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May 3, 2006
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Listing of IRS Published Guidance for January 2006 -- April 2006
Excerpt: "The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. " (U.S. Internal Revenue Service)

Overview: Pensions and Retirement Plan Enactments in the 2005 State Legislatures
Excerpt: "The goal of this report is to help researchers and policy makers know how other states have addressed issues that could arise in any state. .... This report is organized according to the topics that legislatures addressed in 2005, listed at the end of this introduction. The remainder of the introduction identifies the focal issues of 2005." (National Conference of State Legislatures)

Commentary: The Funding Crisis in Municipal Pensions
Excerpt: "Unfortunately, many municipalities in America face the consequences of underfunded pension plans, escalating benefit costs, and reduced income on investments. It's a situation that must be addressed immediately, before a crisis ensues." (Contingencies)

The Movement from DB to DC Plans: The Effect of Congressional Action on Cash Balance Plans (PDF)
2 pages. (The Segal Company)

Retirement Income Security Programs -- Avoiding the Train Wreck
Excerpt: "An actuarial train wreck is fast approaching. The wreck will occur when the dearth of defined benefit pension plans, coupled with the lack of adequate retirement savings, collides with ever-improving life expectancies of our nation's baby boomer and future retiree generations. We foresee a time in which our elderly will be out of income options and devoid of income protection insurance." (Contingencies)

Overview: Final Regulations on Abandoned Defined Contribution Plans
Excerpt: "The DOL has issued three separate final regulations: ...." (Deloitte's Washington Bulletin via BenefitsLink.com)

Opinion: Positive News about Defined Benefit Pension Plans (PDF)
2 pages. Excerpt: "[P]ositive signs have emerged over the past few months for defined benefit pension plans at what may be the high point of the Section 401(k) fad, including: The public's repudiation of the Bush Administration's Social Security 'private accounts,' Heightened interest in retirement plans by university and think tank groups ... Frequent references in the nightly newscasts to the loss of pension benefits that can never be replaced by Section 401(k) plans ..." (H.C. Foster & Company)

New Retirement Savings Plan Is Portable for School Workers
Excerpt: "Saving money for retirement can be difficult and daunting for many workers, but for Bristol public school employees, that task has likely gotten a bit easier. Assistant to Superintendent for Business William Smyth said the Board of Education has adopted a new 457(b) deferred compensation plan, providing an added option for its employees' retirement savings." (The Bristol Press)

Alaska to Investigate Actuaries' Role in Public Pension Fund Shortfall
Excerpt: "The state is planning to take a better look at the role a former consultant may have played in a $6.9 billion shortfall in Alaska's pension systems." (AP via JournalTimes.com)

Puerto Rico: Retirement Fund Trustees Can Be Based Off Island but Distributions Face Higher Tax Rate
Excerpt: "A recently enacted law that amended Puerto Rico's Internal Revenue Code allows trusts with trustees and/or paying agents based on the island to apply a reduced income tax withholding rate on lump sum distributions." (Watson Wyatt Worldwide)

US Airways Pilot Retirees' Suit Against PBGC Dismissed
Excerpt: "Retired U.S. Airways pilots' lawsuit against the Pension Benefit Guaranty Corporation alleging errors in the calculation of estimated benefits under their terminated pension plan has been dismissed by the D.C. appellate court, which found that the retirees had not yet exhausted administrative remedies. [Boivin v. U.S. Airways, No. 03cv02373jr]" (Pensions & Benefits Weblog)

Overview: Fiduciary Duties of Parties Involved in Distributing SEC Settlement Proceeds to Plans
Excerpt: "An independent distribution consultant (IDC) appointed by the Securities and Exchange Commission (SEC) to develop and implement a plan to distribute mutual fund settlement proceeds correcting trading irregularities, but with no control over plan assets, is not a fiduciary, according to an EBSA field assistance bulletin." (CCH Pension & Benefits)

Overview: Fiduciary Duties Regarding Proceeds from Late-Trading and Market Timing Settlements
Excerpt: "[T]he Department of Labor's Employee Benefits Services Administration (EBSA) has provided guidance to its regional offices with respect to the specific ERISA roles and duties of the 'independent distribution consultants,' 'intermediaries,' and plan fiduciaries who will be involved in this distribution. Field Assistance Bulletin No. 2006-01, April 19, 2006 (FAB No. 2006-01)." (Deloitte's Washington Bulletin via BenefitsLink.com)

Employee Ownership Update for May 2, 2006
NCEO Executive Director Corey Rosen discusses a case in which a district court ruled that fiduciaries of Delta Airline's ESOP did not have a duty to diversify out of Delta stock even though the company was under great financial pressure; ESOPs in companies that operate schools; and the Employee Ownership Innovations Awards, awarded to four outstanding employee-owned companies at the NCEO's annual conference. (National Center for Employee Ownership)

