| BenefitsLink Retirement Plans Newsletter |   |
December 1, 2005
Today's sponsor: ASC & The ASC Institute
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Text of Proposed Regs on Determining Current Liability for DB Plans: Updated Mortality Tables (PDF)
27 pages. Excerpt: "Based on this review of the 1983 GAM compared to more recent mortality experience, the IRS and Treasury Department have determined that updated mortality tables should be used to determine current liability for participants and beneficiaries (other than disabled participants)." (Internal Revenue Service)
Chart: Leading Proposals Affecting Defined Contribution and Other Retirement Arrangements (PDF)
24 pages. This side-by-side chart compares the defined contribution and IRA plan provisions of current House and Senate pension bills. (American Benefits Council)
Issue in Brief: Could Tax Reform Kill 401(k) Plans? (PDF)
9 pages. Excerpt: "The purpose of this brief is not to evaluate the [tax reform] proposals but simply to explore their implications for the attractiveness of 401(k) plans." (Center for Retirement Research at Boston College)
$288 Million Bailout for Montana State Pension Funds Moves Forward
Excerpt: "Montana taxpayers would have to shell out $288 million over the next six years to help bail out the state's public pension funds under a plan approved [yesterday] by a legislative committee that may be debated in a future special session." (The Billings Gazette)
Comments Sent to EBSA on Participant Investment Fee Disclosure
Excerpt: "ASPPA submitted comments and a model form to the DOL on the disclosure of investment fee information to participants. [The sample form is at http://www.asppa.org/archive/gac/2005/1130_EE_fee_form.xls.]" (American Society of Pension Professionals & Actuaries)
Overview: IRS Issues Notice 2005-92 Providing KETRA Guidance
Excerpt: "The Treasury and IRS have issued Notice 2005-92 providing some much-needed guidance relating to the application of the Katrina Emergency Tax Relief Act of 2005 ('KETRA') for Hurricane Katrina victims and employer-sponsored retirement plans and IRAs. Some highlights of the notice [are on the target page.]" (Attorney B. Janell Grenier via BenefitsBlog.com)
Equity Indexed Annuities: Friend or Foe?
Excerpt: "Why is it that when most investors hear the word 'annuity' especially 'equity index annuity' they recoil as if facing the plague? Annuities have a long history of helping investors meet their retirement needs. In fact, the use of annuities as a savings device can be traced as far back as the Roman times." (403(b)wise, LLC)
Thrift Savings Plan Board Mulls Loan Restrictions, Automatic Enrollment, Other Changes
Excerpt: "Gary Amelio, executive director of the TSP, the government's version of a 401(k) retirement savings plan, wants Congress to pass four legislative initiatives that would change the plan significantly by placing limits on loans, automatically enrolling new hires, changing the default fund and revising fund definitions." (GovExec.com)
Retirement Age at 60, Not 55, in Trenton Plan for New Jersey Public Employee Pensions
Excerpt: "A sweeping new report on New Jersey's troubled pension and health benefits system recommends several drastic changes that could save the state hundreds of millions of dollars a year, but are also likely to anger thousands of government workers and retirees." (The New York Times; one-time registration required)
UK's Turner Says Pension Savings Scheme Could Reach 150 Bln Sterling in 50 Years
Excerpt: "Speaking to Thomson Investment Management News, Turner said the NPSS -- which should be set up in 2010 if the commission's suggestion is implemented -- would include Socially Responsible Investments (SRI) and sharia investments as well as the 'core funds'." (AFX News Limited via Forbes.com)
U.K. National Pension Savings Plan Recommended
Excerpt: "U.K. employers would have to pay 3% of employees' salaries into a proposed National Pensions Savings Scheme, unless they operate a more generous pension plan for staff, under recommendations made Wednesday by an independent commission on pension reform." (Business Insurance)
Update on Cross-Border Regulations from the United Kingdom
Excerpt: "On 21 November 2005, the Government circulated its response to the Consultation on their draft cross-border regulations. The Department for Work and Pensions (DWP) has not yet issued the revised cross-border regulations, but the response to the Consultation document provides a clear indication of what the final regulations will contain. The key points are outlined [on the target page]." (Watson Wyatt Worldwide)
German Companies Facing Higher Pension Reserve Requirements (PDF)
2 pages. Excerpt: "Many plan sponsors in Germany are facing higher pension reserve requirements following the publication of new actuarial tables that show an increase in life expectancy." (Towers Perrin)
How to Check on the Status of a Determination Letter Request
Excerpt: "If you are wondering whatever happened to that determination letter request that you made for a client, the IRS has provided a web page to assist practitioners with checking on the status of their requests. The new web page entitled 'Where is My Determination Letter Request?' allows you to gauge how back-logged the IRS is with respect to reviewing Forms 5307, 5300, 5310, and 6406, and tells you which ones the IRS is currently reviewing based on a 'Received Date.'" (Attorney B. Janell Grenier via BenefitsBlog.com)
