| BenefitsLink Retirement Plans Newsletter |   |
February 1, 2007
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Text of Final IRS Regs: Updated Mortality Tables for Determining Current Liability for Pension Plans (PDF)
17 pages. Excerpt: "PPA contains a comprehensive revision of the minimum funding requirements for single employer plans, based on the calculation of a funding target that replaces the current liability calculation under section 412(l). . . generally effective for plan years beginning after December 31, 2007. . . . [T]he Secretary is directed to prescribe by regulation the mortality tables used in determining present value or making any computation under the funding rules." (Internal Revenue Service)
Listing of IRS Published Guidance for January 2007
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)
Overview: Default Investments Under Automatic Enrollment in 401(k) Plans
Excerpt: "Under the proposed regulations, a plan may use one of three alternative types of funds as the default investment for automatic enrollment plans. The default options are essentially the following: (1) a life-cycle or retirement-date type funds; (2) balanced funds; or (3) individually managed accounts in which assets are allocated on a life-cycle model." (Pension & Benefits Blog)
Learn to Uncover Hidden 401(k) Fees
Excerpt: "The [target page describes] seven kinds of hidden 401(k) plan fees end expenses fiduciaries need to be aware of." (Boston Herald)
Exchange-Traded Funds Are Starting to Make Inroads Into 401(k) Plans
Excerpt: "The market for ETFs rose to $432 billion at the end of 2006 from $464 million in 1993, the year they were launched, according to fund tracker Morningstar. But the industry is still tiny compared with the $10 trillion in mutual funds." (TheStreet.com)
Governments' Pension Benefits Viewed As Fiscal Risk to California Solvency
Excerpt: "Speaking at a luncheon sponsored by the Ventura County Taxpayers Association, the former Republican legislator [Keith Richman] said the cost of state pensions alone has ballooned from $160 million in 2001 to almost $3 billion this fiscal year. The bill coming due for retirees' healthcare costs is compounding the crisis, he said." (Ventura County Star)
Senators Ask PBGC to Return Some US Airways Pension Liabilities
Excerpt: "A group of U.S. Senators told the Pension Benefit Guaranty Corporation (PBGC) in a letter Tuesday that US Airways can now afford to take back some of its pension liabilities." (PLANSPONSOR.com; free registration required)
Ballard Spahr Attorneys Convince Third Circuit to Uphold Cash Balance Plans
Excerpt: "Lawyers from Ballard Spahr's Litigation and Employee Benefit groups won a major victory in the Third Circuit Court of Appeals on behalf of PNC Financial Corporation. The court completely dismissed challenges to the legality of PNC's cash balance pension plan and the conversion of PNC's traditional defined benefit plan into a cash balance design." (Ballard Spahr Andrews & Ingersoll, LLP)
Overview: First Pension Protection Act Guidance from IRS -- on Distributions
Excerpt: "The guidance primarily relates to distributions from retirement plans. In this newsletter, we discuss the most salient features of this guidance and its effect on [specific] areas . . . ." (Littler Mendelson, P.C.)
Is 'Spouse Is Entitled to 50% of Plan Participant's 401(k) Account As of Appraisal Date' Sufficient?
Excerpt: "How you can deal with the growth in a retirement savings plan (defined contribution plan) between the marital property accrual cut-off date and the date of the actual distribution to the alternate payee." (www.divorcenet.com)
Hewitt Federal Legislation Quick Guide Updated as of January 30, 2007, 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)
PBGC Disaster Relief Announcement 07-01 in Response to Disasters of Nov. 2-11, 2006, in Washington
Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the severe storms, flooding, landslides and mudslides occurring Nov. 2-11, 2006, in Washington." (Pension Benefit Guaranty Corporation)
PBGC Disaster Relief Announcement 07-02 in Response to Severe Storms and Flooding in New York
Excerpt: "The is waiving certain penalties and extending certain deadlines in response to the severe storms and flooding that occurred on November 16-17, 2006, in New York." (Pension Benefit Guaranty Corporation)
Report to Congress: How Much Retirement Savings Will Workers Have When They Retire? (PDF)
41 pages. Excerpt: "The report presents the results of an analysis of the amount of retirement savings that households might be able to accumulate by age 65 under a number of different scenarios. The analysis shows how varying the age at which households begin to save for retirement, the percentage of their earnings that they save, and the rate of return on investment can affect the amount of retirement savings the household will accumulate." (Congressional Research Service of the U.S. Library of Congress)
Qwest and California State Teachers' Retirement System Reach Settlement
Excerpt: "California's giant teacher pension fund has reached a nearly $47 million settlement with Qwest Communications over a lawsuit claiming that the Denver-based telephone company defrauded the fund of $150 million." (AP via The New York Times; free registration required)
2006 Personal Savings Drop to 74 - Year Low
Excerpt: "The Commerce Department reported [today] that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases." (AP via The New York Times; free registration required)
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Links to Items on Executive Comp, Benefits in General
Case Remanded for Interpretation of PPA Amendment Including Some Tribal Plans As Governmental Plans
Excerpt: "In Dobbs v. Anthem Blue Cross & Blue Shield, -- F.3d -- -, 2007 WL 241282 C.A.10 (Colo.),2007, the Tenth Circuit remanded a case for a determination of whether plan sponsored by the Southern Ute Indian Tribe was preempted by ERISA." (Health Plan Law blog by Attorney Roy F. Harmon III)
Overview: Securities and Exchange Commission Interpretive Guidance on Item 402 of Regulation S-K (PDF)
6 pages. Excerpt: "With regard to particular disclosure timing concerns, the January 24, 2007 interpretive guidance generally affirms the interpretations originally published in the Manual of Publicly Available Telephone Interpretations." (LeBoeuf, Lamb, Greene & MacRae LLP)
Overview: SEC Interpretations Regarding Executive Compensation (PDF)
Excerpt: "These interpretations replace the Commission's Publicly Available Telephone Interpretations Manual regarding Item 402 of Regulation S-K. Summaries of certain of the interpretations are set forth [in the target document]." (Haynes and Boone LLP)
Overview of Deferred Compensation Provisions in Senate Minimum Wage Bill (PDF)
Excerpt: "At this time, it seems unlikely that the deferred compensation provisions will be enacted as part of minimum wage legislation, but now that these proposals are on the table, they bear close watching." (Buck Consultants)
Hewitt Federal Legislation Quick Guide for January 30, 2007, on Human Resources & Employment Law (PDF)
4 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)
Newly Posted Events
CFDD 07 Advisor Conference: "Transitioning From Salesperson To Businessperson"
in Arizona on October 1, 2007
presented by Center for Due Diligence
Final HIPAA Nondiscrimination & Wellness Program Rules -- The Changes Employers Must Make
Nationwide on February 6, 2007
presented by Thompson Interactive, A Division of Thompson Publishing Group
Fundamentals of Employee Benefits Law (Part 1) - Webcast
Nationwide on February 22, 2007
presented by West LegalEdcenter
Fundamentals of Employee Benefits Law (Part 2) - Webcast
Nationwide on February 22, 2007
presented by West LegalEdcenter
Fundamentals of Employee Benefits Law (Part 3) - Webcast
Nationwide on February 23, 2007
presented by West LegalEdcenter
Fundamentals of Employee Benefits Law (Part 4) - Webcast
Nationwide on February 23, 2007
presented by West LegalEdcenter
Fundamentals of Employee Benefits Law (Part 5) - Webcast
Nationwide on February 24, 2007
presented by West LegalEdcenter
Interactive Test Drive of New Tools Available to Plan Sponsors
in Colorado on March 1, 2006
presented by A.G. Edwards
Seven Deadly Sins of Planning for Retirement Distributions - Webcast
Nationwide on January 31, 2007
presented by West LegalEdcenter
Newly Posted or Renewed Job Openings
Account Executive Assistant
for The Paragon Alliance Group
in PA
Compliance Specialist for Retirement Plans
for The Paragon Alliance Group
in PA
Associate Daily Plan Administrator
for Tegra Financial Partners
in GA
401(k) Compliance Specialist
for 401k ASP, Inc.
in FL
Retirement Plan Administrator
for Pension House
in WA
Business Analyst, Product Development (Employee Benefits)
for WageWorks, Inc.
in CA
Consultant
for Buck Consultants an ACS Company Human Resources & Benefits Consultants
in NY, TX
Consulting/Marketing Manager
for successful TPA
in CA
Investment Advisory Regional Director
for The Newport Group
in CA, FL
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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