BenefitsLink |   |
| May 7, 2007 |
Sponsored by: ASPPA and WP&BC
(Click on company name or banner to learn more.)
| The Western Benefits Conference - July 22-25, 2007 |
| Benefits by the Bay, the best of two in one! Jointly sponsored by WP&BC and ASPPA, this conference has been designed with all retirement professionals in mind. Seven industry specific targeted learning tracks, the latest market trends, compliance issues and networking opportunities await. Get early bird registration discounts and learn more at www.asppa.org/wbc or www.westernpension.org |
EBRI Policy Forum: The Impact of PPA, FASB, and GASB on Defined Benefit Pension Plans
Excerpt: "EBRI's 60th policy forum . . . was held in Washington, DC, on Thursday, May 3, 2007. The policy forum explored the impact on defined benefit pension plans from the new Pension Protection Act (PPA) law and pending private- and public-sector accounting regulations by the Financial Accounting Standards Board (FASB) and the Government Accounting Standards Board (GASB). You can review the agenda and presentations on EBRI's Web site . . . ." (Employee Benefit Research Institute)
Opinion: Time to Say Goodbye to the 12(b)1 Mutual-Fund Fee
Excerpt: "As additional charges levied on mutual-fund shareholders, 12(b)1 fees were introduced in 1980 to help companies pay for marketing and distribution expenses. Yet over time, this revenue, which diminishes your total return, has been directed to brokers and other marketers." (Bloomberg News)
Overview: Final IRS Rules Provide Guidance on Distributions from Roth 401(k) Arrangements
Excerpt: "The IRS has issued final regulations under Code Sec. 402A that provide comprehensive guidance on the taxation of distributions from designated Roth accounts established under 401(k) and 403(b) plans. The final regulations generally apply to tax years beginning on or after January 1, 2007." (Wolters Kluwer Law & Business)
Opinion: Increase Savings Rate and Investment Success by Holding Annual 401(k) Enrollment
Excerpt: "Vanguard published a study on Roth 401(k) enrollment this week -- and they found that the strongest correlating factor with participants choosing the Roth was being a new employee . . . . This single attribute increased the probability of adoption by 3.2 percentage points on top of the normal 5% adoption rate -- an increase of about 65%." (Nevin Adams' Blog: planadviser ponderings)
Lincoln Financial Latest in Defined Benefit Freeze Trend
Excerpt: "Philadelphia-based financial services company Lincoln Financial Group is the latest employer to turn away from its defined benefit pension plan and transition employees to a beefed-up 401(k) plan." (PLANSPONSOR.com; free registration required)
Opinion: Fleecing 403(b) Plan Participants
Excerpt: "The real problem with annuities in the 403(b) market stems from the absence of a regulatory system that requires school districts to actually assume fiduciary responsibility for the investment selection, expenses, and education involving the 403(b) plans they sponsor." (Morningstar, Inc.)
Overview: IRS Final Regulations Under Section 415 of Internal Revenue Code (PDF)
5 pages. Excerpt: "Qualified retirement plans generally must be amended to comply with the final regulations by the deadline for filing the employer's tax return (including extensions) for the tax year which includes the effective date of the final regulations (e.g., by the due date (including extensions) for the tax year ending December 31, 2008 for a plan with a calendar year limitation year)." (Dechert LLP)
Overview: Nonspouse Beneficiary Rollovers
Excerpt: "The Internal Revenue Service, in Notice 2007-7, apparently decided not to provide transitional relief for those who died prior to 2006 because PPA did not specifically authorize its provision and by its silence did not give any guidance permitting it. Its representatives' informal statements at public conferences have confirmed this policy decision." (McKay Hochman Co., Inc.)
