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| June 1, 2007 |
Sponsored by: DATAIR Employee Benefit Systems, Inc.
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| 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. |
Text of Announcement 2007-59: OK to Add Certain Features to Safe Harbor 401(k) Plan in Mid-Year (PDF)
2 pages. Excerpt: "This announcement provides that a plan will not fail to satisfy the requirements to be a § 401(k) safe harbor plan merely because of mid-year changes to implement a qualified Roth contribution program (as defined in § 402A) or the hardship withdrawals described in part III of Notice 2007-7." (Internal Revenue Service)
Text of Rev. Proc. 2007-37: Application for Approval of Plan-Specific Substitute Mortality Table (PDF)
Excerpt: "A request for the use of substitute mortality tables generally must be submitted at least 7 months prior to the first day of the first plan year for which the substitute mortality tables are to apply. . . . Notwithstanding the generally applicable deadline, a request to use substitute mortality tables is timely if it is submitted on or before October 1, 2007." (Internal Revenue Service)
Summary: IRS Lays Out Process for Qualified Plans to Obtain Approval of Substitute Mortality Tables
Excerpt: "A request to use a substitute table is a request for a ruling. . . . The request must include various information justifying the use of the substitute table, and must be accompanied by a signed and dated copy of a 29-item checklist and a $9,000 user fee." (CCH Tax News)
Redefining Value and Prudent Process in Light of Recent Class Action Lawsuits over 401(k) Fees (PDF)
Excerpt: "In this paper, a new perspective on 'prudent process' and 'value' will be introduced, and the traditional definitions will be challenged. Fiduciaries will also be shown the type of quantitative data they need to objectively determine if their 'prudent process' is actually delivering 'value' to their participants." (Richard D. Glass via Investment Horizons, Inc.)
The Diffusion of Responsibility and Its Effect on Value in 401(k) Plans (PDF)
11 pages. Excerpt: "The factors that contributed to so many fiduciaries ignoring their responsibilities arise primarily from the sponsor's corporate culture, the historical paucity of lawsuits alleging fiduciary imprudence, and the diffusion among non-fiduciary advisors of responsibility for fiduciary decisions. . . . This paper will discuss how this bouillabaisse of responsibility evolved and the concomitant loss of what the letters 'I' and 'S' in ERISA represents -- income security." (Richard D. Glass via Investment Horizons, Inc.)
Investment Company Institute Fights Insurers on 401(k) Defaults
Excerpt: "The Investment Company Institute [is fighting] back against the life insurance industry's attempt to get stable-value funds included as 401(k) default investment options." (Investment News; free registration required)
Updated Statistical Profile of Employee Ownership
The NCEO has released its updated Statistical Profile of Employee Ownership, which details the growth and extent of ESOPs, employee stock options, 401(k) plans primarily invested in company stock, and stock purchase plans. (National Center for Employee Ownership)
New Jersey Public Pension Fund Faces Scrutiny from SEC
Excerpt: "The Securities and Exchange Commission has begun an inquiry into New Jersey's handling of its pension fund for public employees, a move that suggests federal regulators are concerned that the state did not properly disclose its contributions to the fund." (The New York Times; free registration required)
Editorial: Washington Education Association Sues State, Asking 'Gainsharing' Law Be Thrown Out
Excerpt: "A lawsuit by the teachers' union might have been expected, since an employee benefit was being taken away and replaced by a cheaper one. What's unexpected -- and unacceptable -- is that the lawsuit asserts a right to both benefits." (The Seattle Times)
An Actuarial Perspective on the 2007 Social Security Trustees' Report (PDF)
8 pages. Excerpt: "This issue brief provides an actuarial perspective on the most recent report, together with sufficient background material for readers to obtain a good understanding of (1) what the trustees are saying about the future financial condition of Social Security and (2) the limitations of the trustees' assessment." (American Academy of Actuaries)
Contacting Missing Plan Participants -- Practical Considerations
Excerpt: "This article will focus on the IRS and SSA letter forwarding services because they often are the method of last resort in contacting a missing participant or beneficiary and, more importantly, their use is often mentioned in guidance from the ERISA regulators as being one of the steps that plan administrators may or must take as part of their 'reasonable efforts' to contact plan participants in a variety of circumstances." (Trucker Huss)
Overview: Final Rules on Phased Retirement Reflect the PPA
Excerpt: "The final regulations modify certain existing rules, including Reg. Sec. 1.401(a)-1, which generally require a pension plan to be maintained primarily to provide for the payment of definitely determinable benefits after retirement. The regulations provide two exceptions to this rule." (Wolters Kluwer Law & Business)
Valuing a Retirement Savings Account Such as a 401(k) for a QDRO
Excerpt: "Defined contribution plans have become a very common marital asset in divorce cases. Knowledgeable attorneys are using Qualified Domestic Relations Orders directed at these plans to access a participant's account balance and tap into this ready source of cash to retire marital debt and/or equalize the property settlement." (divorcenet.com)
Employee Ownership Update for May 31, 2007
NCEO Executive Director Corey Rosen discusses the continued growth of ESOPs; a survey finding that about one-third of U.S. multinationals make all employees eligible for stock options or SARs; a survey of U.S. adults finding that 13% reported receiving stock-based compensation and 9% received stock options; a slowing termination rate for ESOPs; and the fact that the contractor who rebuilt the San Francisco Bay Area freeway section that recently collapsed is employee-owned. (National Center for Employee Ownership)
In France, Employer-Based Retirement Plans Gaining Ground
Excerpt: "Three years after the so-called Fillon Law offered employers and employees more ways to save for retirement, the number of employer-based savings plans known as PERCOs continues to grow. Companies have been slower, however, to convert their defined contribution plans into the PERE individual retirement accounts the law also authorized." (Watson Wyatt Worldwide)
In Can.ada, Phased Retirement, Other Pension Changes Included in Budget Plans
Excerpt: "Budgets proposed recently by the federal government and the provincial governments of Quebec and Alberta would make a number of changes to retirement programs. All three budgets are awaiting legislative approval but are expected to be enacted." (Watson Wyatt Worldwide)
International Update, May 2007
This monthly publication covers recent developments in foreign public and private pensions. (U.S. Social Security Administration)
Overview: Amounts Paid Into IRA Pursuant to Settlement Agreement Will Be Deemed Restorative Payments
Excerpt: "Amounts paid into an IRA from a settlement agreement were restorative payments, and therefore not subject to generally applicable restrictions on contributions and rollovers, the IRS has privately ruled." (Wolters Kluwer Law & Business)
American Benefits Council Amicus Brief in Second Circuit Cash Balance Plan Case (PDF)
46 pages. Excerpt: "Under Appellants' argument, virtually all cash balance plans and many other forms of hybrid defined benefit plans as well as other common defined benefit plan designs were unlawful until Congress provided otherwise in the Pension Protection Act of 2006. If this theory is accepted, the cost to American businesses will be astronomical and there is little doubt that many companies will exit the voluntary employer-maintained defined benefit system . . . ." (American Benefits Council)
Report of the Working Group on Rule 12b-1 and Mutual Funds (PDF)
77 pages. Excerpt: "Although most funds rely on 12b-1 fees to finance at least some portion of their distribution efforts, recent media coverage and regulatory commentary have questioned whether Rule 12b-1 continues to serve the purpose for which it was originally intended, whether it benefits investors, and, therefore, whether it should be amended or repealed." (Investment Company Institute)
A Late Bloomer's Guide to Saving - Adapted from Kiplinger's Retirement Planning 2007 Guide
Excerpt: "If you count yourself among these late bloomers, don't panic. You can still afford to retire. It will mean ramping up your savings and might mean delaying retirement. But here's the good news: With increasing life expectancies, you still have plenty of time to get it right." (The Kiplinger Washington Editors)
New York Life Program Aims to Help Employers Tailor Retirement Planning
Excerpt: "New York Life Investment Management's retirement plan services division has come out with a program to help employers better understand workers' retirement planning behavior by categorizing plan participants into six segments." (PLANSPONSOR.com; free registration required)
Sponsored by: The Center for Tax Law and Employee Benefits at The John Marshall Law School
(Click on company name or banner to learn more.)
| Enhance Your Employee Benefits Career |
| The John Marshall Law School Center for Tax Law and Employee Benefits invites you to improve your marketability by earning an advanced degree in Employee Benefits in the heart of Chicago. We offer an M.S. degree in Employee Benefits for non-attorney benefits professionals and an LL.M. degree in Employee Benefits for attorneys. Attend an Information Session Monday, June 11 at noon or 5 p.m. Visit www.jmls.edu/employee.html for more information. |
| (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
GASB Says Statement No. 50, Pension Disclosures, Amends GASB Statements No. 25, and No. 27
Excerpt: "The provisions of Statement 50 generally are effective for periods beginning after June 15, 2007, with early implementation encouraged. The requirements relating to governments using the aggregate actuarial cost method are effective for financial statements and required supplementary information that contains information from actuarial valuations as of June 15, 2007, or later." (PLANSPONSOR.com; free registration required)
Overview of Section 409A-- Action Steps Required in 2007 (PDF)
7 pages. Excerpt: "This advisory focuses on action steps that must be taken during 2007 to comply with Section 409A. Accordingly, this advisory presents only a very general overview of the requirements of Section 409A." (Alston & Bird LLP)
HR Should Beware Corporate Executives Deciding to Secretly Backdate Stock Options
Excerpt: "When it comes to the complex and, at times, sensitive matter of stock-option grants for top executives, HR can ill afford to trust that everything will be just fine if they let others worry about the details." (Human Resource Executive Online; free registration required)
2 Companies Settle Charges of Backdating stock options
Excerpt: "Two technology companies, Brocade Communications Systems and Mercury Interactive, [yesterday] became the first two companies to pay fines to settle federal accusations of civil fraud in connection with backdated stock options." (AP via The New York Times; free registration required)
Newly Posted Events
2007 Spring Webinar Series: 401(k) Bootcamp
Nationwide on June 19, 2007
presented by Polycomp Administrative Services, Inc.
2007 Spring Webinar Series: Check-in for a Check-up
Nationwide on June 12, 2007
presented by Polycomp Administrative Services, Inc.
2007 Spring Webinar Series: Check-in for a Check-up
Nationwide on June 13, 2007
presented by Polycomp Administrative Services, Inc.
2007 Spring Webinar Series: How To Be Your Client's Hero Under the Pension Protection Act (PPA 2006)
Nationwide on June 14, 2007
presented by Polycomp Administrative Services, Inc.
2007 Spring Webinar Series: How to Take Advantage of Changes Under the Pension Protection Act (PPA 2006)
Nationwide on June 14, 2007
presented by Polycomp Administrative Services, Inc.
2007 Spring Webinar Series: Prospecting Under the Pension Protection Act (PPA 2006)
Nationwide on June 13, 2007
presented by Polycomp Administrative Services, Inc.
No Employee Left Behind
in Ohio on June 14, 2007
presented by ASPPA Benefits Council of Cleveland
Newly Posted Press Releases
U.S. Labor Department Obtains Independent Fiduciary To Oversee Texas Health Benefit Plan
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Principal Financial Group Offers New Retirement Savings Platform for Underserved Micro-market
Principal Financial Group
New Of Counsel Specializing in Tax and Employee Benefits
Reish Luftman Reicher & Cohen
InterOcean Retirement Services Introduces The Fiduciary Compass
InterOcean Wealth Management
Arby's® Helps Office Workers Take a Real Lunch Break
Arby's Restaurant Group, Inc.
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
401(k)/DC Administrator
for Levy & Associates in Sunny Ft. Lauderdale, Florida
in FL
Consulting/Marketing Manager
for Associated Pension Consultants
in CA
Paralegal
for 1199SEIU Benefit and Pension Funds
in NY
Conversion Manager II
for Automatic Data Processing
in KY
Benefits and Compensation Manager
for Holy Spirit Health System
in PA
Associate Product Manager
for Citi-Smith Barney
in NY
ERISA/Financial Services Attorney
for Financial Engines
in CA
Client Relationship Manager - San Mateo, CA
for Transamerica Retirement Services
in CA
Client Services Representative - DC Plans
for Summit Retirement Plan Services, Inc.
in OH
Institutional Trust Communication Specialist
for BB&T - Branch Banking & Trust
in DC, MD, VA
Client Relationship Manager-Los Angeles, CA or Denver, CO
for Transamerica Retirement Services
in CA, CO
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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