| BenefitsLink Retirement Plans Newsletter |   |
December 20, 2005
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
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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) |
IRS Issues New User Fee Schedule for 2006
Excerpt: "There's a new user fee schedule for 2006. In IR 2005-144, the IRS announced increases in selected user fees -- including fees for letter rulings and determination letters for Employee Plans (EP) and Exempt Organizations (EO) -- for 2006." (U.S. Internal Revenue Service)
Revised Schedule of Employee Plans User Fees, Effective February 1, 2006 (PDF)
10 pages. Many fees will rise for requests postmarked on or after February 1, 2006, as will be elaborated upon in an upcoming IRS revenue procedure. (Internal Revenue Service)
Revised Schedule of IRS User Fees Other Than Employee Plans, Effective February 1, 2006 (PDF)
12 pages. Many fees will rise for requests postmarked on or after February 1, 2006, as will be elaborated upon in an upcoming IRS revenue procedure. (Internal Revenue Service)
Working Paper Abstract: Pensions for an Aging Population
Excerpt: "After presenting the Gruber-Wise analysis showing a strong effect on retirement of implicit taxes from pension rules, it is shown that there is no effect of these implicit taxes on unemployment. This supports the argument for avoiding high implicit taxes on continued work." (National Bureau of Economic Research)
Estimated Revenue Effects of H.R. 2830, the Pension Protection Act of 2005 (PDF)
3 pages. On December 16, 2005, The Joint Committee on Taxation issued Estimated Revenue Effects of H.R. 2830, The 'Pension Protection Act of 2005,' as passed by the House Of Representatives on December 16, 2005. (Joint Committee on Taxation)
Estimated Revenue Effects of S. 1783, the Pension Security and Transparency Act of 2005 (PDF)
6 pages. On December 16, 2005, the Joint Committee on Taxation issued Estimated Revenue Effects of S. 1783, the 'Pension Security and Transparency Act of 2005,' as passed by the Senate on November 16, 2005. (Joint Committee on Taxation)
PBGC Language from Budget Reconciliation Act Conference Report (PDF)
8 pages. (U.S. House of Representatives via American Benefits Council)
Congress Passes Pension-Related Hurricane Relief
Excerpt: "Employees in areas affected by hurricanes Rita and Wilma would be allowed to receive distributions from their retirement plans without federal tax penalties under legislation given final congressional approval over the weekend." (Business Insurance)
Changing Pension Plan Might Pose Dilemma for New York State Legislature
Excerpt: "One of the main sticking points in the transit contract negotiations this week has been the Metropolitan Transportation Authority's effort to reduce pension benefits for future transit workers. But by state law, such pension changes are supposed to be decided by the State Legislature, not at the bargaining table." (The New York Times; one-time registration required)
Working Paper Abstract: Aging, Pension Reform, and Capital Flows: A Multi-Country Simulation Model
Excerpt: "Population aging and pension reform will have profound effects on international capital markets. First, demographic change alters the time path of aggregate savings within each country. Second this process may be amplified when a pension reform shifts old-age provision towards more pre-funding. Third, while the patterns of population aging are similar in most countries, timing and initial conditions differ substantially." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full-text)
Issue in Brief: The House and Living Standards in Retirement
Excerpt: "Do today's retirees have sufficient income to meet their needs? This brief is the third in a series examining replacement rates for current retirees. .... This brief builds on the previous findings by considering how the addition of housing equity affects replacement rates." (Center for Retirement Research at Boston College)
Financial Education for Workers Nearing Retirement
Excerpt: "Question: We have a large percentage of employees who are within 10-15 years from retirement. These employees have been with us for most or all of their careers. We want to help them prepare for retirement and better understand their defined benefit and 401k plans. What type of financial education could benefit these employees?" (Financial Finesse via 401khelpcenter.com, LLC)
House Budget Bill Imposes Fee for Dumped Pension Plans
Excerpt: "The US House of Representatives has approved a budget plan that includes a $3,750 per participant fee for employers who terminate their pension plans due to bankrup.tcy." (PLANSPONSOR.com; one-time registration required)
German Study Questions Asset Meltdown Theory
Excerpt: "Despite the apocalyptic predictions of the effects of massive numbers of retiring baby boomers in the systems designed to care for them, a new European study said the gloom and doom forecasts are overstated. The report, co-authored by Frankfurt-based Faros Consulting, offers another perspective on assertions by some researchers who have claimed that US and European baby boomers will be forced to sell assets to finance their living standards." (PLANSPONSOR.com; one-time registration required)
Overview: IRS Issues Certain Plan Amendment Deadlines and the 2005 Cumulative List of Changes
Excerpt: "The IRS has issued Notice 2005-95 to clarify certain amendment timing deadlines for tax-qualified retirement plans and to provide transitional relief for amendments implementing retroactive annuity starting dates, the automatic rollover requirements, and the updated 401(k) regulations." (Deloitte's Washington Bulletin via BenefitsLink.com)
Vanguard Retirement Investor Report Card for June 2005: Single-Fund Investors (PDF)
20 pages. Excerpt: "Defined contribution and individual retirement account investors' account balances and asset allocations are essentially unchanged through June 2005. Personalized investment return for both types of accounts were more than 7% for the one-year period ended June 2005. Trading levels remained low. IRS investors appear to be more likely to concentrate their portfolios in a single fund than DC investors." (The Vanguard Group)
Links to Items on Executive Comp, Benefits in General
Employee Benefits Year-End Actions To Be Taken by Plan Sponsors (PDF)
2 pages. Excerpt: "This Management Alert is a brief reminder of those actions that companies and benefit plans may be required to take before year-end. Welfare Plans: Flex Account Use It or Lose It Extension; HIPAA Portability & Creditable Coverage; Other HIPAA Portability Issues. Non-Qualified Deferred Compensation Arrangements: Internal Revenue Code Section 409A. Qualified Retirement Plans: Cash Outs/Automatic Rollovers; Retroactive Annuity Starting Date (RASD); 401(k) Plans." (Seyfarth Shaw LLP)
Announcing the Customizable 'What's New on BenefitsLink' Page
We're very pleased to announce a new, customizable 'What's New on BenefitsLink' page! By checking one or more boxes, you can limit your daily information to items about one or more 'subjects' (e.g., 403(b) plans). Or you can view only items of one or more 'types,' such as educational events (conferences, webcasts), job listings or press releases-- in addition to, or in lieu of, the types of items we post daily on the Benefits in the News page. Bookmark the resulting page and then check it often! (BenefitsLink)
The Nonqualified Advisor, November/December 2005 Edition (PDF)
2 pages. This edition includes articles titled: Accruing Split Dollar Benefits Gains Momentum; IRS Issues New Deadlines for Section 409A; FASB Reconsiders Accounting for Post-Retirement Benefits; and 2006 Qualified Plan Limitations. (Executive Benefit Solutions)
SERPs Prone to Miscalculation (PDF)
2 pages. Excerpt: "Supplemental executive retirement plans (SERPs) are generally based upon the final salary of the participant. When service extends beyond the 'normal retirement date' specified in the plan agreement, the final salary increases the SERP benefit beyond its accrued liability." (Executive Benefit Solutions)
The Nonqualified Advisor, August/September 2005 Edition (PDF)
2 pages. The edition includes items titled: SEC Expresses Concern within the Benefits Industry; IRS Changes its Position on Contract Buy-outs; Pennsylvania Adopts Tax Fix for Nonqualified Benefits; and Nonqualified Plans Receive New ID. (Executive Benefit Solutions)
Text of Final USERRA Reg on Notice to Employees (PDF)
5 pages. (U.S. Department of Labor)
Text of Final USERRA Regs (PDF)
69 pages. (U.S. Department of Labor)
Newly Posted Press Releases
ECFC's Politically Correct Holiday Wish List For 2006; Perhaps More Elusive Than An Xbox 360, But More Rewarding
(Employers Council on Flexible Compensation (ECFC))
Stanton Group 2006 Compensation Planning Survey Charts Increases In Salaries, Hiring
(Stanton Group)
IRS to Raise Some User Fees in 2006
(Internal Revenue Service (IRS))
Leading West Coast Stock Plan Administrators Join Two Step's Ownership Advisory Group; User Group Focuses on Stock Option and Cap Table Enhancements
(Two-Step Software, Inc.)
The Principal Financial Group Makes Dealing With Disability Claims Faster and Easier; New Online Claim Form Available for Group Disability Customers
(Principal Financial Group)
Compensation Committees Must Examine Company Relations With Compensation Consultants Due To Developing 'Best Practices'
(Conference Board, The)
Lighthouse1 Software Release Provides Better Client Protection; Simplifies Process and Ensures Federal Compliance for Third Party Administrators
(LA Chapter - Western Pension & Benefits Conference)
Advice for Seniors Navigating the Medicare Prescription Drug Decision; Free Medicare Prescription Drug Planner Now Available From Weiss Ratings
(Weiss Ratings, Inc.)
Newly Posted or Renewed Job Openings
Employee Benefits Tax Senior or Manager
for Deloitte
in CA
Pension Consultant
for Standard Insurance Company
in FL
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.
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Editor and Publisher: David Rhett Baker, J.D.
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