Retirement Plans
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April 21, 2006
Today's sponsor: ASPPA • Working for America's Retirement™

(Click on company name or banner to learn more.)
Banner ad for ASPPA • Working for America's Retirement™

Attend the 2006 ASPPA Mid-Atlantic Benefits Conference!

On May 8-9, the Marriott Philadelphia Downtown Hotel will be the site of this valuable conference, sponsored by the IRS and ASPPA.

Attorneys can earn Ethics Credits and ASPPA members can earn 15 CE credits. Register NOW at

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Text of Final Regs on Termination of Abandoned (Orphan) Individual Account Retirement Plans (PDF)
36 pages. Excerpt: "In some cases, plan abandonment occurs when the sponsoring employer ceases to exist by virtue of a bankrup.tcy proceeding. In other cases, abandonment occurs because the plan sponsor has been incarcerated, died, or fled the country. Whatever the causes of abandonment, participants in these so-called 'orphan plan' or 'abandoned plan' situations are effectively denied access to their benefits and are otherwise unable to exercise their rights guaranteed under ERISA." (Employee Benefits Security Administration, U.S. Department of Labor)

Text of Class Exemption 2006-06 for Administrators of Abandoned (Orphan) Retirement Plans (PDF)
8 pages. Excerpt: "The [prohibited transaction class] exemption permits a 'qualified termination administrator' (QTA) of an individual account plan that has been abandoned by its sponsoring employer to select itself or an affiliate to provide services to the plan in connection with the termination of the plan, to pay itself or an affiliate fees for those services, and to pay itself for services provided prior to the plan's deemed termination." (Employee Benefits Security Administration, U.S. Department of Labor)

Seventh Circuit Confirms ERISA 'Implied Exception' for Participant-Directed Plans (PDF)
3 pages. Excerpt: "The nascent body of case law concerning participant-directed plans recently received a contribution from the Seventh Circuit, which affirmed summary judgment for a plan trustee even though the plan did not satisfy the 'safe harbor' of ERISA section 404(c). Jenkins v. Yager, __ F.3d ___ (7th Cir. Apr. 14, 2006)." (Sutherland Asbill & Brennan LLP)

Opinion: Working Retired -- An Idea Whose Time May Never Come
Excerpt: "Some ten years ago, those of us trying to determine the effects of the coming retirement of the huge baby boom generation saw a future in which a majority of people would continue to work in some capacity after retirement. We believed that jobs would be available for these older workers because corporate America would recognize the need to hold on to them both for their specific skills and because of the lack of younger people to replace them when they retired." (Beverly Goldberg via The Century Foundation)

IRA Proposal Could Affect Annuity Sales
Excerpt: "An embryonic proposal to raise revenue by expanding eligibility for the Roth individual retirement account program could hurt annuity sellers." (National Underwriter Life & Health; free one-time registration or paid subscription required)

Providers Seeking to Make Annuity Products More Affordable and Flexible for 401(k) Participants
Excerpt: "'It is important that annuities are available to people who are retiring,' says David Wray, president of the Profit Sharing/401(k) Council of America, 'but I do not think that the cost-benefit analysis justifies having annuities in a 401(k) plan.'" ( one-time registration required)

Fresh Approaches to Pension Plan Risk Gain Attention of Senior Financial Executives
Excerpt: "Senior financial executives in the U.S. tend to see defined benefit (DB) pension plans as posing a major risk management challenge, and most consider the available options too expensive or ineffective -- stirring interest in fresh approaches that can do a better job containing cost and reducing risk." (Towers Perrin)

Issue in Brief: How Secure Are Retirement Nest Eggs? (PDF)
8 pages. Excerpt: "This brief examines different types of negative events that can strike near retirement. It reports the incidence of widowhood, divorce, job layoffs, disability, and various medical conditions over a 10-year period, and estimates their impact on household wealth." (Center for Retirement Research at Boston College)

DOL Issues Guidance on Allocating Mutual Fund Settlements
Excerpt: "The Department of Labor's Employee Benefit Security Administration (EBSA) has issued guidance regarding the allocation of mutual fund settlements among beneficiaries and who is a fiduciary under the Employee Retirement Income Security Act (ERISA) with regard to the allocation of settlement amounts." ( one-time registration required)

Links to Items on Executive Comp, Benefits in General

Board Compensation Committees and CEOs Disagree Over Executive Pay, According to Survey
Excerpt: "Compensation committee members say the excessive pay to chief executives is more ubiquitous than CEOs claim is the case, according to a survey conducted by Steven Hall & Partners, an independent executive compensation consultant." ( one-time registration required)

Wachovia Shareholders OK Union-Generated Executive Pay Petition
Excerpt: "Wachovia Corp. shareholders have narrowly approved a nonbinding resolution by a union-administered mutual fund to require that bank severance packages worth three times more than the executive's salary be shareholder approved." ( one-time registration required)

Hewitt Federal Legislation Quick Guide Updated as of April 18, 2006
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)

We thank and invite your attention to our additional sponsor: ASPPA • Working for America's Retirement™

(Click on company name or banner to learn more.)
Banner ad for ASPPA • Working for America's Retirement™

2006 Great Lakes Benefits Conference

Co-sponsored by the Internal Revenue Service and ASPPA. The Great Lakes Benefits Conference provides an opportunity to discuss employee benefit issues with colleagues and local, regional and national government employees from the IRS and the DOL.
The program focuses on exchanging information and educating attendees about current regulatory, legislative, administrative and actuarial topics.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Newly Posted Events
(Post Yours!)

U. S. Labor Department Sponsors Seminars To Help Plan Professionals Comply With Federal Pension Law
in Maryland on May 18, 2006
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

What's New for the Form 5500 Webcast
Nationwide on May 3, 2006
presented by ASPPA (American Society of Pension Professionals & Actuaries)

Newly Posted Press Releases
(Post Yours!)

Labor Department Announces Final Rules to Help Workers In Abandoned 401(k) Plans
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Defined Benefit Technician
for SunGard Relius
in FL

Associate Account Manager, Retirement Plan Consulting
for Charles W. Cammack Associates, Inc.
in NY

Principal Trade Review Representative
for ING US Financial Services
in IA

Pension Administrator
for C.H. Dean, Inc. - Dean Pension Consulting
in OH

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Copyright 2006, Inc.; except that you may reprint this newsletter in full (including this sentence) without obtaining our permission.

Published by:, Inc.
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Fax: (407) 644-2151

Editor and Publisher: David Rhett Baker, J.D.