BenefitsLink |   |
| May 1, 2007 |
Sponsored by: DATAIR Employee Benefit Systems, Inc.
(Click on company name or banner to learn more.)
| Software for 401(k), Pension and Flex Administration |
| Now...through June 30, 2007, License any two DATAIR systems and we will cut one license fee by 50%. License more and get even more savings.
Pick and choose the software modules you need: DC/401(k) Proposals & Administration -- DB Proposals & Administration -- Retirement Plan Documents (Prototype and Volume Submitters) -- Government Forms (5500s, 1099-Rs, 5300s) -- Cafeteria Plan Administration & Documents -- Participant Termination Calculations -- FAS 132 Reporting Contact sales@datair.com or call 1-888-328-2474. |
Why Retirees Should Think Twice Before Shifting 401(k) Assets into an IRA
Excerpt: "[A] rollover into an IRA may not be the right choice, for several reasons. Lower plan-service costs for 401(k)s; the sponsor's fiduciary obligations; and the ability, courtesy of last year's Pension Protection Act, to continue 401(k) benefits to spouses who outlive the primary beneficiary, make 401(k)s more appealing." (CFO.com)
Updated Final 415 Regulations - An In-Depth Review
Excerpt: "This article will examine the rules under IRC § 415(c), which sets forth maximum limits for defined contribution plans." (Deloitte via BenefitsLink.com)
Survey Shows Plans Help Worker Retirement Confidence at Big Companies
Excerpt: "Researchers at the Transamerica Center for Retirement Studies . . . have published data supporting that conclusion in a summary of results from one recent survey of 659 owners of U.S. businesses with 10 or more employees and a second survey of 1,402 Americans ages 18 and older at U.S. employers with 10 or employees." (The National Underwriter Company; free registration or paid subscription required)
Small Business Employees Trail Large Company Workers in Retirement Savings & Preparedness
Excerpt: "Small business employees are at a disadvantage when it comes to retirement savings, according to the results from the Eighth Annual Transamerica Retirement Survey. When compared to employees at large companies, small business employees are less likely to have access to a 401(k) or employee-funded retirement plan, and are less active than their large company counterparts in saving for a comfortable retirement." (BusinessWire via Human Resource Executive Online; free registration required)
401(k) by the Numbers: A Discussion of Costs, Value, and What You Get (for What You Pay For)
A 5-article series; topics include 'A Big Picture Look at the DC Marketplace by Plan Size Segment,' 'Estimate of DC Plan Investment Cost Reasonableness by Plan Size Market Segment,' 'Where the Savings Will Come From: the Shake-Up,' 'Consultant and Recordkeeper Opinions [on DC plan design and operation, from a survey]' 'How 401(k) and Others Can Respond to New Realities [in retirement patterns],' and 'Open Recommendations to DC Policy Makers Regarding PPA.'" (Ron Eisen of Investment Management Consultants, Inc.)
Small Business Owners Need to Find Best Retirement Plan
Excerpt: "Over the years, small business owners have used different plans -- including SEP-IRAs, Simple IRAs and Profit Sharing plans -- to help them save for retirement. Many are unaware of the Single 401(k) -- also known as a Solo(k), Single(k) or Individual 401(k)." (Boston Herald)
When Taking Money from Retirement Accounts, Timing Is Everything
Excerpt: "The rules are complex, and your decisions about taking money out can have serious consequences. When and how much to withdraw are among the most frequent questions." (The Boston Globe)
Pricey Annuity Products Aim to Make Money Last
Excerpt: "At a time when 401(k) plan fees are being criticized for cutting into employees' retirement savings, insurance companies are pushing newfangled annuities that, while providing lifelong income, can cost up to another 100 basis points over the basic plan fee." (Financial Week; free registration required)
Phased Retirement Could Begin Under Pension Act Provision
Excerpt: "A brief provision buried deep in last year's mammoth Pension Protection Act lets workers 62 or older receive payments from their traditional defined-benefit pension plans even if they are still working." (The Telegraph)
Plan Sponsors Have Some New Ways to Mitigate Risk - and Some New Risks, As Well
Excerpt: "Sponsors of defined contribution plans did get a reprieve from some risks last year in the form of the Pension Protection Act of 2006 (PPA). The new law offers employers fiduciary safe harbors in connection with several popular new plan design features, including automatic enrollment, the use of diversified investment vehicles such as default investment options, and the offering of investment advice services to plan participants." (PLANSPONSOR.com; free registration required)
Understanding Public Plan Costs and Revenues Paid to Providers
Excerpt: "While any analysis of costs and revenues includes the charges made directly to plans, it also includes indirect payments from the investments to service providers. In turn, that means that fiduciaries must understand and evaluate who receives the benefit of the indirect payments." (National Association of Government Defined Contribution Administrators, Inc.)
