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IRS Final Regs: Distributions from a Pension Plan upon Attainment of Normal Retirement Age (PDF) Excerpt: "17 pages. Effective Date: These regulations are effective May 22, 2007. Applicability Dates: These regulations are generally applicable May 22, 2007." (Internal Revenue Service) IRS Closely Scrutinizing 'Greater-Of' Cash Balance Plan Formulas (PDF) 4 pages. Excerpt: "As the post-PPA determination letter process for cash balance plans gets into full swing, it has become increasingly clear that a particular area of focus during the IRS review process will be whether the plan's benefit formula satisfies the Code's 'anti-backloading' standards." (Ivins, Phillips & Barker via BenefitsLink.com) In 401(k) Default Fight, Insurers Continue Efforts to Have Stable Value Included Excerpt: "As regulators weigh new rules on which investments to use for employees automatically enrolled in 401(k) plans, the insurance industry is playing political hardball and warning that not including stable-value funds as one of the qualified investments could end up hurting 401(k) plans and participants." (Financial Week; free registration required) Opinion: What Accounts for the Negligible Uptick in Participation Rates in Automatic Plans? Excerpt: "Plan sponsors who think the Pension Protection Act's automatic enrollment safe harbor represents an easy solution to disappointing participation rates may have another 'think' coming, according to the findings of recent industry data -- Including PLANSPONSOR's own 2006 Defined Contribution Survey." (PLANSPONSOR.com; free registration required) New Hampshire State Pensions in Jeopardy Once Again Excerpt: "A compromise to reform the state's pension system is in jeopardy after police officers and firefighters sought changes. The $5 billion state retirement system is only two-thirds funded for its long-term obligations because of several years of lagging stock market performance, and lawmakers have been working on legislation to bolster it. The system serves about 20,000 retirees and 50,000 current employees." (The Telegraph) The Fifth Annual Survey of the State of the Defined Benefit Marketplace Excerpt: "From funding status, portfolio returns, contributions, governance, and much more - including information on which managers are providing innovative services - this survey is a must-read for any employer considering or currently offering a defined benefit plan to employees." (PLANSPONSOR.com; free registration required) Daimler Promises to Pay $1 Billion If Chrysler's Overfunded Pension Plans End Within Five Years Excerpt: "In yet another sign of how hard it has been for DaimlerChrysler AG to extricate itself from its ill-fated ownership of Chrysler, the German carmaker has promised to pay $1 billion into the Chrysler pension plans if the plans terminate within five years, according to the Pension Benefit Guaranty Corp." (CFO.com) Overview: 'Automatic IRA' Bill Introduced in House and Senate Excerpt: "Legislation has been introduced in Congress to require employers without retirement plans to establish automatic payroll deposit IRAs for their employees." (Wolters Kluwer Law & Business) Editorial: The Pension Rights Center's Pension System Proposal Is Worth a Look Excerpt: "Although most of the proposals are aimed at providing small companies with retirement plan options they could provide to their employees, they also may appeal to large and midsize employers. Others are aimed at making retirement saving easier and more attractive for individuals." (Investment News; free registration required) PBGC Disaster Relief Announcement 07-11 in Response to Severe Storms and Tornadoes in Kansas Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the severe storms and tornadoes that occurred on May 4, 2007, in Kansas." (Pension Benefit Guaranty Corporation) PBGC Disaster Relief Announcement 07-10 in Response to Severe Storms and Tornadoes in Texas Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the severe storms and tornadoes that occurred on April 21-24, 2007, in Texas." (Pension Benefit Guaranty Corporation) PBGC Disaster Relief Announcement 07-09 in Response to Severe Storms & Flooding in NJ, NY, NH Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the severe storms and flooding that occurred April 14 - 18, 2007, in New Jersey, New York and New Hampshire." (Pension Benefit Guaranty Corporation) PBGC Disaster Relief Announcement 07-08 in Response to Severe Storms and Tornadoes in New Mexico Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the severe storms and tornadoes that occurred on March 23-24, 2007, in New Mexico." (Pension Benefit Guaranty Corporation) Factors Affecting Financial Retirement Preparation through Employer Sponsored Retirement Plans Excerpt: "This study examines the effect of various social, demographic, and economic variables on retirement preparation and discusses ways in which policy makers can use this information to mandate legislation that will motivate individuals to save for retirement." (Social Science Research Network) Sponsored by: ASC & The ASC Institute (Click on company name or banner to learn more.)
