April 6, 2007 Sponsored by: DATAIR Employee Benefit Systems, Inc. (Click on company name or banner to learn more.)
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.)
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 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 Handy Links:
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