Article: Pension Policy and Public Retirement Systems (PDF)
7 pages. Excerpt: "Public pensions are immense, complicated, and politically charged. Regulating them requires a complex balance among state and local executives, legislatures, and competing special interests." (American Academy of Actuaries)
UK May Consider Pension Simplification Measures - Focus Extended to Risk-Sharing Pension Provision
Excerpt: "The reviewers are interested in possible amendments to the legislative framework to encourage employers to establish risk-sharing schemes (as recently championed by the Association of Consulting Actuaries, with input from the Association of Pension Lawyers). They asked for views on how this can be achieved and the implications of doing so." (Watson Wyatt Worldwide)
BenefitsLink Named 'Best of the Web' by Human Resource Executive Online
We're the only site in the 'Benefits' category! Thanks for letting us share this news with you. Excerpt: "With that in mind, we considered it fitting to present in this anniversary issue 10 of the best HR Web sites and 10 of the best HR blogs for your browser's Favorites/Bookmarks list. . . . [I]f it's about benefits, you'll find something about it on BenefitsLink. Just a cruise down its left side navigation/links bar, and you quickly get the idea how they chose the site's name back in 1995." (Human Resource Executive Online; free registration required)
Shameless Plug: Would You Like to Tell a Colleague About this Newsletter?
If you'd like to tell a colleague about the free daily BenefitsLink Retirement Plans Newsletter or the Health & Welfare Plans Newsletter, the best web page for more information and a sign-up form is https://benefitslink.com/newsletter (which appears if you click the headline of this link). Your web browser will have a 'send link by email' option under its 'File' menu. More subscribers means more advertising revenue, which means more and better free features for you can be added. Thanks very much! (BenefitsLink.com)
Links to Items on Executive Comp, Benefits in General
ALI-ABA 50%-Off Sale on Selected Employee Benefits Online Courses and Coursebooks
$149 online courses (usually $299), including coursebooks (the materials distributed at other online or in-person conferences); each course is a presentation from the October 2006 conference, 'Pension, Profit Sharing, Welfare, and Other Compensation Plans after the Pension Protection Act of 2006.' Online coursebooks (on sale for $59) from 2006 include one on executive compensation and one on protection of fiduciaries, employers and administrators from liabilities arising from benefit plans. (ALI-ABA (American Law Institute / American Bar Association))
Overview: Sec. 409A: Short-Term Deferrals, Severance Pay, Performance-Based Comp, and Distributions (PDF)
8 pages. Excerpt: "This . . . LawFlash highlights the rules with respect to severance pay, performance-based compensation, 401(k) wrap plans, and other deferred compensation plans tied to a qualified plan, distributions, and termination of nonqualified deferred compensation plans." (Morgan, Lewis & Bockius LLP)
Efforts to Control Employer-Sponsored Health & Retirement Benefit Costs & Implications for Workers
55 pages. Excerpt: "To evaluate changing employer benefit practices and their potential implications, GAO [examined current & emerging practices employers use to control costs of health care benefits and retirement benefits and employers' workforce restructuring changes.] GAO reviewed studies of employer benefit trends; interviewed representatives of business, government, labor, and consumer advocacy and research organizations; and reviewed and analyzed data from surveys of employee benefits." (U.S. Government Accountability Office)
Overview: Employee Benefits Carry Potential Liability in Merger or Acquisition
Excerpt: "This article will briefly discuss the potential liability exposure in respect of defined benefit pension plans, union (or collectively bargained) multiemployer plans, retiree health benefit plans and 'golden parachute' severance arrangements (including the cost attributable to the non-deductibility of a substantial amount of such payments)." (Dechert)
The Final Word Under the New Section 409A Rules on Coverage (PDF)
Excerpt: "Among many other things, the recently released final Section 409A Treasury Regulations (Final Regulations) clarify what types of arrangements are covered by Internal Revenue Code Section 409A (Section 409A)." (Paul, Hastings, Janofsky & Walker LLP)
