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November 9, 2005
Today's sponsor: DATAIR Employee Benefit Systems, Inc.

(Click on company name or banner to learn more.)
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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)

U.S. House Pension Bill to Encourage 401(k) Signups
Excerpt: "A proposal that would encourage U.S. companies with 401(k) retirement plans to automatically enroll employees is due to go before a U.S. House committee on Wednesday as an amendment to comprehensive pension legislation." (Reuters)

Text: Senate Finance Committee Report -- S. Rept. No. 109-174 -- on S.1953, NESTEG (PDF)
300 pages. Excerpt: "To amend the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 to protect the retirement security of American workers by ensuring that pension benefits are funded and that pension assets are adequately diversified and by providing workers with adequate access to, and information about, their pension plans, and for other purposes." (Senate Finance Committee via The ERISA Industry Committee)

Chairman's Mark of the Pension Protection Act, H.R. 2830 (PDF)
222 pages. Amendment in the Nature of a Substitute to H.R. 2830 Offered by Mr. Thomas of California. (Ways and Means Committee via American Benefits Council)

Official Summary of Chairman's Mark of the Pension Protection Act, H.R. 2830 (PDF)
11 pages. Excerpt: "H.R. 2830. Employers have the option of providing workers with access to professional investment advice. Fiduciary safeguards are created to protect workers from potential conflicts of interest. In addition, the provision clarifies that the fiduciary advisor, not the employer, is liable for the advice given." (Committee on Ways and Means via American Benefits Council)

Joint Tax Committee Description of Chairman's Mark of Pension Protection Act -- H.R. 2830 (PDF)
96 pages. Excerpt: "Description of the Chairman's Amendment in the Nature of a Substitute to H.R. 2830, The 'Pension Protection Act of 2005' Scheduled for Markup by the Committee on Ways and Means on November 9, 2005" (Joint Tax Committee via American Benefits Council)

Fall 2005 NASRA Newsletter (PDF)
20 pages. Topics covered include: GASB and GASAC Update; Update on DB/DC Initiatives; Hedge Funds: Opportunities and Risks; System Governance; Re-Visioning Retirement; Investing in the New Age Wave; Washington Watch: What Taxes, Simplification, and Social Security Mean to You; and, The Public Fund Survey and Other Observations of the Public Pension Community. (National Association of State Retirement Administrators)

SEC Probes Company Pension Plans -- Agency Investigating Plans of Major U.S. Employers
Excerpt: "The Securities and Exchange Commission is probing whether companies have tweaked their pension plan assumptions to please shareholders rather than protect the interests of retirees, the Wall Street Journal reported [today], citing people familiar with the matter." (Reuters via CNN Money)

Aging Baby Boomers Delay Retirement -- Longer Life Expectancies
Excerpt: "A growing number of Americans are working beyond the traditional retirement age of 65, motivated by both economic need and personal preference. This could change not only the nature of retirement, but the American work force as well." (Voice of America)

Netherlands Employers Favor Life Cycle Savings Plan to Replace Early Retirement Plans (PDF)
2 pages. Excerpt: "Most Dutch employers intend to set up a new type of savings plan as a full or partial replacement for their current early retirement arrangements, according to a pulse survey by Towers Perrin. The moves are a result of legislation that will soon take effect and scrap tax breaks for early retirement plans, while facilitating 'life cycle' savings to fund career breaks." (Towers Perrin)

Retirement Plan Opens for Many University of Florida Workers
Excerpt: "Thousands of University of Florida employees who are not now eligible for any university retirement plan will find themselves enrolled in FICA Alternative Plan effective Jan. 1." (The Gainesville Sun)

The Emerging Era of Corporate Pensions in Korea (PDF)
Pages 32-37 of 40 pages. Excerpt: "A new occupational, or corporate, pension law (the Employee Retirement Security Act or 'ERSA') was passed by the Republic of Korea (South Korea) National Assembly on Dec. 29, 2004. It will allow for private sector defined benefit (DB) and defined contribution (DC) pension plans for the first time in the world's 10th largest economy ...." (International News, Society of Actuaries)

Retirement Income Calculator -- Beta Version
Excerpt: "The Committee on Knowledge Extension Research (CKER) is pleased to make available, free of charge, this Beta version of the Retirement Income Calculator software created by William Leslie. This software was produced with funding awarded through CKER's annual grant competition. The software was developed as a pedagogical tool to help demonstrate the impact of a change in Retirement Income strategy on potential financial outcomes." (Society of Actuaries)


Links to Items on Executive Comp, Benefits in General

Regulatory Update, November 2005, Employee Benefit Plan Review (PDF)
2 pages. Excerpt: "The update discusses IRS relief published for employee benefit plans and participants affected by Hurricane Katrina." (Employee Benefit Plan Review via Gardner Carton & Douglas LLP)

Foreign Control Group Not Subject to Disallowance of Deduction for Excess Comp Paid to Executives
Excerpt: "The IRS has ruled that the section 162(m) disallowance of deductions for excessive compensation does not apply to U.S. subsidiaries of publicly held foreign corporations." (Alston & Bird LLP via BNA Tax Management)

Use of Non-Qualified Plans in Executive Benefit Programs Remains Steady
Excerpt: "Clark Consulting Inc.'s (CCI) survey of executive benefits found that 91% of surveyed companies offer a Non-Qualified Deferred Compensation Plan (NQDC)." (PLANSPONSOR.com: one-time registration required)

Section 409A Year-End Checklist (PDF)
4 pages. Excerpt: "The new requirements relating to deferred compensation under section 409A of the [IRC] are effective January 1, 2005. Although the due date for amending plans to comply with section 409A is generally December 31, 2006, there are several earlier compliance dates under the proposed Treasury regulations. Plans have to be administered in compliance with section 409A as of January 1, 2005, and certain plan amendments and actions have to be made or taken by December 31, 2005." (Morgan, Lewis & Bockius LLP)

Benefits of State Work on Par with Private Sector in Washington
Excerpt: "When looking for a new job, what do potential employees really look for in a prospective employer? .... So how does the state of Washington fare in comparison with other employers in the state? Is it competitive?" (The Olympian)

Regulatory Update, October 2005, Employee Benefit Plan Review (PDF)
4 pages. Excerpt: "Topics include the anti-cutback rules for defined benefit plans, an IRS ruling on medical expense distributions from defined contribution plans, and IRS and Treasury priority guidance for 2005-2006." (Employee Benefit Plan Review via Gardner Carton & Douglas LLP)

National Compensation Survey: Employee Benefits in Private Industry in the U.S., 2003 (PDF)
98 pages. Excerpt: "This bulletin presents findings of the 2003 NationalCompensation Survey (NCS) conducted by the Bureau of Labor Statistics (BLS). The survey provides data on detailed provisions of healthcare and retirement plans in private industry." (U.S. Bureau of Labor Statistics)

Stock Options: The Company Plan that Keeps on Giving
Excerpt: "Stock option plans are a great way of attracting, motivating and retaining employees -- especially when you can't pay high salaries. Stock options give employees, officers or consultants the ability to buy company stock at reduced prices when they exercise their options." (AllBusiness.com via San Francisco Chronicle)

Executive Pay Sparks Ire of Institutional Investors
Excerpt: "State Treasurer Denise Nappier, who oversees $21 billion in pension investments, delivered what she admitted might be an unpopular message to a business group meeting on Connecticut's Gold Coast. Some corporate executives' pay is out of control, she said." (AP via The Boston Globe)


Newly Posted Events

Fundamentals of 401(k) Plans
in Iowa on November 16, 2005
presented by SunGard Corbel

Plan Design Workshop
Nationwide on February 8, 2006
presented by SunGard Corbel


Newly Posted Press Releases

M-CARE Selects Evolution Benefits' Benny(R) Debit Card Makes Health Savings Account Transactions More Convenient
(Evolution Benefits)


Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)

The Segal Company Promotes Eighteen Executives
(The Segal Company)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Participant Services Representative - DB/401(k)/Retirement Plans
for Kibble & Prentice
in WA

Corporate Trust Operations Manager
for BB&T (Branch Banking and Trust)
in NC




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