DB Plan Sponsors Hedging their Bets on Hedge Funds: Pension Plans Expected to Invest $300 Billion
Excerpt: "To shore up pension coffers, defined benefit plan sponsors are increasingly willing to roll the dice and take their chances with hedge funds. So enamored are plan sponsors that one study reports institutional investors will pour nearly $300 billion into hedge funds by 2008, up from $5 billion a decade ago." (Employee Benefit News)

Overview: What the New Trustees' Report Shows about Social Security
Excerpt: "On May 1, the Social Security Board of Trustees released the 66th annual report on the program's financial and actuarial status. The report projects that Social Security's trust fund reserves will be exhausted in 2040, one year earlier than last year's projection. After that year, Social Security will be able to pay 74 percent of scheduled benefits, rather than full benefits." (Center on Budget and Policy Priorities)

Savings: Yesterday, Today and Tomorrow
Excerpt: "Most people understand the importance of planning for retirement, but many flub the timing and start saving and investing for retirement late in life. This means they end up with little savings in their mid-60s and must work longer than they would prefer or are forced to develop a taste for cat food and ketchup after calling it a career." (Forbes.com)

Opinion: Richard Quinn Asks Himself the Tough Questions on Retirement
Excerpt: "The last time I tried this, we (that is me and me) chatted about health care issues. This time it will be pensions and retirement." (Employee Benefit News)

Commentary: Annual Social Security Trustees' Report Has Privatizers Salivating
Excerpt: "The Social Security Trustees have released their annual report on the state of the system. It presents a forecast similar to last year, but very slightly worse. If nothing is done in the next 34 years to adjust Social Security benefits and taxes, the system will be unable to meet its full obligations after 2040." (The Century Foundation)

Overview: Time to Make EGTRRA, Other Changes Official (PDF)
Page 2 of 2 pages. (Whyte Hirschboeck Dudek S.C.)

Saver Summit Delegates Delve Into Retirement Challenges
Excerpt: "We all know the media view of life after retirement: svelte and smiling retirees in designer clothing posing in settings that suggest a life of contented leisure. Ban it, participants in the 2006 Saver Summit suggested. Workers would be better served with factual images of unplanned retirements, however ugly, says summit delegate Della Williamson, vice president of NAGDCA." (Employee Benefit News)


Links to Items on Executive Comp, Benefits in General

A Summary of the 2006 Annual Social Security and Medicare Trust Fund Reports (PDF)
22 pages. Excerpt: "Each year the Trustees of the Social Security and Medicare trust funds report on the current status and projected condition of the funds over the next 75 years. This message summarizes the 2006 Annual Reports." (U.S. Social Security Administration)

Overview: Financing and Solvency of Social Security
Excerpt: "The Trustees of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) programs project in their 2006 report that the combined trust funds are sufficient to pay full benefits for the next 34 years, until 2040." (AARP)

Benefits Briefs: Legal Developments Affecting Employee Benefits -- March 2006 (PDF)
5 pages. Excerpt: "In this issue: More Tax Troubles for Stock Options; Smokers' Rights -- Snuffed by ERISA?; Spouses as Preferred Beneficiaries; Waiver of Benefits Not Permitted; Crazy Cases" (Nixon Peabody LLP)

Special Report: Compensation (PDF)
7 pages. Excerpt: "This special report on compensation describes how companies as varied as TIAA-CREF, Payless ShoeSource and TriQuint Semiconductor are making pay for performance work. Other stories examine CEO compensation and look at the changing nature of compensation surveys." (Workforce Management; one-time registration required)

UnitedHealth Halts Executive Options
Excerpt: "The UnitedHealth Group, under fire for the timing of lucrative options grants to executives, said Monday that it had discontinued equity-based awards to its two most senior managers and that it would cease other perks like paying for personal use of corporate aircraft." (Reuters via The New York Times; one-time registration required)

Overview: DOL Updates Voluntary Fiduciary Correction Program
Excerpt: "The VFC Program is only available for the correction of certain listed transactions. The 2006 Update expands the previously listed transactions to include: ...." (Seyfarth Shaw LLP)


Newly Posted Events
(Post Yours!)

