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October 20, 2005
Today's sponsor: DATAIR Employee Benefit Systems, Inc.

(Click on company name or banner to learn more.)
Banner ad for DATAIR Employee Benefit Systems, Inc.

Software for DC/401(k) Plan Administration

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This Windows system features many important enhancements including flexible input for employee data, share and dollar accounting; redesigned easy-to-read report formats, a transaction database for time-weighting of allocations; electronic anniversary notification and data collection; and unlimited investment and source definitions. The system also allows for great flexibility in setting up graded class allocation (cross-tested new comparability) plans.

Training and support included. For free demo versions and pricing, contact sales@datair.com or call 1-888-328-2474.


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

NFIB National Small Business Poll on Retirement -- 2005 (PDF)
28 pages. Excerpt: "Thirty (30) percent of small employers sponsor a pension plan, a 401(k) being the most common type. Ninety (90) percent of owners participate in their firm's pension plan. Plans where they exist are typically instituted about five years after the business started operations (or changed ownership)." (National Federation of Independent Business)

Women Are Delaying Saving for Retirement, According to Oppenheimer Survey
Excerpt: "The 2005 Women & Investing Survey by OppenheimerFunds, Inc. found that 93% of women say saving for retirement is their primary investment goal, but 47% are not contributing to a retirement plan. [56%] of the women surveyed said they are not very or not at all prepared for retirement." (PLANSPONSOR.com: one-time registration required)

Measuring Social Security's Financial Outlook Within an Aging Society (PDF)
23 pages. Excerpt: "[T]he Social Security Trustees have begun to include new measures of Social Security's financial outlook .... These measures have been endorsed by an independent panel of experts appointed by the Social Security Advisory Board. Unfortunately, these new measures are buried in the Report and are not gaining enough attention of policymakers and the media. This paper argues that they deserve much more careful consideration." (TIAA-CREF Institute)

Opinion: The 'DB-ification' of Defined Contribution Plans
Excerpt: "Those enamored of this approach point to automatic enrollment, contribution acceleration, and lifestyle funds as the 'DB-ification' of defined contribution plans -- the purported wisdom of bringing to bear on those plans the approach that has long been true on the defined benefit side. I don't much care for the DB-ification analogy, if for no other reason than it tends to gloss over the reality that with defined benefit plans we also didn't usually ask workers to make direct ...." (PLANSPONSOR.com: one-time registration required)

Council/ERIC Amicus Brief in Milofsky v. American Airlines (PDF)
30 pages. Excerpt: "The last few years have seen a tremendous increase in litigation against ERISA plan fiduciaries premised on ERISA Sections 409(a) and 502(a)(2), which establish a fiduciary's duties to a plan and provide a cause of action for breach thereof. As Supreme Court precedent makes clear, these statutory sections encompass only suits brought on behalf of the plan as a whole, and not those seeking individualized relief." (The ERISA Industry Committee and American Benefits Council)

EU Proposes Rules to Enhance Transfer of Pension Benefits Throughout Europe
Excerpt: "The commission said that under its plan - the portability of pensions directive - 'workers switching jobs or countries will no longer have to worry about substantial loss of work pension benefits.'" (Forbes.com)

Large Premium Increases for United Kingdom Pension Plans Lie Ahead
Excerpt: "Employers with defined benefit plans are facing massive premium increases next year when the risk-based levy required by the Pensions Act of 2004 goes into effect. The new premiums are payable to the Pension Protection Fund (PPF) beginning in April 2006." (Towers Perrin)

National Work-Based Savings Plan Taking Shape in New Zealand
Excerpt: "Within two years, employers in New Zealand will be required to give employees access to a new national work-based savings plan launched by the government, provided the plan is adopted by lawmakers. The 'KiwiSaver,' announced by the government in its May 2005 budget, is intended to help employees save for retirement and a first home deposit, with subsidies from the government." (Towers Perrin)

