BenefitsLink
Retirement Plans
Newsletter
To BenefitsLink home page Fill your job openings fast by advertising on BenefitsLink

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

(Click on company name or banner to learn more.)
Banner ad for ASPPA • Working for America's Retirement™

2006 ASPPA ANNUAL CONFERENCE

Join us on October 22-25 at the Washington Hilton & Towers! Attend special sessions specifically related to the Pension Protection Act ’06. Hear the "Washington Update" from Brian Graff and the popular “Keeping Current” session given by Sal Tripodi. Visit over 80 vendors with new ideas and products in the Spacious exhibit hall. Register NOW @ www.asppa.org.

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

Pension Reform Bill Unlikely to Change Trends, According to Article by Dallas Salisbury
Excerpt: "The law offers some encouragement to employers and workers, but the regulatory and technical guidances underlying the poorly written law are still to come. And the decline of defined-benefit plans seems to continue unabated." (Human Resource Executive Online)

Survey Provides Additional Evidence of Move from Defined Benefit Plans
Excerpt: "A national survey of more than 450 employers by Wells Fargo's employee benefits consulting group, BPS&M, provides additional evidence of the trend away from pension plans in favor of 401(k) plans." (PLANSPONSOR.com; one-time registration required)

Overview: The Pension Protection Act of 2006 -- Implications for Defined Contribution Plans (PDF)
7 pages. Excerpt: "[The PPA] makes a number of significant changes in the laws affecting defined contribution plans. Most of the changes are designed to enhance savings by increasing coverage, contributions and portability of benefits." (Gardner Carton & Douglas LLP)

Fidelity Reports Positive Impact of Automatic Enrollment
Excerpt: "Of the nearly 12,000 defined contribution plans serviced by Fidelity Investments, those with automatic enrollment features showed a participation rate that was 22% higher than the participation rate in Fidelity's defined contribution plans that lacked the automatic enrollment feature . . . ." (CCH Pension and Benefits)

Roth 401(k)s Often Better Choice than Conventional 401(k) Plans
Excerpt: "Want a shot at tax-free investment growth? Here's why you should phone up human resources and put in a request for the Roth 401(k). Should you stuff these dollars in a regular or a Roth 401(k)? The standard advice is to favor the Roth 401(k) if you expect to be in a higher tax bracket in retirement. That will mean missing out on a tax deduction today. But in return, your withdrawals in retirement will be tax-free, rather than getting dinged at a punitive rate." (Jonathan Clements, The Wall Street Journal via Pittsburgh Post-Gazette)

Letter to SEC on the Proposed Distribution Plan for Banc One Investment Advisors Corporation (PDF)
8 pages. Excerpt: "At the outset, [Spark notes concerns] about the fact that the Distribution Plan provides virtually no guidance or assistance with respect to the handling of retirement plans and retirement plan omnibus accounts. As the SEC knows, such accounts involve thousands of plans and millions of participants who are likely the intended beneficiaries of a large percentage of the total distribution." (The Spark Institute)

CalPERS Criticized Over Retroactive Benefits
Excerpt: "Californian Assemblyman Keith Richman has made several damning comparisons between the CalPERS board and those involved with the San Diego pensions crisis, even calling on attorney general Bill Lockyer to comment on whether the fund's actions regarding retroactive benefits violated its constitutional and fiduciary duties." (Global Pensions)

Summary of the Principal PPA Provisions Affecting Individuals
EGTRRA Made Permanent; Direct Conversions from Qualified Plans to Roth IRAs; Rollovers by Non-Spouse Beneficiaries, more. (Denise Appleby in Investopedia)

Letter to Congressmen with Respect to Definition and Requirements of a 'Qualified Risk Manager' (PDF)
4 pages. Excerpt: "The American Academy of Actuaries offers suggested language for inclusion of an actuary with the designation of the M.A.A.A. (member of the American Academy of Actuaries) as one of the qualified risk managers listed in the amendment." (American Academy of Actuaries)

