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February 12, 2007
Sponsored by: ASPPA
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Text of EBSA's Interim Final Rule on Statutory Exemption for Cross-Trading of Securities by Plans
Excerpt: "This document contains an interim final rule that implements the content requirements for the written cross-trading policies and procedures required under section 408(b)(19)(H) of [ERISA, as amended by the] Pension Protection Act of 2006 [which] amended section 408(b) of ERISA by adding a new subsection (19) that exempts the purchase and sale of a security between a plan and any other account managed by the same investment manager if certain conditions are satisfied." (Employee Benefits Security Administration, U.S. Department of Labor)
Retirement Age Workers Downshifting, Not Retiring
Excerpt: "There's a lot of talk these days about a 'new retirement' that's expected to flourish as a wave of workers reach their 60s during the next two decades. . . . However, the Vanguard Center for Retirement Research looked at those forecasts and compared them with current reality, and in a recent report, authors John Ameriks, Holly B. Fergusson, Anna B. Madamba and Stephen P. Utkus concluded the trend is not so new." (The Washington Post; free registration required)
Bare-Bones 401(k) Plan Will Be in Vogue in 2007
Excerpt: "The days of the overpriced 401(k)- type retirement plan are numbered. The word is out. Congress will soon hold hearings on program expenses, and the U.S. Labor Department will issue guidelines on making fees more transparent." (Bloomberg)
Overview: DOL Guidance on PPA's Investment Advice Exemption
Excerpt: "EBIA Comment: This guidance, while not surprising, will be useful to those implementing eligible investment advice arrangements. And the confirmation that Advisory Opinion 2001-09A still stands will be welcome news to advisors and plans that have programs in place using the SunAmerica model as their guide." (Employee Benefits Institute of America Inc.)
Overview: DOL Guidance on Retirement Benefit Statements (PDF)
2 pages. Excerpt: "Sponsors of §401(k) and other defined contribution plans have rapidly approaching deadlines for initial benefit statements (May 15, 2007 for many calendar year plans). Although defined benefit sponsors are not required to distribute benefit statements until 2009 at the earliest, it is still not too early to identify actions they will need to take to comply." (The Segal Group, Inc.)
Immediate Annuities: Do-It-Yourself Pensions
Excerpt: "Pensions may be going the way of rotary phones, but retirees looking for a substitute may want to investigate immediate annuities. These insurance products are expected to grow in popularity as the number of traditional pensions declines and baby boomers scramble for guaranteed sources of income, according to James Lange, author of 'Retire Secure!'" (Bankrate.com)
Compensation and Limitation Charts
Chart 1 is for a short plan year as of 2007, and, chart 2 is for a participant entering a plan after the first day of a full plan year; updated and enhanced February 9, 2007. (McKay Hochman Co., Inc.)
Dismantling Retirement Benefits: Coveted Retirement Packages Are Suddenly Empty
Excerpt: "On Feb. 1, Hanesbrands cut its contribution to retirees' health-insurance premiums from an average of 62 percent to no more than 35 percent. It will end its contributions entirely Dec. 1 but will continue to provide access to the group rate for retirees who can pay the full cost of the premium." (Winston-Salem Journal)
Global Retirement Perspective - Implementing a Governance Framework
Excerpt: "In Mercer's 2006 global governance of retirement plans survey, Meeting the Challenge of Implementation in Europe , we found that 80 percent of companies take a risk-based approach to managing pensions." (Mercer Human Resource Consulting LLC and Mercer Investment Consulting, Inc.; free registration required)
Global Retirement Perspective - Pensions Across Europe: A Work in Progress
Excerpt: "Multinational corporations are finally finding their way towards pan-European pension solutions. As a result of some recent European Court rulings and the passing of the 2003 Pensions Directive, which facilitated cross-border pension arrangements, multinationals are progressing toward a pan-European pension strategy." (Mercer Human Resource Consulting LLC and Mercer Investment Consulting, Inc.; free registration required)
Editorial: The President's Bad Faith on Social Security
Excerpt: "This year, with his political capital on empty, Mr. Bush is talking about a bipartisan effort to reform Social Security. But his actions suggest that he has no intention of making any serious compromises. In his new budget, Mr. Bush allocates $29.3 billion to establish private accounts in 2012, totaling $637 billion through 2017." (The New York Times; free registration required)
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Links to Items on Executive Comp, Benefits in General
Wisconsin Governor Wants Domestic Partner Benefits for All State Employees
Excerpt: "Gov. Jim Doyle says he'll propose offering group health insurance benefits to domestic partners of all state employees when he presents his state budget proposals to lawmakers during the coming week." (Leader-Telegram)
SERP Sales Shift Direction
Excerpt: "Why are SERPs, which in decades past nabbed the lion's share of the non-qualified plan market, garnering a progressively smaller percentage of executive compensation packages?" (National Underwriter Life & Health; free registration or paid subscription required)
ERIC Urges House Ways & Means Committee: 'Drop Deferred Comp Language In Minimum Wage Bill'
Excerpt: "In a letter to House Committee on Ways & Means Chair Charles Rangel (D-NY) and Ranking Member Jim McCrery (R-LA) ERIC urged the Committee to drop Senate language restricting deferred compensation affecting both middle and senior management in the Fair Minimum Wage Act of 2007 (H.R. 2)." (The ERISA Industry Committee)
Deferred Compensation Changes Passed by Senate; Proposals under Consideration by House, As of Feb. 5 (PDF)
Excerpt: "While it is possible that the deferred compensation proposals might be stripped out of a compromise minimum wage bill, they may be held in reserve to pay for future tax legislation." (Miller & Chevalier Charted)
Overview: IRS's Limited Compliance Resolution Program for Section 409A Violations
Excerpt: "On February 8, 2007, the IRS announced a new compliance resolution program . . . that will allow employers to pay, on behalf of affected employees, any Section 409A penalties arising from the exercise of discounted stock options or discounted stock appreciation rights ('SARs') during 2006." (Ballard Spahr Andrews & Ingersoll, LLP)
Newly Posted Events
2007 Consumer Driven Provider Strategies
in California on February 22, 2007
presented by Healthcare Web Summit
2007 Executive Compensation & Benefits Forum
in Massachusetts on March 12, 2007
presented by Retirement Capital Group
2007 Executive Compensation & Benefits Forum
in Georgia on April 17, 2007
presented by Retirement Capital Group
2007 Executive Compensation & Benefits Forum
in California on May 9, 2007
presented by Retirement Capital Group
2007 Executive Compensation & Benefits Forum
in Illinois on September 10, 2007
presented by Retirement Capital Group
FAS 158 for the Pension Actuary - Webcast
Nationwide on February 14, 2007
presented by College of Pension Actuaries
Health Risk Assessment Tools for Lowering Health Plan Claim Costs
Nationwide on February 13, 2007
presented by MediKeeper
Insights on the Economy - Dr. Arthur B. Laffer
in California on February 13, 2007
presented by Retirement Capital Group
Maximizing the Use of Pharmacy Data for a Medicare Population
in California on February 21, 2007
presented by DST Health Solutions
Preferred Brand Competition with Generics
in California on February 15, 2007
presented by Healthcare Web Summit
Worker's Compensation Risk Financing Options in Washington State
in Washington on February 16, 2007
presented by International Society of CEBS - Pacific NW Chapter
Newly Posted Press Releases
U.S. Labor Department Obtains Court Order Appointing Independent Fiduciary to Manage Pension Plan of Defunct Florida Firm
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Rob Thurston warns that Employer Health Care will be Taxed
HR Consulting Group
Newly Posted or Renewed Job Openings
Sr. Operations Manager
for CitiStreet
in FL
401 (k) DC / DB ASC Software Support Specialist Positions
for ASC / ASCi / Actuarial Systems Corporation
in ANY STATE
401(k) Administrator
for Benetech, Inc.
in CA
Actuary
for Benetech, Inc.
in AZ, CA, CO, GA, IL, TX
Compensation Supervisor
for Corning Incorporated
in ANY STATE, NY
Operations Delivery Leader
for Fidelity Human Resources Services Company
in TX
Defined Benefit Administrator
for TPA in the Cleveland / Akron area
in OH
Pension Administrative Support
for Retirement Advisory Services Corp
in PA
Retirement and Institutional Trust Services Relationship Manager
for BOK Financial
in CO
401(k) Business Development Officer
for BOK Financial
in CO
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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