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August 3, 2006
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Legislative Notice on H.R. 4 -- Pension Protection Act of 2006 (PDF)
16 pages. The target page contains background information, bill provisions, and links to related materials. (U.S. Senate Republican Policy Committee via American Benefits Council)

Overview: EGTRRA Permanency Included in the Pension Protection Act of 2006
Excerpt: "[O]ne of the most important provisions in the bill is permanency for the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (Title VIII section 811, p. 597). This provision was approved by the conferees and included in HR 4. Instead of expiring in 2010, the provisions in EGTRRA, such as portability, increased contributions limits, catch-up contributions and greater flexibility in plan designs, are all made permanent." (ICMA-RC)

CBO Letter to Senator Enzi on Budget Effects of Pension Protection Act (H.R. 4) (PDF)
10 pages. Excerpt: "[The letter addresses] the direct spending and revenue effects of H.R. 4, the Pension Protection Act of 2006, as passed by the House of Representatives on July 28, 2006." (Congressional Budget Office via American Benefits Council)

Advisory Opinion 2006-06 Regarding 12b-1 Fees Paid by Proprietary Mutual Fund
Excerpt: "[DOL was asked w]hether the prohibition on the payment of sales commissions in PTE 77-3 applies to the payment of 12b-1 Fees by a proprietary mutual fund to an unrelated broker." (U.S. Employee Benefits Security Administration)

Defined Contribution Plan Failure: Options for Participants
Excerpt: "If an employer fails, or terminates a defined benefit plan, participants may find themselves facing significant shortfalls. Absent outright fraud or theft, however, the failure of a defined contribution sponsor is not usually as troublesome." (The CPA Journal)

Update on 403(b) Regulations, July 2006 (PDF)
Excerpt: "A reliable source at the IRS has recently confirmed that the final regulations are now on hold pending work to be done by the DOL with regard to non-ERISA 403(b) programs. According to a Treasury source, while these discussions are complex, they are not the only reason for the delayed issuance." (Prudential Retirement)

Joint Letter in Response to Requested GAO Study of Public Pension Funding Issues (PDF)
3 pages. Excerpt: "On behalf of the 28 national organizations listed [in the letter] -- representing state and local governments and officials, public employee unions, public retirement systems, and over 20 million State and local government employees, retirees, and their beneficiaries -- we are writing in reference to a July 10, 2006 letter between your offices regarding a study into the financial condition of State and local government defined benefit pension systems." (National Association of State Retirement Administrators)

Links to Items on Executive Comp, Benefits in General

Proposed FASB Staff Position, No. FAS 123(R)-F: Technical Corrections of FASB Statement No. 123(R) (PDF)
5 pages. Excerpt: "This FASB Staff Position (FSP) addresses certain technical corrections of FASB Statement No. 123 (revised 2004), Share-Based Payment." (Financial Accounting Standards Board)

Comment Letter Sent to FASB Regarding EITF Issues 06-4
Excerpt: "[The letter comments on] Accounting for Deferred Compensation and Post-Retirement Aspects of Split Dollar Arrangements]." (Executive Benefit Solutions)

Court Rejects Safe-Harbor Argument, Says ERISA Applies to Benefit Dispute
Excerpt: "Lawyers handling employee-benefit cases understand the broad preemptive power of ERISA. The statute governs virtually all benefit claims where the employer is directly involved in providing benefits to its employees. As a result, the statute usually preempts state-law claims, including breach of contract and bad faith. There are some notable exceptions, though, . . . ." (erisa on the web; Posted by John Wood)

Overview: GAO Survey on Nonprofit Hospitals' Executive Compensation (PDF)
3 pages. Excerpt: "The survey sample was of 100 hospital systems throughout the United States, each of which is recognized as tax exempt under IRC §501(c)(3). Of the 100 hospital systems surveyed, 65 responded. The survey was carried out from June 2005 through June 2006." (Powell Goldstein LLP)

'Rolling Vesting' May Remain Viable for Ineligible Section 457 Plans Notwithstanding Section 409A
Excerpt: "Executives and physicians employed by hospitals, universities and other tax exempt entities have frequently used 'rolling vesting' with regard to their 'ineligible' Section 457 deferred compensation plan accounts to defer the date on which the executive or physician will vest in (and become taxable on) his or her deferred compensation account." (Buchanan Ingersoll & Rooney PC)

Employment Arrangements: Improved Outreach Could Help Ensure Proper Worker Classification
66 pages. Excerpt: "GAO was asked to update [a June 2000] report by describing (1) the size and nature of the contingent workforce, (2) the benefits and workforce protections provided to contingent workers, and (3) the actions that DOL takes to detect and address employee misclassification. [Highlights of the report are at]" (U.S. Government Accountability Office)

Overview: IRS Clarifies When Form 5558 Requires Signature
Excerpt: "The IRS has clarified when Form 5558 (Application for Extension of Time To File Certain Employee Plan Returns) requires a signature. If Form 5558 is used to file an extension for Form 5500 . . . a signature is not required. . . . A signature is required if the extension request concerns the filing of Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans)." (CCH Pension & Benefits)

Advisory Opinion 2006-05A: Whether Federal Reserve System Plans are 'Governmental'
Excerpt: "[DOL was asked w]hether certain employee benefit programs of the Federal Reserve System are excluded from the requirements of Title I under section 4(b)(1) of ERISA as 'governmental plan[s]' within the meaning of section 3(32) of ERISA." (U.S. Employee Benefits Security Administration)

Newly Posted Press Releases
(Post Yours!)

Pension Bill Falls Short for Workers
(Pension Rights Center)

The SPARK Institute Files SEC Comment on the Pilgrim Baxter Proposed Fair Funds Distribution Plan
(SPARK Institute)

Al Otto to Present to Louisville Employee Benefits Council on 401(k) Fees
(White Horse Advisors, LLC)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Retirement Plan Administrator
for Wells, Lamoriello, LLC
in CT

Participant Services Counselor
for AFTRA Health & Retirement Funds
in NY

Key Account Manager
for ING
in MA

Client Relationship Manager
for The Newport Group
in FL

401(k) Compliance Manager
for PENCO, Inc.
in OH

Retirement Services Plan Manager
for Wachovia
in PA

Communications Strategist
for CitiStreet (a State Street and Citigroup Company)
in MA

Investment Client Reporting Analyst
for CitiStreet (a State Street and Citigroup Company)
in MA

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