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November 16, 2006
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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)

Overview of Lump Sums under the Pension Protection Act of 2006
Excerpt: "[CCA Strategies addresses] two distinct provisions under PPA related to lump sum payments: A reduction in the maximum lump sum payable for participants with benefits at or near IRS limits (effective in 2006), and A new basis for calculating minimum lump sums (phased in between 2008 and 2012)." (CCA Strategies, LLC)

Article: PPA Lump Sum Amendments in Standard Terminations: Watch Out!
Excerpt: "The Pension Protection Act of 2006 (PPA) changes the interest rate and mortality table used in calculating minimum lump sum values, effective for distributions in plan years beginning after December 31, 2007. Special care is called for when adopting an amendment to implement this change in the context of a standard termination. [Look for a link to the article, which is a publication of the ASPPA Government Affairs Committee, on the right side of the target page.]" (Keightley & Ashner LLP)

Text of The SPARK Institute's Comments on the Proposed Qualified Default Investment Alternatives (PDF)
4 pages. Excerpt: "The SPARK Institute believes that the notice requirement should be modified to accommodate plans that currently allow for immediate employee enrollment. We are concerned that the QDIA relief will not be available to plan sponsors with respect to employees who enroll in a plan upon employment." (The SPARK Institute)

Text of CIEBA Comments on DOL's Proposed Regulation on Default Investment Alternatives (PDF)
4 pages. Excerpt: "CIEBA generally agrees with the proposed rules that a 'qualified default investment alternative' (QDIA) should be diversified and managed to reflect the level of risk appropriate to the participant's demographic characteristics. Such a blend of asset classes, including both capital appreciation and capital preservation vehicles, are most likely to increase retirement savings for 'defaulted' participants." (Association for Financial Professionals, Inc.)

Coming Soon: The Next Wave of 401(k) Fee Litigation
Excerpt: "Schlichter, Bogard & Denton, the law firm that has instigated these suits, is targeting at least 17 additional major corporations. These new targets are in addition to the 10 Fortune 200-level companies that have already been sued, as well as several other corporations that have been investigated but not yet sued." (Spencer Fane Britt & Browne LLP)

United Kingdom Pension Report Makes Grim Prediction for Defined Benefit Schemes
Excerpt: "A report by a UK financial services firm predicts that 46% of the country's defined benefit schemes will collapse by 2011 because it simply costs too much to run them." (; free registration required)

Oklahoma's Teachers' Retirement System Is the Third Worst Funded System Nationally
Excerpt: "Many of Oklahoma's seven public pension systems are finding increasing debt levels, with more money going out than coming in. The directors of the systems want legislators to open their eyes and make a change to benefit the future of the systems." (CNHI News Service via The News Courier)

Canadian Pension Shortfall Report Is Flawed, According to Alcan
Excerpt: "Alcan Inc. hit back on Wednesday at a report naming it as the company in Can.ada with the biggest pension shortfall and said the analysis did not take into account that it was not required to set aside retirement monies at its European operations." (Reuters via The New York Times; free registration required)

Overview: PPA Notices Require Immediate Attention (PDF)
2 pages. (Milliman)

Retirement Plan Questions from CCA Strategies Readers: November 2006
CCA Strategies answers a question on an executive who retired and elected a lump sum distribution of her qualified pension benefit. The executive's immediate annuity was limited by IRC Section 415 and the plan's interest rate (4.46%) was used to convert the limited annuity to a lump sum. (CCA Strategies, LLC)

'Triple-Dipping' Retirees Targeted: County Pays Salary, Pension, Jobless Benefits to Some
Excerpt: "Sacramento County is taking steps to stop a practice known as 'triple dipping' in which some retired public employees end up collecting retirement benefits, a salary and unemployment benefits -- all within one year." (The Sacramento Bee)

More Japanese Companies Offering Defined Contribution Retirement Plans
Excerpt: "The rate at which companies sponsor such plans is expected to increase even more rapidly as firms near the 2012 deadline to convert their existing Tax Qualified Pension Plans (TQPP) to other types of retirement plans. TQPPs are mainly used by foreign subsidiaries located in Japan." (Watson Wyatt Worldwide)

India Welcomes U.S. Pension Fund Investment, but Bans Local Fund Investment
Excerpt: "New York teachers and California public employees are using Indian equities to buttress their retirement savings. Yet, local Indian workers, only 10 percent of whom have any old-age security, are barred from putting their pension funds to work in the country's booming stock market." (Bloomberg)

Commentary: How a Lawsuit Almost Strangled Cash Balance Pensions
Excerpt: "In August the 7th Circuit Court of Appeals reversed a lower court decision which for three years had cast a long shadow of uncertainty on the employee-benefits sector of the economy. The appeals court upheld the design of IBM's pension plan as not unlawfully discriminatory against older workers. The episode demonstrates how much damage a single lawsuit can inflict, even one that proves unsuccessful in the end." (Alvin Lurie on

Firing Employees for Fraud Against Their Retirement Plan
Excerpt: "Private employers generally have the ability to terminate employees for misusing their retirement plans. The fact that the impermissible behavior involves a retirement plan does not prevent an employer from disciplining employees. This article discusses the circumstances under which private employers may generally take action against employees for issues related to their retirement plans." (Journal of Pension Benefits via Reish Luftman Reicher & Cohen)

