Retirement Plans
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September 20, 2006
Today's sponsor: ASPPA • Working for America's Retirement™

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The 6th Annual ASPPA 401(k) SUMMIT

Be in San Diego February 25-27, 2007 at the Manchester Grand Hyatt to join ASPPA and a few thousand of your colleagues for the industry event of the year. We will have all new workshops that target small, mid and large plan markets, world class speakers, luncheon discussion groups for networking and Pension Protection Act 2006 perspectives from industry experts. don't miss out on early registration incentives. The ASPPA 401(k) SUMMIT – The Forum for Retirement Sales and Investment Professionals.

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

New Class Action Lawsuits Aimed at Revenue Sharing and Company Stock
Excerpt: "While these litigation developments are not unexpected, they are nevertheless extremely disconcerting, particularly in light of the many other recent developments relating to fees and expenses." (Groom Law Group)

401k Plan Fee Lawsuit Details Becoming Available
Excerpt: " has obtain a copy of the 45 page complaint filed against Northrop Grumman Corporation, The Northrop Grumman Corporation Savings Plan Administrative Committee and Investment Committee, numerous corporate offers and their Board of Directors. The complaint alleges that the Defendants . . . ." (

IRS Reveals Its Plans for Cash Balance Plans that Are in Limbo
Excerpt: "At the recent ALI-ABA seminar on Retirement, Deferred Compensation, and Welfare Plans of Tax-Exempt and Governmental Employers, IRS officials stated that, due to the recent changes brought about by the Pension Protection Act of 2006, the IRS plans to start moving cash balance plans out of what the IRS referred to as 'cash balance plan jail.'" (Attorney B. Janell Grenier via

Firms Unmotivated to See that Workers Earn Match, According to Paper
Excerpt: "Employees can't rely on 401(k)s to pay for their retirement, according to a recent paper published by the Center for American Progress." (Workforce Management; one-time registration required)

The SPARK Institute's Comment Letter to EBSA re: Revision of Form 5500 (PDF)
4 pages. Excerpt: "The retirement plan industry is awaiting additional regulatory requirements and guidance from the DOL regarding fee disclosure under Section 408(b)(2) of ERISA. The anticipated 408(b)(2) regulations will no doubt require retirement plan providers to make additional and similar fee information available to plan sponsors. The SPARK Institute urges the DOL to coordinate the requirements under the pending 408(b)(2) regulations and the proposed Form 5500 revisions." (The SPARK Institute)

Text of American Benefits Council's Comments to EBSA on Proposed Revisions of Form 5500 Issues (PDF)
6 pages. Excerpt: "The Council has significant concerns [about] portions of the proposal. Foremost of these concerns are timing issues: the September 19th deadline for comment letters and the proposed 2008 effective date for implementation of the changes are insufficient for the industry to analyze their effect and build the necessary technology. Part of this analysis is to understand how these revisions will relate to the disclosure of service provider compensation . . . ." (American Benefits Council)

The Pension Protection Act and Fiduciary Aspects of Automatic Enrollment in 401(k) Plans
Excerpt: "The PPA addresses an open question as to whether ERISA preempts state laws that might impede or prohibit automatic enrollment features, such as laws requiring the written consent of an employee before any deductions may be made from his or her compensation." (Trucker Huss)

Overview: Procedures for Commercial Passenger Airlines' Election of Alternative Funding Schedule
Excerpt: "IRS has issued an announcement that sets forth the information that must be contained in the election of the alternative funding schedule available for plans of commercial passenger airlines, and the address to which the election must be sent. (AdvAnn 2006-70, 2006-40 IRB)" (Pension & Benefits Week via RIA News Briefings)

Secure Your Retirement with a Rollover IRA
Excerpt: "This article discusses the advantages of Rollover IRA over employer-sponsored retirement plans." (Sam Subramanian via

San Diego County Pension Fund Tallies Losses and Rethinks Its Strategy
Excerpt: "San Diego County's pension fund was named Public Plan of the Year by a money management publication last April. Its investment returns were consistently ranked at the top of pension funds its size by Wilshire Associates, a consulting firm. It looked as if the $7.5 billion pension fund had a winning strategy for investing the retirement money of some 33,000 county workers. Until this week." (The New York Times; one-time registration required)

Pension Plans Like Indiana's Are Taking Bigger Risks With Taxpayers' Money
Excerpt: "Indiana is following the lead of other state and local pension funds trying to catch up with bigger funds such as the $210 billion California Public Employees' Retirement System, which has been sinking money into alternative investments for years. The goal is the same for all: to diversify portfolios and generate higher returns." (BusinessWeek)

300 Top Pension Funds' Assets Up 12% in 2005 Report
Excerpt: "Japan's government pension investment scheme is the world's biggest, with $870.6 billion of assets, followed by the Norwegian government's, at $235.85 billion, and the Dutch ABP's, at $226.97 billion, consultants Watson Wyatt and U.S. newspaper Pensions and Investments said in a report." (Reuters)

Slide Presentation on the Pension Protection Act -- Single Employer and Cash Balance Plans (PDF)
39 pages. The presentation covers: new funding requirements; actuarial assumptions used in determining liabilities; plan asset valuation; single employer pension plan benefit restrictions, and other issues. (Morgan Lewis)

A Data and Chart Book: Retirement Plan Coverage of Boomers -- Analysis of 2003 SIPP Data (PDF)
58 pages. Excerpt: "This data and chart book is an update of the 2004 version. . . . The revised chart book contains data on all types of pension coverage from a worker's current job, coverage from previous job(s), IRAs, and lump-sum payments from retirement plans for a large representative sample of U.S. employees." (AARP)