Links to Items on Executive Comp, Benefits in General As Workers Get Older or Retire, Companies Need to Adapt Excerpt: "There are various ways to prepare your business for the graying of the work force, said Kathy Hyde, eldercare services director of Family & Workplace Connection, a non-profit organization in Wilmington that helps people find care for their children and parents. Older workers value flexibility, whether that means working fewer hours, job sharing or telecommuting, she said." (The News Journal) Opinion: The Mounting Retirement and Health Care Obligations of American Auto Makers Excerpt: "The Big Three U.S. car companies -- Chrysler, General Motors and Ford -- have collective health and pension liabilities of about $95 billion. More than half of that amount is related to retirees." (St. Louis Post-Dispatch) Third Circuit Reverses Penalty Award for Failure to Produce Plan Documents re Clear Notice Test Excerpt: "EBIA Comment: While the plan administrator ultimately won on appeal, this case once again underscores the importance of having retirement and welfare plan procedures to identify and deal appropriately with plan document requests to avoid potential penalties." (Employee Benefits Institute of America Inc.) Executive Compensation: New Proxy Disclosure Rules Enhance the Pay Role of HR Excerpt: "As human resources executives take the lead in the proxy disclosure process under the SEC's new executive compensation rules, they are entering a new era of responsibility and engagement with the board of directors." (Workforce Management; free registration required) Overview: Traditional Nonqualified Deferred Compensation Plans under Final Section 409A Regulations Excerpt: "This Client Alert focuses on the application of Section 409A and the final regulations to traditional nonqualified deferred compensation plans (NQDC plans) and is intended to help guide companies through some of the more complex provisions of the final regulations that are applicable to NQDC plans." (Wilson Sonsini Goodrich & Rosati) ERISA Section 510 Claims Time Barred Under Tolle Rule Excerpt: "Along the thorny path to establishing a viable Section 510 claim a plaintiff encounters the same limitations period imbroglio as in pursuing a claim for benefits - but in additional dimensions." (Health Plan Law blog by Attorney Roy F. Harmon III) International Headlines, May 16, 2007 Excerpt: "Top stories in this issue: Can.ada: Defined benefit plan rescue proposal; India: Finance Bill 2007 passed; FBT compromise hinted; Malaysia: EPF amendment bill approved; Norway: Pension reform; Taiwan: Pension updates; UK: PPF seeks tax relief for large contributions." (Mercer Human Resource Consulting LLC and Mercer Investment Consulting, Inc.; free registration required) Growing Divide Between the Rich and Poor in America Is More Generation Gap Than Class Conflict Excerpt: "Because the older generation hasn't set aside enough money to cover promised government benefits, young people will have to make up the difference or older people will face benefit cuts. The financial shortfalls of Social Security and Medicare over the next 75 years are so large -- $340,000 per household -- that they dwarf the wealth of every age group. This hidden debt will make it a challenge for young people to accumulate as much wealth late in life as their parents have." (USA TODAY) Future Retirees Expect to Work Longer, According to Gallup Poll Excerpt: "Nearly three-quarters of workers say they plan to continue working on a part-time basis after retirement, a far greater number than the 22% of current retirees that now rely on part-time income, a recent Gallup poll found." (PLANSPONSOR.com; free registration required) Newly Posted Events 17th Annual National Health Benefits Conference & Expo (HBCE) in Florida on January 17, 2008 presented by Health Benefits Conference & Expo Navigating the Health Care System: What Every Employer and Consumer Needs to Know About Improving Health Care Quality in Maryland on June 7, 2007 presented by Worldwide Employee Benefits Network (WEB) - Baltimore Chapter The 5th Annual 412(i)Summit in Illinois on August 1, 2007 presented by Executive Benefits Design Group Newly Posted Press Releases Global Expansion Marks 25th Anniversary of Workplace Options Workplace Options Newly Posted or Renewed Job Openings (Post a Job | View All Jobs) Pension Consultants/Administrators for Northern NJ Mid-Size Pension Consulting Firm in NJ Fund Accounting and Asset Unitization Manager for Reliance Trust Company in GA 401(k) Plan Administrator/Consultant for Retirement Plan Administrators, LLC in GA Part-Time Training Facilitator for Professional Development Solutions, LLC in ANY STATE Manager of Pension Services for Valley Forge Consulting Corporation in PA Retirement Sales Consultant for Standard Insurance Company in OH Retirement Sales Consultant for Standard Insurance Company in OH New Business Coordinator for GPS Investment Advisors, LLC in RI Sr Account Mgr-RP for Standard Insurance Company in OR Account Manager - Retirement Services for Wall Street Access in NY ERISA Attorney for Great-West Retirement Services in WI Compliance Specialist for Great-West Retirement Services in WI Defined Contribution Administrator for Howard Feinstein & Associates in IL Business Development Officer - DC Sales for Payden & Rygel in ANY STATE, AL, AR, AZ, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, SD, TN, TX, UT, VA, VT, WI, WV, WY Handy Links:
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