| BenefitsLink Retirement Plans Newsletter |   |
November 4, 2005
Today's sponsor: Retirement Planning Center (RPCPlus)
(Click on company name or banner to learn more.)
| NEW! RPCPlus |
| Introducing the Fastest, Easiest, most Accurate way to Create, Tweak and Deliver Pension Proposals on the Internet. |
| (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) |
Accounting Board to Vote on Pension Rule Next Week
Excerpt: "The current rule, issued in 1985, has been criticized for distorting corporate financial reports. Some investors have said that the rule allows companies to project, at the beginning of each year, how much money their pension investments are likely to earn, then factor that amount into their bottom lines at the end of the year, no matter what the real performance was." (The New York Times; one-time registration required)
Analysis of Congressional Pension Funding Reform Proposals (PDF)
10 pages. Excerpt: "The American Academy of Actuaries1 Pension Committee provides this analysis to address a number of issues in current pension funding reform legislation, specifically the Pension Protection Act of 2005 (HR2830) and the Pension Security and Transparency Act of 2005(PSTA, S.1783), which is the merged version of the bills passed separately by the Senate Finance and Senate Health, Education, Labor and Pensions (HELP) committees." (American Academy of Actuaries)
ERIC Letter Urges Senators to Support Bingaman Amendment to Budget Reconciliation Bill
Excerpt: "The proposed budget reconciliation bill to be considered by the Senate Wednesday November 2, increases the premium-taxes paid by plan sponsors of defined benefit pension plans to the Pension Benefit Guaranty Corporation (PBGC) that are contrary to the interests of plan participants and that violate the mission of the PBGC that is enunciated in ERISA." (The ERISA Industry Committee)
Bingaman Amendment #2364 to Reconciliation Bill on PBGC Premiums (PDF)
2 pages. (U.S. Senate via American Benefits Council)
Cashing In: Do Aggressive Pension Funding Policies Lead to Higher Credit Ratings?
Excerpt: "This article takes a fresh look at the relationship between pension deficits and the credit ratings of sponsoring firms. Using data from Fortune 1000 pension sponsors over the past three years, we find a notable positive relationship between higher pension deficits and lower credit ratings." (Watson Wyatt Worldwide)
Disadvantages of Replacing State and Local Government DB Plans with DC Plans
Excerpt: "National Conference on Public Employee Retirement Systems has long been delivering the message that traditional DB pension plans represent a tried and true system that benefits taxpayers. The [target page contains] NCPERS' list of disadvantages of replacing defined benefit plans with defined contribution plans for state and local governments, their employees and taxpayers ...." (Cypen & Cypen)
Report: Social Security Privatization Around the World (PDF)
33 pages. Excerpt: "This AARP Public Policy Institute Issue Paper by John Turner surveys social security privatization in various countries, presenting a framework for understanding the ways that countries privatize social security. Further, it discusses issues that have arisen as a result of privatization, including high administrative costs, delays in crediting accounts, and the lack of predictability of benefits due to financial market risks." (AARP Public Policy Institute)
Social Security Pensionable Age in OECD Countries: 1949-2035 (PDF)
56 pages. Excerpt: "Using data on pensionable or early retirement ages in 23 OECD (Organization for Economic Cooperation and Development) countries for the years 1949-2035, this AARP Public Policy Institute Issue Paper by John Turner examines the social security reform process that leads to changes in pensionable age." (AARP Public Policy Institute)
Opinion: Social Security Reform -- What's the Best Fix?
Excerpt: "The best way to fix Social Security may be a combination of adjusting it back into balance and investing the surplus where Congress can't get at it." (American Academy of Actuaries)
IRS Extending Voluntary Correction Program Relating to Foreign Tax Withholding
Excerpt: "In RP-2005-71, the IRS explains that the Section 1441 VCP was initiated as a temporary program. The program was effective September 29, 2004 and would be available for submissions made on or before December 31, 2005." (PLANSPONSOR.com: one-time registration required)
Links to Items on Executive Comp, Benefits in General
Monthly Benefit News and Development, November 2005 (PDF)
2pages. The November edition contains short items covering the following issues: Public Plan Funding; Regulatory Roundup; SEC's 403(b) Site; Preretirement Distributions; Upcoming Key Dates; Legislative Activity on the Benefits Front; and, Cash Balance Plans. (Milliman)
Presidential Advisory Panel's Proposal Would Abolish ESOPs, Repeal AMT
In his Employee Ownership Update for November 3, NCEO Executive Director Corey Rosen discusses the effect of the proposals in the final report of the Presidential Advisory Panel on Federal Tax Reform. Most importantly, the Panel's proposals would replace existing defined contribution plans (which include ESOPs) with a new Save at Work plan. Also of interest is the proposed repeal of the alternative minimum tax (AMT), which is of interest to those involved with incentive stock options. (National Center for Employee Ownership)
Action Items by Dec. 31, 2005, in Response to Latest IRS Guidance on Deferred Comp 409A Provisions (PDF)
4 pages. Excerpt: "This alert letter discusses the actions that must betaken by the end of 2005 to comply with the deferred compensation provisions of Section 409A for those aspects of the transition relief which have not been extended." (Frederic W. Cook & Co., Inc.)
