| BenefitsLink Retirement Plans Newsletter |   |
March 23, 2007
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| Advanced Actuarial Conference – Boston, MA, June 5-6, 2007 |
| Designed by practicing pension actuaries specifically to address their unique and specialized needs, this conference covers a wide variety of current and timely issues. Workshops and general sessions will be dedicated to topics including PPA, Future DB Policy Initiatives, Yield Curve, RP 2000 Mortality Tables and Hybrid Plans. Join your fellow pension actuary colleagues at this one of a kind event. |
Comments: Transition Guidance Under Notice 2006-107 Re: Employer Stock Diversification Requirements
Excerpt: "The Institute applauds the Service for issuing prompt interim guidance on the employer stock diversification requirements, which are effective for plan years beginning after December 31, 2006. We generally agree with the guidance provided in Notice 2006-107, but believe that regulations should allow reasonable restrictions on trading employer stock, such as those designed to prevent market timing in employer stock funds." (Investment Company Institute)
Higher Education Compass Publication Focuses on Design and Administration of DC Plans (PDF)
4 pages. Excerpt: "This issue discusses the design and administration of defined contribution (DC) plans. Although the issues discussed in this publication are of interest to all not-for-profit organizations that offer Section 403(b) plans, they are more pronounced for colleges and universities, as well as for hospitals and other health care organizations, due to the nature of the organizations, the larger number of affected employees and reliance on multiple §403(b) plan providers." (The Segal Group, Inc.)
The Total View: 2006 Retirement Plan Trends
Excerpt: "One of the most comprehensive reports of its kind, The Total View provides insight on the changing retirement landscape based on an analysis of proprietary data of the Principal Financial Group®, the nation's 401(k) leader* and total retirement solutions innovator." (Principal Financial Services, Inc.)
Participant Behavior Matters in Target Fund Strategy
Excerpt: "A recently released white paper from JPMorgan Asset Management Group suggests plan sponsors should consider their participants' savings and investing behavior when selecting appropriate target retirement date funds for their retirement plans." (PLANSPONSOR.com; free registration required)
9th Circuit Ruling Opens Way for Pensions as Restitution
Excerpt: "When it comes to compensating crime victims, the sacred cow of untouchable pension funds now may be a cash cow for federal prosecutors wanting to tap white-collar defendants for substantial restitution." (The National Law Journal via Law.com)
Pension Error Costs Millions in Michigan
Excerpt: "Kalamazoo County has paid out millions of dollars more than it should have to some retirees, prompting a call for changes to its pension system. The payments were made to employees who opted for lump-sum payments when they retired, Finance Director Bill Dundon told the county Board of Commissioners . . . ." (Kalamazoo Gazette via Michigan Live LLC)
Hewitt Federal Legislation Quick Guide Updated as of March 20, 2007, for Retirement Plans (PDF)
5 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)
Opinion: Exploring the New Retirement Roadmap
Excerpt: "In our recent [Vanguard] survey, we attempted to understand the paths Americans are taking as they transition from work to retirement. Not surprisingly, the findings ran contrary to the conventional view. While the research identifies six paths to retirement, three-quarters of older Americans are on one of three primary paths." (On Wall Street)
Opinion: A Brave New Retirement World
Excerpt: "For years, ever since companies started abandoning their 'don't worry about a thing' traditional pension plans, many U.S. workers have been left on their own to successfully manage the 'get it right or retire penniless' 401(k) option. But now the pendulum may be swinging again as many companies are moving back to a more paternalistic stance, making their 401(k) look a little bit like a traditional pension." (MarketWatch.com via Human Resource Executive Online; free registration required)
The Pension Protection Act of 2006: ERISA Undergoes the Knife (Again) (PDF)
24 pages. Excerpt: "After two years of study, debate, and above all, politics, Congress gave birth late last summer to a statutory tome modifying -- in some cases radically modifying -- the Federal tax and labor laws governing pension and profit-sharing plans. The Pension Protection Act, known of course by its initials PPA, is the most voluminous (907 pages), if not the most comprehensive, pension legislation since Congress enacted ERISA one score and twelve years before." (Adams and Reese LLP)
The Five Biggest 401(k) Mistakes Employees Make
Excerpt: "[The article explains] how to avoid the five biggest 401(k) mistakes." (MarketWatch.com)
Reports: Social Security Reform: Greater Transparency Needed on Potential General Revenue Financing
50 pages. Excerpt: "Absent reform, Social Security's financing gap will grow until currently scheduled benefits can no longer be paid in full. Recent reform proposals often include general revenue (GR) -- a major change that can have significant implications for the budget as a whole. This report addresses these issues . . . . [Highlights of the report are at http://www.gao.gov/highlights/d07213high.pdf.]" (U.S. Government Accountability Office)
UK Pension News Filter, March 2007
Excerpt: "Over the last few months, the UK Government has been the target for both the European Court of Justice and the High Court for failing adequately to protect pension scheme members. Unfortunately, the courts' findings do not resolve the extent (if any) to which the Government is liable for compensation." (Watson Wyatt Worldwide)
Links to Items on Executive Comp, Benefits in General
EITF Abstract: New Accounting Rules for Collateral Split-Dollar Arrangements (PDF)
13 pages. Full title: Accounting for Deferred Compensation and Postretirement Benefit Aspects of Collateral Assignment Split-Dollar Life Insurance Arrangements (Financial Accounting Standards Board)
ERISA Compliance Calendar/Checklist
Plan Sponsor has a listing of tax and ERISA deadlines for 2007. (PLANSPONSOR.com; free registration required)
Executive Compensation Disclosures for 2007: Insights and Key Examples from the First CD&As (PDF)
6 pages. Excerpt: "The 2007 proxy season is well under way, with the public filings to date providing some useful insights into particular issues relating to the disclosure of executive and director compensation. The level of detail varies dramatically between companies. Most disclosures of executive compensation involve a comprehensive Compensation Discussion and Analysis (CD&A), supplementary tables, and explanatory narratives singling out a variety of issues." (Paul, Hastings, Janofsky & Walker LLP)
National Employee Benefits Day, April 2, 2007 - 2007 Theme: Financial Literacy
Excerpt: "Use this day as an occasion to help your participants make the most of their benefits. Participants need to make informed decisions in order to prepare for their future. Through financial literacy efforts, your participants can make educated and appropriate decisions about their health care choices and retirement future." (International Foundation of Employee Benefit Plans)
Americans Spend Less Time Reviewing Employee Benefits Than Managing Their Taxes
Excerpt: "from Spencer's Benefits Reports: Nearly half of working Americans spend either no time or less than an hour reviewing their benefits each year, according to recent research released by the Guardian Life Insurance Company." (Wolters Kluwer Law & Business)
Hewitt Federal Legislation Quick Guide for March 20, 2007, on Human Resources & Employment Law (PDF)
8 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)
Newly Posted Press Releases
Somerset, NJ Company Agrees To Plead Guilty To Failing To Pay Taxes On More Than $99 Million Worth Of Employee Stock Bonuses
U.S. Attorney's Office
CDM Appoints New Director of Sales
CDM Retirement Consultants, Inc.
Arthur N. Caple Foundation Launches Website
Arthur N. Caple Foundation
Newly Posted or Renewed Job Openings
Pension Administrator
for The Senex Group
in CA
CitiStreet Open House - Tuesday, March 27th 6-8pm
for CitiStreet
in NJ
Benefit Supervisor
for Philips Electronics
in FL
Enrollment Specialist
for Capital Retirement Plan Services
in FL, NJ, TX
Pension Plan Administrator
for Aspen Pension Administrators, Inc. in Albuquerque, NM
in ANY STATE
Defined Benefits Service Delivery Manager
for Affiliated Computer Services (ACS)
in NJ
Director, IT
for 32BJ Benefit Funds
in NY
Plan Administrator
for Milliman, Inc.
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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