, providing top-line results from the SIPP data on retirement plan participation." (Employee Benefit Research Institute)
Links to Items on Executive Comp, Benefits in General
Text of Regulations Extending COBRA, HIPAA, ERISA Timeframes for Persons Affected by Katrina (PDF)
4 pages. Excerpt: "With respect to plan participants, beneficiaries, qualified beneficiaries, or claimants directly affected by Hurricane Katrina ... group health plans, disability and other welfare plans, pension plans, and health insurance issuers subject to part 7 of ERISA, must disregard the period from August 29, 2005 through January 3, 2006 when determining ... the 60-day period to elect COBRA continuation coverage ... [t]he date within which individuals may file a benefit claim ..." (Internal Revenue Service; Employee Benefits Security Administration)
Study Reports More G.ay-Friendly Employers in 2005
Excerpt: "More large US companies in more industries have g.ay-inclusive policies than ever before, according to Human Rights Campaign, a g.ay rights group. .... The group's fourth annual Corporate Equality Index turned up 101 companies with a perfect score when graded on their treatment of g.ay, les.bian, transse.xual, and transgender workers, according to Reuters." (PLANSPONSOR.com: one-time registration required)
Overview: Avoiding Risk as a Plan Service Provider (PDF)
13 pages. Excerpt: "We live in a litigious society with a functional definition of ERISA fiduciary. A fiduciary is what a fiduciary does. Moreover, courts recently have been finding fiduciaries, non-fiduciaries, and even non-parties in interest to be liable in connection with prohibited transactions." (Gardner Carton & Douglas)
Overview: Human Resource and Employee Benefits Compliance Technology
Excerpt: "Regulatory compliance is a necessary evil for HR and benefits professionals. But it's possible to use HR technology in a way that brings financial returns from compliance, making the task much less bothersome, if not downright rewarding. Eric Pulaski, CEO of BindView, a Houston-based provider of compliance software, recommends making a business decision to achieve a return on investment from regulatory compliance, rather than treating it as an obligation." (Employee Benefit News)
Newly Posted Events
Circular 230, Tax Shelters and Plan 412i Plans
in California on November 17, 2005
presented by Western Pension & Benefits Conference - Orange County Chapter
The New World of Non-Qualified Deferred Compensation After Section 409A
in California on October 20, 2005
presented by Western Pension & Benefits Conference - Orange County Chapter
Newly Posted Press Releases
Study Shows Slight Gains in Retirement Plan Participation
(Employee Benefit Research Institute (EBRI))
Invesmart Launches Bill of Rights for Retirement Plan Participants; Urges Retirement Industry to Embrace Bill
(Invesmart, Inc.)
Controller Westly Announces State Tax Benefits for Businesses and Employees Donating to Hurricane Relief; Innovative Program Allows Workers to Contribute Leave Time
(California State Controller's Office)
CPI Introduces AdviserSelect - The Answer to Full Fee Disclosure
(CPI Qualified Plan Consultants, Inc.)
RolloverSystems Announces Selection By TIAA-CREF To Provide Direct Rollover Services
(RolloverSystems)
The Budget-Conscious Way to Recruitment Software
(Swiftpro Ltd.)
Newly Posted or Renewed Job Openings
Senior Plan Administrator
for WESPAC
in CA
Accountant
for 401(k) Advisors
in CA
Executive Advisory Services CRM Director
for Confidential
in NJ
Manager, FA Training & Education
for Merrill Lynch
in NJ
Small Market Business
for Merrill Lynch
in NJ
Benefits Project Specialist
for Aon
in MD
Retirement Analyst/Project Manager
for Aon
in MD
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Copyright 2005 BenefitsLink.com, Inc.; except that you may reprint this newsletter in full (including this sentence) without obtaining our permission.
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