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June 27, 2006
Today's sponsor: ASC & The ASC Institute

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ASC RETIREMENT PLAN SOFTWARE, DOCUMENTS & EDUCATION FOR OVER 20 YEARS!

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

Even Free Money Can't Get Some Nonsavers Into a Retirement Plan
Excerpt: "Even free money can't get millions of Americans to save. Instead, the best way to get them to do it is to force them, unless they specifically say they don't want to. I've come to this conclusion after years of reviewing studies and research papers." (Humberto Cruz via The Boston Globe)

Opinion: Soon You're Talking Real Money, When New Pension Accounting Rules Take Hold
Excerpt: "With new and potentially very costly developments bearing down on pension plan sponsors from all sides, it has become almost as difficult to figure out what poses the greatest current threat to pensions as to walk down the street in Baghdad or Tel Aviv trying to anticipate where a sniper may be lurking." (Alvin D. Lurie via Pension & Benefit Power)

Overview: PBGC Finalizes Regs on Computing Liability When Employer Substantially Ceases Operations
Excerpt: "PBGC has issued a final rule for computing liability when employers with underfunded pension plans close down a facility and lay off a significant percentage of their workforce. The final rule adopts the proposed rule without substantive changes, and provides an illustrative example. The regs are effective for 'section 4062(e) events' occurring on or after July 17, 2006. (PBGC Reg § 4062.8, 71 Fed. Reg. 34819, 6/16/2006)" (Pension & Benefits Week via RIA News Briefings)

Abstract of June 27, 2006, WSJ Article: Pension Crash Landing
Excerpt: "Delta Airlines has become the latest airline company to flip liabilities to the federal Pension Benefit Guaranty Corporation (PBGC), shifting costs to taxpayers, says the Wall Street Journal. Since 2002, an increasing number of companies have dumped their pension plans on the PBGC, the quasi-government agency that 'insures' private pension plans." (National Center for Policy Analysis)

PLANSPONSOR 2006 Recordkeeping Survey
Excerpt: "For all those 'weapons' in the recordkeeping arsenal, experts agree that one area that still requires attention is reaching out to their participants, because 'traditional education is not getting the job done,' says Kent Buckles, president and CEO of Pittsburgh-based Invesmart. When people are confused, he says, they take the path of least resistance -- and, these days, that confusion seems more pervasive than ever before." (PLANSPONSOR.com; one-time registration required)

No Fiduciary Breach for Early Retirement Incentive Program Offered After Participant Retires
Excerpt: "Under a growing body of reported cases, when participants or beneficiaries make inquiries, plan fiduciaries must disclose the possibility of future benefit changes that are under 'serious consideration.' And beware -- although the employer won this case, a slight variation in the facts can lead to a different result." (Employee Benefits Institute of America Inc.)

Opinion: New Pennsylvania State Lawmakers Should Reject 'Platinum' Pensions
Excerpt: "The distance between the rulers and ruled continues to widen in Pennsylvania. For retiring and defeated members of the Pennsylvania House and Senate, the daily perks and privileges of office will disappear, but their departure will trigger the ultimate platinum parachute retirement plan." (The Morning Call Online)

Judge Says San Diego Public Pension Decision Could Take Time
Excerpt: "After listening to about six hours of oral arguments on motions to dismiss lawsuits on San Diego's debt-ridden pension fund, a judge said Monday he will take time to review complex legal issues. Both sides in the dispute between City Attorney Michael Aguirre and the board of the San Diego City Employees Retirement System sought to have their opponents' lawsuits thrown out." (SIGNONSANDIEGO NEWS SERVICES)

Nortel Cuts 1,100 Jobs, Reviews Pension Plan
Excerpt: "Nortel Networks Corp. ... said [today] it will cut 1,100 jobs globally as the communications equipment maker seeks to improve operating margins. Nortel will also review its pension plan, helping trim its annual costs by about $100 million from 2008 and saving the company more than $400 million in cash by 2012." (The Washington Post; one-time registration required)

Recent Switchers: 1st Large-Scale Quantitative Study of Plan Sponsors' Decision to Switch Providers (PDF)
2 pages. Excerpt: "[A]bout one 401(k) plan in six is up for grabs at any point in time. The challenge for 401(k) providers is both to recognize the opportunities -- and manage the risks -- in this dynamic marketplace." (Brightwork Partners LLP)


Links to Items on Executive Comp, Benefits in General

Military Fails Some Widows Over Benefits
Excerpt: "For military widows, many of them young, stay-at-home mothers, the shock of losing a husband is often followed by the confounding task of untangling a collection of benefits from assorted bureaucracies. While the process runs smoothly for many widows, for others it is characterized by lost files, long delays, an avalanche of paperwork, misinformation and gaps in the patchwork of laws governing survivor benefits." (The New York Times; one-time registration required)

47,600 Take Offer of Buyouts at G.M. and Delphi
Excerpt: "In an employee exodus that is one of the biggest ever, about 47,600 union workers at General Motors and its former division, the Delphi Corporation, accepted early retirement or buyout offers, the companies said [yesterday]." (The New York Times; one-time registration required)

As Workers' Pensions Wither, Those for Executives Grow
Excerpt: "[T]here's a twist to the auto maker's pension situation: The pension plans for its rank-and-file U.S. workers are overstuffed with cash, containing about $9 billion more than is needed to meet their obligations for years to come. Another of GM's pension programs, however, saddles the company with a liability of $1.4 billion. These pensions are for its executives." (The Wall Street Journal via Pittsburgh Post-Gazette)

PLANSPONSOR Magazine Special Report: Deferred Compensation -- Change Management
Excerpt: "Rabbi trusts provide the maximum protection that the law permits for participants in deferred compensation plans. 'Virtually any company that has a deferred compensation- arrangement should consider establishing a rabbi trust,' observes Peter Quinn, senior vice president and managing director of executive services at Wachovia Bank." (PLANSPONSOR.com; one-time registration required)

Small Business Benefit Trailblazers See Payoff in Worker Attitudes
Excerpt: "Whether it's because they're keeping up with the Jones Company or keeping the faith with employees, some small employers sponsor benefits packages that rival those of a Fortune 500." (Employee Benefit News)


Newly Posted Events
(Post Yours!)

HSA Benefits Implementation
in Massachusetts on September 26, 2006
presented by IQPC


Newly Posted Press Releases
(Post Yours!)

Watson Wyatt Urges Congress to Seize Opportunity to Shore Up Nation's Pension System
(Watson Wyatt)

Enhanced Version of Benefit Software's eEnroll Online (tm) Includes Newest Consumer-Directed Benefit Offerings
(Benefit Software Inc.)

Diversified Investment Advisors Launches PlanXpress(SM)
(Diversified Investment Advisors)

2006 Benefit Survey Shows Cost of Healthcare Remains Key Concern for Organizations
(Society for Human Resource Management (SHRM))

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


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Client Services Consultant
for July Business Services
in TX

Implementation Project Manager
for CitiStreet
in MA

Pension Analyst
for CitiStreet
in MA

401(k) Qualified Plan Administrator
for Small Business Insurance Agency
in MA

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

Benefits Manager
for The Rosen Group
in NJ, NY, PA, WV

Nonqualified Plan Consultant
for Vanguard
in PA

New Business Development/Sales - Retirement Plans
for PensionTrend, Inc.
in MI

Employee Benefits Compliance Manager
for CUNA Mutual Group
in WI

Sr. Benefits & Retirement Analyst
for Aerojet - Sacramento
in CA




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