| BenefitsLink Retirement Plans Newsletter |   |
October 3, 2006
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| 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. |
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Text of IRS Notice 2006-89: Transitional PPA Relief for Indian Tribal Governments (PDF)
5 pages. Excerpt: "This notice summarizes the changes made to § 414(d) . . . by section 906 of the Pension Protection Act of 2006 (PPA '06) under which plans established and maintained by Indian tribal governments and certain related entities are governmental plans. This notice also provides transition relief under a reasonable and good faith standard with respect to compliance with the PPA '06 changes to § 414(d) pending further guidance, and invites comments from the public . . ." (Internal Revenue Service)
FASB Rule Puts Pensions on Balance Sheet
Excerpt: "The board will start requiring publicly traded companies to state the underfunded or overfunded status of their pension and benefit plans on their financials at the end of fiscal years ending after December 15." (CFO.com)
Overview: DOL Proposed Regulations Implementing the Default Investment Provisions of the PPA (PDF)
4 pages. Excerpt: "The regulations, when finalized, would provide fiduciary relief to plan sponsors and other fiduciaries who invest participant account balances in certain 'qualified default investment alternatives' – including most lifecycle and balanced funds – and meet other conditions described in the regulations." (Groom Law Group)
Pension Act Creates Fiduciary Cross-Selling Dilemma
Excerpt: "Under the law, an adviser who works with 401(k) plans is required to act as a fiduciary when speaking with participants about their 401(k) or individual retirement account. But the law doesn't spell out whether the adviser is required to act as a fiduciary if an employee begins to ask the adviser about other investment options." (Investment News; registration or subscription required)
On the Increased Use of ETFs in 401(k) Plans
Excerpt: "Until recently, ETFs have been shunned by defined contribution plans, in part because a commission is charged for every trade and because they can be traded on the exchanges throughout the day like stocks. Daily trading would be considered excessive by many retirement plans. But some providers of 401(k) plans are finding ways around those drawbacks." (Bankrate, Inc.)
Industry Experts Have Ideas for Change on QDIA Proposal
Excerpt: "While industry experts generally applaud the work done by Department of Labor (DoL) rulemakers on the recently released default investment option safe harbor proposal, they still have suggestions for change, including whether the protected options should include a short-term investment vehicle." (PLANSPONSOR.com; one-time registration required)
Working Paper: The Impact of Pensions on Non-Pension Investment Choices
Excerpt: "[The authors] discuss the long-term trends in pension structure and stock market participation by households, including the long trend where traditional defined benefit (DB) pensions have been replaced by defined contribution (DC) pensions. Next [they] analyze how investment choices outside pension plans have been influenced by the shift in pension structure." (Pension Research Council; registration required to download full-text of paper)
Employee Ownership Update for October 2, 2006
NCEO Executive Director Corey Rosen discusses a study finding that ESOPs result in smoother labor relations; SEC guidance on accounting for backdated stock options; a drop in company stock in 401(k) plans; an employee ownership session at the Social Venture Network conference; and final IRS rules on deductions for ESOP share repurchases. (National Center for Employee Ownership)
Economist's White Paper: Can Annuities Enhance Retirement Lifestyles?