Second Supplementary Decision in Hirt v. Equitable Regarding Three Issues on Cash Balance Plan (PDF)
6 pages. (American Benefits Council)

Freezing Pension Plans: The Cold, Hard Facts on a Hot Topic
Excerpt: "This Mercer Perspective on Retirement explores the DB-versus-DC issue through the eyes of two typical corporate executives who are reviewing their company's retirement programs. They will discuss their specific situations, their thought processes and their concerns. Readers should find the conversation illuminating as well as a useful reference for their own retirement program review." (Mercer Human Resource Consulting LLC and Mercer Investment Consulting, Inc.; one-time registration required)

Links to Items on Executive Comp, Benefits in General

Overview: Antidilution Provisions under Recent Interpretations of FAS 123R (PDF)
3 pages. Excerpt: "According to recent accounting firm interpretations of the Statement of Financial Accounting Standards No. 123R, Share Based Payment ('FAS 123R'), adjustment of the terms of equity-based awards following an equity restructuring event could cause companies to recognize significant compensation cost." (Powell Goldstein LLP)

SEC Letter Regarding Practices Related to the Granting of Stock Options
Excerpt: "The Office of the Chief Accountant has prepared this letter to discuss certain of the existing accounting guidance related to grants of stock options." (U.S. Securities and Exchange Commission)

Summary: SEC Staff Provides Views on Stock Option Accounting Practices
Excerpt: "The Office of the Chief Accountant of the U.S. Securities and Exchange Commission (SEC) issued a letter [September 19] to Larry Salva, Chairman of FEI's Committee on Corporate Reporting (CCR) and Sam Ranzilla, Chairman of the Center for Public Company Audit Firms expressing its views on the 'appropriate application of the stock option accounting literature'." (Financial Executives International)

Firms Praised for G.ay Benefits While Three Companies Received a Score of Zero
Excerpt: "US Airways, Motorola and Intel are among 138 companies that earned a 100 percent grade from the Human Rights Campaign. The political group has been rating corporations for five years on their attitudes, policies, rights and benefits for g.ays." (East Valley Tribune)

SEC Considers Additional Executive Compensation Rules
Excerpt: "As companies gear up to comply with new disclosure transparency rules, the SEC is once again considering a rule requiring disclosure of highly paid, policy-making non-officers." (Human Resource Executive Online)

Compilation of NCSL 50-State Legislative Tracking Web Resources
Excerpt: "This new resource page provides NCSL legislative tracking resources on a variety of health and other rapidly-changing topics." (National Conference of State Legislatures)

Education Improves Employee Perception of Stock Options
Excerpt: "Preliminary findings from researchers at the University of Illinois at Urbana-Champaign and Michigan State University show that personalized stock plan education programs increase the value employees attribute to their stock option awards." (; one-time registration required)

We thank and invite your attention to our additional sponsor: RELIUS® Education – Seminars and Conferences for Pension Professionals

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2007 Advanced Pension Conferences

While you're budgeting for 2007, remember to include the Relius Advanced Pension Conference. Scheduled twice each year, this established pension conference is one of the best ways you can stay up-to-date with the most recent and important topics surrounding retirement plans, including the Pension Protection Act of 2006. Our panel of experts led by program Chairman and Moderator, Craig Hoffman, share their knowledge and experience on each important topic. The program agenda offers general sessions, twelve concurrent sessions, as well as the very popular and informative "Ask the Experts". Keeping your industry knowledge current is important in this competitive market. Make the Relius Advanced Pension Conference a must-attend event in 2007.

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

Newly Posted Events
(Post Yours!)

Journey deep into the world of IRAs
in Indiana on October 24, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Pennsylvania on October 24, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Indiana on October 24, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Pennsylvania on October 25, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Kentucky on October 25, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Indiana on October 25, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Kentucky on October 26, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Kentucky on October 26, 2006
presented by Wolters Kluwer Financial Services

Journey deep into the world of IRAs
in Maryland on October 26, 2006
presented by Wolters Kluwer Financial Services

PPA - DC Issues in Depth
Nationwide on October 18, 2006
presented by American Society of Pension Professionals & Actuaries (ASPPA)

Summary Plan Descriptions for Health Plans (Including Health FSAs and HRAs)—How to Prepare and Deliver Effective SPDs
Nationwide on October 19, 2006
presented by Employee Benefits Institute of America Inc. (EBIA)

Newly Posted Press Releases
(Post Yours!)

Paladin Registry Launches Fiduciary Advisor Services That Are Based on 2006 Pension Reform Act Regulations
(Paladin Registry, LLC)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Supervisor / Senior Plan Administrator
for Howard Simon & Associates, Inc.
in IL

Member Retirement Services Senior Analyst
for OCTFCU- Orange County Teachers Federal Credit Union
in CA

Senior Financial Analyst / Financial Analyst
for Nolan Financial Group
in DC, MD

Health and Welfare Consultant
for Charles W. Cammack Associates
in NY

Retirement, Trust & Estate Specialist
for Charles Schwab
in IN

Wachovia Retirement Solutions Relationship Manager II
for Wachovia
in FL

Qualified Retirement Plan Administrator
for Retirement Plan Services, Inc.
in FL

HR Technology Administrator
for Vanguard
in PA

Benefits Administrator
for Vanguard
in PA

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