November 9, 2006 Today's sponsor: ASPPA • Working for America's Retirement™ (Click on company name or banner to learn more.)
CRS Report for Congress: Summary of the Pension Protection Act of 2006 (PDF) 25 pages. Excerpt: "This report summarizes the main provisions of the Pension Protection Act (PPA) as they affect single-employer defined benefit plans, multiemployer defined benefit plans, and defined contribution plans." (U.S. Congressional Research Service) No PPA Technical Corrections Until 2007, ASPPA Chief Says Excerpt: "A technical corrections bill for the Pension Protection Act of 2006 (PPA; P.L. 109-280) probably will be passed as part of a tax bill in the first six months of 2007, rather than in a 'lame duck' session of Congress in 2006, according to Brian Graff, executive director of the American Society of Pension Professionals and Actuaries (ASPPA)." (CCH Pension and Benefits) Overview: Plan Sponsors Sued Over 401(k) Fees Excerpt: "Plan sponsors should be concerned because this type of suit could be brought against any plan sponsor, large or small. Once a lawsuit has been filed, a defendant's risk of an adverse outcome will largely depend on the quality of the defendant's 401(k) plan records." (Poyner Spruill) Investment Behavior of 401(k) Participants Suggests That There's Some Confusion Out There Excerpt: "First, [participants] seem to be a little overwhelmed by choice. The average number of investment options rose to 18.6 last year, and savings plan participants did not adopt the new options as fast as their employers offered them." (The Motley Fool) Most Employers Unprepared for Baby Boomer Retirements, According to the ClearRock Survey Results Excerpt: "Almost half of companies (46%) would like at least 25% of their baby boomers to continue working past retirement age, but only about one-third (36%) expect to keep that many on their payrolls, according to the survey of about 100 organizations." (CCH Pension) Defined Benefit Plan Fund Management and Economies of Scale Excerpt: "To be sure, cross-border pooling of assets is not for every company. 'One size does not fit everybody,' . . . . This approach only makes sense when both a sizable number of assets and countries are involved." (Treasury and Risk) New Edition of Model ESOP from NCEO The National Center for Employee Ownership (NCEO) has just published the third edition of its Model ESOP. The book is by Karen Ng, a prominent ESOP attorney, with explanatory notes by NCEO Executive Director Corey Rosen. The plan has been updated for 2006 (including the Pension Protection Act of 2006). The book comes with a CD with the plan documents in word-processing format. (National Center for Employee Ownership) Financial Literacy and Savings Rate Linked As National Problem Excerpt: "The nation's negatively spiraling household savings rate and its low financial literacy scores are related aspects of the same looming national problem, warned a local economist and personal finance specialist. 'Our kids are facing a dilemma that is unprecedented in our lifetime,' said Dr. Allen Cox, director of the Towson University-based Maryland Coalition for Financial Literacy." (The Examiner) Cooper v. IBM Personal Pension Plan: A Critique Excerpt: "Since the Cooper decision will the starting point for the other appellate courts addressing the pre-PPA status of cash balance pension plans, Cooper merits close scrutiny. Such scrutiny indicates that Cooper is laudably transparent in its reasoning and contains many important insights. However, given what the pre-PPA pension age discrimination statutes say, in the final analysis, Cooper is wrong on the merits." (New York University Review of Employee Benefits and Executive Compensation via Social Science Research Network) MeadWestvaco Adds Cash Balance to Defined Benefit Offering Excerpt: "According to the October 30 announcement, under the new cash balance formula, eligible employees will receive an annual contribution from the company at a specific percentage of eligible pay based on an employee's combined age and years of service that grows at a guaranteed rate of interest until retirement or termination of employment." (PLANSPONSOR.com; one-time registration required) Links to Items on Executive Comp, Benefits in General Company Fined for Failure to Provide Plan Documents Excerpt: "The US District Court for the Eastern District of Michigan has ruled that a plan administrator must pay a former employee $10,500 for failing to provide her with pension plan documents she requested." (PLANSPONSOR.com; one-time registration required) 2006 Election Coverage -- Shift of Power: How Does It Impact You? Excerpt: "The Foundation has compiled recent articles covering the election and its impact on benefit plans." (International Foundation of Employee Benefit Plans) U.S. Taxation of Foreign Trusts, Trusts with Non-U.S. Grantors and Their U.S. Beneficiaries (PDF) 78 pages. Excerpt: "This outline discusses how to create foreign trusts, examines their exposure and the exposure of their U.S. beneficiaries to U.S. income tax and describes the reporting requirements imposed on their creators, their beneficiaries and the trusts themselves, explains the new grantor trust rules applicable to non-U.S. persons and immigrants, and . . . . [Originally published August 2003.]" (Pillsbury Winthrop Shaw Pittman LLP) Newly Posted Events Automatic Enrollment: Is it appropriate for your clients? Nationwide on February 8, 2007 presented by McKay Hochman Co., Inc. Current Issues with 401(k) Plans Nationwide on May 1, 2007 presented by McKay Hochman Co., Inc. Default Investments - The DOL Regulations Nationwide on March 20, 2007 presented by McKay Hochman Co., Inc. Participant Disclosures and Communications Nationwide on April 18, 2007 presented by McKay Hochman Co., Inc. The Pension Protection Act of 2006: Planning for small business owners. Webinar Nationwide on November 10, 2006 presented by Executive Benefits Design Group Newly Posted Press Releases Pension Plan Sponsors Changing Investment Focus (Watson Wyatt) New Great-West Healthcare Resource Helps Employees Compare Plans and Budget for Health Care (Great-West Life & Annuity Insurance Company) Retirement: A Financial Time Bomb Awaits Vast Majority of Americans (Brown & Tedstrom) Newly Posted or Renewed Job Openings Actuarial Benefit Consultant for Fidelity Investments in MA, NC, NY Senior Employee Benefits Record Keeper/Tester for Wachovia in NC DB Domain Leader for Hewitt Associates in NJ Plan Specialist-Plan Sponsor Desk (Los Angeles) for Transamerica Retirement Services in CA Senior Care Manager for Great-West Corporate in TX ESOP Operations Manager for RSM McGladrey Retirement Resources in IA Client Services Consultant for American United Life Insurance Company, a OneAmerica financial partner in DC, IN, KS, NC, TX Plan Services Consultant for American United Life Insurance, a OneAmerica financial partner in IN Benefits Data Analyst for Blue Cross Blue Shield North Carolina in NC Retirement Plan Administrator for Berry, Dunn, McNeil & Parker in ME Financial Planner / Investment Specialist for Diversified Investment Advisors in AZ Retirement Plan Communication Associate, #0604050 for John Hancock in OR 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:
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: |