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December 28, 2005
Today's sponsor: DATAIR Employee Benefit Systems, Inc.

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

Pension Problems Loom for Boomers
Excerpt: "Boomers with pension plans have counted on monthly retirement checks at the end of their career, but more employers are ending their plans or halting future benefit accruals. Those at greatest risk include boomers in their late 40s and early 50s, who are still at least a decade from retirement but too old to save enough to make up the difference in their pension benefits." (USA TODAY)

Pension Funding Gap at FTSE 100 Companies Widens to 75 Billion Pounds
Excerpt: "Britain's 100 largest publicly traded companies saw their total pension shortfall widen to 75 billion pounds ($130 billion) at the end of 2005 as interest rates fell, Deloitte and Touche LLP said." (Bloomberg News)

Social Security Agreement Between Japan and the United States Takes Effect
Excerpt: "U.S. workers temporarily assigned to Japan for duties and Japanese workers temporarily sent to the United States will benefit from an agreement by the two countries' governments to end double payments and allow the computation of social security credits in both countries. " (Watson Wyatt Worldwide)

Tax Treatment of Deferred Income Pension Plans Changed in Can.ada
Excerpt: "The changes, which were first outlined in the 2003 and 2005 federal budgets, include the treatment of foreign property. They also affect the tax treatment of registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), registered education savings plans (RESPs) and deferred profit-sharing plans (DPSPs)." (Watson Wyatt Worldwide)

Opinion: Is Norway's Present Our Future?
Excerpt: "It is not inconceivable that here in the US, where we face much of the same demographic change as the Norwegians, someday we will be looking at a mandatory pension scheme that extends beyond social security contributions." (Michael Malone via MJM Financial)

Retirement Plan Issues Forecast to Stay Squarely on 2006 Canadian Radar Screen
Excerpt: "Not surprisingly, a new forecast of the top workplace issues facing Canadian corporate HR executives in the next year includes a hefty share affecting pensions and retirement. A Watson Wyatt Worldwide news release said the top HR trends for 2006 include stepped up governance related to pensions and increased participation of plan members in pension decisions." (PLANSPONSOR.com; one-time registration required)

European Union Cross-Border Pension Schemes
Excerpt: "From 30 December 2005, pension schemes located in one EU member state need to apply for authorisation and approval, if they want to accept contributions from employers which employ members in another EU member state. UK schemes need authorisation and approval from the Pensions Regulator to operate cross-border within the EU. This guidance sets out the application process for authorisation and approval." (The Pensions Regulator)

Text of Rev. Proc. 2006-13: Fair Market Value of Annuity Contract Upon Conversion to Roth IRA (PDF)
6 pages. Excerpt: "This revenue procedure provides safe harbor methods that are permitted to be used in determining the fair market value of an annuity contract for purposes of determining the amount includible in gross income as a result of the conversion of a traditional IRA to a Roth IRA, as described in Q&A-14 of §1.408A-4T of the temporary regulations." (Internal Revenue Service)

Chart: Comparison of Private Sector Defined Contribution Provisions in S 1783 and HR 2830 (PDF)
14 pages. Description of Private Sector Defined Contribution Provisions in S 1783, the Pension Security and Transparency Act As Passed by the Senate on November 16, 2005, and HR 2830, the Pension Protection Act of 2005, As Passed by the House of Representatives on December 15, 2005. (The Profit Sharing/401(k) Council of America)

Firms Court Collective Funds for Small Plans
Excerpt: "Thornburg Investment Management and State Street Global Advisors are among the firms exploring collective investment funds (CIFs) for plans under $50 million. Incorporating brand name mutual fund managers into collective funds catering to smaller plans could accelerate flows into CIFs next year, ...." (defined contribution & savings plan alert)

Proposed Legislation: Plan Asset Rule (PDF)
2 pages. Excerpt: "The U.S. Congress has been considering a bill that contains provisions that would modify the ERISA plan asset regulation. Under this bill, the threshold of benefit plan investor participation at which a fund's assets would be deemed to constitute plan assets would be raised from 25% to 50%." (Dechert LLP)

Book Review: The Battle for Social Security -- From FDR's Vision to Bush's Gamble
Excerpt: "This book will still be relevant the next time Social Security's critics manage to revive the effort to undo our only national insurance program. And this is certain to happen again. The history of Social Security confirms one of the iron laws of official Washington: In this town, no important policy dispute is ever definitively settled." (The Washington Post; one-time registration required)


Links to Items on Executive Comp, Benefits in General

Companies Accelerate Vesting to Avoid Options Expense
Excerpt: "SimpleTech Inc. and Federal Trust Corporation have each approved the accelerated vesting of outstanding stock options to reduce compensation expenses that must be recognized in future periods as a result of the Financial Accounting Standards Board (FASB) Statement 123." (PLANSPONSOR.com; one-time registration required)

Audio: Ohio College, Miami University, Sued over Same-Sex Benefits
Excerpt: "An Ohio lawmaker is suing Miami University, charging that its policy of offering benefits to employees' same-sex domestic partners violates an amendment to the state Constitution banning civil unions. Ohio is among a growing number of states where public colleges offering such benefits face legal challenges." (All Things Considered via National Public Radio)

Hewitt Federal Legislation Quick Guide Updated as of December 27, 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: Our Entitlement Paralysis
Excerpt: "By 2030, Social Security, Medicare and Medicaid may cost 15 percent of national income -- almost double their level in 2000 and equal to 75 percent of today's federal budget. Left alone, these programs would require massive tax increases, cause immense deficits or crowd out other important government programs. We also know of at least partial solutions: curb costs by slowly raising eligibility ages and cutting benefits for wealthier recipients." (Robert J. Samuelson via The Washington Post; one-time registration required)

Overview: DOL Issues Final USERRA Regulations (PDF)
3 pages. Excerpt: "Finally, it should be stressed that, in addition to its obligations under USERRA and VBIA, an employer must be attentive to state law obligations applying to employees who serve in the uniformed services. USERRA acts as a threshold or minimum set of requirements, and many states provide rights broader than those under USERRA to employees in the military or with military commitments." (Epstein Becker & Green, P.C.)


Newly Posted Events

Distributions and Taxation Workshop
in Indiana on January 19, 2006
presented by SunGard Corbel

Distributions and Taxation Workshop
in Texas on January 19, 2006
presented by SunGard Corbel

Distributions and Taxation Workshop
in New Jersey on January 20, 2006
presented by SunGard Corbel

Plan Design Workshop
in Arizona on February 10, 2006
presented by SunGard Corbel

Plan Design Workshop
in Illinois on February 15, 2006
presented by SunGard Corbel

Plan Design Workshop
in Indiana on February 15, 2006
presented by SunGard Corbel

Plan Design Workshop
in Ohio on February 16, 2006
presented by SunGard Corbel

Plan Design Workshop
in Kansas on February 16, 2006
presented by SunGard Corbel

Ready for Roth?
in Ohio on January 13, 2006
presented by SunGard Corbel

Ready for Roth?
in Missouri on January 13, 2006
presented by SunGard Corbel

Ready for Roth?
in Texas on January 19, 2006
presented by SunGard Corbel

Ready for Roth?
in Indiana on January 19, 2006
presented by SunGard Corbel

Ready for Roth?
in New Jersey on January 20, 2006
presented by SunGard Corbel


Newly Posted Press Releases

New CCH Resource Provides Professionals With Guidance On Retirement Plans For Individuals And Small Businesses
(Wolters Kluwer Financial Services)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Executive Director
for West Virginia Consolidated Public Retirement Board
in WV




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