| BenefitsLink Retirement Plans Newsletter |   |
March 7, 2007
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Text of EBSA Regs on Qualified Domestic Relations Orders; Effects of Timing and Previous Orders
These interim final regulations, issued pursuant to a directive in the Pension Protection Act, clarify that an order that otherwise qualifies as a QDRO shall not fail to be treated as a QDRO solely because it is issued after, or revises, another domestic relations order or QDRO; or due to the time at which it is issued. (U.S. Department of Labor, Employee Benefits Security Administration)
Lawmakers Scrutinize Fees for 401(k) Plans
Excerpt: "Workers are being overcharged tens of billions of dollars a year in unnecessary and often hidden fees imposed on popular, company-sponsored retirement savings plans known as 401(k)s, financial experts told a congressional committee yesterday." (The Washington Post; free registration required)
Testimony: Private Pensions: Increased Reliance on 401(k) Plans Calls for Better Information on Fees
Excerpt: "[The testimony focused] on (1) trends in the use of 401(k) plans, and (2) the types of fees associated with these plans. [Highlights are at http://www.gao.gov/highlights/d07530thigh.pdf.]" (U.S. Government Accountability Office)
Some High-Wage Earners Ignore 401(k) Plans
Excerpt: "About 70 percent of American workers are participating in their company's 401(k) retirement plans, but low-wage earners aren't the only ones who opt not to make contributions. A Watson Wyatt survey says 52 percent of workers earning less than $25,000 aren't putting money in a 401(k), and nearly 10 percent of employees making more than $100,000 a year don't participate." (Baltimore Business Journal via bizjournals.com; free registration required)
61% Of Plan Sponsors Considering Offering Roth 401(k) Option, 2007 PSCA Survey Finds
Excerpt: "from Spencer's Benefits Reports: A survey of 429 profit-sharing/401(k) plan sponsors reveals that 22% of plan sponsors currently are offering the Roth 401(k) option, and 61% of the remaining plan sponsors either are planning to add or are considering adding the Roth 401(k) option to their plans. The Profit Sharing/401(k) Council of America (PSCA) collected the data in early 2007." (Wolters Kluwer Law & Business)
Testimony: Private Pensions: Increased Reliance on 401(k) Plans Calls for Better Information on Fees
Excerpt: "[The testimony focused] on (1) trends in the use of 401(k) plans, and (2) the types of fees associated with these plans. [Highlights are at http://www.gao.gov/highlights/d07530thigh.pdf.]" (U.S. Government Accountability Office)
Opinion: Redundant Fees Destroy 403(b) Retirement Assets; Get Out of Annuities
Excerpt: "Insurance companies developed annuities so investors could invest their money and have all interest, dividends and gains sheltered from taxation -- thus the term 'tax shelter.' Sounds good, right? But if you can only remember one thing from this article, here it is: 401(k), 403(b) and 457 retirement plans are already tax shelters! You get no additional tax advantage by investing in annuity products in these plans." (403bwise.com)
Overview: IRS Guidance on New Distribution Rules with Impact on 2006 Individual Taxation (PDF)
2 pages. Excerpt: "The IRS has published preliminary guidance relating to pension distribution rules included in the Pension Protection Act (PPA) enacted last year (IRS Notice 2007-7)." (Milliman)
CoCo Companies: Work, Happiness and Employee Ownership (PDF)
29 pages. Excerpt: "In CoCo Companies Richard Reeves . . . makes clear that co-ownership is the starting point, but its power only clicks in when combined with the full engagement of employees in 'co-creation' of value - the CoCo companies. The coincidence of happiness, customer service and commercial success is no accident." (Employee Ownership Association)
Sweden's Pension Antidote
Excerpt: "Like the Social Security system in the United States, the Swedish pension plan uses current workers' contributions to fund current retirees' benefits. Beyond that, however, the differences are vast, says the Wall Street Journal." (Wall Street Journal via National Center for Policy Analysis)
IRS 30 Year Treasury Securities Rate Updated for February 2007
30 Year Treasury Securities Rate for February 2007: 4.82% (Internal Revenue Service)
IRS Composite Corporate Bond Rate Table Updated for March 2007
Corporate Bond Weighted Average Interest Rate = 5.80 for March 2007 (Internal Revenue Service)
Overview: DOL Guidance on Providing Investment Advice to Participants in FAB 2007-01 (PDF)
2 pages. (Milliman)
Links to Items on Executive Comp, Benefits in General
FASB Is Kicking Off Phase Two in Its Work on FAS 158
Excerpt: "In late March or early April, the Financial Accounting Standards Board (FASB) is set to take up the thorny issue of measurement when it comes to including liabilities and assets from defined benefit (DB) plans and other post-employment benefits (OPEB) on corporate income statements as prescribed in FAS 158." (Treasury & Risk)
Making Benefit Change Work - A Towers Perrin Survey Report (PDF)
24 pages. Excerpt: "Are employees capable of managing the new roles and risks inherent in today's health care and retirement plan designs? Are they even willing to try? And how are benefit changes affecting U.S. businesses and their ability to engage their people?" (Towers Perrin)
Newly Posted Events
2007 Fall Forum
in Minnesota on September 10, 2007
presented by BISYS Retirement Services
2007 Fall Forum
in Massachusetts on October 15, 2007
presented by BISYS Retirement Services
2007 Fall Forum
in Nevada on October 29, 2007
presented by BISYS Retirement Services
2007 Fall Forum
in Texas on November 12, 2007
presented by BISYS Retirement Services
2007 IRA Institute
in Illinois on June 25, 2007
presented by BISYS Retirement Services
2007 IRA Online Institute
Nationwide on May 7, 2007
presented by BISYS Retirement Services
2007 IRA Online Institute
Nationwide on September 10, 2007
presented by BISYS Retirement Services
2007 Web/Telephone Seminar: Advanced Health Savings Accounts
Nationwide on April 19, 2007
presented by BISYS Retirement Services
2007 Web/Telephone Seminar: Basic IRAs
Nationwide on April 5, 2007
presented by BISYS Retirement Services
2007 Web/Telephone Seminar: Coverdell Education Savings Accounts
Nationwide on April 3, 2007
presented by BISYS Retirement Services
2007 Web/Telephone Seminar: Introduction to Health Savings Accounts
Nationwide on April 10, 2007
presented by BISYS Retirement Services
2007 Web/Telephone Seminar: IRA Excess Contributions
Nationwide on April 12, 2007
presented by BISYS Retirement Services
401(k) Plans
in California on June 5, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in California on June 6, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in California on June 8, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Consumer-Driven Healthcare
in Arizona on March 22, 2007
presented by International Society of Certified Employee Benefit Specialists--Phoenix Chapter
Current IRS and Treasury Guidance and Issues; Planning and Implementing Provisions - Webcast
Nationwide on March 29, 2007
presented by West LegalEdcenter
Developing Key Performance Indicators for Consumer-Directed Health Care and Pay-For-Performance
in California on March 20, 2007
presented by Healthcare Web Summit
Domestic Partners and Employee Benefits -- Practical Advice for Cafeteria Plans and Health Plans (Including Health FSAs and HRAs)
Nationwide on April 5, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in California on June 7, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Fundamentals of Employee Benefits Law (Part 1) - Webcast
Nationwide on March 7, 2007
presented by West LegalEdcenter
HIPAA Portability, Privacy & Security
in California on June 8, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in California on June 7, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Keeping Your ESOP Culture Strong
Nationwide on May 23, 2007
presented by National Center for Employee Ownership
New Developments in Benefits Litigation; ERISA Remedies; and Department of Labor Litigation Update - Webcast
Nationwide on March 28, 2007
presented by West LegalEdcenter
Planning and Implementing Provisions Affecting 401(k) Plans; Miscellaneous Issues; Code §409A and the New Rules for Deferred Compensation - Webcast
Nationwide on March 29, 2007
presented by West LegalEdcenter
Planning Considerations for Small Business and Professional Plans; Roth 401(k) Plans; Department of Labor Regulatory Update; Spousal Rights Alternatives - Webcast
Nationwide on March 30, 2007
presented by West LegalEdcenter
Qualified Plan Problems and Employee Welfare Benefit Issues; Contributory and Salary Reduction Retirement Plans; Supplemental Retirement Plans for Professional Groups - Webcast
Nationwide on March 30, 2007
presented by West LegalEdcenter
Terminating Plans under the DOL Automatic Rollover Safe Harbor; Handling Orphan Plans; What Financial Institutions Will and Will Not Do; 5500s; Determination Letters - Webcast
Nationwide on March 7, 2007
presented by West LegalEdcenter
Newly Posted Press Releases
Statement of Acting Assistant Secretary of Labor Bradford P. Campbell On 401(k) Fee Disclosure Initiatives
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Calendar and ToDo List Features Highlight March 2007 Upgrade of WebCOBRA.com from Travis Software
Travis Software Corp.
Most Workers Underestimate Chances, Impact of Disability, Survey Shows
Council for Disability Awareness (CDA)
Newly Posted or Renewed Job Openings
Compliance Manager
for REPTECH
in CO
Pension Administrator
for Matthews, Gold, Kennedy & Snow, Inc.
in AZ
Enrolled Actuary
for Midtown Manhattan Consulting Firm
in NY
Compliance Specialist
for Lincoln Financial Group
in IL
Pension Manager - Retirement Consulting Group
for Fidelity Investments
in MA
Internal Marketing Associate - Retirement Plan Services
for Simpkins & Associates Dallas Office
in TX
Pension Analyst - Retirement Consulting Group
for Fidelity Investments
in MA
Branch Manager for Retirement Plan Services Office
for BenefitStreet, Inc.
in CA
Director of Employee Benefits and Payroll
for Blue Heron Executive Search & Consulting
in VA
Benefit Outsourcing Administrator
for USI Insurance Services
in NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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