U.K. Reaches Pension Deal with Public Workers
Excerpt: "Public-sector workers in the United Kingdom will be able to continue to retire at 60 and be eligible for defined benefit pensions under a deal struck between the Trades Union Congress and the government." (Business Insurance)


Links to Items on Executive Comp, Benefits in General

Towers Perrin News Briefs: United States
Briefings included on Deferred Compensation Regulations Issued by IRS; Employers Split on Long-Term Strategies for Medicare Part D Coverage; CMS to Accept RDS Census Updates from Multiple Sources; IRS Clarifies W-2 Reporting for Dependent Care FSAs; CMS Announces 2006 Rates for Medicare Parts A and B; and, FASB Shifts Position on Grant Date for Stock-Based Awards. (Towers Perrin)

Overview: Congress, Fed Agencies Provide Relief for Plan Sponsors & Participants Affected by Katrina
Excerpt: "Employers and employees affected by Hurricane Katrina can take advantage of a number of regulatory relief measures announced by federal agencies, as well as legislative relief passed by Congress." (Towers Perrin)

Remarks by Frederic W. Cook, Stanford Directors' College, June 20, 2005, on Executive Compensation (PDF)
21 pages. Excerpt: "There is much to report that is positive about executive compensation practices and trends in corporate America-- namely a focus on pay-for-performance, equity incentives and ownership. And there is a new dynamic taking place in board rooms across America. Power to influence compensation practices is moving from the CEO to the Compensation Committee, and from the HR and compensation staff to the committee's outside advisors and consultants who are not beholden ...." (Frederic W. Cook & Co.)

Nordic Welfare States Working Just Fine -- Lessons for U.S.?
Excerpt: "For years, American critics have argued that the European social model, with its cushy work hours and cradle-to-grave nanny plans, cannot survive in a global economy. Just look at France, Germany and Italy, whose economies have suffered high unemployment and low growth for a decade, these critics say. .... But there is more than one European model, and some have been more successful than others." (Knight Ridder Newspapers via The Tallahassee Democrat)

Employees Seeking Better Information on Compensation and Benefits
Excerpt: "Many employees want better compensation and benefit information from their employer and would like to have it communicated to them directly on their desktops at work or in other creative ways, according to new Towers Perrin research." (Towers Perrin)


Newly Posted Events

Difficult Health FSA Expenses--To Reimburse or Not to Reimburse?
Nationwide on November 10, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)

Managing Fiduciary Risk
in California on February 16, 2006
presented by Western Pension & Benefits Conference - Orange County Chapter


Newly Posted Press Releases

Mercer Human Resource Consulting Builds Employee Portal for Client Using Trustgenix Identity Management Product; IdentityBridge Provides Employees with Single Sign-On to Third-Party Payroll, Investment, and Healthcare Provider Sites
(Mercer Human Resource Consulting)

CapTrust Financial Advisors selects ICC Plan Solutions as enrollment kit provider
(Metrics Partners)

ERISA Advisory Council to Hold Final 2005
(U.S. Department of Labor, Employee Benefits Security Administration)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Account Manager
for Kibble & Prentice
in WA

Human Resources Support Specialist
for CitiStreet
in FL

Benefits Administrator
for The Rosen Group
in DE, NJ, PA, VA, WV

OmniPlus Consultants
for Chesapeake Benefit Partners
in ANY STATE

Senior Human Resources (Benefits) Specialist
for Fluor Corporation
in TX

Health & Welfare Specialist
for Administaff
in TX

Retirement Services Consultant
for Nationally Recognized Retirement Services, Education and Consulting Firm
in MN

401(k) Implementation Specialist
for 1st Global
in TX

Vice President, Mid-Market Sales
for CitiStreet - A State Street and Citigroup company
in MA, NJ

Pension Administrator
for Sheffler & Martin, Inc.
in CA

ERISA/Benefits Attorney
for Parker, Poe, Adams & Bernstein L.L.P.
in NC

Retirement Services Specialist
for Administaff
in TX

Benefit Analyst
for Mercer HR Services
in MA




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