February 22, 2007 Sponsored by: www.ftwilliam.com (Click on company name or banner to learn more.)
Hewitt Packard Freezes Defined Benefit Plan; Will Increase 401(k) Match; Retiree Health Cut Back Excerpt: "The company will no longer contribute to U.S. employees' defined-benefit pension plan -- a freeze that already hit most U.S. workers in July 2005. The freeze is now being extended to the rest of the company's U.S. workforce. Instead, HP will increase its 401(k) match from 4 percent to 6 percent." (Corvallis Gazette-Times) HP Added to List of Companies That Have Changed DB Plans Since December 2005. Excerpt: "Changes include plan terminations, plan freezes for new and/or current employees, and changes to the formula by which pension benefits are calculated. For specifics, click on the employer's name to see the company's press release, SEC filing or news story announcing the change." (Pension Rights Center) March 31 Deadline Approaching for Newly-Mandated Statements to Self-Directed DC Plan Participants Excerpt: "For defined contribution plans that use the calendar year as the plan year, and under which participants are allowed to direct the investment of their account balances, the first required statement will be due for the quarter that ends on March 31, 2007." (Bond, Schoeneck & King, PLLC) Text of 257-Page FASB Staff Position Conforming Earlier Documents to Reflect Statement 158 (PDF) FAS 158-1. 'This [Staff Position] updates . . . FASB Statement No. 87, Employers' Accounting for Pensions, . . . FASB Statement No. 88, Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits, and . . . FASB Statement No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, to reflect the provisions of FASB Statement No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans." (Financial Accounting Standards Board) Creative Tricks for Defined-Contribution Enrollment Excerpt: "Thirty companies were honored in the 2007 Eddy Awards for their creative investment education programs. Campaigns involving baseball cards, sunscreen and flip-flop key chains might seem gimmicky, but they produced real enrollment results." (Workforce Management) Text of Vanguard Chairman's Remarks at PPA Developments Conference Discussion of DB vs. DC debate, automatic enrollment provisions. Excerpt: "As for the PPA, I'm a big fan of what Congress accomplished in the legislation. . . . And today I'll attempt to explain my optimism by looking at the PPA in a broad way-as I said, not from the view of a technical expert, but from a longtime observer of, supplier to, and participant in the U.S. retirement system." (Investment Company Institute) PBGC Reminder: Send Us Copies of All Multiemployer Plan Annual Funding Notices See paragraph at bottom of the target 'What's New for Practitioners' page, updated February 21, 2007: 'PBGC Must Receive Copies of All Multiemployer Plan Annual Funding Notices." (Pension Benefit Guaranty Corporation) New Jersey Pension System Deficit Up to $7.2 Billion -- a $2.7 Billion Increase Excerpt: "To begin closing the growing gap between the state's pension assets and what it is expected to owe retired public workers, state and local governments would have to pay $950 million to the Public Employee Retirement System this year, according to Janet Cranna, an actuary hired by the state. State government is expected to make roughly half of its $459 million required contribution in the upcoming fiscal 2008 budget, likely adding to the growing pension deficit." (CourierPost Online) One Illinois State Pension Plan Back to Fully Funded: Illinois Municipal Retirement Fund Excerpt: "The Oak Brook-based IMRF, which represents 2,900 local units of government and 250,000 employees and retirees, reached 100.5% funding of its pension obligations as of Dec. 31, according to officials. . . . There isn't another major public retirement program in Illinois at 100% currently, according to the Civic Federation, a Chicago watchdog group that has been highly critical of pension shortfalls." (Chicago Business) Text of ASPPA's Comments to DOL on Model Form for Disclosure of Fees to Fiduciary Advisers (PDF) 3 pages. Excerpt: "The biggest challenge may be explaining to participants that any indirect compensation received by the adviser does not affect or increase the amount paid by the participant. Participants need to understand the amount that they pay, directly or indirectly, but also that compensation received by plan advisers does not increase that amount." (ASPPA) DOL PPA 'Investment Advice' Guidance: Answers, Opportunities, Outstanding Issues Excerpt: "The attached memorandum outlines: Pre-PPA common industry approaches to structuring investment advice programs, based on the Department's advisory opinions and other guidance; The scope, requirements and the issues created by the Exemption; Issues resolved by the FAB; Opportunities created by the FAB; Unresolved issues." (Groom Law Group) Opinion: Capitol Hill Full of Government Pension Allies Despite DB Cutbacks in Private Sector Excerpt: "Congress isn't about to let the federal retirement program go away because most members of Congress will draw those lifetime indexed-to-inflation benefits. There also is the National Active and Retired Federal Employees Association. NARFE has been described as a giant legal-lobbying organization with one client (the retired or wannabe retired fed) and one goal (protect the pension plan)." (Washington Times) Bonuses to Legislative Staffers in Pennsylvania Bump Up Pensions Excerpt: "Legislative staffers, who received millions of dollars in secret bonuses over the last two years, will see an added bump to their pensions. Senate Chief Clerk Russell Faber confirmed this week that Senate bonuses -- of which $442,000 was handed out in 2005 and 2006 -- otherwise known as 'supplemental payments' have been included in employee pension calculations." (TimesOnline.com) Opinion: Texas Teachers Take Advantage of Loophole to Get More Spousal Benefits from Soc Sec Excerpt: "Public school teachers in Texas eventually found a loophole in [the federal government's pension offset rules for Social Security benefits, enacted in 1977]. They could still receive their public pension and full Social Security spousal benefits if during their last day of public employment they were in a job covered by both Social Security and a public pension program. School district jobs such as janitor and cafeteria worker fit the bill nicely." (The Spectator) Overview: NASD Guidance on Portability of Investments (PDF) 2 pages. Excerpt: "NTM 0706 provides that member firms should have procedures in place that are specifically designed to review and evaluate investment recommendations made by newly associated individuals to existing customers relating to mutual funds and variable products." (Morgan Lewis) Overview: Congressional Reports Makes Case for Higher Savings Rates Over Longer Periods Excerpt: "A recent Congressional Research Service (CRS) report argues for beginning retirement savings at an early age and at 10% of compensation rather than 6%." (CCH Pension) Sponsored by: Mid-Sized Pension Management Conference (Click on company name or banner to learn more.)
Links to Items on Executive Comp, Benefits in General Corrected Link: Insurance Information in Spanish -- Useful for Employers and Participants Excerpt: "Employers with many Spanish-speaking workers may want to take note of a new resource on benefits and insurance topics. To help educate Spanish-speaking consumers on various types of insurance, the National Association of Insurance Commissioners recently launched a new Spanish-language Web site that employers and workers can use." (BenefitNews.com by Employee Benefit News) A Review of Employee Benefits Developments; February 2007 Edition PPA benefit statement requirements; HIPAA regs on nondiscrimination and wellness programs; ending of cash balance plan rulings moratorium; transitional relief for health FSA and HRA debit card reimbursements; ESOP regs on S corporation allocations; more 401(k) fee litigation; cases on top hat plans, COBRA damages. (HodgsonRuss LLP) Extensive Overview for Executives: SEC Issues Regs on Executive Comp Disclosure Requirements 10 pages. (Pillsbury Winthrop) ERISA Remedies Case Might Be Heard by Supreme Court Excerpt: "[The case turns on] whether Section 502(a)(2) permits a participant to bring an action to recover losses attributable to his account in a defined contribution plan that were caused by fiduciary breach." (Workplace Prof Blog) Newly Posted Events 401(k) Plans in Ohio on April 17, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) 401(k) Plans in Illinois on April 24, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Cafeteria Plans in Ohio on April 18, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Cafeteria Plans in Illinois on April 25, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) COBRA Compliance for Group Health Plans in Ohio on April 20, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) COBRA Compliance for Group Health Plans in Illinois on April 27, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Consumer Directed Health: Insight, trends and legislation in California on March 21, 2007 presented by ArlenGroup Consumer Driven Care 2007 Web Summit in California on March 19, 2007 presented by Healthcare Web Summit Deadline Looms -- IRS Guidance on Rollovers From Health FSAs/HRAs Teleweb Nationwide on March 8, 2007 presented by International Foundation of Employee Benefit Plans ERISA Compliance for Health & Welfare Plans in Ohio on April 19, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) ERISA Compliance for Health & Welfare Plans in Illinois on April 26, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HIPAA Portability, Privacy & Security in Ohio on April 20, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HIPAA Portability, Privacy & Security in Illinois on April 27, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HSAs, HRAs, and Consumer-Driven Health Care in Ohio on April 19, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) HSAs, HRAs, and Consumer-Driven Health Care in Illinois on April 26, 2007 presented by Employee Benefits Institute of America Inc. (EBIA) Newly Posted Press Releases The Standard Rolls out New Web-based Data Review Tool for Plan Sponsors Standard Insurance Company Social Security Administration Research Contract Social Security Administration Newly Posted or Renewed Job Openings Pension Plan Administrator for Saville, Dodgen & Company, Certified Public Accountants & Advisors in TX Manager Client Relationships for Mutual of Omaha in NE Pension Consultant for McKay Hochman Co., Inc. in NJ Plan Compliance Officer - Retirement, HRA & FSA Plans for MidAmerica Administrative & Retirement Solutions, Inc. in FL Director - Compensation & Benefits for Takeda in IL Client Relationship Manager for Great-West Retirement Services in KS Pension Recordkeeper for Iris Bashi Associates, LLC in NJ Sr New Business Account Mgr for Standard Insurance Company in OR Account Manager-Institutional Partner Plan Support for Great-West Retirement Services in CO Pension Administrator for Valley Forge Consulting Corporation in PA Account Executive - Group Benefits for Lenox Advisors in NY Account Mgr-RP for Standard Insurance Company in OR Defined Contribution Analyst for Standard Insurance Company in OR Defined Contribution Analyst for Standard Insurance Company in OR Sr Account Mgr-RP for Standard Insurance Company in OR Handy Links:
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