The Final Word Under the New Section 409A Regulations: 2007 Action Items and Diagnostic Guide (PDF)
Excerpt: "It will take time for directors and affected individuals to understand and agree on how to bring noncompliant Section 409A arrangements into compliance. [The target page suggests a] five-step approach." (The Bureau of National Affairs, Inc. via Paul, Hastings, Janofsky & Walker LLP)
Drafter of Final 409A Regulations Explains Reasons Behind Various Changes
Excerpt: "Treasury Attorney Dan Hogans, one of the authors of the new final regulations on nonqualified deferred compensation, explained some of the changes made by those regulations in a webcast sponsored by Ernst & Young LLP on April 16, 2007." (Wolters Kluwer Law & Business)
Overview by Deloitte: IRS Issues Final 409A Regulations -- Part I
Excerpt: "The regulations define 'deferred compensation' very broadly, as any arrangement under which compensation for current services is payable in a later year, then carve out exceptions for many common programs, such as qualified plans, short-term deferrals, stock options, welfare benefits, certain types of separation pay and some foreign plans." (Deloitte)
Newly Posted Events
Benefits and Wellness Communications: Maximizing Impact, Effectiveness and Cost Efficiency
in Ohio on May 17, 2007
presented by WEB (Worldwide Employee Benefits Network) Cleveland Chapter
ERISA Fiduciary Responsibility Update for Plan Fiduciaries, Employers and Administrators
Nationwide on June 5, 2007
presented by ALI-ABA (American Law Institute-American Bar Association)
Final Code §415 Regulations: Highlights of the New Maximum Benefit and Contribution Limitations - Webcast
Nationwide on May 15, 2007
presented by American Society of Pension Professionals & Actuaries (ASPPA)
Handling FMLA Notice & Medical Certification Requirements
Nationwide on May 17, 2007
presented by HRTrainingCenter.com
The 401k Service Training Program™ Accredited by Robert Morris University
in Pennsylvania on June 18, 2007
presented by Financial Service Standards, LLC
Newly Posted Press Releases
UBA Survey: Employers Identify Key Wellness, Employee Education Initiatives; Highlight Current, Desired Benefit Offerings
United Benefit Advisors
SPARK Commends Putnam Investments' Proposed Distribution Plan In SEC Comment Letter
SPARK Institute
Small Business Employees Significantly Trail Their Large Company Counterparts in Retirement Savings and Preparedness
Transamerica Retirement Services
State Health Reform Program Launched
Robert Wood Johnson Foundation
Dave Thomas Foundation for Adoption Announces Top 100 Adoption-Friendly Workplaces
Dave Thomas Foundation for Adoption
New Report from Corporate Insight Examines Mutual Fund Firms' Online Small Business Retirement Offerings
Corporate Insight
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Senior Health & Benefits Planner
for King County Human Resources
in WA
Senior Plan Administrator
for Transamerica Retirement Services
in CA
ERISA Associate
for Kilpatrick Stockton LLP, Raleigh, North Carolina
in NC
401(k) "Apprentice"
for Gordon Smith Pension Advisors, LLC
in NC
Actuary
for HP Northwest
in OR
Employee Benefits Attorney
for Employee Benefits Institute of America Inc. (EBIA)
in WA
Benefits - Special Projects (temporary assignment)
for Law Firm
in AZ
Client Relationship Manager -- Chicago, IL
for Transamerica Retirement Services
in IL
Client Services Coordinator
for AST Capital Trust Company
in AZ
Trust Marketing Officer
for AST Capital Trust Company of Delaware
in DE, MD, PA
Senior Relationship Manager
for AST Capital Trust Company
in AZ
VP, Relationship Manager
for CitiStreet
in MA
Pension Administration
for Stephen H. Rosen & Associates, Inc.
in NJ
Account Manager (Group Employee Benefits Service)
for The Protector Group Insurance Agency, Inc.
in MA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Subscribe to the BenefitsLink Health & Welfare Plans Newsletter, Too!
Sign-up form is at https://benefitslink.com/newsletter (free).
This newsletter is sent to you each workday except federal holidays.
This email has been published by:
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
David Rhett Baker, J.D., Editor
Copyright 2007 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.
Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/
Other useful links: