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| April 26, 2007 |
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Overview: Wal-Mart Hit with Class-Action Over 401(k) Plan; Text of Complaint
Excerpt: "The new nationwide class-action alleges that because Wal-Mart makes profit-sharing contributions to its 401(k) plan based on each employee's compensation, illegally 'shaving' that compensation operated to reduce Wal-Mart's profit-sharing contributions. Plaintiffs allege that the 401(k) plan fiduciaries breached their duties under ERISA by participating in or failing to stop this reduction." (Spencer Fane Britt & Browne LLP)
401(k)s: The Hidden Fees
Excerpt: "Unfortunately, annuity 401(k) plans often wind up being more expensive for participants than other 401(k) plans, experts say. . . . Annuities can offer tax-deferred growth, which is a plus on its own, but isn't necessary when offered inside a 401(k) plan that is already tax-deferred. Another potential for redundancy is that annuities offer protection of principal and often include options that mimic life insurance, such as 'step-up death benefits,' . . . ." (BusinessWeek)
2007 Report of Results from Segal's Survey of Multiemployer Plans' PPA '06 Funded Percentage (PDF)
2 pages. Excerpt: "The results include these two key findings: The average PPA '06 funded percentage for the surveyed plans was estimated to be 94 percent as of the end of 2006." (The Segal Group, Inc.)
Many Corporations Slow to Embrace Financial Solutions to Pension Risks
Excerpt: "from Spencer's Benefits Reports: Despite the rise of new funding and accounting rules that are expected to make the financial impact of many pension plans more volatile for employers and funding deficits more transparent to shareholders, there is little sense of urgency in the way most companies are managing their pension risks and assets." (Wolters Kluwer Law & Business)
Comments on PBGC's Proposed Termination Premium Fee Regulation (PDF)
Comments received on Premium Rates; Payment of Premiums; Flat Premium Rates, Variable-Rate Premium Cap, and Termination Premium; Deficit Reduction Act of 2005; Pension Protection Act of 2006 (Pension Benefit Guaranty Corporation)
Nonspouse Beneficiary Direct Rollover Rule: An Opportunity to Grow Deposits
Excerpt: "The new rule allows a nonspouse beneficiary to escape the employer plan rules by directly rolling the inherited plan assets to a traditional 'Beneficiary IRA' and taking distributions over his/her life expectancy. As a result, a nonspouse beneficiary is able to retain the tax-sheltered benefit of the account and spread the tax liability over a longer period of time." (Wolters Kluwer Financial Services)
News in Brief: Senators Reintroduce Women's Retirement Security Act
Excerpt: "Senators Gordon Smith (R-Oregon), Kent Conrad (D-North Dakota) and John Kerry (D-Massachusetts) have reintroduced the Women's Retirement Security Act, which tries to rectify perceived inequities between men and women at retirement." (Watson Wyatt Worldwide)
The Big Challenges That Advisors Are Facing in the Current Retirement Environment
Excerpt: "[A] group of retirement experts from some of the nation's top firms gathered to share their perceptions of this ever-changing and complex industry. But these weren't boilerplate views expressed through rose-colored glasses. [Audio clips and transcript of a Q & A session]" (OnWallStreet)
Retirement Security of the Baby Boomers: the Role of Financial Literacy and Planning
Excerpt: "In 'Baby Boomer Retirement Security: the Roles of Planning, Financial Literacy, and Housing Wealth' (NBER Working Paper 12585), [the authors] explore the links between financial literacy, planning, and retirement saving adequacy. Specifically, the authors ask how financially prepared Baby Boomers are for retirement, whether more financially-literate individuals are more likely to plan for retirement, and whether planning affects wealth accumulation." (National Bureau of Economic Research)
The Best Retirement Plan This Accountant Has Ever Seen
Excerpt: "Is there really something better than a Roth IRA? Of course there is. And the strategy has been around since the 1960s, yet few people know that the strategy -- called a 'Private Retirement Plan' -- even exists." (CONTRACTORmag.com)
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| 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. |
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Links to Items on Executive Comp, Benefits in General
Action Plan and Checklist -- Section 409A Plan Amendment Deadline (PDF)
3 pages. Excerpt: "In some cases the rules permit several alternatives for consideration, which may add to the length of the amendment process. For many companies, this will mean the amendment (and full execution) of numerous individual agreements and plan documents." (Holme Roberts & Owen LLP)
Georgetown Law and Economics Research Paper: Deferred Compensation Revisited
Excerpt: "The tax rules governing deferred compensation, codified at section 409A, are harsh and complex. The rules are focused on the least important policy considerations and overlook the most important. Professors Halperin and Yale suggest a different approach, one that would make the law simpler, fairer, and more effective." (Social Science Research Network)
Newly Posted Events
ERISA Advisory Council To Hold First Meeting Of 2007 - Meeting Is Open To The Public And Press
in District of Columbia on May 11, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
The Basics of Health and Welfare Plans
in California on May 22, 2007
presented by No. Calif. Chapter of Certified Employee Benefits Specialists (ISCEBS)
What Are Our Options: Equity Compensation Under the Final 409A Regulations - Webcast
Nationwide on May 1, 2007
presented by Venable LLP
Newly Posted Press Releases
U.S. Secretary of Labor Elaine L. Chao Appoints New Members And Leaders To 2007 ERISA Advisory Council
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
InvestLink Launches .NET Platform - Offers the Most Advanced Delivery of Technology for Defined Contribution
InvestLink
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Compliance Specialist
for CCA Strategies
in IL
Benefits Analyst Sr.
for Countrywide Financial
in AZ
Account Manager
for ING, Financial Services
in NY
Compensation Consultant/Program Manager
for Hewitt Associates
in IL
Employee Benefit Specialist
for Principal Financial Group
in AL
Retirement Plan Consultant
for Diversified Investment Advisors
in TX
Pension Specialist
for Diversified Investment Advisors
in FL
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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