| BenefitsLink Retirement Plans Newsletter |   |
October 7, 2005
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
(Click on company name or banner to learn more.)
| Software for DC/401(k) Plan Administration |
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| (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) |
Bill to Strengthen Pension Plans Is Mired in Dispute over Financing Rules
Excerpt: "After ending a fight over the treatment of airlines, the legislation's sponsors were battling a new revolt by senators over the bill's stricter treatment of old-line manufacturers that are in poor financial health." (The New York Times; one-time registration required)
Father of 401(k) Plans Thinks Latest Savings Rage -- the Roth 401(k) -- Is Overrated
Excerpt: "The man who is credited with inventing the 401(k) plan isn't very impressed with the latest twist on the 25-year-old retirement program. Roth 401(k) plans will let workers save part of their taxable wages so they won't owe any taxes when they withdraw the funds after retirement. But Ted Benna, who designed the first 401(k), doesn't 'consider it personally to be a very big deal (even though) it's going to get a lot of press.'" (Las Vegas Review-Journal)
401(k) Plan Fiduciary Breach Lawsuit Against Westar Energy Inc. Moves Forward in the Court System
Excerpt: "US District Judge Julie Robinson of the US District Court for the District of Kansas ruled that the plaintiffs had raised a sufficiently strong case that the corporate defendants would be considered a fiduciary under the Employee Retirement Income Security Act (ERISA), BNA reported." (PLANSPONSOR.com: one-time registration required)
WSJ Online/Harris Interactive Poll Finds Worker Participation at 45% for 401(k) or 403(b) Plans
Excerpt: "According to the announcement, there appears to be a direct correlation between income level and the likelihood to participate in a 401(k)/403(b) plan. Less than one-quarter (22%) of workers with annual household incomes of $35,000 or less are K plan participants or are in a 403(b) compared to 40% of workers with incomes of $35,000 to $49,999, 54% of workers making $50,000 to $74,999, and 66% of workers pulling in $75,000 or more." (PLANSPONSOR.com: one-time registration required)
Large IRAs Not Fully Protected from Bankrup.tcy or Lawsuit Seizure?
Excerpt: "A recent U.S. Supreme Court ruling and new federal law have extended bankrup.tcy and lawsuit protection over most assets in individual retirement accounts. But[,] caution financial planners, the protection may not be complete for owners of large IRAs." (Naples Sun Times)
United Airlines' Pilots Ask Court to Force Pension Payments to Current Retirees and Beneficiaries
Excerpt: "The Rocky Mountain News reports that the Air Line Pilots Association and United Retired Pilots Benefit Protection Association are fighting to have United forced to make around $6 million in October pension payments from a non-qualified plan to retired pilots and dependents. About 3,300 retirees and beneficiaries nationwide were receiving monthly benefits from the plan, the news report said." (PLANSPONSOR.com: one-time registration required)
Valuation of Retirement Benefits in Divorce Settlements
Excerpt: "Before going ahead and having your client's, or your opposing counsel's client's retirement benefits valued, always compare notes with your opposing counsel to be sure you are in agreement on the basic data being submitted." (The Divorce, Pensions and Retirement Benefits Newsletter)
Socially Responsible Investing -- Does It Pay for Public Pension Funds?
Excerpt: "In last week's Pro Shop, economist Alicia Munnell argued that socially responsible investing had no place in public pension funds. She reasoned that screening out potential investments based on ethical, religious or other similar criteria distracted managers from their primary mission of maximizing returns. Besides, Munnell said boycotting companies on moral grounds doesn't have much of an impact on share prices." (SmartMoney.com)
Lockheed to Cut Employee Benefits: Pension Changes to Affect New Workers
Excerpt: "Employees hired after Jan. 1 will be ineligible for the company's traditional pension plan, which guarantees workers a percentage of their salaries upon retirement, and will not qualify for retiree health care benefits." (The Washington Post; one-time registration required)
Small Business, but Big Retirement Nest Egg Is Possible
Excerpt: "'Small business' doesn't mean 'small retirement.' Indeed, small-business owners have plenty of options for retirement savings -- for themselves and their employees. Don't be fooled by their names, though. 'Simple' or 'simplified' plans often fail to live up to their names." (The Motley Fool)
New United Kingdom Pension Funding Rules Delayed
Excerpt: "The U.K. government said Thursday that new funding rules for defined benefit pension plans will be delayed until December. The new rules, which incorporate a European Union directive on occupational pension funding, had been expected to come into force at the end of this month." (Business Insurance)
Most United Kingdom Defined Benefit Plans Boosting Contributions
Excerpt: "Most U.K. defined benefit pension plans are underfunded, and many employers have increased their contributions to occupational plans to try to address funding deficits, a survey shows. The Assn. of Consulting Actuaries' survey found that 89% of defined benefit pension plans sponsored by employers surveyed were in deficit, and 88% said their plans' actuaries had suggested an increase in contributions to address the shortfall." (Business Insurance)
Links to Items on Executive Comp, Benefits in General
Overview: GASB Issues Long-Awaited OPEB Implementation Guide (PDF)
2 pages. Excerpt: "A Segal Company Bulletin for the Public Sector that discusses long-awaited guidance released by the Governmental Accounting Standards Board (GASB), Guide to Implementation of GASB Statements 43 and 45 on Other Postemployment Benefits, only touches on highlights of GASB's implementation guide, which is extensive." (The Segal Company)
Overview: Proposed Regulations under Section 409A
Excerpt: "In particular, the new 409A proposed regulations ... provide detailed operational rules relating to elections and distributions, and they address a range of important issues like when a plan may be terminated (and not just frozen) and how to value private and public company stock." (Kilpatrick Stockton LLP)
Hewitt Federal Legislation Quick Guide Updated as of October 4, 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)
Newly Posted Press Releases
401(k) Conference For Sales And Investment Professionals Now Taking Registrations Online
(American Society of Pension Professionals & Actuaries (ASPPA))
New England Business Warms to Health Savings Accounts; Survey Finds Over 60% Considering Offering an HSA by 2007
(Compensation & Benefit Solutions (CBS))
Newly Posted or Renewed Job Openings
Plan Administrator
for RSM McGladrey Retirement Resources
in IL
Inside Sales Representative
for BISYS Retirement Services
in PA
Key Account Manager
for ING U. S. Financial Services
in CA, NV
Non-Qualified Plan Consultant
for The Newport Group
in FL
Omni Specialists; Contract positions
for RSM McGladrey Retirement Resources
in IL
Senior Consultant/Manager
for Milliman, Inc.
in CO
Director, International Compensation and Benefits
for Sony Pictures Entertainment
in CA
Consultant, Health and Productivity Management
for Kindred Healthcare
in KY
Client Services Representative
for National Automobile Dealers Association
in VA
Director- Variable Life
for MassMutual Financial Group
in CT
OmniPlus Business Analyst
for High Point Consulting & Staffing, LLC
in ANY STATE
Producer
for First Charter Bank
in NC
Systems Development Leader/Actuary
for Lynchval Systems Worldwide, Inc.
in DC, VA
DB Client Service Analyst
for Mercer HR Services
in ANY STATE
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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