The Fiduciary Audit File: How to Help Clients Who Are Themselves Fiduciaries
Excerpt: "To comply with the mandates of ERISA, fiduciaries must establish prudent processes for administering retirement plans, including the creation and maintenance of an adequate record-keeping system. Explained here are the basic requirements for plan sponsors and those that find themselves in an ERISA fiduciary status." (Investment Advisor)

2006 Consultant Survey-- 401(k) Advisors
PLANSPONSOR's Consultant Survey is an evaluation by plan sponsor clients of the specific products and services offered by their consultants. (PLANSPONSOR.com; one-time registration required)

Overview: Pension Protection Act of 2006 - Some Significant Provisions Impacting Nonprofits & Donors (PDF)
8 pages. Excerpt: "The Pension Protection Act of 2006 . . . was signed into law by the President on August 17, 2006. This new law includes significant incentives and new restrictions on nonprofits and donors. Some of the significant provisions are set forth [in the target page]." (Briggs and Morgan)

Pension Plans Feel Long-Term Rate Drop
Excerpt: "Lower long-term interest rates have begun to hurt pension plans, adding to the funds' liabilities, according to a report [yesterday] from Mellon Financial Corp., which tracks the health of pension plans in the U.S." (AP via Los Angeles Times; one-time registration required)

Protecting a Privatized Social Security: Actuary Proposes 'Floor Plan' Reform (PDF)
4 pages. Excerpt: "Following is a creative, compromise solution to Social Security's looming financial crisis in the United States. Now, the Floor Plan is described for private-employer pensions in IRS Revenue Ruling 76-259. Under such a program as it would apply to Social Security, a worker's benefit at Social Security age for full benefits (the so-called Full Benefit Age), now age 65 to 67, would be the sum of two benefits: . . ." (Carol Caruthers, MSPA, EA)


Links to Items on Executive Comp, Benefits in General

McDonald's Japan No Longer Serving Up Forced Retirement
Excerpt: "McDonald's Japan announced it will abolish its policy of forced retirement at 60 for its company-owned restaurants. The change complies with new Japanese legislation, but the company says that's not why it is instituting it." (Workforce Management; one-time registration required)

Mailbox Rule Presumption Defeats Participant's Claim for Failure to Provide Notice of Plan Amendment
Excerpt: "EBIA Comment: The DOL's regulations specifically permit notice of a plan amendment by delivery of SMMs and SPDs via first-class mail. Armed with evidence of its mailing procedures and the mailing of this notice, this company created a presumption of receipt that the participant could not defeat. As this case illustrates, a plan's records should include evidence of the mailing list and the company's established business practices with respect to mailing." (Employee Benefits Institute of America Inc.)

Congress Is Urged to Hold Off Acting on Options and Executive Pay
Excerpt: "Linda Chatman Thomsen, the Securities and Exchange Commission's enforcement director, told the [Senate Finance Committee] panel that it might be 'premature' to introduce government policies now that new accounting and disclosure rules were discouraging the manipulation of option grants and other forms of pay abuse." (The New York Times; one-time registration required)

Senators May End Executive Pay Deduction
Excerpt: "Senators said they may close a loophole in U.S. tax law that lets companies deduct executive pay of more than $1 million, in an effort to crack down on the manipulation of stock option grants." (The Washington Post; one-time registration required)

SEC Executive Compensation Rules Prompt Low Expectations
Excerpt: "A majority of corporate human resources and compensation directors think new rules to rein in executive pay will have little effect on company performance or salary levels, according to a recent Watson Wyatt Worldwide poll." (PLANSPONSOR.com; one-time registration required)

SEC's Cox Says Executive Salary Cap a Flop
Excerpt: "The $1 million legislative cap on salaries for certain top public company executives 'deserves pride of place in the Museum of Unintended Consequences,' Securities and Exchange Commission chairman Christopher Cox said in written testimony submitted Senate Banking Committee." (Investment News; registration or subscription required)

CFA Says: Ban 'Spring Loaded' Stock Options
Excerpt: "Although the use of stock options has fallen out of favor due to new option expensing rules, there is a need for 'further examination of the replacement for options and the practice of granting restricted stock,' Kurt Schacht, executive director of the CFA Centre for Financial Market Integrity, told the Senate Banking Committee [September 6]." (Investment News; registration or subscription required)


Newly Posted Events
(Post Yours!)

