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May 23, 2007
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Sponsored by: DATAIR Employee Benefit Systems, Inc.

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Text of Amendments to Final IRS Regs Under Section 415 (Limitations on Contributions and Benefits) (PDF)
4 pages; these amendments to several sentences in the final regulations are in addition to a small correction of a typographical error in the final regulations; that small correction was published separately on this date by the IRS. (Internal Revenue Service)

Text of Correction to IRS Final Regs Under Sec. 415 (Limitations on Contributions and Benefits) (PDF)
2 pages. Excerpt: "This document contains a correction to final regulations (TD 9319) that were published in the Federal Register on Thursday, April 5, 2007 . . . . [U]nder the paragraph heading C. Determination of High-3 Average Compensation . . . the language 'participant in rehired.' is corrected to read 'participant is rehired." (Internal Revenue Service)

Overview: Final Roth 401(k) Regulations
Excerpt: "The regulations are generally applicable January 1, 2007. The rollover rules and the prohibition on manipulation of accounting are, however, applicable January 1, 2006." (JPMorgan Chase & Co.)

Motorola Out to Cut Pension Fund Shortfall
Excerpt: "The Motorola pension fund -- which serves about 91,000 U.S. participants -- had $4.3 billion in assets but owed $5.5 billion in long-term benefit obligations in 2006, leaving the fund underfunded by $1.2 billion, according to a filing with the U.S. Securities and Exchange Commission." (Daily Herald)

New Mckinsey & Company Research Predicts Defined Benefit Market Ready for Major Upheaval
Excerpt: "The U.S. defined benefit pension market is going to be hit with a massive shakeup that will see three-quarters of private-sector DB assets frozen or terminated in the next five years, compared to 25% currently.That was a key conclusion of new McKinsey & Company research that predicted at least $1 trillion in private-sector defined benefit assets will be invested in entirely different products and solutions by 2012, according to a McKinsey news release." (PLANSPONSOR.com; free registration required)

IRS Finalizes Phased Retirement Pension Distribution Rules
Excerpt: "The Treasury Department and Internal Revenue Service (IRS) released their final regulations on phased retirement, which laid out the tax-related requirements for pension distributions to those who continue working beyond retirement age." (PLANSPONSOR.com; free registration required)

Editorial: It's Long Past Time for Pension Reform in Massachusetts
Excerpt: "[L]awmakers have ignored this fine mess long enough. During a time of fiscal constraint, they can - and they must - send a message to taxpayers by enacting sensible reforms in the way state pensions are calculated." (Boston Herald)

Michigan House Tackles Bills Taxing Pensions, Limiting Benefits of Public Employees
Excerpt: "The state House began taking action Tuesday on a series of bills that would limit public employee health and retirement benefits, tax their pensions . . . ." (Detroit Free Press)

Decide on Investment Consultant Type before Hiring Outsider, Says Greenwich Report
Excerpt: "Before they hire an investment consultant, institutional investors need to first decide what kind of adviser they need.That was a key recommendation in a new Greenwich Associates report that identified eight questions plan sponsors should answer before starting their consultant search, according to a Greenwich news release." (PLANSPONSOR.com; free registration required)

Issue in Brief: Do People Plan to Tap Their Home Equity in Retirement
Excerpt: "As the baby boomers retire and the retirement income system contracts, housing equity is likely to become an increasingly important source of support. To see if attitudes are changing about the potential for using one's home to cover living expenses in retirement, this brief reports on a survey that asks older working people today the role they think their house will play in their future." (Center for Retirement Research at Boston College)


Sponsored by: SunGard Relius

(Click on company name or banner to learn more.)
Banner ad for SunGard Relius

Relius Administration Retirement Plan Recordkeeping Software

Software for daily-valued and balance-forward retirement plan recordkeeping used in more than 1,000 pension businesses. Relius Administration offers Plan Sponsor and Participant Web access, straight-through processing for automated trading, payroll and transaction processing, compliance testing and reporting capabilities for DB/DC/401(k) plans -- as well as support for cafeteria /125 plans. Offered as an installed or hosted (ASP) application, Relius Administration is supported by more than 300 professionals and is backed by the financial strength of SunGard.

