April 3, 2007 Sponsored by: International Foundation of Employee Benefit Plans (Click on company name or banner to learn more.)
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 (Click on company name or banner to learn more.)
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 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 Handy Links:
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