Retirement Plans
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December 5, 2006
Today's sponsor: ASPPA • Working for America's Retirement™

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Banner ad for ASPPA • Working for America's Retirement™

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: Remedial Amendment Periods & Determination Letter Applications: Check Your Company's EIN (PDF)
4 pages. Excerpt: "[F]or some individually-designed plans, the guidance requires plan sponsors to update such plans and submit them for determination letters by January 31, 2007." (Utz, Miller & Kuhn, LLC)

PBGC Announces Maximum Insurance Benefit for 2007
Excerpt: "[T]he maximum insurance benefit for participants in underfunded pension plans terminating in 2007 is $49,500 per year for those who retire at age 65. The amount is higher for those who retire later and lower for those who retire earlier or elect survivor benefits (see chart). If a pension plan terminates in 2007 but a participant does not begin collecting benefits until a future year, the 2007 maximum insurance limits still apply." (Pension Benefit Guaranty Corporation)

Overview: New Relief Offered to Fiduciaries Under the Pension Protection Act of 2006 (PDF)
14 pages. Excerpt: "The Pension Protection Act ('PPA') provides new protections for fiduciaries by extending the application of ERISA section 404(c) to blackout periods, default investments and the mapping of participant accounts. [Attached to the Bulletin are comments sent to the Employee Benefits Security Administration by the firm of Reish Luftman.]" (Reish Luftman Reicher & Cohen)

Opinion: Yet Another Call for 401(k) Fee Transparency
Excerpt: "[The author suggests] that we're trying to make sure that relatively unsophisticated participants aren't being ripped off by a system that has been afforded certain privileges to, at least ostensibly, help them. Secondly, we're trying to arm and/or inform those charged with overseeing those programs -- plan sponsors, advisers, and yes, even regulators – with the information they need to provide effective oversight." (; free registration required)

Overview: Pension Act Reforms for Defined Benefit and Hybrid Defined Contribution Plans
Excerpt: "For those trying to devise defined benefit (DB) and hybrid defined benefit/defined contribution (DC) plans that fall under the employer deduction rules of the Pension Protection Act (PPA) of 2006, there is a thicket of information to wade through and interpret." (Investment Advisor Magazine)

Delta Air Lines and Pension Benefit Guaranty Corporation Reach Settlement
Excerpt: "Under the agreement, the government's pension insurer would get an unsecured claim of $2.2 billion against the nation's third biggest carrier. That would put it in line with other unsecured creditors for compensation after Delta emerges from bankrup.tcy." (AP via The Washington Post; free registration required)

Moody's Finalizes Position on Taking Multiemployer Pension Plan Under-Funding into Account (PDF)
2 pages. Excerpt: "This Bulletin discusses the final decision of Moody's Investors Service to take into account the impact of under-funding in multiemployer plans when Moody's rates the creditworthiness of contributing publicly traded companies that elect to be rated." (The Segal Group, Inc.)

EBSA Asks for Information about Investment Advice Systems
Excerpt: "EBSA officials are asking what kinds of investment advice computer models exist today, what kinds of models could exist, and how to handle matters such as fee disclosure and determining whether a model meets PPA requirements." (National Underwriter Life & Health; free registration or paid subscription required)

Long Life Is a Blessing and a Challenge -- For Retirement Income Planning
Excerpt: "If there's one challenge as daunting as all those years of squirreling money away for retirement, it's this: making sure you don't run out of money during retirement. You have to figure out how much to withdraw each year. Whether to get a part-time job. Or an annuity. And if you fail to plan for unexpected health care costs, you might have to kiss those exciting travel plans goodbye." (USA TODAY)

Financial Literacy and Education Commission: Progress Needed to Ensure Effective National Strategy
54 pages. Excerpt: "[T]his report reviews [the Financial Literacy and Education Commission's] progress in (1) developing a national strategy; (2) developing a Web site and hotline; and (3) coordinating federal efforts and promoting partnerships among the federal, state, local, nonprofit, and private sectors. [Highlights of the report are at]" (U.S. Government Accountability Office)

Corporate Blacklist Imposed by a Norwegian State Pension Fund
Excerpt: "These directives are aimed to ensure that money does not flow to companies linked to weapons production, human rights abuses, environmental damage, corruption, or other misdeeds." (The Motley Fool)

The Retirement Education Revolution -- What It Means for You and Your Clients
Excerpt: "Historically, retirees have had limited sources to educate themselves on this time of their lives, often turning to one another to learn about retirement, or to the media -- typically newspapers, financial radio talk shows, and occasional retirement segments on television." (Investment Advisor Magazine)

Index-Fund Pioneer Bogle Sees Trouble in Paradise
Excerpt: "The money-management industry's most famous critic, John C. Bogle, has a new target in his sights. It's the fast-growing business of exchange-traded funds, which he lately has been lambasting as a 'U-turn for the worse' in the evolutionary progress of index funds." (Bloomberg News)

IRS 30 Year Treasury Securities Rate Updated for November 2006
30 Year Treasury Securities Rate for November 2006: 4.69% (Internal Revenue Service)

IRS Composite Corporate Bond Rate Table Updated for December 2006
Corporate Bond Weighted Average Interest Rate = 5.79 for December 2006 (Internal Revenue Service)

We thank and invite your attention to our additional sponsor: ASC & The ASC Institute

(Click on company name or banner to learn more.)
Banner ad for ASC & The ASC Institute


We're so confident you can create retirement plan documents, amendments & forms in one-half the time or less we're waiving the initial fee for a limited time and you can start for only $50/month. Learn more at

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Links to Items on Executive Comp, Benefits in General

Benefits Communications Consultancy Urges Communication of Real Cost of Work-Related Benefits
Excerpt: "Most employees simply focus on how much money they are being paid at the end of each month and fail to appreciate what their employer is spending on 'hidden' workplace benefits, so leading them to believe they are worse off than they actually are, a U.S. study has suggested." (

Overview: IRS Developments on Compliance with Section 409A (PDF)
2 pages. Excerpt: "The operations of the arrangement (I am distinguishing operations from the written plan) do not need to conform with the IRC 409A regulations this year, but also are extended until 2007. Until then employers may rely upon 'reasonable good faith' compliance with the new Code section; a number of compliance alternatives are available to the employer in this regard." (The ERISA Law Group, P.A.)

Newly Posted Events
(Post Yours!)

401(k) Testing Techniques
Nationwide on February 1, 2007
presented by SunGard Corbel

Participant Forms and Notices Workshop
Nationwide on February 1, 2007
presented by SunGard Corbel

Plan Design Workshop - Strategies for PPA
in Michigan on January 17, 2007
presented by SunGard Corbel

Plan Design Workshop - Strategies for PPA
in California on January 18, 2007
presented by SunGard Corbel

Plan Design Workshop - Strategies for PPA
in Arizona on January 19, 2007
presented by SunGard Corbel

Plan Design Workshop - Strategies for PPA
in Ohio on January 19, 2007
presented by SunGard Corbel

Newly Posted Press Releases
(Post Yours!)

PBGC Announces Maximum Insurance Benefit for 2007
Pension Benefit Guaranty Corporation (PBGC)

EBRI: Time for Retirement Benefits Checkup
Employee Benefit Research Institute (EBRI)

Meritain Health Acquires CBSA PERFORMAX

Dorsa Consulting Assists State Governments & Municipalities Seeking Compliance With New Governmental Accounting Standards
Dorsa Consulting

Caregiver Discrimination Lawsuits Against Employers Increase
NavGate Technologies

Delta, PBGC Reach Agreement on Delta Pilot Pension Plan
Delta Air Lines, Inc.

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

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

for Louis Kravitz & Associates
in CA

Pension Assistant
for Retirement Plan Administrators, LLC
in GA

Pension Administrator
for TPA Firm
in PA

Defined Contributions Service Delivery Manager
for Affiliated Computer Services
in NJ

Account Manager
for Nova 401(k) Associates
in TX

Retirement Services Specialist
for Administaff
in TX

Employee Benefits Specialist
for Steptoe & Johnson PLLC
in WV

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