| BenefitsLink Retirement Plans Newsletter |   |
November 22, 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) |
Text of IRS Notice 2005-87: Grandfather Rule for Preexisting Benefits in DB Plans Under 415 Regs (PDF)
2 pages. Excerpt: "This notice provides that when the final regulations under § 415 of the Internal Revenue Code are published, the grandfather rule of § 1.415(a)-1(g)(3) of the proposed regulations for preexisting benefits in defined benefit plans will be expanded." (Internal Revenue Service)
Overview: Senate Approval of Pension Reform Act
Excerpt: "After a month of delay, the Senate overwhelmingly voted (97-2) to approve the Pension Security and Transparency Act (PSTA, S.1783) on November 16. The Senate's vote is a critical step forward for pension reform. Attention now shifts to the House, where the Pension Protection Act (PPA, H.R.2830) is expected to move to the floor in early December." (Watson Wyatt Worldwide)
SEC Official Says Pension Rules Encourage Underfunding of Plans
Excerpt: "A top strategist at the U.S. Securities and Exchange Commission says current U.S. defined benefit pension rules give employers an incentive to put in too little cash and invest plan assets recklessly. SEC Chief Economist Chester Spatt delivered his critique of the U.S. pension system last week in Washington at a seminar organized by a Georgetown University research center." (National Underwriter Life & Health; free one-time registration or paid subscription required)
Consulting Firm Concerns Growing for San Diego Pension Board
Excerpt: "New questions surrounding the budget and timeline of the pension system's self-investigation have pricked worries among some pension board trustees that they are headed for the same consultant frustrations as their cousins at the city of San Diego. Last week, a consulting firm investigating allegations of wrongdoing in the pension system alerted the city's retirement system that it would exceed its $1.7 million budget and that it had not completed a large portion of its work ...." (voiceofsandiego.org)
U.S Pension Accounting Shift 'Would Hit Equities'
Excerpt: "Proposed changes to pension fund accounting in the US are likely to prompt a shift of investment away from equities and into bonds while speeding the demise of defined-benefit plans, according to investment experts." (Financial Times)
In the Netherlands, Tougher Pension Plan Funding Rules Delayed Until 2007 (PDF)
2 pages. Excerpt: "Relief and some criticism have followed the Dutch Central Bank's (DNB) decision in September to postpone new and tougher funding rules for pension plans until January 1, 2007." (Towers Perrin)
New Jersey Pension Reform Pushed, According to a Draft of the Benefits Review Task Force Report
Excerpt: "The governor's Benefits Review Task Force will recommend an end to state pension abuses that cost taxpayers millions of dollars a year, and it may ask that government workers and retirees pay more for their health care costs, according to a draft summary of the report." (Asbury Park Press)
Regular Reviews Are Key to Retirement Plan Compliance
Excerpt: "Because of their complexity and potential long-term impact on the bottom line, retirement plans are among the most visible sources of frustration in any organization. Many companies implement a plan when they start doing business but revisit it only when their third-party administrator, or vendor, recommends a change." (RSM McGladrey Advantage via SmartPros Ltd.)
Employers in India Subject to New Fringe Benefits Tax
Excerpt: "Employers in India are facing higher costs due to a new tax on pension plan contributions and outlays for certain other employee benefit programs. Guidance issued by the government at the end of August makes it clear that the fringe benefits tax (FBT), as it's called, applies to employer-provided life, disability and health care insurance in addition to pension plan contributions." (Towers Perrin)
Montana's State Pension System Needs Greater Scrutiny
Excerpt: "We don't know very much about the Montana Public Employees Retirement Board or its conflict with Gov. Brian Schweitzer over its recent hiring of an executive director. We'll bet you don't either. That's reason enough to encourage the governor as he fights to pry open the doors and windows at PERS and let some sunshine in." (Missoulian)
Louisiana Senate Agrees to Plan for State Employees' Early Retirement
Excerpt: "Sen. Butch Gautreaux couldn't get his early retirement plan for state employees through the retirement committee that he heads, so he persuaded the Senate to tack those provisions onto two other House-passed bills Monday, bypassing the committee." (AP via nola.com)
Senate's Tax Bill Includes Incentives for Charity Gifts
Excerpt: "The bill would add tax breaks for people who make small charitable contributions and for those who want to donate directly from their individual retirement accounts." (The New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Overview: FASB Vote to Reconsider Accounting for Pensions and Other Retiree Benefits (PDF)
3 pages. Excerpt: "At its Board meeting on November 10, 2005, the Financial Accounting Standards Board (FASB) discussed whether to add a project to its agenda to reconsider the accounting for pensions and other postretirement benefits. The FASB unanimously agreed to pursue a two-phase project, as recommended by the FASB Staff." (Hewitt Associates)
Why Disparate Impact Claims for Age Discrimination Still Face an Uphill Battle
Excerpt: "In March, the U. S. Supreme Court held for the first time that the Age Discrimination in Employment Act (ADEA) allows current or former employees to sue for age discrimination even where there is no evidence of intentional discrimination, under what are known as 'disparate impact' claims. Such claims allege discrimination based on the impact of a policy on a group of employees, rather than deliberate discriminatory treatment." (Faegre & Benson LLP)
Utah State Faculty to Debate Domestic Partner Benefit Coverage
Excerpt: "A proposal to offer domestic partners the same benefits as married employees is back at the Utah State University campus after a nine-month hiatus. Barry Franklin, a professor at the College of Education and Human Services, circulated a petition and won the right to raise the issue Monday before the school's faculty. The Faculty Senate will decide Dec. 5 whether to keep the proposal alive." (AP via kutv.com)
Newly Posted Events
Four Important Sources of Benefit Plan Liability and How to Avoid Them Teleweb
Nationwide on December 8, 2005
presented by International Foundation of Employee Benefit Plans
Quarterly Meeting
in Montana on December 1, 2005
presented by Western Pension & Benefits Conference - Montana Chapter
Newly Posted Press Releases
PBGC Assumes Pension Plans Of Two Falcon Products Companies
(Pension Benefit Guaranty Corporation (PBGC))
Treasury and IRS Issue Guidance on FSA Grace Period and HSA Eligibility
(U.S. Treasury Department and Internal Revenue Service)
CRR Releases New Women's Game on Retirement Planning
(Center for Retirement Research at Boston College)
Newly Posted or Renewed Job Openings
Pension Consultants/Administrators
for Northern NJ Mid-Size Pension Consulting Firm
in NJ
Health and Welfare Implementation Manager
for Constantin Control Associates
in NJ
ERISA Fiduciary
for Sentinel Fiduciary Services
in FL
401(k)/ Retirement Plan Administrator
for Pension Consulting/Services Firm
in MI
Employee Benefits Administration Specialist
for Large, locally owned CPA firm
in LA
Manager Distribution Desk
for Associates in Excellence
in CA
Plan Administrator
for Continental Benefits Group, Inc.
in NJ
Retirement Plan Specialist
for Leggette Actuaries, Inc.
in TX
Handy Links:
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- 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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