Plan Sponsors Using Registered Investment Advisers As Co-Fiduciaries
Excerpt: "Registered investment advisers may provide plan sponsors with fiduciary relief relating to the selection and monitoring of plan asset investment choices in a participant-directed plan and select asset investments generally in an employer- directed plan. Further, plan sponsors working with investment advisers as co-fiduciaries receive extensive disclosure and a description of any conflicts of interest." (Investment News; free registration required)
Corporate Scandals Give Rise to Fiduciary Consulting
Excerpt: "The field of fiduciary consulting has become a huge business in the last couple of years, especially since the collapse of Enron Corp. . . . ." (Investment News; free registration required)
What Questions Really Matter When Creating an RFP?
Excerpt: "[A]lthough developing the RFP takes only days, and vendors are usually given a couple of weeks to respond, the response analysis and review with the client takes months, sometimes even a year or more." (PlanAdvisor Magazine)
Legislation Targets Employers Without Retirement Plans
Excerpt: "Employers without retirement plans would be required to establish an automatic payroll deduction program to an individual retirement account (IRA) under new legislation." (PLANSPONSOR.com; free registration required)
EU Asks 9 Countries for Information on Pension Fund Taxation
Excerpt: "The European Commission has asked the Czech Republic, Denmark, Spain, Lithuania, the Netherlands, Poland, Portugal, Slovenia and Sweden to provide further information on their rules by which dividend and/or interest payments to foreign pension funds (outbound payments) may be taxed more heavily than dividend and/or interest payments to domestic pension funds (domestic payments)." (Forbes.com)
Opinion: The Risks of Retirement Investing
Excerpt: "[A group called Retirement 20/20, a collection of pension and financial experts, took a look at the new emphasis on 401(k) and other retirement savings plans which] puts too much responsibility on individuals -- creating too much risk of failure -- so they've come up with six guiding principles to make it work better." (The Washington Post; free registration required)
Interview: SEI Executives Make the Case for Shifting Pension Investing Focus
Excerpt: "Liability-driven investing that manages a pension fund's assets relative to its liabilities is a hot topic in boardrooms and on the conference circuit. However, a recent paper by SEI Global Institutional Solutions suggests LDI should only be one component of objective-based portfolio construction, which not only looks at influence of liabilities on asset structure, but on an organization's overall financial strategy." (Employee Benefit News)
IRS 30 Year Treasury Securities Rate Updated for April 2007
30 Year Treasury Securities Rate for April 2007: 4.87% (Internal Revenue Service)
IRS Composite Corporate Bond Rate Table Updated for May 2007
Corporate Bond Weighted Average Interest Rate = 5.80 for May 2007 (Internal Revenue Service)
Current vs. Retirement Income: How Much Do I Need?
Excerpt: "The larger you plan to live, the more income you'll need, and the more you'll have to save. Granted, this won't give you an accurate-to-the-tenth-decimal-point figure. But you should be able to come up with a percentage that in your judgment is reasonable. You can then plug this figure into our Retirement Planner or a similar calculator and get a sense of what you need to do to hit that target." (CNNMoney.com)
Links to Items on Executive Comp, Benefits in General
'Age Friendly' Workplaces on the Rise
Excerpt: "With an estimated 70 percent of baby boomers saying they want or need to stay in the workforce longer, employment experts are emphasizing the need to create an 'age friendly' workplace, free from age bias and welcoming to mature workers. Even if many baby boomers ultimately retire earlier than they currently plan to, enough will stay on -- or reenter -- to swell the ranks of graying workers." (The Christian Science Monitor)
Effective Employee Communications
Excerpt: "Rather than an afterthought, communications should be a primary tool for increasing employee engagement, according to Christopher Chiames, a consultant with F&H Solutions Group." (Workforce Management; free registration required)
