| BenefitsLink Retirement Plans Newsletter |   |
April 5, 2007
Sponsored by: ASPPA
(Click on company name or banner to learn more.)
| 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. |
Text of Final 415 Regs from Federal Register (Typeset, Shorter than Yesterday's Linked Version) (PDF)
55 pages. (Internal Revenue Service)
Summary of IRS/Treasury Final 415 Regulations (PDF)
3 pages. Excerpt: "The final regulations are effective April 5, 2007, but apply to limitation years beginning on or after July 1, 2007. Generally, the regulatory changes will be applied starting January 1, 2008 to plans with a calendar year limitation year (most plans). The regulations do permit some changes to be applied earlier." (American Benefits Council)
Mutual Funds and Insurance Companies May Get New Rules on Fee Disclosure
Excerpt: "The SEC's chief wants 'one simple number' to show the cost of any retirement-plan option." (Los Angeles Times; free registration required)
Excessive Retirement Plan Fees Case Against Kraft Continues
Excerpt: "A federal judge ruled last week that a lawsuit alleging Kraft Foods Global charged excessive fees to its 401(k) plan participants can move forward. In denying a motion to dismiss by Kraft, U.S. District Judge David Herndon of the Southern District of Illinois ruled that the complaint filed by 401(k) plan participants properly set forth claims of breach of fiduciary duty." (BenefitNews Connect)
Retirement Savings Plan Suit Alleges Over-Charges, Undisclosed Payments and Kickbacks
Excerpt: "Lies, kickbacks, union corruption and tens of millions of dollars in ill-gotten gains are among the accusations laid out in a lawsuit that's likely to strike fear in the hearts of labor leaders and financial executives across the country." (Forbes.com)
Competition Heats Up for Retirement Funds
Excerpt: "The 401(k) market at large companies has become saturated. But now small businesses are more interested than ever in beefing up their retirement plans, providing banks fertile new ground to tread." (U.S. Banker and SourceMedia, Inc.)
Being an Advisor Focused on Selling and Servicing Corporate 401(k) Plans Is a Matter of Balance
Excerpt: "David Tyrie of Putnam Investments [says] 'It's not a seesaw any more -- you have to balance at least three different constituents[:]' participants; plan sponsors; and the advisors themselves who must be able to make a living from the plans." (Investment Advisor)
Overview: 403(b) Related Employee Plans Compliance Resolution System Changes
Excerpt: "The revised EPCRS adds additional correction methods and includes new provisions that affect 403(b) plans. EPCRS spells out in great detail the various corrections available for a 403(b) plan. All three EPCRS programs are available to 403(b) plans. self-correction program (SCP), voluntary compliance program (VCP) and audit cap." (McKay Hochman Co., Inc.)
Overview of an Increase in 457 Plan Sponsorship
Excerpt: "Over the past few months, McKay Hochman has noticed an increase in 457 plan sponsorship. Through our discussions with clients, we can attribute the increase to two major reasons." (McKay Hochman Co., Inc.)
A Wiser Way for Retirees to Donate -- Using IRA Proceeds
Excerpt: "Charitable gift funds are more than a toy of the nearly rich. They offer a surprising advantage to retirees with ordinary incomes. Using a charitable gift fund, a retired couple can increase their giving or increase the amount they spend on themselves. Or they can do a bit of both." (National Center for Policy Analysis)
Financial Service Companies Can Gain Assets by Providing Good Retirement Income Solutions
Excerpt: "According to the new TowerGroup report Winning the Battle for Retirement Assets, the challenges inherent in retirement income planning and asset decumulation will compel many U.S. households to consolidate assets with a single advisor." (LOMA)
UK Chancellor's Budget Cuts Income Tax, Closes Retirement Scheme Loopholes
Excerpt: "The chancellor . . . provided further detail regarding previously announced changes to close tax loopholes in respect of some retirement schemes and announced an extension to the scheme designed to top up benefits from underfunded pension schemes where the employer has become insolvent and the scheme has wound down, so that more members will benefit." (Watson Wyatt Worldwide)
Trust Sued Over Backing Retiree Plan
Excerpt: "A lawsuit filed in federal court in Manhattan last week contends that a retirement plan offered by the New York State United Teachers breached its fiduciary duty when it accepted millions of dollars in payments from an investment firm in exchange for endorsing the firm's products to plan members." (The New York Times; free registration required)
Towers Perrin U.S. Legislative Tracking Charts -- Retirement -- Updated April 3, 2007 (PDF)
4 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
Hewitt Federal Legislation Quick Guide Updated as of April 3, 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)
Terminating a Defined Contribution Plan in 2006 or 2007: Do I Need to Amend for PPA?
