| BenefitsLink Retirement Plans Newsletter |   |
March 2, 2007
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Listing of IRS Published Guidance for January-February 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)
Supreme Court Requests Government Input on 401(k) Plan Restoration Case
Excerpt: "U.S. Supreme Court justices have asked the government for its input as part of a pending request for the high court's review of a case examining whether a 401(k) participant can recover account losses in a fiduciary breach suit." (PLANSPONSOR.com; free registration required)
FedEx and Goodyear Make Big Pension Plan Changes
Excerpt: "Both employers will freeze their pension plans and enhance their 401(k) benefits. FedEx says its changes reflect accounting and funding rule changes, the Pension Protection Act's provisions on cash-balance plans and automating 401(k)s, and shifting demographic trends." (Workforce Management; free registration required)
401(k) Plans: Plaintiffs' Bar and Regulators Team Up to Challenge Fee Abuses
Excerpt: "This convergence of events has benefits attorneys warning all employers to scrutinize the fine print in their agreements with 401(k) providers to avoid potential litigation and prepare for regulatory changes. Experts warn the arguments advanced by plaintiffs in the lawsuits against huge corporations would apply equally to plan sponsors in small- and medium-sized companies." (Inside Counsel)
New Data Show Widespread Employee Ownership in U.S.
New data from the General Social Survey show that 20 million American workers own stock in their company through a 401(k) plan, ESOP, direct stock grant, or similar plan, while 10.6 million hold stock options. That means that 17% of the total workforce, but 34.9% of those who work for companies that have stock, own stock through some kind of benefit plan, while 9.3% of the workforce, but 18.6% of those in companies with stock, hold options. (National Center for Employee Ownership)
S&P Report: State Pension Defined Benefit Funding Dipped Slightly to 81.8% in Fiscal 2005
Excerpt: "The funding levels for state pensions slipped slightly in fiscal 2005 to 81.8% despite solid investment returns, but are expected to stabilize and improve over the medium term if investment returns and liability growth meet expectations, according to a recent report by Standard & Poors." (PLANSPONSOR.com; free registration required)
Study Finds Lack of Communication on Retirement Issues
Excerpt: "Employers continue to underestimate the high value that employees place on retirement benefits compared to salary, according to a recent survey by the Transamerica Center for Retirement Studies." (Wolters Kluwer Law & Business)
Can.ada Court Extends Date for Pension Back Payments for Same-Sex Partners
Excerpt: "The Canadian Supreme Court pushed back that date that g.ay men and women can get back payments of their deceased partners' pension contributions from 1998 to 1985, but put a cap on the amount they could receive." (PLANSPONSOR.com; free registration required)
Broad Discretion Enough to Recoup Pension Plan Overpayments
Excerpt: "The U.S. District Court for the Eastern District of Tennessee ruled that a pension plan can recover the $70,000 it made in overpayments to a participant, who claimed that he didn't have to give back the money because the plan language did not explicitly authorize the plan to seek its repayment." (PLANSPONSOR.com; free registration required)
Non-Spousal Rollovers from Employer Plans Into Inherited IRAs Are Now Tax-Free--But Tread Cautiously
Excerpt: "It was supposed to get easier for non-spouse beneficiaries to roll money from an employer plan into an inherited IRA. But while transfers to non-spouse plan beneficiaries under the Pension Protection Act of 2006 (PPA 2006) are effective for 2007, it appears there may be problems and challenges in obtaining the intended benefits." (Financial-Planning.com)
Opinion: Why The GAO Got It All Wrong - Public vs Private Pensions
Excerpt: "As Benefitnews.com Connect reported recently, the Government Accountability Office wants to expand oversight of employee pension benefits. A new GAO report suggests substantially increasing the number of pension 'compliance examinations.' Or, as normal people would say, 'audits.'" (Corey Sherman via Views & Vents)
Pension Fund as Tollkeeper: A Way Around the Skeptics
Excerpt: "At first glance, directors of pension funds may seem ill equipped to run toll roads, particularly those as vast as the New Jersey Turnpike and the Garden State Parkway. After all, what do investment managers know about collecting tolls, plowing snow and paving highways?" (The New York Times; free registration required)
New Research Backs Competence Tests for Pilot Retirement
Excerpt: "Stanford University researchers who studied the performance of older pilots have called for a mandatory retirement based on their competence and not the calendar." (PLANSPONSOR.com; free registration required)
Nearly 20% of Young Workers Not Getting Tax-Planning Information
Excerpt: "Nearly one in five young workers reported that their employer doesn't exactly do a bang-up job in providing them information about tax-advantaged financial planning, according to a new survey." (PLANSPONSOR.com; free registration required)
Opinion: How to Help Americans Save More
Excerpt: "That Americans do not save enough money has been repeated so often it is now widely accepted . . . . That result, following a long train of other ominous-sounding data, has led many to conclude that Americans face a savings 'crisis,' so government must do something to fix the problem -- they must help us, or make us, save more. Politicians then roll out pet proposals that they claim are the answer. However, both the savings data and the proposed 'solutions' are seriously flawed." (ocregister)
Working Paper Abstract: Dynamic Portfolio Choice in Retirement
Excerpt: "Retirees confront the difficult problem of how to manage their money in retirement so as to not outlive their funds while continuing to invest in capital markets." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve fulltext)
Book Review: Your Complete Retirement Planning Road Map, by Ed Slott
Excerpt: "The text is written primarily for consumers, which makes the information easy to read, though no less helpful. The book's five basic sections--from account types to 'special issues'--are logically indexed, short on fluff and include real-world anecdotes that should help advisors explain tricky tax concepts to their clients." (Financial-Planning.com)
