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February 7, 2007
Sponsored by: ASPPA
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| The ASPPA 401(k) SUMMIT! |
| Join over 1,300 retirement sales and investment professionals at the premier event of the year. Continuing education credits, 19 individual workshops, networking opportunities and more await you in San Diego, CA, February 25-27, 2007. Don’t miss your opportunity to attend. Save money and register NOW! |
Overview: DOL's First Guidance on PPA Investment Advice Provision (PDF)
Excerpt: "In Field Assistance Bulletin (FAB) 2007-01, dated February 2, 2007, the U.S. Department of Labor issued guidance to its national and regional offices on the investment advice provisions of the Pension Protection Act (PPA)." (Sutherland Asbill & Brennan LLP)
New Law Decreed That Non-Spouses Could Roll an Inherited 401(k) into an IRA, but IRS Backtracks
Excerpt: "There are two main gotchas. The first is that the IRS said the non-spouse rollover 401(k) provision is discretionary, not mandatory. So a company plan is not required to offer the rollover option to non-spouses. The good news for potential non-spouse beneficiaries is that savvy employers appear to be adopting the change on a widespread basis." (Forbes.com)
Value Averaging for 401(k) Plans Makes More 'Cents' than Dollar-Cost Averaging
Excerpt: "This study develops a feasible value-averaging strategy for average 401(k) investors by using the equity mutual funds as the driving force and the monthly 401(k) contributions and the bond account as the natural capital reserve. This feasible approach is called 401(k) value averaging." (Journal of Financial Planning)
Evaluating Your Retirement Options As an Employee of a Public School
Excerpt: "Although you may be eligible to participate in a 403(b) plan, don't assume that your employer has checked out or approved any particular investment product or any firm or professional that sells potential 403(b) investments. School districts typically do not engage in that sort of screening, and some states prevents school districts from limiting the companies that can sell 403(b) plan investments." (U.S. Securities and Exchange Commission)
Buying Extra Time for Your Pension
Excerpt: "When we plan for retirement, there is one crucial question that none of us can answer: How long will I live? Obviously that's important to everyone, but it has particular financial ramifications if you work in the public sector -- a governmental agency or organization -- that lets you 'buy' additional time for your pension plan." (Bankrate.com)
PBGC Could Set Variable Premium Under Proposal
Excerpt: "Employers with underfunded pension plans could face higher pension insurance premiums if Congress enacts a proposal made Monday by the Bush administration." (Business Insurance)
Overview: Third Circuit Upholds Cash Balance Plans (PDF)
2 pages. 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)
QDRO Awards Pension Benefits to Partner in 'Quasi-Marital Relationship'
Excerpt: "EBIA Comment: We find this case notable because it involved relatively unusual circumstances (for a QDRO case) and because it gives us an opportunity to remind plan administrators that they must have QDRO procedures in place that address specific ERISA and Code requirements on (among other things) the timing of QDRO reviews, notices to the parties, and the segregation of payments while a QDRO is being reviewed." (Employee Benefits Institute of America Inc.)
Opinion: Progress on G.ay Rights Leaves Politicians in the Dust
Excerpt: "For the first time, more than half of all Fortune 500 companies offer domestic partner health insurance benefits to their employees, according to the Human Rights Campaign Foundation's annual 'State of the Workplace' report." (CNN)
Notices from IRS -- CP 403 and CP 406 Notices -- Delinquency Notices
Excerpt: "The CP 403 and CP 406 Notices are delinquency notices pertaining to the filing of Forms 5500 and 5500-EZ. The frequently asked questions provided [on the target page] are intended to assist you in drafting a response should you receive such a notice." (Internal Revenue Service)
Notices from IRS - 'Proposed' Penalty Assessment for Form 5500 and Form 5500-EZ
Excerpt: " The CP 213 Notice is sent to notify filers of a 'proposed' IRS penalty due to a late or incomplete Form 5500 or Form 5500-EZ return. The frequently asked questions provided [in the target page] are intended to assist you in drafting a response should you receive such a notice." (Internal Revenue Service)
ICI Advises Against Computer Model for Providing Investment Advice to IRAs
Excerpt: "The Institute has urged the Labor Department (DOL) to report to Congress that a computer model investment advice program for IRAs does not appear feasible." (Investment Company Institute)
Hewitt Federal Legislation Quick Guide Updated as of February 6, 2007, for Retirement Plans (PDF)
3 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)
Developing Time Horizons for Use in Portfolio Analysis (PDF)
6 pages. Excerpt: "This article provides a time-referenced perspective to portfolio analysis. Time-horizon modeling should be an integral component of any portfolio's investment policies and practices. Risk and return take on probabilistic meanings, while asset streams must be balanced with and fund the liability streams." (International Foundation of Employee Benefit Plans)
ICI Makes Recommendations to Committee on Capital Markets Regulation
Excerpt: "In its submission, the Institute makes recommendations related to two main areas impacting the future strength of the U.S. capital markets - the regulatory structure of our securities markets and retirement and savings issues." (Investment Company Institute)
Downside Risk Measurement and Portfolio Optimization Using Post Modern Portfolio Theory (PDF)
20 pages. Excerpt: "The main problem with standard deviation is that it is not a measure of risk. Rather, it is a measure of uncertainty. Downside risk, as the name implies, measures risk below a certain point. Unlike standard deviation, downside risk accommodates different views of risk. In this paper we show how various downside risk measurements give a more complete picture of risk and help improve the participant's outcome." (Unified Trust Company)
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Links to Items on Executive Comp, Benefits in General
ACLU Sues New Mexico Over Same-Sex Retiree Benefits
Excerpt: "The American Civil Liberties Union is suing New Mexico on behalf of three les.bian couples who are seeking retirement health benefits for the domestic partners of all les.bian and g.ay state employees." (Business Insurance)
Overview: Senate Votes to Increase Taxes on Executive Compensation (PDF)
Excerpt: "Late last week the Senate approved amendments to the House's proposed Fair Minimum Wage Act of 2007 (Minimum Wage Act) which could dramatically increase taxes on nonqualified deferred compensation and limit corporate tax deductions for many forms of executive compensation." (Seyfarth Shaw LLP)
Milliman's Monthly Benefit News and Developments, February 2007 (PDF)
2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee Benefits. (Milliman)
Senate Minimum Wage Bill Has Additional Provisions on NQDC and Federal Contractor Compliance (PDF)
3 pages. Excerpt: "The House had passed a 'clean' minimum wage bill (without certain tax and other provisions included in the Senate-passed version) by a vote of 315 to 116 on January 10, 2007. In addition to the minimum wage increase, the Senate-passed bill includes small business tax relief and provisions on nonqualified deferred compensation and federal contractor compliance with employment verification requirements." (Hewitt Associates)
'Say on Pay' Highlighted in the Upcoming 2007 Proxy Season
Excerpt: "Two groups have recently asked US companies and the SEC to reconsider their closed stance on investor involvement with executive review and compensation. A network of 41 US institutional investors recently announced the filing of shareholder resolutions at 44 major US companies asking companies to grant shareholders an advisory vote on executive compensation packages." (SocialFunds.com)
Hewitt Federal Legislation Quick Guide for February 6, 2007, on Human Resources & Employment Law (PDF)
5 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)
Googling Equity-based Compensation: Employee Stock Options Become Transferable
Excerpt: "[Nontransferability] has been an almost universal feature of nonqualified employee stock option plans. However, recent developments suggest that it is possible to make nonqualified stock options transferable, at least for public companies, and that there may be good reasons to do so." (Faegre & Benson LLP)
Newly Posted Events
2007 Mid-Winter Tour: Advanced IRAs: A seminar for serious IRA professionals
in Massachusetts on March 16, 2007
presented by BISYS Retirement Services
2007 Mid-Winter Tour: Advanced IRAs: A seminar for serious IRA professionals
in Louisiana on March 21, 2007
presented by BISYS Retirement Services
2007 Mid-Winter Tour: Advanced IRAs: A seminar for serious IRA professionals
in Maryland on March 21, 2007
presented by BISYS Retirement Services
2007 Mid-Winter Tour: Advanced IRAs: A seminar for serious IRA professionals
in Pennsylvania on March 23, 2007
presented by BISYS Retirement Services
2007 Mid-Winter Tour: IRA Essentials
in Massachusetts on March 15, 2007
presented by BISYS Retirement Services
2007 Mid-Winter Tour: IRA Essentials
in Maryland on March 20, 2007
presented by BISYS Retirement Services
2007 Mid-Winter Tour: IRA Essentials
in Louisiana on March 20, 2007
presented by BISYS Retirement Services
2007 Mid-Winter Tour: IRA Essentials
in Pennsylvania on March 22, 2007
presented by BISYS Retirement Services
COBRA for Rookies -- The Basics, With Play-by-Play Commentary
Nationwide on March 8, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Savings & Retirement Symposium
in District of Columbia on March 1, 2007
presented by Securities Industry and Financial Markets Association (SIFMA)
Webcast: Keeping the Fiduciary from the Judiciary: Fiduciary Issues under PPA
Nationwide on February 21, 2007
presented by ASPPA (American Society of Pension Professionals & Actuaries)
Newly Posted Press Releases
Success in Alternative Investments Requires Focus on Governance
Watson Wyatt
Institutional Investor & Retirement Organizations Partner to Form New National Non-Profit
NASRA (National Association of State Retirement Administrators)
Finally, A Reason to Feel Good About Healthcare
Principal Financial Group
Assist America Global Emergency Services Become Available in China through China Assist; Landmark Approval Allows U.S.-Based Assistance Services to be Sold in the People’s Republic of China for the First Time Ever
Assist America, Inc.
Treasury Releases FY 2008 Blue Book
U.S. Department of Treasury
Ftwilliam.com announces the release of the 2007 PBGC Premium Forms
ftwilliam.com
ICMA-RC Adds Long-term Care Insurance to its Financial Planning Services Lineup
ICMA-RC
Personal Health Records As An Employee Benefit
MediKeeper
Retirement Advisors and Plan Sponsors Invited to Participate in First-of-its-Kind "Retirement Credential Survey"
Financial Service Standards, LLC.
Statement by William G. Gale, Director, The Retirement Security Project
Retirement Security Project
S4 Launches 'Count Us In! Campaign' to Keep Personal Retirement Accounts in the Budget
Students Saving for Social Security (S4)
Institutional Shareholder Services Launches Options Expensing Alert
Institutional Shareholder Services (ISS)
Citibank(R) Helps Customers Save for Retirement Through New IRS Split Tax Refund Offering
Citibank
PBMI Drug Benefit Conference Fosters Better Benefit Decision-Making
Pharmacy Benefit Management Institute (PBMI)
Newly Posted or Renewed Job Openings
Plan Document Specialist
for Louis Kravitz & Associates
in CA
Sr Employee Benefits Admin
for Raytheon
in VA
Account Manager for Retirement Plans
for Standard Insurance Company
in OR
Pension Administrator
for Truog-Ryding Company
in CA
Flex Claims Administrator
for Stanley Benefit Services, Inc.
in NC
Employee Services Call Center Representative
for Oasis Outsourcing, Inc.
in FL
Manager, Retirement Plan Servicing
for BOK Financial
in OK
Benefit Plan Administrator
for J. D. BENEFITS, INC
in NC
Operations Consultant
for ING Americas
in CT
Client Relationship Manager for TPA Firm in Oakland County, MI
for Freedom One Financial Group
in MI
Regional Director, Retirement Services
for Great-West Retirement Services
in IL
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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