Hewitt Federal Legislation Quick Guide Updated as of November 14, 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)

Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth
Excerpt: "This paper compares wealth holdings across two cohorts of the Health and Retirement Study: the early Baby Boomers surveyed in 2004, and individuals in the same age group in 1992." (Pension Research Council; free registration required to download full-text of paper)

Eaton Vance Debuts Retirement Savings Plan
Excerpt: "Boston-based Eaton Vance Corp. today introduced a new retirement savings program called the Supplemental Retirement Account. The SRA is a web-based program for systematic retirement savings outside of qualified retirement plans." (Investment News; free registration required)

Not So Fast on All That Boomer Retirement Doom and Gloom
Excerpt: "The sky is falling. Or at least that's what the so-called Merchants of Doom would have us believe. Yes, the merchants -- politicians, financial firms and the like -- say the baby boomers' retirement years will be more tarnished than golden." (Robert Powell via MarketWatch)

An Executive Summary of PricewaterhouseCoopers 2006 Global Equity Incentives Survey Report
Excerpt: "The 2006 Global equity incentives survey (GEIS) is one of the most comprehensive studies of the design, compliance, process and administration, and communications of US and global equity plans. [A link to the full-text of the 24-page survey report is available on the target page.]" (PricewaterhouseCoopers)

Links to Items on Executive Comp, Benefits in General

Year-End Compliance Alert: Qualified Retirement Plans, Health and Welfare Plans, and Exec Comp (PDF)
Excerpt: "The [target page] is a summary of year-end compliance issues that you should consider as we approach the end of 2006. Although many of these issues deserve more detailed comment, [Miller & Chevalier's] intent is to help you see the big picture before you focus on the details." (Miller & Chevalier Chartered)

Shareholder Resolution Seeks to Limit Supplemental Executive Retirement Plans
Excerpt: "Two shareholder resolutions recently offered by unions make it clear that institutional investors will keep the focus on executive compensation in the 2007 proxy season." (HR Policy Association)

Hewitt's Global Report - Third Quarter 2006
The report covers Retirement and Social Security issues, Proposed Changes, and Other Benefits including health care and Issues for Expatriate Employees in many countries. (Hewitt Associates)

Hewitt Federal Legislation Quick Guide for November 14, 2006, on Human Resources and Employment Law (PDF)
8 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)

Bosses and Workers Not In Sync over Recruiting Impacts
Excerpt: "A new survey finds that organizations and their employees do not see eye to eye when it comes to gauging the impact of pay, health care and retirement plans on attracting talented workers and keeping their professional engines revved up." (; free registration required)

Newly Posted Events
(Post Yours!)

Ask the Experts: Open Enrollment for Medicare Part D - Webcast
Nationwide on November 16, 2006
presented by

Exploring Defined Contribution-Related Provisions of The Pension Protection Act of 2006 - Webcast
Nationwide on November 30, 2006
presented by International Foundation for Retirement Education (InFRE)

Five Must-Know Tips To Save On Health Insurance In 2007-The Biggest Non-Compliance Mistakes - Audio Conference
Nationwide on December 12, 2006
presented by

Health & Welfare Plan Record Retention and Document Disclosures—How to Avoid Penalties, Keep the Feds Happy, and Prevent Compliance Headaches
Nationwide on November 9, 2006
presented by Employee Benefits Institute of America Inc. (EBIA)

Immigration Compliance For The HR Professional: Employment Authorization Issues And Beyond- Audio Conference
Nationwide on November 28, 2006
presented by

New HSA Comparability Rules - Webcast
Nationwide on November 29, 2006
presented by

New Policy Proposal to Expand Access to Health Insurance Coverage for the Uninsured - Webcast
Nationwide on November 16, 2006
presented by

Workers' Compensation Settlements: A Do's And Don'ts Practical Guide
Nationwide on December 4, 2006
presented by

Newly Posted Press Releases
(Post Yours!)

U.S. Department of Labor Announces Settlement With Former Enron Executive Jeffrey Skilling
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Council Welcomes PBGC Deficit Reduction Announcement But Urges Changes to Calculation of Deficit
American Benefits Council

Pension Reporter Government Forms System from DATAIR – Year 2006 Forms Released
DATAIR Employee Benefit Systems, Inc.

DATAIR Announces 1099-R Service Bureau
DATAIR Employee Benefit Systems, Inc.

Healthcare Costs Increase at the Lowest Rate in Five Years
Aon Consulting

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

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

Plan Administrator
for Third Party Administration Firm
in FL

Regional Service Coordinator
for Standard Insurance Company
in OH

Plan Manager
for The Hartford
in CT

Senior Implementation Specialist
for CitiStreet
in NJ

Regional Marketing Director, TPA Services (#0601288)
for John Hancock
in CA

Trust Associate II
for Wachovia
in VA

Retirement Plan Consultant
for Kibble & Prentice
in WA

Senior Due Diligence Analyst
for Vanguard
in PA

Retirement Services Consultant
for McGovern Myles, LLC

Relationship Manager
for A.G. Edwards & Sons
in CA

Pension Administrator
for Lurie Besikof Lapidus & Company, LLP
in MN

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