2006 Fall Forum
in Illinois on September 18, 2006
presented by BISYS Retirement Services

2006 Fall Forum
in Georgia on October 2, 2006
presented by BISYS Retirement Services

2006 Fall Forum
in Maryland on October 23, 2006
presented by BISYS Retirement Services

2006 Fall Forum
in California on November 13, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Essentials
in Minnesota on October 11, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Essentials
in Massachusetts on October 17, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Essentials
in District of Columbia on October 19, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Essentials
in California on October 24, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Essentials
in Arizona on October 26, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Update: A seminar for serious IRA professionals
in Minnesota on October 12, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Update: A seminar for serious IRA professionals
in Massachusetts on October 18, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Update: A seminar for serious IRA professionals
in District of Columbia on October 20, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Update: A seminar for serious IRA professionals
in California on October 25, 2006
presented by BISYS Retirement Services

2006 Fall Tour: IRA Update: A seminar for serious IRA professionals
in Arizona on October 27, 2006
presented by BISYS Retirement Services

A Whole New World for Multiemployer Funds
Nationwide on September 12, 2006
presented by Buck Consultants

Cross-Tested Plan Workshop - Design and Testing
in Kansas on September 19, 2006
presented by SunGard Corbel

Cross-Tested Plan Workshop - Design and Testing
in Georgia on September 20, 2006
presented by SunGard Corbel

Cross-Tested Plan Workshop - Design and Testing
in Michigan on September 20, 2006
presented by SunGard Corbel

Cross-Tested Plan Workshop - Design and Testing
in North Carolina on September 21, 2006
presented by SunGard Corbel

Cross-Tested Plan Workshop - Design and Testing
in Massachusetts on September 26, 2006
presented by SunGard Corbel

Cross-Tested Plan Workshop - Design and Testing
in Illinois on September 26, 2006
presented by SunGard Corbel

Cross-Tested Plan Workshop - Design and Testing
in Texas on September 27, 2006
presented by SunGard Corbel

Cross-Tested Plan Workshop - Design and Testing
in Minnesota on September 27, 2006
presented by SunGard Corbel

Employee Benefits in Bankruptcy & Workouts: An Update
Nationwide on October 5, 2006
presented by ABA Joint Committee on Employee Benefits

FMLA Update (Two Day Program - Seminar Plus Workshop) Located in cities throughout the country
Nationwide on September 12, 2006
presented by HRTrainingCenter.com

In-Person COBRA Seminars Located in cities throughout the country
Nationwide on September 12, 2006
presented by HRTrainingCenter.com

Interactive Cafeteria Plan Seminar Every Wednesday for 3 weeks (10/4, 10/11 & 10/18) 2pm-3pm EASTERN
Nationwide on October 4, 2006
presented by HRTrainingCenter.com

Multi-State Taxation & Reporting Webcast 2:00pm- 3:30pm EASTERN
Nationwide on September 19, 2006
presented by HRTrainingCenter.com

Pension Protection Act Series - Single Employer and Cash Balance Plans
Nationwide on September 19, 2006
presented by Morgan Lewis & Bockius LLP

Pension Protection Act Series - Single Employer and Cash Balance Plans
Nationwide on September 21, 2006
presented by Morgan Lewis & Bockius LLP

Safe Harbor 401(k) Plans - Design and Administration
in Georgia on September 21, 2006
presented by SunGard Corbel

Safe Harbor 401(k) Plans - Design and Administration
in Michigan on September 21, 2006
presented by SunGard Corbel

Safe Harbor 401(k) Plans - Design and Administration
in North Carolina on September 22, 2006
presented by SunGard Corbel

Safe Harbor 401(k) Plans - Design and Administration
in Massachusetts on September 27, 2006
presented by SunGard Corbel

