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| May 18, 2007 |
Sponsored by: ASPPA and WP&BC
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| 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 |
What to Do After Improperly Excluding Employees from Designated Roth Contributions
Excerpt: "There is a new methodology under the Employee Plans Compliance Resolution System (EPCRS) for correcting the defect of improperly excluding employees from a 401(k) and/or (m) arrangement. The new guidance, contained in Revenue Procedure 20206-27 (the 'Rev. Proc.') is helpful and addresses obvious inequities under the prior guidance." (Reish Luftman Reicher & Cohen)
Report: Maximizing the Value of Company Stock at Retirement (PDF)
28 pages. Excerpt: "[The Institute takes] a focused look at one particular strategy for utilizing Net Unrealized Appreciation . . . which applies specifically to those individuals who own company stock in their workplace savings plans, e.g. 401k and ESOP." (Fidelity Research Institute)
Working Paper: Literacy, Trust and 401(k) Savings Behavior
Excerpt: "Our findings underscore the importance of ongoing workplace education for both voluntary and automatic enrollment plans and highlight the unique issue of trust in automatic enrollment plans." (Center for Retirement Research at Boston College)
Debate on 401(k) Investments Pits Mutual Funds vs Insurers
Excerpt: "A U.S. Labor Department proposal floated last year that might boost long-term U.S. retirement savings by as much as $90 billion has gotten hung up by debate about excluding safe but lower-yielding insurance products from the mix of default investment options for 401(k) plans." (Dow Jones Newswires via Stockgroup Media Inc.)
What's Not on 401(k) Participant Statements
Excerpt: "A rule that took effect April 1 makes it easier for investors to see what sales commissions and annual fees they are paying for mutual funds. But it's causing confusion for some 401(k) participants, who are now getting less information about their funds, not more. Fidelity, a major 401(k) service provider, has temporarily pulled fund-performance data from quarterly statements while it tries to comply with the new rule." (San Francisco Chronicle)
The 'Longevity Problem:' How Do We Provide for a Participant Who Outlives His or Her 401(k) Balance?
Excerpt: "If 401(k) plans are to become the primary retirement savings vehicle for America's workers, three things have to happen: We have to increase contributions; we have to improve returns; and we have to solve the longevity problem." (PLANSPONSOR.com; free registration required)
401(k) Fees 'Not Excessive or Unreasonable,' According to International Paper Company
Excerpt: "Lawyers for International Paper Company (IPC) -- one of a series of legal targets for class-action participant lawsuits alleging excessive 401(k) fees filed last year -- insist that the company did nothing wrong." (PLANSPONSOR.com; free registration required)
Study Reveals Improvement in Pension Funding Despite Lower Employer Contributions
Excerpt: "Due to discount rate increases and strong investment returns, the funded status of pension plans significantly improved during 2006, according to a recent study conducted by Milliman Consultants." (Wolters Kluwer Law & Business)
The Age for Phased Retirement Is an Issue
Excerpt: "[A little-noticed debate is taking place in Washington about] the age at which government, through laws regulating pensions, should allow 'phased retirement'--a set-up in which employees collect at least part of their pensions, while staying on a company's payroll at least part time. Last year, in its big pension law rewrite, Congress allowed employers--if they chose--to pay pensions to workers, 62 or older, who remain on the payroll. Previously, the rules didn't allow this." (Forbes.com)
Hewitt Comment Letter on DOL's Interim Final Regulations on Qualified Domestic Relations Orders (PDF)
14 pages. (Hewitt Associates)
Minimum Required Distribution Failures: A Way to Get Relief from the Potentially Severe Excise Tax?
Excerpt: "Fortunately, the Employee Plans Compliance Resolution System (EPCRS) (as currently described in Rev. Proc. 2006-27) provides for a waiver of the excise tax under Code section 4974." (Reish Luftman Reicher & Cohen)
Opinion: Real Retirement Security - What Would it Look Like?
