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April 6, 2007


Sponsored by: DATAIR Employee Benefit Systems, Inc.

(Click on company name or banner to learn more.)
Banner ad for DATAIR Employee Benefit Systems, Inc.

Software for DC/401(k) Plan Administration

DATAIR's IMPROVED BENEFIT ADMINISTRATION SOFTWARE for 401(k), Profit Sharing and all other Defined Contribution plans. Designed for administrators and consultants.

This Windows system features many important enhancements including flexible input for employee data, share and dollar accounting; redesigned easy-to-read report formats, a transaction database for time-weighting of allocations; electronic anniversary notification and data collection; and unlimited investment and source definitions. The system also allows for great flexibility in setting up graded class allocation (cross-tested new comparability) plans.

Training and support included. For free demo versions and pricing, contact sales@datair.com or call 1-888-328-2474.


Text of April 2007 'Special Edition' of 'IRS Employee Plan News' (PDF)
2 pages; brief but useful 14-point overview of final regulations under section 415, addressing limitations on benefits or contributions under qualified and certain other retirement plans. (Internal Revenue Service)

Overview: IRS Issues Final, Comprehensive 415 Regulations
Excerpt: "The Internal Revenue Service (IRS) has issued final regulations under Section 415 of the Internal Revenue Code that address new rules under the Pension Protection Act of 2006 (PPA) and includes rule changes within other statutes in the years since previous comprehensive regulations were issued." (PLANSPONSOR.com; free registration required)

401(k) Fees Litigation: Class Action Lawsuits Alleging Shady Fee Practices Roils 401(k) Sponsors
Excerpt: "Thus far, these class-action lawsuits, filed mainly in Illinois (with a few in Missouri, Connecticut and California), have been primarily targeted at Fortune 50 companies. Most were filed by a single law firm, but now more plaintiff's firms are jumping on the bandwagon." (Littler Mendelson, P.C.)

Lawrence Starr, President of Qualified Plan Consultants, Does Not Like Roth 401(k)s
Excerpt: "Most workers, he says, will likely be in a lower or the same tax bracket when they retire. And those folks, he says, are better off with the current tax deduction, the traditional 401(k) contribution." (MarketWatch Inc.)

Auditing Employee Benefit Plans -- A Discussion
Excerpt: "So - what is an acceptable audit? The AICPA Audit and Accounting Guide - Employee Benefit Plans includes the fundamental GAAP and GAAS standards for benefit plan audits. A few of those requirements are particularly invasive and frequently involve legal counsel, so that is what I wanted to address in this posting." (Pension & Benefits Blog)

More Californians Delaying Retirement, According to Study
Excerpt: "a study published Monday of Californians finds that those entering their golden years in the Golden State are staying on the job far longer than they used to. The study by the California Budget Project, a Sacramento non-profit, reports that the number of Californians ages 55 to 64 who are still working has grown from 54.2 percent in 1995 to 61.6 percent in 2006." (The Mercury News; free registration required)

Editorial: New Jersey Public Pension Fund Situation Should Be a Cautionary Tale
Excerpt: "It would be naïve to believe that the rot in New Jersey's public pension system is limited to New Jersey. The Times's Mary Williams Walsh reported on Wednesday that over the last decade, various New Jersey legislatures and governors have routinely shortchanged the state's public pension fund, while overstating the amounts that were contributed . . . ." (The New York Times; free registration required)

Maximizing Pension Payouts
Excerpt: "Pension maximization does not work in all circumstances, however. Someone whose health has deteriorated is not a good candidate for permanent life insurance, which is the fundamental component and economic workhorse of a structurally strong pension-maximization strategy." (Advisor Today)

Overview of the Saver's Credit
Excerpt: "Contributions made to any of the following savings vehicles are eligible for the credit: a 401(k) plan, including a SIMPLE 401(k); a section 403(b) annuity; an eligible deferred compensation plan of a state or local government, also known as a governmental 457 plan; a SIMPLE IRA plan; or a salary reduction SEP. The Saver's credit is also available for voluntary after-tax employee contributions to a tax-qualified retirement plan or section 403(b) annuity." (ICMA-RC)

Why Do Some People Save Well but Others Live Paycheck-to-Paycheck
Excerpt: "Interviews with self-described savers and financial experts reveal that savers share certain habits. Here's a list of them. Let's call it, with a tip of the hat to Stephen Covey, the Seven Habits of Highly Effective Savers." (Los Angeles Times; free registration required)

New Zealand's KiwiSaver to Be Put in Place in July
Excerpt: "The KiwiSaver Act retirement scheme will be implemented as of July 1, 2007. It is a voluntary workplace-based government initiative that is designed to help employees save for retirement and to complement New Zealand's existing tax-funded age pension." (Watson Wyatt Worldwide)


Sponsored by: ASPPA

(Click on company name or banner to learn more.)
Banner ad for ASPPA

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.

(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

Corporate CEO Bonuses and Equity Compensation has Strong Growth, According to Watson Wyatt
Excerpt: "The nation's largest company chief executives saw their annual bonuses jump 13% and the value of their equity-based compensation holdings increase by almost 50% in 2006, a new study has found." (PLANSPONSOR.com; free registration required)

Many Fired Corporate Executives Retain Health Benefits Under COBRA for Remainder of Their Contracts
Excerpt: "Documents filed this year with the Securities and Exchange Commission indicate that many U.S. companies continue to provide health insurance for CEOs and other executives who lose their jobs because of conditions in their contracts, 'sometimes for years to follow,' the Wall Street Journal reports." (Kaiser Family Foundation)

Young Taxpayers in the Dark on 401(k)s, FSAs, and Other Tax-Related Benefits
Excerpt: "Young taxpayers are significantly less likely to take advantage of tax-related benefits, are most likely not to know whether they are eligible to participate in benefit plans, and nearly one in five rate their employers as terrible in providing information about tax-advantaged planning, according to findings from a nationwide CCH CompleteTax survey." (Wolters Kluwer Law & Business)


Newly Posted Events

IRA Elements 2007 -- Essential Elements of Periodic Training - Advanced
in Illinois on May 9, 2007
presented by Wolters Kluwer Financial Services

IRA Elements 2007 -- Essential Elements of Periodic Training - Advanced
in Georgia on May 9, 2007
presented by Wolters Kluwer Financial Services

IRA Elements 2007 -- Essential Elements of Periodic Training - Advanced
in Missouri on May 9, 2007
presented by Wolters Kluwer Financial Services

IRA Elements 2007 -- Essential Elements of Periodic Training - Advanced
in Mississippi on May 10, 2007
presented by Wolters Kluwer Financial Services

IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Illinois on May 10, 2007
presented by Wolters Kluwer Financial Services

IRA Elements 2007 -- Essential Elements of Periodic Training - Beginner
in Missouri on May 10, 2007
presented by Wolters Kluwer Financial Services


Newly Posted Press Releases

Ceridian’s New Online Reference System Simplifies Employee Benefit Management
Ceridian

Unum Says Cancer Still No. 1 Cause of Disability, but Survival and Return-to-Work Rates Are Increasing
Unum


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Retirement Specialist (part-time)
for RubinBrown LLP
in MO

Actuarial Specialist
for Kravitz - Louis Kravitz & Associates
in CA

401(k) Administrator
for Iron Administration, LLC
in IL

Actuarial Pension Analyst
for Libman, Kadavy & Co., Inc.
in OH




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