| BenefitsLink Retirement Plans Newsletter |   |
April 28, 2006
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Text of ASPPA Comments on Designated Roth Contributions Under Section 402A (PDF)
11 pages. Excerpt: "The final regulations should permit rollovers of Roth account distributions between §401(k) plans and §403(b) arrangements.... The final regulations should clarify various aspects of the rules regarding rollovers of the taxable portion of Roth account distribution (i.e., the earnings).... The model special tax notice required under IRC §402(f) should be updated to include a description of the tax treatment of distributions of designated Roth contributions." (ASPPA)
Text of American Benefits Council Comments on Designated Roth Accounts Under Sec. 402A (PDF)
12 pages. Excerpt: "[T]he Council requests additional clarifications in the areas discussed below... ' Items addressed include the separate accounting rule, the five-taxable-year period, rollovers, reporting, and employer stock. (American Benefits Council)
Working Paper: The Inattentive Participant-- Portfolio Trading Behavior in 401(k) Plans
Excerpt: "Using a rich new dataset on 1.2 million workers in over 1,500 plans, we find that most 401(k) plan participants are characterized by profound inertia. Almost all participants (80%) initiate no trades, and an additional 11% makes only a single trade, in a two-year period." (University of Michigan Retirement Research Center)
Retirement Industry Trends-- A Look at Recent Important Research
Excerpt: "[R]esearchers at University of Pennsylvania's Wharton School found most workers in defined contribution retirement plans are 'inattentive' to their portfolios.... New research has analyzed the adoption and efficacy of automatic features, matching contributions, opt-in features, on-line advice and managed accounts.... On a final note, employers have not yet decided to embrace the new Roth 401(k)." (The McHenry Group)
Congressional Research Service Report: Income of Americans Age 65 and Older, 1969 - 2004 (PDF)
47 pages. Excerpt: "[R]etirees will have to stretch their savings and other assets over longer periods of retirement than their parents and grandparents experienced. This CRS report presents data collected by the Census Bureau from 1969 through 2005 that describe how the demographic traits, employment patterns, and the sources and amounts of income of people 65 and older have changed over a period of nearly 40 years." (Congressional Research Service of the U.S. Library of Congress)
Mercer Defends Actions in Milwaukee Pension Controversy
Excerpt: "Milwaukee County's former actuarial firm says it isn't to blame for a controversial pension deal that has spelled disaster for the county budget. Rather, any ill effects the county may have suffered are the result of a market downturn, criminal conduct by former County Personnel Director Gary Dobbert and imprudent decisions by the County Board, according to documents filed this week in federal court in Milwaukee." (Milwaukee Journal-Sentinel)
Before Adding an Income Annuity to Your Plan, Read This!
Excerpt: "[A] participant looking for retirement income from their defined contribution plan account should not select an annuity exclusively based on the highest payment.... There are potential fiduciary issues for any plan sponsors that select annuity vendor(s) or advisors who become involved with helping almost-retirees make choices about the plan distribution." (The McHenry Group)
United Nations Encourages Pension Plans to Weigh Environmental and Social Impacts of Investments
Excerpt: "A group of the world's largest institutional investors joined [UN Secretary-General Kofi] Annan at the Stock Exchange to officially launch the Principles for Responsible Investment." (Environment News Service)
IRS Resources for the Restatement Process under Rev. Proc. 2005-66
Excerpt: "The IRS has recently created a number of resources on their website explaining many of the rules in Rev. Proc. 2005-66. Below are a number of key links on the topic. These will lead to many other links on the subject within the IRS site." (McKay Hochman Co., Inc.)
Overview: Form 8905-- Certification of Intent to Adopt a Pre-approved Plan
Excerpt: "In mid-April 2006, the IRS issued Form 8905, 'Certification of Intent To Adopt a Pre-approved Plan', which was referenced in Rev. Proc. 2005-66 as the form needed to permit an individually designed plan to change from the five-year cycle to the six-year cycle for pre-approved plans." (McKay Hochman Co., Inc.)
Overview: How Does the Elapsed-Time Eligibility Method Work?
Excerpt: "The elapsed-time method of determining eligibility is an alternative to the hours of service method. The elapsed-time method provides an administrative convenience that may be used by employers with workers in jobs where counting hours is not always easy or possible." (McKay Hochman Co., Inc.)
International Update on Foreign Public and Private Pensions
Includes item about Chile's 25-year-old mandatory individual retirement account system. (Office of Policy Data, Social Security Administration)
Transcript: International Conference on Social Security Reform in Selected OECD Countries
Excerpt: "Justice Lewis Brandeis once referred to the American states as laboratories for democracy ... In a very real way, the developed democracies of the OECD can serve the same function for the United States when it comes to Social Security reform." (Urban Institute)
Links to Items on Executive Comp, Benefits in General
Overview of Changes in Restated DOL Voluntary Fiduciary Compliance Program
Excerpt: "The finalized VFCP made the following additions and modifications to the April 6, 2005 proposed changes to the VFCP program ..." (McKay Hochman Co., Inc.)
Pfizer Shareholders Reject Call for Ouster of Directors Who Approved $83 Million Pension
Excerpt: "Hank McKinnell, Pfizer's chairman and chief executive, will qualify to collect the pension if he retires in 2008 at age 65, according to the company's most recent proxy statement. His annual pension benefit would be $6.5 million, but McKinnell could opt for a lump-sum payment of more than $83 million." (Washington Post; one-time registration required)
A Campaign To Tighten Executive Pay
Excerpt: "After years of complaining about sky-high executive pay packages, this year shareholder activists are finally getting some traction in their efforts to do something about the issue." (Washington Post; one-time registration required)
Newly Posted Events
"What Every Employer Needs to Know about ERISA"
in Idaho on May 24, 2006
presented by The ERISA Law Group, P.A.
Advanced IRA Seminar
in Indiana on May 23, 2006
presented by Wolters Kluwer Financial Services
Advanced IRA Seminar
in Maine on May 23, 2006
presented by Wolters Kluwer Financial Services
Advanced IRA Seminar
in Idaho on May 24, 2006
presented by Wolters Kluwer Financial Services
Advanced IRA Seminar
in Michigan on May 24, 2006
presented by Wolters Kluwer Financial Services
Advanced IRA Seminar
in New Hampshire on May 24, 2006
presented by Wolters Kluwer Financial Services
Advanced IRA Seminar
in Minnesota on May 25, 2006
presented by Wolters Kluwer Financial Services
Advanced IRA Seminar
in Missouri on May 25, 2006
presented by Wolters Kluwer Financial Services
Advanced IRA Seminar
in Massachusetts on May 25, 2006
presented by Wolters Kluwer Financial Services
Beginner IRA Seminar
in Utah on May 23, 2006
presented by Wolters Kluwer Financial Services
Beginner IRA Seminar
in Iowa on May 23, 2006
presented by Wolters Kluwer Financial Services
Beginner IRA Seminar
in Minnesota on May 24, 2006
presented by Wolters Kluwer Financial Services
Beginner IRA Seminar
in Michigan on May 25, 2006
presented by Wolters Kluwer Financial Services
COBRA Traps: Ten Common Problems and How to Address Them-- Lessons for Employers, Administrators, and Advisors
Nationwide on April 20, 2006
presented by Employee Benefits Institute of America Inc. (EBIA)
Orphan Plans - The Final Rules Are In
Nationwide on May 17, 2006
presented by SunGard Corbel
Practical Guidance for Retirement Plan Beneficiary Designation
in Illinois on June 12, 2006
presented by ASPPA Benefits Council of Chicago
Sal Tripodi Workshop
in Illinois on May 17, 2006
presented by ASPPA Benefits Council of Chicago
Three HIPAA Deadlines: Portability (1/1), Privacy (4/14), and Security (4/20)-- What You Need to Do to Comply
Nationwide on February 23, 2006
presented by Employee Benefits Institute of America Inc. (EBIA)
Newly Posted Press Releases
PBGC Assumes Pensions Of Aloha Airlines
(Pension Benefit Guaranty Corporation (PBGC))
UnitedHealth Group Board of Directors to Address Executive Compensation Issues
(UnitedHealth Group)
UnumProvident Rolls Out Web-Based Claims Monitoring Service
(UnumProvident)
ARAG Appoints Daniel Montgomery VP of Claims
(ARAG)
Hitachi Division Adds DFA Funds - Selects Presidium Retirement Advisers, Inc. to Assume Fiduciary Role
(Target Marketing Solutions, Inc.)
Newly Posted or Renewed Job Openings
Health & Welfare Associate
for Towers Perrin
in CT, GA, NJ, NY
Administrator - Pension Services
for Aris Corporation of America
in PA
Compliance Site Manager
for Merrill Lynch / Princeton Retirement Group
in GA
Assistant Client Services Manager
for Zenith Administrators
in CA
Assistant Client Services Manager
for Zenith Administrators
in WA
Paralegal - Business/Executive Compensation
for Perkins Coe LLP
in IL
Health and Welfare Practice Leadership
for Charles W. Cammack Associates, Inc.
in NY
Retirement Plan Administrator
for Chicago Pension Firm
in IL
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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