Actuaries Criticize GAO Report on Cash Balance Plans in November 28, 2005, Letter to David Walker (PDF)
3 pages. Excerpt: "[The Academy of Actuaries' Pension Practice Council writes regarding GAO's] recent report, 'Private Pensions: Information on Cash Balance Pension Plans.' Based on [their] review, [they] respectfully recommend that [GAO] amend or supplement the report to reflect the considerations enumerated [in the letter]." (American Academy of Actuaries)
Opinion: The Other Shoe Has Yet to Drop on Pension Consultants' Possible Conflicts of Interest
Excerpt: "According to the SEC study, issued in May, most of these pension advisers had relationships with unaffiliated broker-dealers or operated their own broker-dealers -- thus providing themselves with an easy way to receive indirect payments from money managers." (CFO Magazine)
Lawmakers Seek Inquiry on Pension Fund Money Management
Excerpt: "Two members of the House of Representatives asked the research arm of Congress yesterday to investigate whether the federal agencies that enforce pension law have failed to police a crucial part of the pension business: the consultants and money managers who help decide how money is invested." (The New York Times; one-time registration required)
GAO Cash Balance Study Questioned
Excerpt: "A recent Government Accountability Office study found that all workers -- even younger ones -- fare worse in cash-balance pension plans than in traditional defined-benefit programs. Now the analysts whose cash-balance study was criticized by the GAO contend that the agency's critique is not grounded in reality." (Workforce Management; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Text of December 2005 Special Edition of IRS-Published 'Employee Plans News' (PDF)
Excerpt: "This Special Edition contains a reminder that the Abusive Transaction Settlement Initiative is open until January 23, 2006. In addition, more relief for hurricane victims has been issued." (Internal Revenue Service)
Overview: Application of New Deferred Compensation Rules to Equity Compensation
Excerpt: "This article provides general guidelines to help you identify plans that may be exempt from the rules and plans that may need to be amended to comply with the rules. In the case of a plan that needs to be amended, this article highlights some alternatives to consider that would allow plan participants to continue to defer compensation amounts without current taxation." (Deloitte's Washington Bulletin via BenefitsLink.com)
Overview: U.S. Supreme Court to Reconsider the Scope of Equitable Relief under ERISA (PDF)
2 pages. Excerpt: "The U.S. Supreme Court will again consider the scope of equitable relief under ERISA. The Supreme Court's decision could impact a wide variety of claims for fiduciary breach brought by participants under ERISA § 502(a)(3)." (Proskauer Rose LLP)
Hewitt Federal Legislation Quick Guide Updated as of November 29, 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)
Newly Posted Events
Advanced IRA Distribution Training for Financial Advisors
in California on May 5, 2006
presented by NF Communications, Inc.
Consumerism in Health Care Survey Release Dec. 8
in District of Columbia on December 8, 2005
presented by Kaiser Family Foundation
Distributions and Taxation
in Ohio on January 13, 2006
presented by SunGard Corbel
Distributions and Taxation Workshop
in Ohio on January 13, 2005
presented by SunGard Corbel
Distributions and Taxation Workshop
in Ohio on January 13, 2005
presented by SunGard Corbel
Distributions and Taxation Workshop
in Colorado on January 12, 2006
presented by SunGard Corbel
Distributions and Taxation Workshop
in Ohio on January 12, 2006
presented by SunGard Corbel
Distributions and Taxation Workshop
in Tennessee on January 12, 2006
presented by SunGard Corbel
Distributions and Taxation Workshop
in Missouri on January 13, 2006
presented by SunGard Corbel
Pension Plans and Retirement Security
Nationwide on December 1, 2005
presented by Diane Rehm Show
Plan Design Workshop
in Wisconsin on February 8, 2006
presented by SunGard Corbel
The Ultimate Marketing BootCamp for Financial Advisors
in Texas on March 2, 2006
presented by NF Communications, Inc.
Newly Posted Press Releases
PBGC To Adopt Updated Mortality Table
(Pension Benefit Guaranty Corporation (PBGC))
Alliance Benefit Group of Illinois Selects ICC Plan Solutions For H.S.A. Enrollment Materials
(Metrics Partners)
U. S. Labor Department Acts to Improve Access of Hurricane Victims To 401(k) Loans and Withdrawals
(U.S. Department of Labor, Employee Benefits Security Administration)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Mark Bennett
(IndyMac Bank)
Newly Posted or Renewed Job Openings
Health Benefits Analyst
for Segal is a leading employee benefits, compensation, and human resources consulting firm.
in NY
Client Services Team Coordinator
for ICMA-RC
in DC
Client Services Senior Specialist
for ICMA-RC
in DC
Pension Administrator
for Truog-Ryding Company, Inc.
in CA
Field Sales Coordinator
for Transamerica
in CA
External Wholesaler
for Transamerica
in CT
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
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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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