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December 29, 2005
Today's sponsor: DATAIR Employee Benefit Systems, Inc.

(Click on company name or banner to learn more.)
Banner ad for DATAIR Employee Benefit Systems, Inc.

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)

Safe Harbor 401(k) Chart -- Revised December 29, 2005
Excerpt: "These are some of the basics that an employer needs to know before considering a 401(k) Safe Harbor Plan. Each employer's goals, plan design, contribution sources and demographics from a unique scenario which the employer will wish to discuss with his or her plan provider before finalizing the decision to make the plan a 401(k) Safe Harbor Plan." (McKay Hochman Co., Inc.)

How Risky Is Your 401(k)? Simple Ways to Check If Your Savings Plan Is on the Right Track
Excerpt: "[W]hile it may be useful to see how your 401(k) compares in riskiness to the S&P 500 or where it ranks on the scale from conservative to speculative, I don't think this is the most important thing .... Far more essential is finding out whether you're on track to achieving a secure retirement. Which means you want to know whether the portfolio you accumulate by the time you retire, plus Social Security and any pensions you may receive, will be sufficient to support you ...." (CNNMoney)

Legislation Pending in Congress Aims to Encourage Employers to Adopt Automatic Enrollment in 401(k)s
Excerpt: "The bills' content can be split into two major parts, says Edward Ferrigno, a Washington-based vice president at the Profit Sharing/401(k) Council of America (PSCA): One is removing employer barriers to offering automatic enrollment by clarifying issues surrounding it, and the other is creating incentives for employers to provide it." (PLANSPONSOR.com; one-time registration required)

Lucent Pension Surplus Clouds Company's True Earnings Picture
Excerpt: "Eighty-two percent of the reported profit for Lucent Technologies Inc. for the fiscal year that ended on September 30 comes from its $973-million pension credit. The Wall Street Journal reports that the company's latest annual report to the Securities and Exchange Commission (SEC) shows its pension plan has $2.7 billion more in assets than liabilities." (PLANSPONSOR.com; one-time registration required)

Overview: Gulf Opportunity Zone Act -- Distributions and Loans from Eligible Retirement Plans
Excerpt: "The retirement plan relief provided in the Katrina Emergency Relief Tax Act has been extended to the victims of Hurricanes Wilma and Rita." (McKay Hochman Co., Inc.)

Lawmakers Increase Scrutiny of Public Employee Pensions
Excerpt: "''The underlying problem for the pension system is that elected officials and labor bosses make promises that they don't have to pay (for), that don't come due for years,'' said George Passantino of the Reason Foundation, a libertarian think tank in Los Angeles that has pushed for change. ''Governments have got to find a way to attract good workers, but doing so in a way that doesn't break the backs of taxpayers.''" (AP via The New York Times; one-time registration required)

Pension Reform in Peru Begins to Bear Fruit
Excerpt: "Peru's private pension system was established as an alternative in 1992 during a time of financial crisis and virtual collapse of the state-run pension system. The system consists of funds controlled by five competing pension fund management firms known as Administradoras de Fondos de Pensiones, or AFPs." (IDBAmerica)

Overview: IRS Releases Roth IRA Annuity Conversion Guidance
Excerpt: "Federal tax officials on [December 28] released additional guidance on how to figure out the fair market value of an annuity contract that has yet to be annuitized as part of the conversion process of a traditional IRA to a Roth IRA." (PLANSPONSOR.com; one-time registration required)

Overview: Nondeductible IRA Reporting
Excerpt: "Tracking nondeductible Individual Retirement Account (IRA) contributions, which is the responsibility of individual IRA owners, is somewhat different than tracking nondeductible contributions to a qualified plan." (McKay Hochman Co., Inc.)

Chart: 2006 Qualified Plan Limits
Excerpt: "Download printable pocket limit card (cut and fold)[from this target page]. This document is in a PDF. You will need Acrobat Reader to view and print." (Swerdlin & Company)

Most Companies See Employee Retirement As Not Their Problem, According to Survey
Excerpt: "[A]ccording to a survey conducted recently by Hewitt Associates, a global human resources services firm ... of the more than 100 large, U.S. and European multinational organizations Hewitt selected for its Global Retirement Benefits Research Survey, only a paltry 4% said that enabling employees to retire is a top priority. For most companies, particularly those in North America, adequate planning for retirement benefits appeared to be a low priority, ...." (Retirement Plan Advisor)


Links to Items on Executive Comp, Benefits in General

The Business Case for Workers Age 50+: Planning for Tomorrow's Talent Needs (PDF)
100 pages. Excerpt: "U. S. companies face potential loss of experienced talent in a wide range of key roles as baby boomers approach traditional retirement age. This study, prepared for AARP by Towers Perrin, a global professional services firm, details the business case for hiring and retaining the 50+ worker as an effective solution to the projected challenge of rising competition for talent in the coming years." (AARP)

Overview: Final Regulations and New Notice Issued by the DOL for USERRA
Excerpt: "The final regulations were based on the proposed rules issued on September 20, 2004, and the DOL's consideration of the 80 commentators it received that provided over 300 queries or concerns on over 200 topics. The DOL addressed these comments in the preamble and incorporated many into the final rules, including several to clarify certain retirement plan issues." (McKay Hochman Co., Inc.)

The Trucker Huss Benefits Report -- December 2005 (PDF)
5 pages. The December edition includes articles titled: The Internal Revenue Service Releases 2005 Cumulative List of Changes, and, Nonqualified Deferred Compensation Reporting Requirements Delayed. (Trucker Huss)

Overview: IRS Clarifies Valuation Rule for Options and SARs under Section 409A (PDF)
4 pages. Excerpt: "In a welcome gesture of holiday cheer, the IRS issued Notice 2006-4 on December 23, 2005 and clarified that the highly controversial valuation rules for options and stock appreciation rights (SARs) set forth in proposed regulations under section 409A of the Internal Revenue Code (Code) will become effective prospectively, when and if contained in final regulations." (Morgan, Lewis & Bockius LLP)

Book Review: The Enthusiastic Employee -- How Companies Profit by Giving Workers What They Want
Excerpt: "Sirota [co-author]: We find there are three basic goals of people at work. First, to be treated fairly. We call that equity. Employees want to know they are getting fair pay, which is normally defined as competitive pay. They want benefits and job security. These days, employees especially need medical benefits, so those have become significant." (Knowledge@Wharton)

Overview: Military Leave Rules for Employers Issued (PDF)
7 pages. Excerpt: "The employment and benefit rights of reservists who are called to active duty are governed by the Uniformed Services Employment and Reemployment Rights Act (USERRA), which applies to virtually all employers, regardless of size. USERRA's protections extend to all employees, including managerial and professional employees." (Aon Consulting)


Newly Posted Events

HIPAA Security for Employers: A Practical Approach
in California on January 19, 2006
presented by ArlenGroup


Newly Posted Press Releases

Please Join Us At BenefitsLink In Welcoming Jeanette Hull To The Staff!
(BenefitsLink.com, Inc.)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Client Service Manager
for Merrill Lynch Retirement Group
in CO




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