Safe Harbor 401(k) Plans - Design and Administration
in Illinois on September 27, 2006
presented by SunGard Corbel

Safe Harbor 401(k) Plans - Design and Administration
in Texas on September 28, 2006
presented by SunGard Corbel

Safe Harbor 401(k) Plans - Design and Administration
in Minnesota on September 28, 2006
presented by SunGard Corbel

Safe Harbor 401(k)Plans - Design and Administration
in Kansas on September 20, 2006
presented by SunGard Corbel

The Future of Work and Health - Where do we go from here?
in Pennsylvania on September 21, 2006
presented by Central Pennsylvania Chapter - ISCEBS

Web/Telephone Seminar: Advanced HSAs
Nationwide on October 17, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: Basic IRAs
Nationwide on October 5, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: General Traditional IRA Distributions
Nationwide on October 19, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA Excess Contributions
Nationwide on October 3, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA Fundamentals for Frontline Personnel - Part I
Nationwide on October 17, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA Fundamentals for Frontline Personnel - Part II
Nationwide on October 19, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: IRA-to-IRA Transfers and Rollovers
Nationwide on October 24, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: Pension Protection of 2006
Nationwide on September 15, 2006
presented by BISYS Retirement Services

Web/Telephone Seminar: Withholding
Nationwide on October 12, 2006
presented by BISYS Retirement Services


Newly Posted Press Releases
(Post Yours!)

Most See New Disclosure Rules Having Little Impact on Executive Pay
(Watson Wyatt)

New Book Offers Reform Agenda for a Working America
(Urban Institute)

PBGC Protects Pensions At Oneida Ltd.
(Pension Benefit Guaranty Corporation (PBGC))

Declining Interest Rates Fuel Boost in U.S. Pension Plan Liabilities
(Mellon Financial Corporation)

BNA Launches Portfolio Series Providing In-Depth Analysis and Insight Into Application of Accounting Rules and Standards
(BNA, Inc.)

Judy Diamond Associates Releases the Directory of Third Party Retirement Plan Administrators 2007-2008 Edition
(Judy Diamond Associates)

Wells Fargo Survey Shows New 401(k) Plan Designs Taking Hold, Employers Planning More Pension Changes
(Wells Fargo)

New Book: Restructuring Retirement Risks
(Pension Research Council)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Retirement Plan Coordinator
for American Funds, a part of The Capital Group Companies, Inc
in TX

Benefit Analyst/Consultant (Travel Required)
for CCA Strategies
in CO, GA, IL, MA, TX

Account Executive, Group Benefits
for Lenox Advisors, Inc
in CT, NY

Group Benefits Sales Professional
for Lenox Advisors Inc
in NY

General Manager
for Benefit Systems, Inc.
in TX

Retirement Medical Plans Analyst
for PepsiCo, Inc.
in NY

Retirement Plan Administrator
for TPA Firm Established in 1982
in NH

Pension Manager
for Philadelphia Area TPA (Montgomery County)
in PA

Legislative and Regulatory Advocate: Retirement Security
for The ERISA Industry Committee
in DC

Account Manager
for Pension Corporation of America
in OH

Director of Client Services
for BISYS Retirement Services
in PA

Service Delivery Manager
for JPMorgan Retirement Plan Services
in CO, KS, MO

Service Line Manager, Daily Valuation
for Spectrum Pension Consultants, Inc.
in WA

401(k) Processor
for Leggette Actuaries, Inc.
in TX

Health and Welfare Lead Analyst - MA060460
for MidAmerican Energy
in IA

401 (k) Administrator
for Compliance/Administration Company
in NJ




Handy Links:

NOTE TO AOL MEMBERS: PLEASE DO NOT REPORT THIS EMAIL AS SPAM. This email is not unsolicited. We do not send unsolicited email. This email is coming to you because you asked to receive it by entering your email address on our web page at

https://benefitslink.com/newsletter/

These emails are sent each workday except federal holidays.

This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151

David Rhett Baker, J.D., Editor

Copyright 2006 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.

Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/

Other useful links: