| BenefitsLink Retirement Plans Newsletter |   |
October 26, 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 |
| DATAIR's IMPROVED BENEFIT ADMINISTRATION SOFTWARE for 401(k), Profit Sharing and all other Defined Contribution plans. Designed for administrators and consultants.
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) |
House Panel to Vote on PBGC Premium Hike
Excerpt: "Budget legislation expected to be voted on Wednesday by a House panel would boost by more than 50% the base premium employers with defined benefit plans pay the Pension Benefit Guaranty Corp., while, for the first time, giving the PBGC authority to boost premiums in the future." (Business Insurance)
Delphi Wants to Freeze Union Pension
Excerpt: "Bankrupt Delphi Corp. has told the United Auto Workers it wants to freeze its union pension and eliminate retiree health care and other benefits, a UAW rank-and-file publication said [yesterday]." (Reuters via MSN.Money)
Graphs: Company Sponsored Pensions in Peril
The three graphs show changes in company sponsored pension plans. (Time Online Edition)
New Jersey Sued Over Contributions to Police, Fire Pension Fund
Excerpt: "Professional Firefighters Association of New Jersey, Trenton, sued the state of New Jersey, state Treasurer John McCormac and the state Senate and General Assembly, seeking to overturn a 2003 law that allowed municipalities to lower their contributions to the $16.4 billion Police and Firemen's Retirement System of New Jersey, Trenton. The lawsuit, filed in New Jersey state court, also seeks to force the state to make 'regular, full payments' to the pension plan .... " (Pension & Investments Online)
The True Nature of the Risks to the Defined Benefit Pension System (PDF)
16 pages. Excerpt: "In this report, [three fundamental questions are addressed]: Just how bad is the PBGC's current funding situation? Why should workers care? What legislative proposals are critical to the long-term survival of the defined benefit system?" (American Benefits Council)
Overview: PBGC Guidance on 2005 Participant Notice Requirement for Underfunded Plans; Model Notice
Excerpt: "The purpose of the Participant Notice requirement is to ensure participants in certain underfunded pension plans are aware of the plans' funding status and the PBGC's maximum benefit guarantees. When required, the 2005 Participant Notice is due 2 months after the plan's 2004 Form 5500 due date (including extensions)." (Deloitte's Washington Bulletin via BenefitsLink.com)
Survivors of AK Employees Suing over Pension Benefits Calculations
Excerpt: "... According to the suit, AK's benefits plan gives surviving spouses 50 percent of the monthly base pension their spouses received before their deaths, minus ... " (Middletown Journal; one-time registration required)
Qualified Higher Education Expenses -- Tax Court Provides Insight into IRA Distributions
Excerpt: "Distributions from a traditional IRA prior to age 59-1/2 are generally subject to federal income tax and a 10 percent penalty tax. However, Internal Revenue Code (IRC) Section 72(t) provides for several types of distributions that are exempt from the 10 percent penalty tax, including IRA distributions used to pay for 'qualified higher education expenses.'" (Bankers Systems Retirement Plan Services)
Inventing the Stretchable Retirement Dollar -- With Annuities
Excerpt: "As the retirement system braces for the graduation of a generational bulge into old age, plan sponsors are starting to worry whether they are doing enough -- now that an increasing number no longer offer DB plans -- to prepare employees for a potentially long retirement with fewer safety nets. Yes, they have been providing education on savings and more investment options in their defined contribution (DC) plans, but do their participants have the knowledge to make their savings stretch ...." (Treasury & Risk Management)
Air Force Rejects Benefits for 'Air America' Employees
Excerpt: "If you were once a pilot for a secret airline run by the CIA, flying all sorts of clandestine military operations in Southeast Asia for three decades, are you entitled to government retirement benefits?" (National Journal via GovExec.com)
Links to Items on Executive Comp, Benefits in General
Time Cover Story: The Broken Promise -- Retirement Benefits with a Pension and Health Care
Excerpt: "Now more and more companies are walking away from that promise, leaving millions of Americans at risk of an impoverished retirement. How can this be legal? A TIME investigation looks at how Congress let it happen and the widespread social insecurity it's causing. .... To get immediate access to this complete story, you must be a TIME Magazine subscriber." (Time Magazine; subscription required for access to complete story)
Report to Attendees at 2005 NCTR Convention on Federal Developments by Cynthia L. Moore (PDF)
7 pages. Excerpt: "[The report covers the following:] Where Do We Stand on Federal Issues? Summary of 18 Years of Lobbying Activity for NCTR; and, Cash Balance Provision in S. 1783 ... a short explanation of the governmental plan problems with the current Senate bill dealing with hybrid plans." (National Council on Teacher Retirement)
Each Element of Total Pay Is Part of Toolbox to Attract, Retain, Motivate, and Focus Employees (PDF)
2 pages. Excerpt: "The first step in building a strategic response is to focus on the 'majors' in total pay. This means a focus on cash compensation (base pay plus incentives), medical benefits, and retirement benefits." (Milliman)
Employers Write Off Displaced Workers at Legal Peril -- Reminders of Obligations
Excerpt: "The worst of times may be the best time to remind employers of their legal obligations to their workers. A New Orleans-based law firm is advising hundreds of clients who had business operations disrupted by Hurricane Katrina to be mindful of employment laws." (BenefitNews Connect)
Table: Year 2006 IRS Dollar Limits Affecting Employee Benefit Plans
Excerpt: "The IRS recently announced the 2006 cost-of-living adjustments for various provisions affecting employee benefit plans." (Perkins Coie)
Washington Regulatory Wrap Up, As of October 24, 2005 (PDF)
3 pages. The chart of federal regulatory proposals concerning employee benefits of interest to NCTR members has been updated to be current as of October 24, 2005. The federal updates referenced in the chart are available at http://www.nctr.org/federal/index.html. (National Council on Teacher Retirement)
Newly Posted Events
2006 Benefits Fair and Trade Show
in Massachusetts on May 24, 2006
presented by New England Employee Benefits Council
Benefits Philadelphia
in Pennsylvania on December 8, 2005
presented by Employee Benefit News
Benefits Philadelphia Conference
in Pennsylvania on December 8, 2005
presented by Employee Benefit News
Ready for Roth?
in North Carolina on December 6, 2005
presented by SunGard Corbel
Newly Posted Press Releases
PSCA Releases Roth 401(k) Survey: 17.4 Percent of 401(k) Plans Intend to Add Roth Feature; 40.9 Percent Still Undecided
(Profit Sharing/401(k) Council of America (PSCA))
WLB Launches Work/Life Program For Labor Unions
(Workplace Options)
Ameriprise Retirement Services Introduces Podcasting
(Ameriprise Retirement Services)
Newly Posted or Renewed Job Openings
Benefits Associate - Global Consulting Group
for Towers Perrin
in NY
Actuarial Associate - Global Consulting Group
for Towers Perrin
in NY, PA
Director, Retirement Services Support Services
for Administaff
in TX
Manager - Health Claims/Customer Service
for Zenith Administrators
in WA
Compliance Administrator- Plan Consulting Services
for Vanguard
in PA
Employee Benefit Administrative Officer
for Citizens & Northern Bank
in PA
Pension Administrator
for Retirement Alliance, Inc.
in NH
Retirement Plan Administrator
for Bates & Company, P.A.
in FL
Regional Service Coordinator
for Standard Insurance Company
in OH
Health & Welfare Consultant - Westwood, CA
for Aon/Albert G. Ruben
in CA
Assoc Counsel (Employee Benefits/Tax/Retirement Accounts)
for Great-West Corporate
in CO
Benefits Analyst - 401k
for Knowledge Learning Corporation
in OR
Retirement Plan Administrator
for TPA Firm Established in 1982
in NH
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.
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: