| BenefitsLink Retirement Plans Newsletter |   |
March 8, 2007
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Press Release and Links to Testimony Provided to House Committee Hearing on 401(k) Fee Disclosure
Hearing was held on March 6, 2007. Excerpt: "The testimony at today's hearing offered clear evidence of the need for better disclosure of fees to workers who have 401(k) or similar savings plans and to the companies that sponsor them, said U.S. Rep. George Miller (D-CA), the committee's chairman." (U.S. House of Representatives, Committee on Education and Labor)
Archived Webcast of House Committee Hearing on 401(k) Fee Disclosure
Hearing was held on March 6, 2007. (U.S. House of Representatives, Committee on Education and Labor)
Opinion: 'Fact Check' Needed for Testimony Given to House Committee on 401(k) Fee Disclosure (PDF)
11 pages. Mr. Eisen provides comments on each key point presented by four witnesses at the March 6, 2007 hearing, and explains why he agrees or disagrees with each point. (Ron Eisen of Investment Management Consultants, Inc.)
Overview: DOL's Field Assistance Bulletin 2007-01 on the Provision of Investment Advice (PDF)
2 pages. (Dechert LLP)
Working Paper: Reducing the Complexity Costs of 401(k) Participation Through Quick Enrollment (PDF)
Excerpt: "We study a low-cost manipulation designed to simplify the 401(k) enrollment process. Employees are given the option to make a Quick Enrollment™ election to enroll in their 401(k) plan at a pre-selected contribution rate and asset allocation. By decoupling the participation decision from the savings rate and asset allocation decisions, the Quick Enrollment™ mechanism simplifies the savings plan decision process." (Boettner Center for Pension and Retirement Research via Reish Luftman Reicher & Cohen)
CIGNA Latest Target of 401(k) Fee Suit
Excerpt: "The St. Louis law firm that made national news by filing a batch of lawsuits over 'excessive' retirement plan fees has now turned its legal sights to the CIGNA Corporation and its 401(k) plan." (PLANSPONSOR.com; free registration required)
Overview: PBGC Guidance on Premium Changes (PDF)
8 pages. Excerpt: "Flat-rate premiums shot up for the 2006 plan year and are now statutorily ordained to increase over time. An ongoing employer whose plan terminates in a distress or involuntary termination on or after Jan. 1, 2006, may have to grapple with a new and hefty 'termination premium.'" (Pension & Benefits Reporter via Keightley & Ashner LLP)
IBM to Help Its Workers 'Get Smart' About Personal Finance
Excerpt: "IBM will today announce a multi-million dollar personal finance and education benefit program for all its U.S. employees - 'IBM MoneySmart.'" (PLANSPONSOR.com; free registration required)
Retirement Questioned for Future Kentucky State Workers
Excerpt: "Many future lower-paid state workers may not be able to save enough for retirement under the Senate's plan to shore up the state pension program, a House member said yesterday. 'The reduction in guaranteed benefits for future employees is significant,' said Rep. Derrick Graham, D-Frankfort." (The Courier-Journal)
Paper Suggests Merging the UK Pensions Regulator and PPF
Excerpt: "The person assigned to review UK pension regulation has suggested a proposal that would merge the country's two newest pensions bodies -- the Pensions Regulator and the Pension Protection Fund, the Financial Times reported." (PLANSPONSOR.com; free registration required)
The Behavioral Economics of Retirement Savings Behavior (PDF)
34 pages. Excerpt: "This Issue Paper by Richard Thaler of the University of Chicago and Shlomo Benartzi of UCLA grew out of the lecture 'Libertarian Paternalism, Behavioral Economics, and Public Policy' presented by Professor Thaler in July of 2005." (AARP)
IBM to Offer Financial Training: Employees Will Get Help with 401(k)s
Excerpt: "International Business Machines . . . announced a $50 million effort to teach its employees financial and retirement planning, in light of the company's decision to shift from a traditional pension to an employee supervised 401(k) plan." (San Jose Mercury News)
Hewitt Federal Legislation Quick Guide Updated as of March 6, 2007, for Retirement Plans (PDF)
4 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)
More Cash Balance Conversion Guidance Coming, Says IRS Chief Counsel Attorney
Excerpt: "Linda Marshall, from the IRS Chief Counsel's office, told the D.C. Bar Taxation Section on February 21, 2007 that the IRS has resumed processing determination letter applications for conversions from traditional defined benefit plans to cash balance plans, and that more guidance will be issued." (Wolters Kluwer Law & Business)
Latest Cash Balance Ruling Bad News for Existing Plans
Excerpt: "In a setback for employers, a U.S. district court judge ruled that Citigroup's cash balance plan discriminates against older workers. The decision goes against last year's finding by the 7th U.S. Circuit Court of Appeals that IBM's cash balance plan is not age-discriminatory and sets the stage for new lawsuits against hybrid plans." (Employee Benefit News)
Links to Items on Executive Comp, Benefits in General
Delta Gives More Details on Post-Bankrup.tcy Employee Benefits
Excerpt: "Delta Air Lines Inc. plans to issue a lump-sum cash payment to many employees when the airline emerges from bankrup.tcy this spring, according to a newsletter sent this week to workers from Chief Executive Gerald Grinstein." (The San Diego Union-Tribune)
Legal Uncertainty Stifles Phased Retirement
Excerpt: "Adoption of phased retirement has been sluggish, partly because of increasingly complex legal hurdles. With two rules on phased retirement stipulating different age limits, legal uncertainty abounds. Employers continue to assume a 'wait and see' posture." (Employee Benefit News)
Hewitt Federal Legislation Quick Guide for March 6, 2007, on Human Resources & Employment Law (PDF)
7 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)
Backdating Scandal Probe Extends to 9/11 Slump
Excerpt: "Dozens of companies are being investigated for backdating stock options to the days that followed the Sept. 11, 2001, terrorist attacks, and profiting on the back of the equity-market slump that resulted, The Wall Street Journal reported [yesterday]." (CNBC)
Newly Posted Events
2007 Spring Conference
in Arizona on May 10, 2007
presented by Western Pension & Benefits Conference - Phoenix Chapter
25th Annual Creative Pension & Benefits Seminar
in Ohio on May 4, 2007
presented by Ohio State University Office of Continuing Education (CEd), The
Accredited "401k Service Training Program™" for Retirement Professionals
in California on April 24, 2007
presented by Financial Service Standards, LLC
Default Investments - The DOL Regulations
Nationwide on March 21, 2007
presented by McKay Hochman Co., Inc.
Participant Disclosures and Communications
Nationwide on April 19, 2007
presented by McKay Hochman Co., Inc.
Pension Focus 2007 Conference
in Missouri on May 17, 2007
presented by Pension Focus
Newly Posted Press Releases
Work & Family Benefits, Inc. Introduces Web-based Benefits "Command and Communications" Hub
Work & Family Benefits Inc.
Most U.S. Adults Support Paid Sick Time Requirements
Wall Street Journal
The Online 401(k) Announces Plan Sponsor's Bill of Rights
The Online 401(k)
Roland|Criss Unveils The First Tool To Measure Fiduciary Risk For Retirement Plan Sponsors, Foundations, And Endowments
Roland|Criss Fiduciary Services
Newly Posted or Renewed Job Openings
Actuarial Benefit Consultant
for Fidelity Investments
in MA, NC, NY
Enrollment Specialist
for CitiStreet
in TX
Part-Time Pension Contractors
for Diversified Investment Advisors
in ANY STATE
Director of Benefits Service Delivery
for New York University
in NY
Pension Administrator
for Retirement System Group Inc.
in NY
Sales position - Government Market
for CitiStreet
in ANY STATE
Sr Benefits Analyst
for Broadcom Corporation
in CA
Program Manager - Pension Plan - B025047
for IBM Corporation
in NC
Retirement and Institutional Trust Services Relationship Manager
for BOK Financial Corporation
in TX
401(k) Sales
for Boutique RIA Firm
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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