Excerpt: "Over the years, economic research has consistently demonstrated the potential importance of annuities for retirees. With baby boomers approaching retirement and the increased switching from defined benefit to defined contribution retirement plans, more has to be done to insure a responsible management of the payout phase of retirement. [This report] provides background on annuities and on policies to insure a responsible management of the payout phase of retirement." (Dr. Pinar Çebi via American Council for Capital Formation)
Some Teachers and Other Govt Employees Penalized by Two Provisions of Social Security
Excerpt: "One, called the 'windfall elimination provision,' reduces benefits for public employees who receive pensions and have 'substantial earnings' from Social Security-covered jobs of less than 30 years. The 'government pension offset' adjusts spousal and widow or widower's Social Security benefits when the recipient in question has a government pension." (Los Angeles Times; one-time registration required)
Self-Directed IRAs Offer a Wide Range of Investments -- and an Even Wider List of Rules
Excerpt: "Self-directed IRAs aren't new, points out Paul Maxwell, chief operating officer of Carlesbad, California-based Trust Administrative Services. 'Alternative investments have always been permitted [in IRAs] under the IRS code,' he says. What's helping them grow at three times the rate of traditional IRAs, in terms of number of new accounts, is the greater control they offer -- and at least the aura of more upside." (CFO.com)
Text of the Automatic IRA Act of 2006 (PDF)
34 pages. Excerpt: "To amend the Internal Revenue Code of 1986 to allow employees not covered by qualified retirement plans to save for retirement through automatic payroll deposit IRAs, to facilitate similar saving by the self-employed, and for other purposes." (U.S. Senate via American Benefits Council)
Hewitt Federal Legislation Quick Guide Updated as of September 26, 2006, for Retirement Plans (PDF)
2 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding retirement plans. (Hewitt Associates)
Profit Sharing/401k Council of America Comment Letter on Proposed Changes to the Form 5500 (PDF)
2 pages. Excerpt: "PSCA believes that the proposed changes to the Form 5500, in conjunction with electronic filing, will result in a significant improvement in the timely reporting of comprehensive plan expense information. We expect that this will result in 'data-mining' within the industry that will result in increased transparency that will benefit American workers saving for retirement." (Profit Sharing/401k Council of America)
Working Paper: Cross-Cohort Differences in Health on the Verge of Retirement
Excerpt: "Boomers indicate they have relatively more difficulty with a range of everyday physical tasks, but they also report having more pain, more chronic conditions, more drinking and psychiatric problems, than their HRS earlier counterparts. This trend portends poorly for the future health of Boomers as they age and incur increasing costs associated with health care and medications." (Pension Research Council; registration required to download full-text of paper)
Links to Items on Executive Comp, Benefits in General
Overview: SEC's New Executive Comp Disclosure Requirements and Companies with Retirement Plans
Excerpt: "The changes to the rules for disclosure of executive and director compensation that the Securities and Exchange Commission (SEC) adopted this summer1 include requirements for additional reporting for companies with retirement plans. These new requirements have not yet received much media attention. This Compliance Alert focuses on the additional requirements and their implications." (The Segal Company)
Hewitt Federal Legislation Quick Guide for September 19, 2006, on Human Resources and Employment Law (PDF)
9 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding human resources and employment law. (Hewitt Associates)
Newly Posted Events
Journey deep into the world of IRAs
in Montana on November 7, 2006
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Florida on November 7, 2006
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Texas on November 7, 2006
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Texas on November 8, 2006
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Florida on November 8, 2006
presented by Wolters Kluwer Financial Services
Pension Protection Act Series - Multiemployer Plans
Nationwide on October 11, 2006
presented by Morgan Lewis & Bockius LLP
Pension Protection Act Series - Multiemployer Plans
Nationwide on October 12, 2006
presented by Morgan Lewis & Bockius LLP
The Pension Protection Act 2006-Dallas
in Texas on October 6, 2006
presented by Executive Benefits Design Group
Vesting - Basics and Beyond Web Seminar
Nationwide on October 17, 2006
presented by SunGard Corbel
Newly Posted Press Releases
Employers Saved More than $4 Million Last Year through Midwest Business Group on Health's HMO Buyers Group
(Midwest Business Group on Health)
Heat is on for Seniors Thanks to Information from the National Council on Aging's BenefitsCheckUp
(National Council on Aging (NCOA))
Newly Posted or Renewed Job Openings
Trust Administrator - Employee Benefits
for Old Point Trust & Financial Services, N.A.
in VA
Health and Welfare Project/Client Manager
for TRI-AD
in CA
Regional Operations Manager
for Invesmart, Inc.
in WA
Relius Administration Pension Analyst
for SunGard
in FL
Compliance Testing Consultant
for Diversified Investment Advisors
in NY
401(k) Administrator
for ABA, Inc. - Accrued Benefit Administrators, Inc.
in CA
Pension Consultant
for Mercer Advisors
in CA
Benefits Specialist/Administrator
for Benefits Group WorldWide, Inc.
in CA
Marketing Communications Specialist
for BISYS Retirement Services
in PA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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