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April 3, 2007


Sponsored by: International Foundation of Employee Benefit Plans

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Get answers to your health, retirement and compensation questions. Join today.

The International Foundation of Employee Benefit Plans is a comprehensive resource for those working with benefit plans. Members enjoy personalized secondary research services, informative publications and online information, as well as discounted educational programs, books and distance learning options. Known as the cosponsor of the CEBS designation, the International Foundation also offers numerous ways to keep current with benefit issues, so you are prepared to answer your participants’ questions.

Bridging the Gap Between the 401(k) and Defined Benefit Plans
Excerpt: "[A retirement management account] is an income planning and administration program that allows a person to assess his or her needs in retirement [and] provides a guide to making savings last through those leisure years. In the RMA model, a plan is devised that will give the person a steady stream of income . . ., but since few can say for sure how many years that will be -- insurers coming closest with their actuarial models -- the program involves a combination of products . . . ." (Treasury & Risk)

Stock Drop Triggers ERISA-Oriented 'Investigation'
Excerpt: "Troubles in the sub-prime mortgage lender sector have pummeled the stock price of those providers. Therefore, it should come as no surprise that those firms that have stock in their 401(k) plans are drawing the attention of litigators." (PLANSPONSOR.com; free registration required)

On-Site Advisers Would Boost 401(k)s, According to Survey
Excerpt: "The most critical factor for getting employees to consider purchasing annuities into 401(k) plans is having advisers on-site at the workplace, according to a study by Cerulli Associates . . . ." (Investment News; free registration required)

'Free' 401(k) Investment Advice May Pose Conflict of Interest
Excerpt: "'Employers are now able to provide advice as long as they disclose conflicts of interest,' said John Hotz, deputy director of the Pension Rights Center . . . . 'It's basically a 'Get Out of Jail Free' card on fiduciary responsibility.' For their part, Fidelity and Ayco are stopping short of making the claim that they are providing financial advice to the IBM workers, instead using the term 'financial guidance,' which carries more of a whiff of education than specific investment picks." (The Baltimore Sun; free registration required)

Defined Benefit Plans' Financial Health Improved in 2006, According to Wilshire Consulting
Excerpt: "Corporate pension plans saw their financial health significantly improved in 2006 with the funding ratio jumping from 93% to 101% and a $83.5 billion deficit at the beginning of the year changed to a $16.6 billion surplus." (PLANSPONSOR.com; free registration required)

Court Rules Boeing Cash Bal. Plan Doesn't Violate ERISA Age Discrimination/Backloading Restrictions
Excerpt: "The court ruled that the plan does not discriminate against older workers or backload benefits in violation of the Employee Retirement Income Security Act (ERISA) (Wheeler v. Pension Value Plan for Employees of the Boeing Co., S.D. Ill., No. 06-cv-500-DRH, 3/13/07)." (Hewitt Associates)

In U.S., 32,000 People Are Owed Pensions
Excerpt: "A total of $133 million in retirement benefits haven't been claimed, the federal agency that insures private pension plans reported Tuesday. The Pension Benefit Guaranty Corp. said 32,000 people are owed money. Individual benefits range from $1 up to $611,028. The average unclaimed benefit is about $4,950." (The Kansas City Star; free registration required)

Boomers to Face 'Retirement Spending Boom'
Excerpt: "Many baby boomers will face the first phase of retirement needing more money than they previously anticipated, a new survey reported. A news release from the U.S. division of Sun Life Financial said its survey found that more than 70% of baby boomers expect their income needs to fluctuate greatly throughout retirement with the highest income amount needed in the first five years." (PLANSPONSOR.com; free registration required)

ESOP Is Key to Making Tribune Deal Work
Excerpt: "Under the $13-billion deal announced yesterday between Tribune and the Chicago real estate mogul, an employee stock ownership plan would be created to take on the $11-billion debt needed to purchase the media company. An ESOP, which is considered a retirement plan, can be structured in many different ways, and Zell has not yet offered a lot of specifics." (Newsday.com)

Employee Owners Don't Necessarily Have a Say in Management
Excerpt: "More than 10 million workers have stakes in their companies through employee stock ownership plans, and many have benefited. But the owners of the companies that set up such plans are usually the biggest winners -- and that appears to be the case in Samuel Zell's acquisition of the Tribune Company." (The New York Times; free registration required)

Employee Ownership Update for April 2, 2007
NCEO Executive Director Corey Rosen discusses the latest news on the Tribune Company ESOP transaction and also corrects an item in the previous update. (National Center for Employee Ownership)

Brown Defends Decision to Abolish U.K. Pension Relief
Excerpt: "U.K. Chancellor of the Exchequer Gordon Brown defended his 1997 decision to remove tax exemptions for pensions, saying the move was right for the long-term economic health of the country." (Bloomberg News)

Spanish Government Cuts Tax Breaks for Pension Plans
Excerpt: "Company pension plans in Spain receive less favorable tax treatment this year as a result of changes to the country's personal income tax law that went into effect on January 1. Two important changes that will impact employers and employees reduce the aggregate amount of contributions that can qualify for tax relief and make retirement lump sum payments fully taxable." (Towers Perrin)

Mexican Tax Law Changes Go Into Effect for Retirement Plans
Excerpt: "Employers in Mexico must now comply with a new set of rules affecting contribution limits and other key aspects of company-sponsored retirement plans as a result of tax law changes that went into effect on December 5. The changes apply both to defined benefit (DB) pension plans and defined contribution (DC) plans." (Towers Perrin)

New Zealand Government Extends KiwiSaver Tax Incentive to Employer-Based Retirement Plans
Excerpt: "The KiwiSaver Act requires employers to enroll all new permanent employees into a new work-based national savings plan beginning July 1, 2007, with employees able to opt out if they choose to do so." (Towers Perrin)