401(k) Educational Seminar With Speaker Stephen Forbes From Corbel
in Connecticut on June 14, 2006
presented by National Institute of Pension Administrators-CT Chapter

401(k) Plan Workshop
Nationwide on May 4, 2006
presented by SunGard Corbel

401(k) Plan Workshop
in Texas on May 12, 2006
presented by SunGard Corbel

401(k) Plan Workshop
in Utah on May 12, 2006
presented by SunGard Corbel

401(k) Plan Workshop
in Washington on May 12, 2006
presented by SunGard Corbel

Code Section 409A Workshop
in California on June 8, 2006
presented by SunGard Corbel

Code Section 409A Workshop
in Colorado on June 8, 2006
presented by SunGard Corbel

Code Section 409A Workshop
in Washington on June 9, 2006
presented by SunGard Corbel

Estate Planning Considerations for Qualified Plans and IRAs
in Georgia on June 15, 2006
presented by SunGard Corbel

Estate Planning Considerations for Qualified Plans and IRAs
in North Carolina on June 16, 2006
presented by SunGard Corbel

Fall Forum 2006
in Illinois on September 18, 2006
presented by BISYS Retirement Services

Fall Forum 2006
in Georgia on October 2, 2006
presented by BISYS Retirement Services

Fall Forum 2006
in Maryland on October 23, 2006
presented by BISYS Retirement Services

Fall Forum 2006
in California on November 13, 2006
presented by BISYS Retirement Services

Form 5500 Preparation Workshop
in New York on May 17, 2006
presented by New York Metropolitan Area Chapter - ISCEBS

Form 5500 Workshop
in Texas on May 11, 2006
presented by SunGard Corbel

Form 5500 Workshop
Nationwide on May 11, 2006
presented by SunGard Corbel

Form 5500 Workshop
in Utah on May 11, 2006
presented by SunGard Corbel

Form 5500 Workshop
in Washington on May 11, 2006
presented by SunGard Corbel

Health & Welfare Plan Fundamentals - A One-Day Seminar
in New York on May 25, 2006
presented by New York Metropolitan Area Chapter - ISCEBS

IRA Institute 2006 - CIP
in Illinois on June 19, 2006
presented by BISYS Retirement Services

IRA Institute 2006 - CISP
in Illinois on June 19, 2006
presented by BISYS Retirement Services

IRA Online Institute 2006 - CIP
Nationwide on May 8, 2006
presented by BISYS Retirement Services

IRA Online Institute 2006 - CIP
Nationwide on September 11, 2006
presented by BISYS Retirement Services

IRA Online Institute 2006 - CISP
Nationwide on May 8, 2006
presented by BISYS Retirement Services

IRA Online Institute 2006 - CISP
Nationwide on September 11, 2006
presented by BISYS Retirement Services

New! Fundamentals of 401(k) and Other Qualified Plans
in Texas on June 14, 2006
presented by SunGard Corbel

Population Health Management -- Valuable Lessons from the Fortune 100 Pave the Path to Health and Profit
in California on May 24, 2006
presented by ArlenGroup

Web/Telephone Seminar: Introduction to Roth 401(k)s
Nationwide on June 7, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA Beneficiary Distributions
Nationwide on June 15, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA Compliance
Nationwide on June 8, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA Fundamentals for Frontline Personnel - Part I
Nationwide on June 6, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA Fundamentals for Frontline Personnel - Part II
Nationwide on June 8, 2006
presented by BISYS Retirement Services


Newly Posted Press Releases
(Post Yours!)

New Analysis Shows Largest U.S. Companies Continued Shift to 401(k) Plans in 2005
(Watson Wyatt)

CPI Qualified Plan Consultants Adds Heritage Funds to Retirement Platform
(CPI Qualified Plan Consultants, Inc.)

CitiStreet Surveys Show Investment Advice Spurs Action Among Retirement Plan Participants
(CitiStreet)

ftwilliam.com Announces The Release Of Form 8905
(ftwilliam.com)

MediKeeper to Provide Health Management Tool For All First HSA Customers
(MediKeeper)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Pension Administrator
for Primark Benefits
in CA

Trust Administrator - Employee Benefits
for Old Point Trust and Financial Services
in VA

Benefits & Retirement Specialist
for Aerojet - Sacramento
in CA

Defined Contribution Plan Administrator
for New York Life Investment Management LLC
in NJ

Product Manager
for New York Life Investment Management LLC
in NJ

Assistant Product Manager
for New York Life Investment Management LLC
in MA

Defined Benefit Client Account Manager
for New York Life Investment Management LLC
in MA

Defined Benefit New Business Consultant
for New York Life Investment Management
in MA

Benefits Administrator
for Independent Benefit Services
in MD

Account Executive- Philadelphia
for Transamerica
in PA

National Accounts Consultant
for Standard Insurance Company
in OR

Administrative Assistant
for McCready and Keene, Inc.
in IN

Sr. HR Representative
for Entergy Corporation
in LA

Not-for-Profit / 403(b) Market Manager
for Transamerica
in CA

Jr. Installation Specialist
for Transamerica
in CA

Benefits Manager
for Callison
in WA

Sr. Installation Specialist
for Transamerica
in CA

Defined Contribution Plan Administrator
for Pension Works, Inc.
in VT




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