| BenefitsLink Retirement Plans Newsletter |   |
June 9, 2006
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House GOP Leader Vows Quick Work on Pension Bill
Excerpt: "A top House Republican vowed Thursday that lawmakers would finish work on a long-awaited effort to overhaul the nation's troubled defined-benefit pension system by the Independence Day holiday." (MarketWatch.com)
Society of Actuaries Research Provides Insight for Navigating a Treacherous Pension Environment
Excerpt: "A series of surveys that explores how the public perceives retirement risks and manages related financial resources has uncovered interesting results. Read [the target page article] for a detailed explanation." (Society of Actuaries)
Trends and Issues: Capitalizing on Inertia -- Automation Boosts Retirement Savings (PDF)
12 pages. Excerpt: "This paper provides a survey of academic research that explores the impact of certain plan features that lead to greater participation and contribution rates, and, ultimately, to greater financial security in retirement." (TIAA-CREF Institute)
Fifth Report of the ACT, June 7, 2006, Includes Information on 403(b) Arrangements Compliance (PDF)
116 pages. Excerpt: "The fifth report of recommendations of the Advisory Committee on Tax Exempt and Government Entities (ACT) on four issues addressing: Policies and Guidelines for Form 990 Revision, Document Compliance Program for 403(b) Arrangements, Public Employers' Toolkit for Preparing Payrolls, and Effect of IRS Audit Information on Tax Exempt Bond Market, is now available." (U.S. Internal Revenue Service)
PBGC Appeals Court Decision on Delta Pilots Contract
Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) has filed an appeal of the bankrup.tcy court decision rejecting its objections to a settlement between Delta Air Lines Inc. and its pilots' union, Reuters reports." (PLANSPONSOR.com: one-time registration required)
Overview: ERISA Sec. 404(c) not Exclusive Means to Satisfy Fiduciary Duties under Participant-Directed Plans
Excerpt: "The Seventh Circuit held that, although ERISA section 404(c) creates a safe harbor for a trustee, ERISA section 404(c) is not the only possible means by which a trustee can escape liability for participant-directed plans. The court held that ERISA permits a plan trustee to delegate decisions regarding the investment of funds to plan participants even if the plan does not meet the requirements for the ERISA section 404(c) safe harbor." (White & Case LLP)
Overview: The Statutory Eligibility Rule of 1,000 Hours of Service in a 12-Month Period
Excerpt: "Should a plan that has selected the statutory eligibility rule of 1,000 hours of service in a 12-month period permit employees to become participants as soon as they complete 1,000 hours of service? .... No. The statutory rule requires employees to complete 1,000 hours and 12 months of service." (McKay Hochman Co., Inc.)
Overview: The DOL Promise of Guidance Pertaining to the Timely Deposit of Employee Deferrals
Excerpt: "An employer was recently found to be in breach of fiduciary conduct under ERISA, even though the employer had sent the custodian a check for the amount of employee deferrals via overnight delivery on the actual payday the deferrals were withheld, because the vendor/custodian who received the checks initially held the funds in a non-interest bearing account for 2 days until the allocation report was uploaded by the TPA." (McKay Hochman Co., Inc.)
Links to Items on Executive Comp, Benefits in General
Proposed FASB Staff Position No. FAS 123(R)-E --Title: Amendment of FASB Staff Position FAS 123(R)-1 (PDF)
3 pages. Excerpt: "This FASB Staff Position (FSP) addresses whether a modification of an instrument in connection with an equity restructuring or a business combination should be considered a modification for purposes of applying FSP FAS 123(R)-1, 'Classification and Measurement of Freestanding Financial Instruments Originally Issued in Exchange for Employee Services under FASB Statement No. 123(R).'" (Financial Accounting Standards Board)
Overview: New Tax Rules Governing the Use of Private Aircraft
Excerpt: "Despite the restrictions on tax savings imposed by the modified rules on the deductibility of airplane expenses under IRC Section 274(e) and on the first functional use exception from California use tax, with proper planning taxpayers may be able to structure their activities to avoid the impact of the new rules." (Los Angeles Lawyer via Reish Luftman Reicher & Cohen)
Letter on Congressional Hearings on Executive Compensation and One Firm's Testimony (PDF)
10 pages. Excerpt: "The House of Representatives Financial Services Committee, which has oversight of the SEC, held hearings on executive compensation on May 25. The special hearings were called by Congressman Barney Frank (D-Mass), ranking minority leader, to advance his bill, the Protection Against Executive Compensation Abuse Act, which he introduced last November." (Frederic W. Cook & Co., Inc.)
Hewitt Federal Legislation Quick Guide Updated as of June 6, 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)
It's Crunch Time for the United Automobile Workers in Detroit
Excerpt: "Ford is offering workers up to $100,000 to leave their jobs, including $35,000 to those eligible for retirement. The company is also offering a plan that pays up to $15,000 in college tuition, plus half a worker's salary for three years. Ford has no target for reducing its payroll, but the buyouts are being offered to workers at plants that it plans to close." (The New York Times; one-time registration required)
Newly Posted Events
Getting It Right -- Know Your Fiduciary Responsibilities - Minneapolis Compliance Assistance Seminar for Retirement Plan Fiduciaries
in Minnesota on July 13, 2006
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Newly Posted or Renewed Job Openings
401(k) / Defined Contribution Administrator
for Pension Investors Corporation
in FL
Employee Benefits Account Manager
for The Parker Group
in NY
Strategic Investment Advisory Group
for JP Morgan Asset Management
in NY
Accounting Analyst/Financial Specialist
for PPL Services
in PA
Health Benefits Analyst
for Segal Company
in AZ
Health Care Benefits Consultant
for Deloitte Consulting LLP
in MN
Retirement Rollover Specialist
for The Dreyfus Corporation
in ANY STATE, AZ, CA, NV, OR, WA
Account Manager
for Pension Corporation of America
in OH
Defined Benefit Conversion Project Leader
for New York Life Investment Management LLC
in MA
Defined Contribution Administrator/Consultant
for The Benefit Practice
in NY
Account Executive - Retirement Plan Consultant
for Benefit Funding Services Group
in CA
Internal Service Representative
for Northwestern Benefit Corporation of Georgia
in GA
Manager of Administration
for Pension And Retirement Services, Inc.
in MO
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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