Benefits Briefs: Legal Developments Affecting Employee Benefits -- September 2005 (PDF)
6 pages. In this issue: Fiduciary Minefields; Protected Activity of a Fiduciary; Rev. Rul. 2005-55: Forfeiture of Accounts for Incidental Medical Benefits Violates Vesting Requirements for Profit Sharing Plans; COBRA Strikes Again; Surprise -- Plan Document Controls Over SPD. (Nixon Peabody LLP)
Can Plaintiff Get Relief for Fiduciary Breach?
Excerpt: "A Seventh Circuit panel that included Judge Easterbrook recently invited an ERISA plaintiff to seek 'make-whole' relief against a fiduciary in McDonald v. Household International, Inc. This has been a vexing issue for plan participants since the Supreme Court's decision in Great-West, which many courts have interpreted to limit severely the kind of relief a participant may obtain from fiduciaries and others." (Michael H. Rosenthal via foryourbenefit.blogspot.com)
Hurricane Katrina Disaster Relief: Employers Can Lend a Helping Hand
Excerpt: "Altruistic employers can match employees' charitable donations, or allow employees to contribute their leave to a charity or an employee leave bank. They can grant paid or unpaid leaves of absence, so employees can do relief work themselves. However employers decide to help, they must carefully consider plan design and administration issues, tax and ERISA consequences, and applicable state laws." (Watson Wyatt Worldwide)
The State of the TPA Industry and Forecast for 2006
Excerpt: "This report & forecast for 2006 is being written in November 2005, at a time when many of the concerns about which we've warned before are starting to show. Many of the largest employers are saying that they cannot support & continue the level of ever-increasing cost of health coverage for retirees and employees." (Society of Professional Benefit Administrators)
Hewitt Federal Legislation Quick Guide Updated as of November 1, 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)
Opinion Piece from Tom DeLay -- A Swing and a Miss on Tax Reform
Excerpt: "This was a chance to scrap the Internal Revenue Code -- the 5-million-word monstrosity that costs American businesses and families billions of dollars and billions of hours to comply with -- once and for all. The president gave the panel a golden opportunity to bring about vital, comprehensive reforms. Instead, it proposed an array of incremental policy tweaks of the kind that one might expect to be presented in the president's annual budget." (The Washington Post; one-time registration required)
Editorial: Reshaping the Tax Code
Excerpt: "[T]he panel offered a number of suggestions to make the system simpler and fairer. The three most revolutionary would limit deductions for home mortgages and health insurance and eliminate the deduction for state and local taxes." (The Washington Post; one-time registration required)
Newly Posted Events
409A: Overview of New Proposed Regulations and Immediate Employer Response
Nationwide on November 7, 2005
presented by West LegalEdcenter
Defined Benefit Plan - Year-End Roundup
Nationwide on November 15, 2005
presented by Morgan Lewis & Bockius LLP
Defined Benefit Plan - Year-End Roundup
Nationwide on November 22, 2005
presented by Morgan Lewis & Bockius LLP
Newly Posted Press Releases
Tax Reform Panel Proposals Will Reduce Retirement Savings
(Profit Sharing/401(k) Council of America (PSCA))
Trustmark Mutual Holding Co., Charles Schwab and Alliance Benefit Group Unite To Bring Consumers More HSA Investment Options
(TrustMark)
Thomas E. Plumb Named President Of Stanton Group
(Stanton Group)
Charles Russella Named Retirement Practice Leader Of Stanton Group
(Stanton Group)
How Rising Health Care Costs Affect Household Finances
(Employee Benefit Research Institute (EBRI))
Aetna Selects CitiStreet; Benefits Firm's First HR Contact Center
(CitiStreet)
Apex Pension Strategies, Inc, and Paragon Pension Services, Inc. Announce Merger
(Pyrastar Pension Group)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Gerianne DeRosa
(Preferred Pension Planning Corporation)
Newly Posted or Renewed Job Openings
Conversion (Implementation) Specialist
for RSM McGladrey Retirement Resources
in IL, MN
Pension Account Execs
for Graham Forbes, Inc.
in NY
Director, Institutional Relationship Management
for BISYS Retirement Services
in PA
Health Benefits Analyst
for SEGAL an employee benefits, human resources, and compensation consulting firm
in CA
Accountants
for The Retirement Plan Company, LLC
in TN
Compliance Officer/Consultant
for Ameriprise Financial
in MN
Analyst, Benefits
for Ball Corporation
in CO
Administrator, Retirement and Savings
for Ball Corporation
in CO
Financial Transactions Specialist
for ExpertPlan. Inc.
in NJ
Client Service Project Manager
for BrokerSuite
in MA
Account Executive Director
for The Principal Financial Group
in WA
Retirement Plan Administrator
for Virchow Krause & Co., LLP
in WI
Training Instructional Designer
for BISYS Retirement Services
in PA
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: