Retirement Plans
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July 7, 2006
Today's sponsor: ASPPA • Working for America's Retirement™

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don't miss the 2006 Western Benefits Conference!

The famed Bellagio Hotel is the site of this year’s WBC, held July 16-19. Sponsored by the Western Pension & Benefits Conference and ASPPA, there are more than 50 educational sessions on retirement, health, welfare, fiduciary issues and more plus networking activities such as an exhibit hall, golf outing, Sunday reception and entertainment on Monday evening.

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

IRS Ruling Permits Transfer of Beneficiary's Interest in Decedent's IRA to Special Needs Trust
Excerpt: "The IRS has privately ruled that the transfer of a disabled beneficiary's interest in a decedent's IRA to an IRA owned by the special needs trust of the beneficiary would not be considered a taxable transfer for purposes of Code Sec. 691(a)(2)." (CCH Pension & Benefits)

Working with Non-Fiduciary Investment Consultants
Excerpt: "Plan fiduciaries must ask non-fiduciary consultants to account for their compensation so that the fiduciaries can fulfill their fiduciary duty under ERISA section 404(a)(1)(A)(ii). The consultant, however, has no duty to (and very rarely does) answer that question. Reish and Ashton really have nailed it when they refer to this as a 'disconnect.'" (Morningstar)

Listing of IRS Published Guidance for January 2006 -- June 2006
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)

Tennessee Legislature Approves Bill Allowing Roth 401(k) Plans for State Employees (PDF)
Pages 3-4 of 7 pages. Excerpt: "On May 23, 2006, the Tennessee Legislature passed a bill (H.B. 3287) allowing the state treasurer to offer Roth 401(k) plans to state employees if approved by the State Department of Finance and Administration. [A table compares features of the new Roth 401(k) and the traditional 401(k).]" (Gabriel Roeder Smith & Company)

Social Justice Group to Offer Social(k) Fund Menu
Excerpt: "The Co-op America Business Network has agreed to encourage its 3,500 members to adopt a 401(k) plan investment option platform that includes more than 100 socially conscious funds." (National Underwriter Life & Health; free one-time registration or paid subscription required)

Company Stock in a 401(k)? The Net Unrealized Appreciation Option Could Save on Taxes
Excerpt: "If your clients hold employer's securities in their qualified plans, they may enjoy favorable tax treatment. The tax break comes from net unrealized appreciation (NUA), but it is only available if your clients play by the rules." (

Overview: Roth 401(k) Investing Guide
The article topics are: Who should -- and shouldn't -- select the Roth 401(k); Contribution considerations; Tax rates; and, No magic bullet about how to divide Roth versus non-Roth assets in your 401(k). (The Vanguard Group)

Massachusetts Panel Urges State Pension Overhaul: Changes Would Close Loopholes in System
Excerpt: "A commission created by the Legislature is recommending major changes to a public pension system that allows well connected state employees to get better benefits than their peers." (The Boston Globe)

IRS Weighted Average Interest Rate Table Updated for July 2006
Weighted average for July 2006: 4.83% (U.S. Internal Revenue Service)

Links to Items on Executive Comp, Benefits in General

Accting for Def Comp and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Ins. (PDF)
5 pages. Excerpt: "This draft abstract for EITF Issue No. 06-4, 'Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements,' addresses the following issue: Whether the postretirement benefit associated with an endorsement split-dollar life insurance arrangement is effectively settled in accordance with either Statement 106 or Opinion 12 upon entering into such an arrangement." (Financial Accounting Standards Board)

Overviews of Employee Benefits Developments, June 2006
This edition includes short overviews of assorted topics: PBGC requires electronic filing of premium declarations; IRS completes EPCRS overhaul; DOL expands and simplifies voluntary fiduciary correction program; DOL publishes guidance on mutual fund settlement proceeds; What it means to be an unfunded 'top hat' deferred compensation plan; A Severance Plan Casel; and, Supreme Court validates ERISA health plan reimbursement provision. (Hodgson Russ LLP)

Almost Half of Firms Noncompliant with Form 5500, According to Poll
Excerpt: "Employers are getting poor scores in at least one area of legal compliance. About 47% of companies did not file Form 5500 as required by federal authorities in 2003, according to Corporate Synergies, which polled 74,000 employers." (BenefitNews Connect)

Newly Posted Events
(Post Yours!)

2006 "Best Benefits Practices" Conference
in Massachusetts on December 7, 2006
presented by New England Employee Benefits Council

Newly Posted Press Releases
(Post Yours!)

CitiStreet Establishes Data Management Group
(CitiStreet) Announces Release of Batch Amendment Module

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Enrolled Actuary
for Summit Benefit & Actuarial Services, Inc.
in OR, WI

Operations Specialist
for PenCal Administrators, Inc.
in CA

Deputy Human Resources Director
for The County of Riverside
in CA

Account Manager, Employee Benefits
for ABD Insurance and Financial Services
in CA

Compliance Analyst
for National Automobile Dealers Associations’
in VA

in IL

Asset/Liability Management Analyst (APL/PTS)
for Great-West Corporate
in CO

OmniScript Analyst
in CO, NC

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