Contact us: 800-326-7235, ext. 1100 E-mail: reliusinfo@relius.net


(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)

Links to Items on Executive Comp, Benefits in General

Workers Could Gain Health Insurance, Pensions Under Employee Free Choice Act
Excerpt: "If the Employee Free Choice Act becomes law, approximately 3.5 million more people in the U.S. would have employer-based health insurance and 2.8 million more people would have employer-based pensions, according to a new report issued by a public policy organization." (Wolters Kluwer Law & Business)

Preparing for an Aging Workforce: A Focus on New York Businesses
Excerpt: "This late 2006 AARP survey of 400 employers across the state examines employer perception and action concerning worker shortages, loss of institutional knowledge, and retention of older workers." (AARP)

Presentation on the Final 409A Regulations: Severance and Distribution Issues (PDF)
35 pages. Excerpt: "Overview of 409A Distribution Rules: Distributable events; Restrictions on distributions to specified ('key') employees. Severance: Which payments are subject to 409A? May be subject to the six-month delay if made to key employees; What flexibility do employers have in structuring severance payments?" (Morgan, Lewis & Bockius LLP)

Overview: Receipt/Solicitation of or Payment/Promise of Kickbacks in Connection with an ERISA Plan
Excerpt: "Today, it is more important than ever that plan fiduciaries, particularly members of the plan's investment committee, understand the self-dealing and kickback prohibitions applicable to plans subject to the Employee Retirement Income Security Act of 1974 (ERISA), as amended, and review their plans' decision making practices for compliance." (PLANSPONSOR.com; free registration required)

Why Benefits Matter and How to Maximize the ROI
Excerpt: "This article examines data from the [Rewards of WorkSM Study] to explore strategies for improving benefit satisfaction. It also addresses factors employers should consider before selecting a strategy." (The Segal Group, Inc.)


Newly Posted Press Releases

Former California Executive Charged with 18 Counts of Embezzling 401(k) Assets, Fraud and Tax Evasion Following U.S. Labor Department Investigation
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

U. S. Labor Department Extends Annual Reports Deadline After Severe Storms and Flooding Hit Kansas
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

ERIC Supports Health-Care Coverage Expansion, But Concerned About Intrusion on ERISA Preemption
ERIC (ERISA Industry Committee)

CEO Of 1 Point Solutions Indicted On 78 Counts Related To Embezzlement Of Over $15 Million In Retirement Funds
U.S. Department of Justice


We're one of the top 350 employment sites on the web!Newly Posted or Renewed Job Openings
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Defined Contribution Retirement Plan Administrator
for Loren D. Stark Company, Inc.
in TX

Employee Benefits Specialist
for Steptoe & Johnson PLLC
in OH

Actuarial Specialist
for Kravitz - Louis Kravitz & Associates
in CA

Quality Assurance Specialist
for Standard Insurance Company
in WA

Sr. Retirement Plan Consultant
for Standard Insurance Company
in TX

SR. EB Recordkeeper/Tester
for Wachovia
in NC

Plan Administrator
for Retirement Plan & ERISA Specialists
in IL

Director - Product Management
for Leading Financial Services Software Vendor
in NY

Compliance Manager - Retirement Solutions
for Union Bank of California
in CA

Plan Accounting Manager
for Benefit Consultants Group
in NJ

Consultant, Health & Welfare
for Cammack LaRhette Consulting
in CT, MA, ME, NH, NY, RI, VT

Relationship Manager
for Swerdlin & Company
in GA

Relationship Manager
for Fidelity Investments
in KY, TX

Membership & Administrative Coordinator
for National Tax Sheltered Accounts Association
in MO

401(k) Education Officer
for City National Bank
in CA

Account Manager / Employee Benefit Analyst
for JR Katz
in IL

National Accounts Communication Specialist
for MassMutual Financial Group
in MA

Associate Benefit Consultant
for Thorbahn
in MA




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