How to Ensure Your Employees Value Their Benefits Package (PDF)
10 pages. Excerpt: "When employees think about how much they earn, the figures that usually come to mind are the dollar amounts on their paychecks. Most employees don't appreciate the fact that their pay is only one part of the overall compensation equation. [Published November 2006]" (Charlton Consulting Group)
Overview: IRS's Clarifying Guidance on Completing the 2006 Form 990 (PDF)
2 pages. Excerpt: "The new guidance, which is presented in a Q&A format, is posted on the IRS website and addresses issues relating to the disclosure of information about officers, directors, trustees, key employees, highly compensated employees, and highly compensated professionals or other independent contractors." (Morgan, Lewis & Bockius LLP)
Why Men Die Younger than Women
Excerpt: "This review examines the mortality gap, primarily in the U.S. context, by providing an overview of the gender pattern in mortality, an explanation of its existence, and an assessment of how and why it has changed over time." (Geriatrics Aging via Medscape; free registration required)
For DaimlerChrysler, the Chrysler Deal Is About More Than Cash: Benefits Liabilities Are Key Factor
Excerpt: "The price for the Chrysler Group might not matter as much to DaimlerChrysler AG officials as shedding the division's huge pension and health care liabilities does. If the German company can get a deal where those liabilities -- which have been estimated to be in the $16.5-billion to $19-billion range -- are eliminated from its balance sheet, it might accept a sale price that on its own would seem low, the Free Press has learned." (Detroit Free Press)
Newly Posted Events
401(k) Plan Workshop
Nationwide on May 11, 2007
presented by SunGard Relius
401(k) Plan Workshop
in Illinois on May 11, 2007
presented by SunGard Relius
401(k) Plan Workshop
in North Carolina on May 11, 2007
presented by SunGard Relius
401(k) Plan Workshop
in Ohio on May 11, 2007
presented by SunGard Relius
Changing Behavior or Changing Attitudes: Which Comes First? - Webcast
Nationwide on May 24, 2007
presented by International Foundation for Retirement Education (InFRE)
Focus on Health and Welfare Plans
in Virginia on May 17, 2007
presented by Capital Chapter ISCEBS
Form 5500 Preparation Workshop
in District of Columbia on June 6, 2007
presented by Capital Chapter ISCEBS
Form 5500 Preparation Workshop
in District of Columbia on June 6, 2007
presented by Capital Chapter ISCEBS
Form 5500 Workshop
in Illinois on May 10, 2007
presented by SunGard Relius
Form 5500 Workshop
in North Carolina on May 10, 2007
presented by SunGard Relius
Form 5500 Workshop
in Ohio on May 10, 2007
presented by SunGard Relius
Form 5500 Workshop
Nationwide on May 10, 2007
presented by SunGard Relius
Newly Posted Press Releases
AARP Supports Bipartisan Legislation to Give Workers Retirement Savings Options
AARP
Women's Retirement Security Act Of 2007 Introduced
American Council of Life Insurers
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Senior Communications Development Account Manager
for New York Life Investment Management - Retirement Plans Services
in MA
Actuarial Benefit Consultant
for Fidelity Investments
in IL, NC, NY, TX
401(k) Administrator/Consultant
for Madison Pension Services, Inc.
in NY
Senior Benefit Analyst
for Ameriprise Financial
in MN
Senior Marketing Manager
for Transamerica Retirement Services
in CA
401(k) Administrator
for R.L. Billings and Company
in IA
Retirement Plan Services Representative
for The Capital Group Companies
in IN
Employee Benefits Insurance Sales Professionals
for One of the nation's leading providers of Outsourced Business Services
in DC, FL, MD, PA
Client Relationship Consultant
for Gallagher Retirement Services
in NJ, NY, PA
Actuarial - exams preferred
for Benefit Jobs LLC
in ANY STATE
Labor Relations Liaison
for University of California, Office of the President
in CA
Defined Contribution Plan Administrator
for Shore Tompkins Actuarial Resources
in IL
Analyst/Consultant
for ESOP Economics, Inc.
in PA
Account Manager - Employee Benefits
for NEMCO Brokerage, Inc.
in NY
Account Manager (Insurance/TPA)
for Zenith Administrators
in NV
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: