June 22, 2006 Today's sponsor: ASPPA • Working for America's Retirement™ (Click on company name or banner to learn more.)
NY Teachers Union Explains Settlement with Spitzer Over 403(b) Practices Excerpt: "'It is clear now the Trust, despite its best intentions, could have -- and should have-- historically provided more disclosure of the fees paid to the Trust by [the annuity company endorsed by the union] and more regularly reviewed investment options,' said NYSUT President Richard Iannuzzi. 'Mistakes were made. They will not be made again.'" (New York State United Teachers) Autoworkers Union Opposes Proposed At-Risk Pension Rule Excerpt: "The United Auto Workers would oppose a bill to overhaul the traditional U.S. pension system if it kept a current proposal for identifying pension plans at risk of default, a union official said on Wednesday." (Washington Post; one-time registration required) Rising Rates Ease Pressure on Defined Benefit Retirement Plans Excerpt: " Rising interest rates, the bane of the stock market, could be the cure for what ails Corporate America's pension plans.'It literally could make them funded,' said Howard Silverblatt, senior equity index analyst at Standard & Poor's. 'We could swing the other way.'" (MarketWatch) Single-Employer Plan Termination Issues Under the PBGC's Plan Termination Insurance Program (PDF) 24-page overview by attorney David R. Levin; originally published March 2005. Excerpt: "Within less than two decades after its enactment, ERISA was significantly modified to impose substantial limitations upon the ability to initiate voluntary plan terminations. These limitations were designed to restrict employers from shifting all or a portion of the unfunded liability for guaranteed benefits onto the termination insurance program." (Gardner Carton & Douglas) United Pilots to Receive Shrunken Pension Checks; PBGC Covers Only So Much Excerpt: "Pilots face a double whammy: Their high salaries mean their expected pension payout is big compared to other workers (pension checks are calculated based on earnings), far exceeding the PBGC's maximum payout. On top of that, federal law requires pilots retire at age 60, but the PBGC considers that early retirement -- 65 is 'normal' -- and dings their benefits." (MarketWatch via Human Resource Executive Online; free one-time registration required) Innovative Artists' Pension Plan Flourishes Excerpt: "[E]ach trust is structured as a limited liability corporation with no tax benefits ... Each [participating artist] agrees to contribute up to 20 works over 20 years, more in the early years, fewer in the later years.... The artist acquires a pro-rata interest in the trust, sort of like shares in a mutual fund. The trusts have collected more than 500 paintings, sculptures and other pieces." (San Francisco Chronicle via Scripps Howard News Service) The End of a Dream: Defined Benefit Plans Disappearing Excerpt: "Today's low long-term interest rates, combined with a stock market that's no higher than it was six years ago, have made traditional defined-benefit plans a crushing financial burden to many firms-- just as they're feeling the heat from foreign businesses that don't have plans. In addition, research shows that young employees increasingly don't care about traditional pensions ... And a raft of coming regulatory changes will make those plans even more burdensome to employers." (Fortune via CNNMoney.com) Newly Posted Events Labor Department Sponsors Tucson Workshop on Federal Pension and Health Law in Arizona on August 1, 2006 presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA) Newly Posted Press Releases ASPPA Retirement Plan Fundamentals (RPF) Examinations to Replace PA Examinations Effective Midnight, June 30, 2006 (ASPPA (American Society of Pension Professionals & Actuaries)) Blue Cross of California Launches BMI Training and Promotion Program to Make Childhood Obesity Screening a Statewide Standard (Blue Cross of California) Nation's Insurance Commissioners Help Consumers Cope With Cost, Confusion Regarding Health Insurance (National Association of Insurance Commissioners (NAIC)) Newly Posted or Renewed Job Openings Account Executive- Philadelphia for Transamerica in PA 401(k) Administrator for Continental Benefits Group, Inc. in NJ Data Project Administrator for Vanguard in PA TPA Relationship Manager - South East Region for Transamerica in GA Pension Administration Analyst-Entry for Hewitt Associates in GA VP, Retirement Plans Product Manager for J & W Seligman & Co Incorporated in NY Cafeteria Plan Administrator (Section 125) for Polycomp Administrative Services (Roseville, CA) in CA Retirement Program Manager - DB, DC, and NQP Plans for Vanguard in PA Assistant Plan Administrator for Compensation Planning, Inc. in OK Pension Administrator for Andraos Capital Management in CA Daily Valuation Recordkeeper for Associates in Excellence in CA TOC Design Consultant Advanced for Hewitt Associates in IL Associate Account Manager, Human Resource Services for Paychex in NY Plan Analyst for McGraw Wentworth - Group Benefits Broker/Consultant in MI Account Manager for McGraw Wentworth - Group Benefits Broker/Consultant in MI Handy Links:
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