| BenefitsLink Retirement Plans Newsletter |   |
January 3, 2007
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| Join your colleagues January 25-26, 2007 at the Hilton Los Angeles/Universal City for the perfect opportunity to discuss employee benefits issues with top IRS and DOL government agency representatives. Co-Sponsored by the IRS, ASPPA, NIPA and WP&BC, this conference offers a specialized agenda highlighting the latest on pension issues. Don't let this opportunity pass you by. Register NOW! |
IRS Advisory Group Asks Retirement Plan Practitioners to Share Experiences with Pre-Approved Plans
The IRS' Advisory Group for Tax Exempt and Government Entities is asking retirement plan practitioners to complete an online survey about their experiences with plans that use 'master and prototype' or 'volume submitter' plan documents. Specifically, attorneys and other firms responsible to clients (employers) whose plans use such 'pre-approved' plan documents are asked to describe the most commonly encountered document or operational failures, and to recommend ways to prevent them. (Advisory Group (to IRS) for Tax Exempt and Government Entities)
Summary of the Key Provisions of the Pension Protection Act of 2006
14 pages. Excerpt: "The AICPA Employee Benefit Plan Audit Quality Center has prepared this summary of the Pension Protection Act of 2006 to assist members in obtaining a general understanding of key provisions in the Act relating to financial, reporting and other matters that are highlighted in this summary." (Employee Benefit Plan Audit Quality Center)
Compilation of McKay Hochman Articles on the Pension Protection Act (PPA) of 2006
The target page also provides links to government resources on the PPA and a list of PPA changes for which the IRS will be providing guidance. (McKay Hochman Co., Inc.)
Opinion: 401(k) Assets Need Greater Protection
Excerpt: "Better protecting 401(k) assets starts with employees, who should carefully monitor their accounts. But Congress also can help by requiring companies to carry more liability insurance on retirement plans. An insurance company's involvement provides outside oversight of a company's retirement investments." (The Des Moines Register)
Employees Sue ABB and Fidelity over 401k
Excerpt: "A lawsuit was filed last week against ABB Inc. and Fidelity Management Trust Co., alleging they overcharged employees participating in ABB's 401(k) retirement plan." (BusinessWeek Online)
Overview of the DOL Benefit Statement Guidance
Excerpt: "The Pension Protection Act (PPA) requires individual account plans that permit participant direction of investments to issue account statements at least quarterly. If participants do not direct investments, an annual statement is required instead. The PPA also increases the amount of information that must be provided in pension benefit statements. The DOL's just released guidance, FAB 2006-3, provides a method of good faith compliance pending issuance of final regulations." (McKay Hochman Co., Inc.)
Federal Government Retirees Get Pension Increase
Excerpt: "Government retirees . . . will see their monthly pension checks increase this month, by 2.3 percent or 3.3 percent, depending on their retirement system." (The Washington Post; free registration required)
Overview of the PPA IRA Charitable Donation
Excerpt: "Under PPA, an IRA owner who is 70-1/2 or older may make a direct, tax-free donation to a qualified charitable organization of up to $100,000 per year from his or her IRA with respect to tax years 2006 and 2007. An advantage to this option is that such distributions may be used to satisfy the IRA's minimum distribution requirements." (McKay Hochman Co., Inc.)
PhD Thesis Summary: The Effects of Employee Ownership in the Context of the Large Multinational (PDF)
13 pages. Excerpt: "The general problem definition of this study is . . . as follows: what are the attitudinal effects of employee ownership in the context of the large multinational, and to what extent do cultural values matter?" (European Federation of Employee Shareownership)
Overview: IRS Final Regulations Address Requirements for ESOPs Holding S Corporation Stock
Excerpt: "Code Sec. 409(p)(1) requires that, for ESOPs holding employer securities consisting of stock in an S corporation during an allocation year, no portion of the assets of the plan attributable to the employer securities may accrue for the benefit of any disqualified person." (Wolters Kluwer Law & Business)
Law Protects Civilian Retirement Plans for National Guard and Reserve Members
Excerpt: "There are several provisions in USERRA that directly affect retirement benefits and planning. It is important to keep these in mind if you will be deployed for longer periods of time, especially if that deployment is in a combat zone where compensation is tax-free." (Army Times)
Overview: Determination Letter Process Will Open with Respect to Cash Balance Plans
Excerpt: "On January 16, 2007, the Internal Revenue Service will issue Notice 2007-6, announcing that it will begin processing determination letters for cash balance conversions (and for similar account-balance defined benefit plans, now called 'statutory hybrid plans')." (Littler Mendelson)
Overview: IRS 2006 Cumulative List -- Notice 2007-3
Excerpt: "The IRS issued the 2006 Cumulative List as Notice 2007-3. The list, which includes PPA items, is for plans that are to be submitted from February 1, 2007, through January 31, 2008." (McKay Hochman Co., Inc.)
Overview: IRS Transitional Guidance for Hybrid Plans
Excerpt: "The guidance clarifies several terms and introduces a few new ones. A 'statutory hybrid plan' refers to cash balance plans, PEPs and other hybrid plans (the PPA called them applicable defined benefit plans)." (Watson Wyatt Worldwide)
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Links to Items on Executive Comp, Benefits in General
New York City Employees' Retirement System Pension Funds Seek Vote on Executive Pay
Excerpt: "New York's pension funds asked Home Depot Inc., Blockbuster Inc. and Par Pharma.ceutical Cos. to let shareholders vote on whether they approved of top executives' pay packages." (Bloomberg News via Los Angeles Times; free registration required)
Overview of Revised Executive Compensation Disclosure for Stock and Option Awards (PDF)
3 pages. Excerpt: "Disclosures about executive officers' and directors' stock and option awards will be more closely aligned to the amounts reported in the financial statements, reflecting earned compensation for the service period as reported in the financial statements, rather than the aggregate grant-date fair value of the awards, under newly adopted amendments to Item 402 of Regulation S-K." (KPMG LLP via Financial Executives International)
109th Congress Wraps Up -- Important Changes Ahead for 110th
Excerpt: "After the long and difficult pension reform debate, Congress is mostly done with pension legislation for now, except for a few outstanding issues. For example, the business community and Capitol Hill staff are compiling lists of technical corrections to the PPA. These corrections could move through Congress in 2007, although technical corrections sometimes take several years to pass." (Watson Wyatt Worldwide)
Employees in China Are Very Dissatisfied with Their Compensation and Benefits, According to Survey
Excerpt: "Only 28 percent of workers are satisfied with their compensation and benefits favorable ratings in Mainland China. Only 33 percent are satisfied with their pay, compared with 38 percent in Asia-Pacific as a whole and 47 percent in the United States." (Watson Wyatt Worldwide)
Newly Posted Events
2007 Web/Telephone Seminars: SEP Plans
Nationwide on February 27, 2007
presented by BISYS Retirement Services
HSA Legislative Update Webinar
Nationwide on January 11, 2007
presented by Convergent Retirement Plan Solutions, LLC
Journey deep into the world of IRAs
in Illinois on January 23, 2007
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Pennsylvania on January 23, 2007
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in West Virginia on January 23, 2007
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Pennsylvania on January 24, 2007
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in California on January 24, 2007
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Ohio on January 24, 2007
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Ohio on January 25, 2007
presented by Wolters Kluwer Financial Services
Journey deep into the world of IRAs
in Indiana on January 25, 2007
presented by Wolters Kluwer Financial Services
The Basics of Health Savings Accounts (HSAs)
Nationwide on January 16, 2007
presented by Convergent Retirement Plan Solutions, LLC
Newly Posted or Renewed Job Openings
Plan Administrator
for Independent Pension Consultants, Ltd.
in MN
Retirement Services Account Manager 2
for SunTrust Banks, Inc.
in VA
Senior Counsel I - Employee Benefits
for Northrop Grumman Corporation
in CA
Sales Consultant, Group Health Insurance
for ABG-MA (Alliance Benefit Group- Mid-Atlantic), a Benefitstreet co.
in MD
Health & Welfare Consultant
for Charles W. Cammack Associates
in NY
Plan Administration Specialist
for Boston Financial Data Services
in MA
Retirement Services Consultant
for Administaff
in TX
401(k) Administrator
for Growing Benefits Consulting / TPA Firm in NW Suburb of Chicago
in IL
Pension Administrator
for Pension Administrator
in NJ
Employee Benefits Attorney With ESOP Experience
for Chang, Ruthenberg & Long PC
in CA
Employee Benefits Attorney With at Least 5 Years Experience
for Chang, Ruthenberg & Long PC
in CA
Marketing Manager
for AXA Equitable
in NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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