Retirement Plans
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September 27, 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)

PPA Series Webcast on Defined Contribution Plans (PDF)
38 pages. (Morgan Lewis)

Text of Proposed Regs on Default Investment Alternatives in Participant-Directed Retirement Plans (PDF)
20 pages. Excerpt: "As part of the Pension Protection Act, section 404(c) of ERISA was amended to provide relief accorded by section 404(c)(1) to fiduciaries that invest participant assets in certain types of default investment alternatives in the absence of participant investment direction. . . . This relief . . . is not contingent on a plan being an 'ERISA 404(c) plan' or otherwise meeting the requirements of the Department's regulations at 2550.404c–1." (Employee Benefits Security Administration, U.S. Department of Labor)

Text of DOL Fact Sheet on Proposed Regulation Relating to Default Investment Alternatives
Excerpt: "Qualified Default Investment Alternatives: Under the proposed regulation, a QDIA must satisfy the following requirements: [1] A QDIA may not impose financial penalties or otherwise restrict the ability of a participant or beneficiary to transfer the investment from the qualified default investment alternative to any other investment alternative available under the plan." (U.S. Employee Benefits Security Administration)

Comments on the New Benefits Acronym: QDIA
Excerpt: "What is a QDIA? A 'qualified default investment alternative' as described in soon-to-be-issued proposed regulations from the Department of Labor . . . ." (Attorney B. Janell Grenier via

Labor Department Rules Would Remove Obstacle to Automatic 401(k) Enrollment
Excerpt: "The proposed rules would relieve plan sponsors of liability if their automatic-enrollment options had poor investment returns, provided such investments are limited to three default options: target-retirement mutual funds, balanced funds or professionally managed investment accounts." (MarketWatch)

Overview: Pension Protection Act of 2006 Provisions for Single Employer Defined Benefit Plans (PDF)
5 pages. Excerpt: "This Alert provides a summary of the key aspects of the Pension Act which impact single employer defined benefit plans including: increased funding requirements; increased deduction limitations; changes to the rules governing lump sum distributions, and new benefit restrictions on underfunded plans; restrictions on nonqualified plan funding; reporting obligations; PBGC premium calculations; and rules governing cash balance plans." (Orrick, Herrington & Sutcliffe LLP)

Text of ASPPA Comments on ADP/ACP Safe Harbor Notices and Final 401(k)/401(m) Regs
Excerpt: "ASPPA recommends that the Treasury and IRS revise the Final Regulations to permit safe harbor notices to incorporate by reference the distributions and vesting provisions of the SPD." (American Society of Pension Professionals & Actuaries)

Commercial Airline Pilots Lobby to Extend Retirement Age Past 60
Excerpt: "FAA spokesman Les Dorr has said there is 'no compelling scientific or medical evidence that would cause us to reconsider the current age limit.' But Congress could require a change, he added, and the FAA would have to adhere to that." (AP via The New York Times; one-time registration required)

ERISA and Derivatives -- Excerpts from a 1996 Department of Labor Letter
Excerpt: "During a September 26, 2006 panel discussion about the use of derivatives by pensions, mention was made of a U.S. Department of Labor letter. [Here is a link to the letter:]" (Pension Risk Matters)

Slide Presentation by David Walker: Retirement Insecurity in the 21st Century (PDF)
46 pages. (U.S. Government Accountability Office)

Survey on Working After Retirement: The Gap Between Expectations and Reality (PDF)
9 pages. Excerpt: "The latest Pew findings suggest that retirement is a phase of life about which public attitudes, expectations and experiences are in a period of transition. And given the demographic changes afoot . . . as well as the changes underway in the basic financial framework of retirement (fewer people now than in the past work for employers who provide defined benefit pension plans) this evolution in attitudes is likely to continue for years to come." (Pew Research Center)

Links to Items on Executive Comp, Benefits in General

FASB to Issue Final Standards for Pensions and OPEB
Excerpt: "The Financial Accounting Standards Board (FASB) has issued a project update announcing that FASB Statement No. 158 Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans is expected to be issued on September 29, 2006." (; one-time registration required)

Overview: Disclosing Corporate Governance Information under the New Executive Compensation Regs
Excerpt: "For the past few years, issuers have been required to disclose in filings with the SEC certain information regarding director independence and other corporate governance matters. The commission has recently consolidated these requirements under a new Item 407 of Regulation S-K." (Thelen Reid & Priest LLP)

Overview: Disclosing Related Party Transactions under the New Executive Compensation Regulations
Excerpt: "For many years, issuers have been required to disclose in their proxy statements the existence of transactions between the issuer and parties related to it. The SEC has recently amended Item 404 of Regulation S-K to broaden both the class of persons and the class of transactions requiring this disclosure." (Thelen Reid & Priest LLP)

Newly Posted Press Releases
(Post Yours!)

Most Workers Fear Higher Costs, Reductions In Health Benefits, Watson Wyatt Surveys Find
(Watson Wyatt)

PSCA Announces the 2006 Signature Award Winners
(Profit Sharing/401(k) Council of America (PSCA))

U.S. Secretary of Labor Elaine L. Chao Announces Proposed Rule On Default Investment Alternatives for Participant-Directed Plans
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

Assistant Secretary of Labor Ann L. Combs to Leave Post at Employee Benefit Security Administration in October
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

Council Supports Legislative Efforts To Improve HSAs
(American Benefits Council)

Investor Protection Trust Launches New, Free Teaching Guide On Investor Education
(Investor Protection Trust (IPT))

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Pension Administrator
for Qualified Pension Services, Inc.
in MO

401K Plan Administrator/Recordkeeper (fun lover)
for Advisors Plan Administrators, LLC
in OK

Benefits Consultant Sr
for Nevada Power
in NV

Pension Administrator
for AKT Retirement Plan Services LLC
in OR

Assistant Pension Administrator (Defined Benefits)
for Qualified Benefits, Inc - QBI (a wholly owned subsidiary of BenefitStreet, Inc.)
in CA

Sr. Relationship Manager-Defined Contribution Services
for Bank of America
in MA, RI

Retirement Plan Communication Associate, #0602844
for John Hancock
in MD

ESOP Administrator
for Blue Ridge ESOP Associates
in VA

Senior Employee Relations Consultant (Reference # JP25378-JN)
for Southern California Edison
in CA

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