Decumulation Planning and Retirement Income Planning -- What's in a Name?
Excerpt: "Industry luminaries such as Dan Moisand, chairman of the Financial Planning Association, and Bert Whitehead, father of the Alliance of Cambridge Advisors, also question this phenomenon. Says Moisand: 'I've been laughing about the hoopla since the first boomer hit 59 1/2.' Says Whitehead: 'In my 35 years, I've done retirement planning for scores of clients who are now retired. Frankly, the whole hullabaloo about [decumulation planning] seems ridiculous to me.'" (Financial Planning)

White Paper: World Retirement Savings
Excerpt: "The study belies the popular notion that Americans are deadbeats when it comes to retirement savings. 'Americans are very engaged in thinking about and planning for retirement,' says Ken Gelman, AXA Equitable's director of market research." (Financial Planning)


Sponsored by: Mid-Sized Pension Management Conference

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Banner ad for Mid-Sized Pension Management Conference

Safe Passage for Your Retirement Plan

Do you feel as though your retirement program is in dry dock, holding you back from exploring the open waters of plan management? Navigating the multitude of new management strategies has gotten even more difficult with the passage of the PPA 2006. There is good news ahead! It’s all hands on deck for the Mid-Sized Pension Management Conference, May 8–11 in Boston. This is the one program that provides real, take away solutions to your 401(k) or DB plan issues, allowing you to reach your company’s goals and help your employees meet their retirement income needs.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Links to Items on Executive Comp, Benefits in General

Job Changes at Older Ages: Effects on Wages, Benefits, and Other Job Attributes
Excerpt: "This study examines older adults' employment opportunities by studying job changes at ages 45 to 75. . . . Although most older job changers enjoy their new jobs, they generally experience sharp hourly wage reductions and often lose pension coverage and health benefits. The findings highlight the special labor market challenges faced by older displaced workers.' (Urban Institute)

CRS Report for Congress: The Economics of Corporate Executive Pay (PDF)
40 pages. Excerpt: "Given congressional concerns with the potentially serious implications of excessive executive pay, this report examines critical and supportive evidence surrounding the premise that the executives are generally overpaid from an economic perspective. The report also provides a brief history of executive pay regulation and analyzes policy options. But first, the report looks more closely at the available data." (Congressional Research Service)

Third Circuit Rejects Fiduciary Exception to Attorney Client Privilege
Excerpt: "The Third Circuit's decision in Wachtel v. Health Net has highly significant implications for ERISA fiduciaries, and particularly insurer-fiduciaries. The Court refused to apply the fiduciary exception to the federal attorney client privilege using a four-factor analysis that will provide an ample source of future controversy." (Health Plan Law blog by Attorney Roy F. Harmon III)


Newly Posted Events

Disease Management ROI: Benchmarks, Metrics, and Case Studies for Success - Webcast
Nationwide on May 3, 2007
presented by Health Resources Online

Estate Planning Considerations for Qualified Plans and IRAs
Nationwide on June 7, 2007
presented by SunGard Relius

Fundamentals of 401(k) and Other Qualified Plans
Nationwide on June 6, 2007
presented by SunGard Relius

Pension Basics: Cash Balance Plans
Nationwide on April 26, 2007
presented by Qualified Pension Consulting, Inc.

Pension Basics: Cash Balance Plans
Nationwide on May 22, 2007
presented by Qualified Pension Consulting, Inc.

Pension Basics: Introduction to Eligibility
Nationwide on May 10, 2007
presented by Qualified Pension Consulting, Inc.

Pension Protection Act: Nonspouse Rollovers after PPA
Nationwide on May 8, 2007
presented by Qualified Pension Consulting, Inc.

Pension Protection Act: The Changes in Vesting for Non-Elective Contributions Effective January 1, 2007
Nationwide on April 24, 2007
presented by Qualified Pension Consulting, Inc.

Quarterly Benefit Statements Required by the Pension Protection Act: What is Required to be Distributed to Participants by May 15th
Nationwide on April 17, 2007
presented by Qualified Pension Consulting, Inc.

Quarterly Benefit Statements Required by the Pension Protection Act: What is Required to be Distributed to Participants by May 15th
Nationwide on May 3, 2007
presented by Qualified Pension Consulting, Inc.

Spring Seminar - Winds of Change
in Oregon on April 11, 2007
presented by Western Pension & Benefits Conference - Portland Chapter

Stock Option Backdating: New Rules & Enforcement Trends - Webcast
Nationwide on April 25, 2007
presented by HRTrainingCenter.com


Newly Posted Press Releases

Confusing Technology Hampering Efforts to Change Employee Behavior, Watson Wyatt Says
Watson Wyatt

U.S. Labor Department Recovers More Than $2 Million To Pay New Jersey Benefit Plan Health Claims
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Labor Department Obtains $5 Million Court Order to Restore Tennessee Company’s Pension Funds
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Consumer Driven Care Guidebook 2007 Edition
MCOL


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Health/Welfare Consultant - Benefits Evaluation Team
for Hufnell, Inc Executive Recruiters - Benefits Outsourcing, Benefits and HR
in PA

OmniPlus Consultants
for Chesapeake Benefit Partners
in ANY STATE

Pension Administrator
for Truog-Ryding Company
in CA

401(k)/DC Administrator
for Levy & Associates in Sunny Ft. Lauderdale, Florida
in FL

Broker and Sales Support Manager
for Paychex
in NY

Retirement Plan Consultant
for Standard Insurance Company
in WA

Internal Sales Consultant
for Transamerica
in MA, PA

Senior Defined Contribution Analyst
for Standard Insurance Company
in OR

Senior Benefits Analyst
for Bay Area Rapid Transit District (BART)
in CA




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