Excerpt: "The massive PPA-2006 did a little to protect the security of one government agency. But PPA did almost nothing to protect the retirement security of those who need it the most. These are the people who are unlikely to accumulate adequate retirement security without employer-sponsored or government-sponsored assistance -- the very same middle income employees (Studebaker's 'losers') who needed it the most 40 years ago just before ERISA's enactment (the 'target group')." (Carl Johnson via Pension & Benefits blog)
Emotions Affect Retirement Savings Decisions, According to Prudential Study
Excerpt: "Five emotions can influence retirement investors to react to market uncertainty in ways that may not be in their best interest, according to a new Prudential Financial survey. A Prudential news release those emotions include fear, regret, inertia, aggressiveness and susceptibility." (PLANSPONSOR.com; free registration required)
Social(k) Calling for Retirement Plan Participant Pressure on Fidelity
Excerpt: "If your retirement plan has investments at Fidelity, you may soon be asked to help prod the mutual fund giant to divest itself of investments linked to Sudan." (PLANSPONSOR.com; free registration required)
New Pension Law in the Netherlands Brings New Requirements for Pension Funds
Excerpt: "Employers in the Netherlands are adjusting to a new pension law aimed at improving the security of employees' benefits by setting tougher funding rules, setting a stronger framework for the governance of employer-sponsored pension funds and improving information to participants." (Towers Perrin)
Australian Superannuation Simplification Changes Take Effect in July
Excerpt: "Changes to simplify the Australian superannuation (pension plan) rules have now received final government approval and will go into effect on July 1, 2007. The changes mark the biggest overhaul of the Australian retirement system since the beginning of compulsory employer contributions through the Superannuation Guarantee program in 1992." (Towers Perrin)
Argentina's Social Security Reforms Bring Changes for Employers
Excerpt: "Social security reforms adopted in February are prompting employers in Argentina to consider making major changes to their retirement programs for employees." (Towers Perrin)
Links to Items on Executive Comp, Benefits in General
Working Paper: Why Do Japanese Workers Remain in the Labor Force So Long?
Excerpt: "As part of the search for answers to questions about what could be done to increase labor force participation rates among older workers in the United States, it makes sense to take a close look at evidence from Japan, one of the few industrial countries with a higher labor force participation rate among older workers than the United States." (Center for Retirement Research at Boston College)
Barney Frank Eyes Private-Equity Pay Cut
Excerpt: "House Financial Services Committee Chairman Barney Frank threatened legislative action if Congress finds that private-equity deals spawn a 'gross imbalance' in pay between the workers in the affected companies and the executives and entrepreneurs who take those companies private." (CFO.com)
Overview: Final 409A Regulations Provide Guidance on Equity Compensation (PDF)
Excerpt: "This Client Alert focuses on the portions of the Final Regulations that affect stock options, stock appreciation rights and other forms of equity compensation." (Paul, Hastings, Janofsky & Walker LLP)
Overview: IRS Guidance on Public Disclosure of Form 990-T (PDF)
2 pages. Excerpt: "On May 9, the IRS issued Notice 2007-45, which provides interim guidance on the new Form 990-T public disclosure requirement enacted as part of the Pension Protection Act of 2006 (PPA)." (Morgan, Lewis & Bockius LLP)
Overview of What's New Under the Final 409A Regulations
Excerpt: "In addition to more traditional deferred compensation plans and arrangements, Section 409A is broadly applicable to many severance and change of control arrangements, employment agreements, equity compensation and other arrangements that had not been typically viewed as 'deferred compensation.'" (Kirkpatrick & Lockhart Preston Gates Ellis LLP)
Webcast on Executive Compensation Highlights Findings from 2007 Proxy Filings
Excerpt: "In a recent Webcast, a team of Towers Perrin leaders presented an analysis of executive pay levels and practices based on an examination of proxy statements filed by more than half of the Fortune 500 companies. These represent the first filings by major U.S. companies under the SEC's new proxy disclosure rules." (Towers Perrin)
Newly Posted Events
Elements of State Health Reform Value-Driven Health Care through Quality Improvement and Measurement - Webcast
Nationwide on May 25, 2007
presented by KaiserNetwork.org
Estate Planning Considerations for Qualified Plans and IRAs
in Illinois on June 7, 2007
presented by SunGard Relius
Estate Planning Considerations for Qualified Plans and IRAs
in Minnesota on June 8, 2007
presented by SunGard Relius
Newly Posted Press Releases
Statement by PBGC Interim Director on Additional Financial Protection Obtained for Chrysler Pension Plans
Pension Benefit Guaranty Corporation (PBGC)
Safety-Kleen and Oklahoma Employees Benefits Council Honored by SouthWest Benefits Association for Retirement and Health Benefits Best Practices
SouthWest Benefits Association
Buyers Health Care Action Group Set To Profile Minn. Governor's "Fit Workplaces" Initiative
HPI Advisors, LLC
Leading Financial Service Organizations To Help Fee-Only Advisors Follow PPA Provisions for "Fiduciary Adviser" Standard
National Association of Personal Financial Advisors (NAPFA)
Newly Posted or Renewed Job Openings
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Employee Benefits Administration
for Primary Consulting, Inc.
in ANY STATE
Pension Actuary
for Chicago Suburban Pension Firm
in IL
Relationship Manager - Defined Contribution Plans
for Vanguard
in PA
Handy Links:
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