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January 31, 2007


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Judge Upholds Dun & Bradstreet Cash Balance Plan
Excerpt: "Dun & Bradstreet Corp.'s cash balance pension plan does not discriminate against older employees, a federal judge has ruled." (Business Insurance)

Cash Balance Proponents Get Two Legal Victories
Excerpt: "Backers of the highly controversial cash balance plans have won two legal victories in recent days with rulings from a lower federal court judge and a federal appellate court that the plans are not age discriminatory." (PLANSPONSOR.com; free registration required)

Text of Request by Washington Nationals to PBGC for Exemption from Bond/Escrow Requirement
Excerpt: "This notice advises interested persons that the Pension Benefit Guaranty Corporation has received a request from Washington Nationals Baseball Club, LLC for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) . . . with respect to the Major League Baseball Players Benefit Plan. Section 4204(a)(1) provides that the sale of assets by an employer that contributes to a multiemployer pension plan will not constitute a complete or partial withdrawal from the plan if . . ." (Pension Benefit Guaranty Corporation)

Failure to Communicate Tops Enrollment Concerns of Employers
Excerpt: "Employers said the areas that could stand to be improved in the benefit enrollment process are employee communications, health information and benefit decision support. On the other hand, employees were most concerned that the enrollment process was too complicated, according to a recent survey by consultant Watson Wyatt Worldwide." (PLANSPONSOR.com; free registration required)

Pensions: To Choose an Annuity or To Take a Lump Sum?
Excerpt: "Question: When I retired, I chose a lump-sum from my company's pension plan and rolled the money into an IRA instead of taking an annuity. I did this because it's my understanding that if my wife and I were to die . . ., none of the annuity's value would be passed on to our children or other heirs. By taking the lump sum and moving it to the IRA, on the other hand, our heirs will receive the IRA balance when we die. Do you agree with my reasoning on this issue?" (CNNMoney.com)

Correcting Excess IRA Contributions
Excerpt: "This article examines the various methods available for correcting excess contributions and the accompanying responsibilities of an IRA owner and his/her IRA custodian/trustee." (Wolters Kluwer Financial Services)

Not All CPAs Fully Understand What Acting As a Fiduciary Entails
Excerpt: "Assuming the role of a fiduciary is often a courtesy extended to long-term clients and seen as a revenue source for the firm, but CPAs must be aware of the different rules that govern, potential conflicts of interest, possible additional insurance coverage needs, and the specialized knowledge required for each type of fiduciary relationship." (WebCPA)

'Best' 401(k) Plan Is at Hand -- The Thrift Savings Plan
Excerpt: "Several national magazines and financial columnists have rated the 'best' 401(k) plan around. Guess what it is? The TSP. The Thrift Savings Plan is available only to government employees and uniformed military personnel." (The Washington Times)

Editorial: Legislators Need to Correct Mistake on Pension Plans
Excerpt: "It is back to the drawing board for the West Virginia Teachers Retirement System. Let's hope the trip isn't an expensive one for taxpayers and/or educators. In 2005, state legislators and Gov. Manchin agreed to a plan they hoped would please educators -- and provide a shot in the arm for the TRS. We were among those warning that it was a bad idea." (The Intelligencer)

Identifying Excess IRA Contributions
Excerpt: "What causes an excess IRA contribution? How does an IRA owner pay the penalty tax? This article answers these questions and more by reviewing the common reasons for excess IRA contributions and the resulting responsibilities of IRA owners and their IRA custodians/trustees." (Wolters Kluwer Financial Services)

Racial Differences in Baby Boomers' Retirement Expectations (PDF)
2 pages. Excerpt: "Although fiftysomething African Americans plan to work longer than they did a decade ago, they lag behind other racial and ethnic groups. African American boomers report a 28 percent chance of working full-time past age 65 as opposed to 33 percent for all other racial groups." (Urban Institute)

Minimum Benefits in Social Security -- Design Details Matter (PDF)
2 pages. Excerpt: "A minimum could take many forms, influencing its ability to reduce poverty. Important dimensions of a minimum benefit's design include the following: benefit level . . . and how it varies with years of service; number of service years required . . . ." (Urban Institute)

Minimum Benefits in Social Security Could Reduce Aged Poverty (PDF)
2 pages. Excerpt: "This brief considers the effect of a Social Security minimum benefit on the program's adequacy. With benefit cuts looming in the face of Social Security's long-term fiscal deficit, an effective minimum benefit could help protect the highest-risk groups." (Urban Institute)

Would Raising the Social Security Retirement Age Harm Low-Income Groups? (PDF)
6 pages. Excerpt: "We find that increasing the retirement age reduces lifetime benefits for all groups, but reduces benefits less for those with lower lifetime earnings and less education." (Urban Institute)

Towers Perrin U.S. Legislative Tracking Charts -- Retirement -- Updated January 29, 2007 (PDF)
2 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)

Labor Department Still Considering Best Way to Issue PPA Guidance, Senior Official Says
Excerpt: "Given a relatively tight deadline, the Department of Labor has not yet decided whether to put out proposed regulations or proceed directly to final regulations for the significant changes the Pension Protection Act of 2006 made to rules governing the individual benefit statements that retirement plans send to participants, a senior department official said Jan. 26." (The Bureau of National Affairs, Inc.; paid subscription may be required)

EBSA Official Says the Agency is Working Aggressively on PPA and Regulatory Agenda
Excerpt: "Louis J. Campagna, chief of the Division of Fiduciary Interpretations, Office of Regulations and Interpretations for the agency, said EBSA regulatory activities related to the PPA are being driven by the statutory deadline requirements of 180 days and 360 days, focusing on such matters as automatic enrollment and default investments, cross trades, and investment advice." (The Bureau of National Affairs, Inc.; paid subscription may be required)

In France, Bonus Incentives for Late Retirement Now in Effect
Excerpt: "In an effort to boost the senior employment rate from the present 37.9 percent to a target of 50 percent by 2010, the French government released a new decree effective January 1, 2007. This measure aims to encourage people who have reached the retirement age of 60 to remain in the labor market by providing an extra pension bonus for each supplementary trimester of work." (Watson Wyatt Worldwide)

UK Pensions Regulator Makes Last Appeal for Comments on DC Risk Paper
Excerpt: "The UK's Pensions Regulator made its last call to the pension community to comment on its November paper on how defined contribution plans are run and their risk levels." (PLANSPONSOR.com; free registration required)


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(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

Can SPDs Be Written with the Reader in Mind? (PDF)
3 pages. Excerpt: "Improving plan communication for retirement plan participants, particularly as it pertains to Summary Plan Descriptions ('SPDs'), has been a challenge since ERISA. Many plan participants express frustration in understanding their rights and benefits, and employers are caught between providing accurate content that passes law department muster and reader-friendly language, tone, and style." (Aon Consulting)

Third Circuit Extends 'Clear Repudiation' Rule to Erroneous Benefit Award Claims
Excerpt: "The Third Circuit handed down an important decision yesterday that bears careful reading by ERISA practitioners. On the somewhat tedious subject of when an action accrues for purposes of the applicable limitations period, the Court extended the 'clear repudiation' rule applied in benefit denial cases to cases of inaccurate benefit awards." (Health Plan Law blog by Attorney Roy F. Harmon III)

Company Boards Clueless on CEO Pay
Excerpt: "Shareholders worried about runaway executive pay are likely to be stunned by the findings of a new study that shows many board directors still have no idea how much their CEOs would collect if they retire, are fired or bought out." (AP via The Washington Post; free registration required)

How Long Do Boomers Plan to Work? (PDF)
2 pages. Excerpt: "[N]ew research shows that as the boomers approach retirement they intend to work longer than people born a dozen years earlier, promoting economic growth and partly offsetting the economic pressures created by an aging population." (Urban Institute)

