Retirement Plans
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November 7, 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)

401(k) Plans: A 25-Year Retrospective (PDF)
40 pages. Excerpt: "November 10, 2006 marks the 25th anniversary of the day that the Internal Revenue Service (IRS) proposed regulations that opened the door for 401(k) plans. Although a tax code provision permitting cash or deferred arrangements (CODAs) was added in 1978 as Section 401(k), it was not until November 10, 1981 that the IRS formally described the rules for these plans." (Investment Company Institute)

Employers Expected to Make Responsible Decisions for 401(k)s
Excerpt: "Employees don't get to select the mutual funds that end up in their 401(k) menu and they don't have a say in what their workplace retirement plans cost them. While the employer holds all the aces, it's the voiceless workers who have the most at stake." (

Educating Workers About Delayed Retirement
Excerpt: "More baby boomers are delaying retirement, and the decision might affect how employers talk about retirement education programs, especially ones addressing the financial pros and cons to working past age 62 to 67." (Employee Benefit News)

How to Handle Beneficiary Designations
Excerpt: "Naming beneficiaries is a more nuanced decision-making process than you might think, and it's one that may have significant repercussions for your loved ones. In this week's column, [Christine Benz provides] some pointers to bear in mind as you review your beneficiary designations." (Morningstar, Inc.)

Opinion: The Problem with Lump Sum Distributions and What to Do About It
Excerpt: "We are entering a new era in retirement. We know that Social Security alone is insufficient (and in jeopardy for younger workers), we know few people in the future will have a defined benefit plan, and we know that managing a pot of money for a lifetime of income is not easy. So why don't employers try and make it a bit easier?" (Richard D. Quinn via Employee Benefit News)

Opinion: The Importance of Setting the Fiduciary 'Tone at the Top'
Excerpt: "For more than six years, 'breach of fiduciary responsibility' has been the leading cause of arbitration against broker-dealers. Yet in 2005, the SEC made permanent the broker-dealer exemption, making it nearly impossible for the public - and also the investment industry, for that matter - to discern the difference between a suitability standard and a fiduciary standard of care." (Investment News; registration or subscription required)

Saving and Investing Guide Proves Knowledge Is Powerful Asset
Excerpt: "The material is intended primarily for high school students. But, based on the questions [Humberto Cruz gets] from readers, adults could use it too. And that's the point: Teaching this information early can prevent costly mistakes later on. I'm talking about 'The Basics of Saving and Investing: Investor Education 2020,' a teaching guide developed by the not-for-profit Investor Protection Trust." (Chicago Tribune: one-time registration required)

Michelin Makes Changes to U.S. Employee Retirement Plan
Excerpt: "Michelin North America Inc. recently revised its employee retirement plan. The plan applies to all active, union-free employees in the United States. The changes . . . were made 'to help manage our long-term obligations, strengthen our position in an increasingly competitive business environment and continue to deliver excellent retirement benefits to its employees,' according to the company." (Modern Tire Dealer)

The Basics of Saving and Investing: Investor Education 2020
Excerpt: "The Basics of Saving and Investing: Investor Education 2020 guide is an investor education and protection teaching guide. It was developed for high school teachers, however its content lends itself to all kinds of investor education and protection initiatives including college courses, work place education, after school programs, seminars for adults and seniors, etc." (Investor Protection Trust)

FRONTLINE: Can You Afford to Retire?
Excerpt: "Target web page includes link to view the program online (the 60-minute program originally aired on PBS on May 16, 2006). The program will re-air in many markets this evening (November 7)." (FRONTLINE via Public Broadcasting Service)

NBER Working Paper Abstract: Simplification and Saving
Excerpt: "Many financial decisions that individuals face are complicated and daunting for those who are not financial experts. One important consequence of this complexity is that individuals procrastinate in making these decisions. In this paper, we evaluate a low-cost intervention designed to simplify the retirement saving decision." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full-text)

Opinion: Pension Protection Act Signals a New Era for the Private Pension System
Excerpt: "In effect, PPA offers positive support for the private pension system by continuing and extending what EGTRRA began. This Act provides the foundation and momentum for new plan design options, funding considerations and investment strategies, which likely will foster much follow-up guidance and legislation. PPA is the tipping of the first domino." (Chip Hunt and Chip Hardy via

Pozen Predicts Death of Defined-Benefit Plans
Excerpt: "Changes in federal laws governing pension plans, accounting modifications and funding shortfalls signal the demise of defined-benefit plans, said Robert Pozen, chairman of MFS Investment Management of Boston." (Investment News; registration or subscription required)

Links to Items on Executive Comp, Benefits in General

457(f) & 409A Update (PDF)
Excerpt: "457(f) standards remain somewhat in flux, which could also argue in favor of taking at least partial advantage of the December 31, 2007 amendment extension for 409A." (Gardner Carton & Douglas LLP)

Overview: Executive Compensation Disclosure -- Changes to Form 8-K (PDF)
3 pages. Excerpt: "Public companies will now need to disclose compensation changes on Form 8-K only if they are truly 'material' to investors. The SEC has revised Form 8-K disclosures of compensation changes and has moved them from Item 1.01 to Item 5.02 in order to separate them from 'material agreement' disclosure." (Powell Goldstein LLP)

An Analysis of the Bush Tax Advisory Panel's Proposals
Excerpt: "Summary of the Tax Panel's Proposals for Individual Taxpayers . . . . Combine 15 different tax provisions for at-work saving, health saving, education saving, and retirement saving into three simple savings plans . . . ." (NYSSCPA's Tax Policy Subcommittee via The CPA Journal)

2006 Election Night Guide and Analysis (PDF)
17 pages. (Pillsbury Winthrop Shaw Pittman LLP)

Retire Well for Less Than You Think
Excerpt: "Once you qualify for post-retirement benefits like Social Security or Medicare, you get to start getting paid by the services you have been paying for throughout your entire career." (The Motley Fool)

We thank and invite your attention to our additional sponsor: Mid-Sized Pension Management Conference

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Banner ad for Mid-Sized Pension Management Conference

PPA 2006: New Plan Management Tools for the Road Ahead

The road to successful plan management has taken a number of detours in recent years. Plan sponsors are constantly reminded of the fiduciary potholes, plan design u-turns and regulatory speed traps they face every day. And now, the "PPA" super highway is open to traffic! The Pension Protection Act of 2006 has produced sweeping new changes that will directly affect your retirement plan. Find out exactly which route you should take by attending the 2007 Mid-Sized Pension Management Conference, scheduled for January 28–31, in Orlando, Florida.

(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!)

401(k) Educational Seminar With Speaker Robert Kaplan From McKay Hochman
in Connecticut on December 6, 2006
presented by National Institute of Pension Administrators-CT Chapter

401(k) Plans: Beyond the Basics
in Georgia on December 6, 2006
presented by SunGard Corbel

HIPAA and Health Laws Compliance Assistance Seminar
in Nevada on November 28, 2006
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Legislative Update: Pension Protection Act of 2006.....and a little more
in Pennsylvania on November 16, 2006
presented by Central Pennsylvania Chapter - ISCEBS

Newly Posted Press Releases
(Post Yours!)

Funding Status of U.S. Pension Plans Improved in October
(Mellon Financial Corporation)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Pension Administrator
for Snyder Cohn
in MD

Retirement Plan Consultant
for the MandMarblestone Group, LLC
in PA

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

Director of Client Services
for BISYS Retirement Services
in PA

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

401(k) Administrator - Analyst
for The Pension Group, Inc.
in CA

Client Relationship Manager
for Freedom One Financial Group
in MI

Pension Administrator
for Staffordshire Benefits, LLC
in NJ, PA

Retirement Services Provider Consultant
for Deloitte Consulting LLP
in MA, MN, NY

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