Excerpt: "[T]o remain qualified, a plan that terminates before the extended amendment date must be updated, at the time of termination, for all law changes that are effective as of the plan's termination." (SunGard Corbel LLC)
FedEx Joining the Long List of Companies Overhauling Pension Plans to Save Money
Excerpt: "Responding to changes in U.S. pension law, accounting rules and worker demographics, FedEx unveiled a sweeping change in its pension programs effective next year. It will move the company away from defined benefits into cash-balance accounts for workers . . . ." (Air Cargo World Online)
Overview: PPA Defined Benefit and Defined Contribution Deduction Limit
Article revised March 30, 2007, and includes an overview of Notice 2007-28. Excerpt: "NOTE: With limited exceptions, most defined benefit plans are covered by Title IV of ERISA and the PBGC. The exceptions are plans of 'professional service employers' with 25 or fewer active participants and plans covering only substantial owners and no common law employees." (McKay Hochman Co., Inc.)
Overview: Groups Excludable from Plan Participation
Excerpt: "A nonstandardized plan may exclude groups of employees from the plan, provided the plan passes coverage testing. What groups of employees may generally be excluded from a nonstandardized prototype plan?" (McKay Hochman Co., Inc.)
McDonalds Revamps Retirement Plans
Excerpt: "To increase participation rates and saving levels in its retirement plan, McDonald's recently reinstated an automatic enrollment feature and modified the investment options in the plan." (BenefitNews Connect)
Workers Need to Step Up Personal Savings to Compensate for Troubled Pension System, According to GAO
Excerpt: "Low defined contribution plan participation combined with a declining defined benefit pension system, rising health costs and insufficient personal savings means a larger number of older workers will need to keep working to bring in extra income, a recent report by the Government Accountability Office (GAO) suggests." (PLANSPONSOR.com; free registration required)
Sponsored by: Mid-Sized Pension Management Conference
(Click on company name or banner to learn more.)
| 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
Towers Perrin U.S. Legislative Tracking Charts -- Human Resources -- Updated April 3, 2007 (PDF)
6 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
Hewitt Federal Legislation Quick Guide for April 3, 2007, on Human Resources & Employment Law (PDF)
11 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 Events
Form 5500: Update and Solving Filing Problems
Nationwide on April 26, 2007
presented by American Society of Pension Professionals & Actuaries (ASPPA)
IRA Elements 2007 -- Essential Elements of Periodic Training - Advanced
in Tennessee on May 9, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Tennessee on May 8, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Georgia on May 8, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Illinois on May 8, 2007
presented by Wolters Kluwer Financial Services
IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Missouri on May 8, 2007
presented by Wolters Kluwer Financial Services
The COBRA Timeline: Reduce Liability, Expenses, And COBRA Participation- webcast
Nationwide on April 19, 2007
presented by HRTrainingCenter.com
Trends and Challenges in Administering FMLA Teleweb
Nationwide on April 19, 2007
presented by International Foundation of Employee Benefit Plans
Newly Posted Press Releases
CEOs See Strong Bonuses, Equity Gains, Watson Wyatt Analysis Finds
Watson Wyatt
U.S. Labor Department Obtains Judgment Restoring $201,735 to Profit-sharing Plan of Gadsden, Ala., Company
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Chubb's Position on Law Firm Blogs
Chubb Group of Insurance Companies
CalSTRS Corporate Governance Efforts Pay Off
California State Teachers' Retirement System (CalSTRS)
Wachovia's 'WE Care Fund' Surpasses $1 Million in Donations to Employees Needing Assistance
Wachovia Corporation
Newly Posted or Renewed Job Openings
Defined Contribution Retirement Plan Administrator
for Loren D. Stark Company, Inc.
in TX
Senior Client Relationship Manager
for The Newport Group
in FL
Benefit Plan Administrator
for J. D. BENEFITS, INC
in NC
Plan Document Specialist
for Louis Kravitz & Associates
in CA
Compliance Analyst
for The Newport Group
in FL
Consultant - 401(k) Defined Contribution Administrator
for Xcitek Consulting Services
in NJ
Medical Cost Director
for Great-West Corporate
in IL
Employee Benefits Attorney (Senior/ Manager)
for Deloitte, LLP
in CA
Vice President, Legal (Retirement Plan Services)
for AST Capital Trust Company
in AZ
Benefits Analyst
for Alameda County HRS
in CA
401(k) Plan Administrator/Analyst
for The Pension Group, Inc.
in CA
Institutional Trust New Business Officer
for BB&T
in DC, VA
ERISA Compliance Officer
for City National Bank
in CA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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