Towers Perrin U.S. Legislative Tracking Charts -- Retirement -- Updated February 27, 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)
Links to Items on Executive Comp, Benefits in General
Hearing Statement: The Aging Workforce: What Does It Mean for Businesses and the Economy (PDF)
Excerpt: "We would urge you to focus on the role that phased (or 'flexible') retirement programs can play in meeting the needs of both workers and employers, as well as in bolstering the economy and relieving burdens on government programs. Under current law, there are certain obstacles to the ability of employers to implement these 'win-win' programs and, as the population ages, the disconnect between the law and the needs of the workplace will expand." (American Benefits Council and HR Policy Association)
Working Paper: Job Changes at Older Ages: Effects on Wages, Benefits, and Other Job Attributes
Excerpt: "This study examines older Americans' employment opportunities by studying job changes at older ages. Using data from the Health and Retirement Study, it compares wages, benefits, and other job attributes on new and former jobs for adults ages 45 to 75 who changed employers between 1986 and 2004." (Center for Retirement Research at Boston College)
Working Paper: Saving and Demographic Change: The Global Dimension
Excerpt: "This paper uses a panel data set of 85 countries covering 1960-2005 to investigate the macroeconomic linkages between national rates of saving and investment and population aging. The issue takes on added significance because of the recent suggestion that the decline in global interest rates has been driven by demographic changes in the industrial economies." (Center for Retirement Research at Boston College)
Ford Says Restructuring to Cost $11.18B
Excerpt: "Ford Motor Co. said Wednesday that its restructuring plan would likely cost $11.18 billion, with more than half of the expenses devoted to programs for laid-off workers." (AP via The Washington Post; free registration required)
New Regulations Prompting Many Companies to Reconsider Executive Perks
Excerpt: "From supplemental executive retirement plans to tax assistance, investment counseling, golf club memberships and spousal travel -- even such seemingly innocuous items as drycleaning and reserved parking spaces -- boards of directors are taking a closer look at whether offering such perks is worth the scrutiny and potential embarrassment." (Human Resource Executive Online; free registration required)
AALU Chief Gives Mixed Report on Deferred Compensation Legislative Effort
Excerpt: "Insurance groups are 'making significant progress' at persuading members of Congress that the deferred compensation plan changes included in the Senate minimum wage bill are inappropriate, one leader says." (National Underwriter Life & Health; free registration or paid subscription required)
Overview: IRS Release of Executive Compensation Report (PDF)
2 pages. Excerpt: "[March 1, 2007], the IRS released a report describing the results of its Exempt Organizations Executive Compensation Compliance Project. (To view the report, please visit http://www.irs.gov/pub/irstege/exec._comp._final.pdf)" (Morgan, Lewis & Bockius LLP)
Newly Posted Events
401(k) Plans
in Minnesota on May 8, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Massachusetts on May 15, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Georgia on May 22, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Testing Techniques - 6 added locations
Nationwide on March 28, 2007
presented by SunGard Relius
Cafeteria Plans
in Minnesota on May 9, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Massachusetts on May 16, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Georgia on May 23, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Minnesota on May 11, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Massachusetts on May 18, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Georgia on May 25, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Minnesota on May 10, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Massachusetts on May 17, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Georgia on May 24, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Follow the Money: DOL Initiatives and New Litigation on Service Provider Revenue Sharing
Nationwide on March 29, 2007
presented by ABA Joint Committee on Employee Benefits
Governor's Health Plan Initiative AND San Francisco Paid Sick Leave
in California on March 15, 2007
presented by No. Calif. Chapter of Certified Employee Benefits Specialists (ISCEBS)
HIPAA Portability, Privacy & Security
in Minnesota on May 11, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Massachusetts on May 18, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Georgia on May 25, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Minnesota on May 10, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Massachusetts on May 17, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Georgia on May 24, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Nonspouse Rollovers after PPA
Nationwide on March 27, 2007
presented by SunGard Relius
Participant Forms and Notices Workshop - 6 added locations
Nationwide on March 28, 2007
presented by SunGard Relius
Newly Posted Press Releases
NCPERS Partners In Creation Of New Trustee Education Program
National Conference on Public Employee Retirement Systems
Ten of the Nation’s 100 Best Companies to Work for Offer Commuter Check Benefit Solutions
Accor Services North America
New MyHealthCoach.com Website Helps Employers Control Healthcare Costs and Encourage Healthy Lifestyles
Hummingbird Coaching Services
CCH CompleteTax Survey: Young Taxpayers in the Dark on Tax-related Benefits
CCH, a Wolters Kluwer business
Newly Posted or Renewed Job Openings
Pension Administrator
for Southern Pension Services
in FL
Director/VP Client Services
for Fidelity Investments
in NH
Retirement Program Director
for Fidelity Investments
in RI
Sr Relationship Manager
for T Rowe Price
in MD
Sr. Employee Benefit Specialist
for The Principal Financial Group
in IN
Pension Administrator
for Jordan & Andrews
in CA
Director, Testing & Reporting Services
for Fidelity Investments
in KY, TX
401k Conversion Implementation Project Manager
for Fidelity Investments
in KY, MA, TX
Analyst
for ESOP Economics, Inc.
in PA
Retirement Plan Service Representative
for Growing, Dynamic Financial Services Firm
in TX
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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