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May 23, 2006
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ASC helps retirement plan professionals increase efficiency and profitability through its software systems, documents and education. Software includes DC 401(k) administration & valuation, Defined Benefit, Compliance Testing, DV Direct daily valuation, AIM case management and more. With ASCi plan documents you can quickly and easily create customized prototype/volume submitter plan documents, efficiently maintain historical plan information, create complete amendment packages for all your clients at one time and more. Click to learn more or email

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

2006 Tax Law Changes and the Impact on You (PDF)
5 pages. Excerpt: "On May 17, 2006, President Bush signed into law the Tax Increase Prevention and Reconciliation Act of 2005 (the 'Act'). The Act contains a list of extended provisions, several new tax breaks, and a list of revenue raisers. This Alert provides an overview of the more significant new provisions and their impact on taxpayers [including conversions of IRAs into Roth IRAs in 2010]." (Briggs and Morgan)

A Guide for Participants in a 403(b) Tax-Sheltered Annuity Plan (PDF)
6 pages. Excerpt: "As a 403(b) plan participant, you need to pay attention to the operation of your 403(b) tax-sheltered annuity so that you can: be compliant with the law, maximize your retirement benefits, and avoid additional taxes and penalties." (U.S. Internal Revenue Service)

A Guide for Sponsors to the 403(b) Tax-Sheltered Annuity Plan (PDF)
6 pages. Excerpt: "It is important to know the tax rules applicable to a 403(b) plan to: 1) help you comply with the tax law; and 2) help you ensure that your employees get the maximum benefit out of your 403(b) plans." (U.S. Internal Revenue Service)

These Workers Act Like Owners -- Because They Are
Excerpt: "Employees who own a big share of their company are more likely to innovate, stay focused on quality and hold management accountable. As some companies struggle under slipshod governance, ineffective leadership and bloated costs, organizations that build an 'ownership culture' in the workplace develop a stronger position in the marketplace." (The New York Times; one-time registration required)

Merger of Minneapolis, Statewide Teachers' Pension Funds Approved
Excerpt: "In the final vote of an all-day, all-night session, legislators early Sunday sent to Gov. Tim Pawlenty a long-sought merger of the financially strapped Minneapolis teachers pension fund with the statewide teachers retirement fund." (Star Tribune; one-time registration required)

Overview: IRS Revises Its Corrections Programs for Retirement Plans (PDF)
2 pages. (Milliman)

Retirement Savings and Household Wealth: Trends from 2001 to 2004 (PDF)
21 pages. Excerpt: "According to the most recent survey, 47.9% of workers under age 65 participated in employer-sponsored retirement plans-- both DB and DC-- in 2004, down from 49.6% in 2001. The decline in retirement plan participation between 2001 and 2004 was most heavily concentrated among workers under 45 years old, male workers, non-white workers, unmarried workers, those who did not attend college, and those with household incomes in the bottom half of the income distribution." (Congressional Research Service of the U.S. Library of Congress)

Congress Set To Enact Major Changes
Excerpt: "While it is not at all surprising to see Congress expending an enormous effort in an attempt to fix the defined benefit plan system, it is surprising to see so many legislative changes under ERISA's fiduciary responsibility rule poised. While ultimate passage for some provisions is uncertain, it is surprising that so many of these fiduciary proposals have moved through Congress generally unscathed and almost unnoticed." ( one-time registration required)

Bill Would Require Senate Approval of PBGC Head
Excerpt: "Bipartisan legislation introduced Monday by two Senate leaders would require Senate confirmation of future executive directors of the Pension Benefit Guaranty Corp." (Business Insurance)

Public Pension Funds Sue UnitedHealth over Stock Option Grants
Excerpt: "A lawsuit has been filed on behalf of a group of five public pension funds seeking to remedy the harm caused to UnitedHealth Group, Inc. and its shareholders as a result of backdated executive compensation stock option grants." ( one-time registration required)

UK Pension Paper Said to Favor Auto Enrollment
Excerpt: "The paper that will set out the future for pension policy in the UK is due out by the end of the week, but is believed to call for, among other things, auto enrollment and a minimum of 3% contributions by employers into the pension plans of employees." ( one-time registration required)

Links to Items on Executive Comp, Benefits in General

Update on Tax Legislation Regarding Personal Use of Corporate Aircraft
Excerpt: "The revenue reconciliation bill President Bush signed into law on May 17, 2006, cited as the 'Tax Increase Prevention and Reconciliation Act of 2005,' does not change the current rules regarding personal use of employer-provided aircraft. Although omitted from this legislation the Senate-proposed aircraft provisions may still appear in upcoming legislation (e.g., a second package of tax cuts or pension legislation)." (Deloitte via

Equity-Based Compensation (PDF)
42 pages. Excerpt: "Answers to Frequently Asked Questions Concerning Compensating Management, Employees and Consultants with Stock, Options and Other Equity" (O'Melveny & Myers LLP)

Combined Retirement Income/Retiree Health Acct. Would Simplify Employees' Saving for Both Needs (PDF)
2 pages. Excerpt: "Today, there are at least 17 different tax-advantaged employer- or individually-based vehicles available that distinguish between saving for retirement and health care expenses. However, with employer-provided retiree health care fading away, and medical expenses already consuming a significant portion of retirees' living costs, this distinction no longer makes sense." (HR Policy Association)

Poll Shows Benefits a Key Factor in G.ays' Job Search
Excerpt: "A majority of adults -- 67 percent -- agree the benefits a company offers its employees are critical in determining where one works, according to the Out & Equal Workplace Survey." (

Domestic Partner Benefits OK'd by Utah Court
Excerpt: "An ordinance extending health benefits to the domestic partners of Salt Lake City employees does not violate a 2004 state constitutional ban on same-sex marriages, a court has ruled." (Business Insurance)

Newly Posted Press Releases
(Post Yours!)

Workplace Options Care Coach Service Wins Caregiver Friendly Award
(Workplace Options)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

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

Senior Benefits Compliance Representative
for Aerojet
in CA

Participant Services Center Supervisor
for New York Life Investment Management LLC
in MA

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

Senior Manager-Retiree Health Services
in DC

Account Executive
for Transamerica
in CO

Project Manager
for The Paragon Consulting Group
in IN

Defined Contribution Plan Manager
for Freescale Semiconductor
in TX

Associate Counsel (Employee Benefits/Tax/Retirement Accounts)
for Great-West Corporate
in CO

E.B. Operations & Participant Accounting Manager
for BBT/Stanley, Hunt, Dupree, and Rhine
in SC

401(k) Enrollers/Independent Contractors - Part Time
for Diversified Investment Advisors

Recordkeeping Services Manager
for Vanguard
in AZ

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