Towers Perrin U.S. Legislative Tracking Charts -- Human Resources -- Updated January 29, 2007 (PDF)
4 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)

Average Worker May Be Hurt by Stock Options Scandal
Excerpt: "There's a largely overlooked class of victims from the stock option backdating scandal: rank-and-file workers. Across Silicon Valley and the nation, hundreds of thousands of workers who played no role in manipulating options nonetheless could pay a price, from lost stock options and lost investment opportunities to looming tax bills." (The Mercury News)

Idaho Court Rules Stock Options are not Wages
Excerpt: "The Idaho Supreme Court ruled that stock options are not considered wages under state law, handing a defeat to a former Albertson's Inc. employee who claimed the company violated wage laws when it fired him for intending to exercise his stock options." (PLANSPONSOR.com; free registration required)

SEC OKs Auction System for Options Valuation
Excerpt: "Securities and Exchange Commission (SEC) Chief Accountant Conrad Hewitt said in a recent letter that the auction system put together by Zions Bancorp of Salt Lake City was permissible to use so the company could determine market values for its employee stock options, the Wall Street Journal reported." (PLANSPONSOR.com; free registration required)


Newly Posted Events

5th Annual 412(i) Summit
in Illinois on August 1, 2007
presented by Executive Benefits Design Group

ASPPA Benefits Council of Chicago
in Illinois on September 20, 2007
presented by ASPPA Benefits Council of Chicago

ASPPA Benefits Council of Chicago
in Illinois on December 6, 2007
presented by ASPPA Benefits Council of Chicago

ASPPA benefits Council of Chicago Meeting
in Illinois on June 14, 2007
presented by ASPPA Benefits Council of Chicago

ASPPA Benefits of Chicago Meeting
in Illinois on March 22, 2007
presented by ASPPA Benefits Council of Chicago

Holiday Gifts for Retirement Plans: Year-End Guidance Under PPA
Nationwide on February 22, 2007
presented by ABA Joint Committee on Employee Benefits

Managing Retirement Income Consumer Workshop - 2007 NAVA Marketing Conference
in Arizona on February 26, 2007
presented by International Foundation for Retirement Education (InFRE)

Strategies for Managing Retirement Income course - 2007 NAVA Marketing Conference
in Arizona on February 27, 2007
presented by International Foundation for Retirement Education (InFRE)

The New Regulatory and Political Landscape for Consumer Driven Care
in California on February 1, 2007
presented by Healthcare Web Summit


Newly Posted Press Releases

Communication Challenges Loom Large in Benefit Enrollment Process
Watson Wyatt

Allied Pilots Association Emphasizes Support for Retirement at Age 60 as FAA Announces Proposal to Raise Limit
Allied Pilots Association (APA)

Unum Says Long Term Care Buyers Are Getting Younger, Selecting Home Care Option
Unum

Zions Bancorporation Receives SEC Clearance for Market-Based Employee Stock Option Valuation Method
Zions Bancorporation

Chronic Pain Up Almost 40 Percent Among U.S. Workers in Past Decade
Ortho-McNeil Pharmaceutical, Inc

Noncompliance Still Unravels Health Care - Survey
National Community Pharmacists Association (NCPA)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Client Service Representative
for The Online401(k)
in CA

Pension Analyst - Quality Assurance
for MassMutual Financial Group
in MA

Education / Enrollment Specialist
for USI Consulting
in CT, MA, ME, NH, NY, RI, VT

Compliance Analyst
for Great-West Corporate
in WI

Senior Benefits Analyst
for Watson Wyatt Worldwide
in VA

Marketing Director - Multi-Cultural Departments
for MassMutual Financial Group
in CT, MA

Retirement Services Account Manager
for SunTrust Bank
in FL

Senior Director, Insurance Program Development & Management
for National Rural Electric Cooperative Association (NRECA)
in VA

Retirement Plan Administrator
for Fred S. Shapiro & Associates, Inc.
in MD




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