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June 7, 2007
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Sponsored by: DATAIR Employee Benefit Systems, Inc.

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Compliance Checklist 2007 for Defined Benefit Plans, Defined Contribution Plans, and 403(b) Plans (PDF)
37 pages. Excerpt: "The Checklist incorporates Defined Benefit, Defined Contribution and ERISA 403(b) requirements and provides information on the materials that you will need to file, filing due dates, and agencies to which the filings should be made." (Prudential Financial)

Overview: Final Code Section 415 Regulations: Defined Contribution Plans
Excerpt: "The general rule under section 415 is that a defined contribution plan is a plan providing participants with individual accounts in which the participants' benefits are based solely on the amount contributed to the accounts, plus allocable income, losses, expenses and forfeitures." (Hanson Bridgett Marcus Vlahos & Rudy, LLP)

Plan Sponsors See Commission Disclosure As Positive, According to Study
Excerpt: "More than two-thirds of plan sponsors and more than 60% of investment managers say they want the Securities and Exchange Commission (SEC) to draw clearer lines for disclosure requirements for commissions paid to brokers for research and trade execution, a recent study suggests." (PLANSPONSOR.com; free registration required)

Many Multiemployer Plans May Need Funding Improvements in Order to Meet PPA Requirements in 2008
Excerpt: "Forty-two percent of multiemployer plans in a recent survey would need to develop funding improvement plans in order to meet the PPA requirements for such plans effective in 2008, based on current measurements, according to consultant Segal Company." (Wolters Kluwer Law & Business)

Overview: IRS's Proposed Regulations on Mortality Tables Under PPA (PDF)
3 pages. Excerpt: "The IRS has issued proposed regulations defining the mortality tables to be used for defined benefit plan funding under the Pension Protection Act of 2006 (including for determining current liability for multiemployer plans). These tables, which are to be used for 2008 plan years, reflect the same mortality basis as required for 2007 plan years. The proposed regulations also provide rules for the use of plan-specific tables." (Buck Consultants)

Senators Eye Pension Relief Provision for Airlines
Excerpt: "The top Democrat and Republican on the Senate Finance Committee asked two airlines Wednesday to outline the benefits they will get from a provision extending them pension relief that was put into the Iraq war spending bill at the last minute." (AP via The Washington Post; free registration required)

Text of ASPPA's Comments to DOL on PPA Participant Benefit Statement Requirements (PDF)
6 pages. Excerpt: "The PPA's vesting disclosure requirement should be satisfied by either referencing the [SPD] for the plan or providing a description of the plan's vesting schedule, by itself, without specific participant data such as date of hire, years of service, or hours of service. . . . ASPPA [also] recommends that only defined benefit plans should be required to provide disclosure on benefit statements regarding the use of permitted disparity in determining benefits." (American Society of Pension Professionals and Actuaries (ASPPA))

Revised Overview: Congress Reintroduces Bills to Repeal the Social Security GPO and WEP (PDF)
Pages 3- of 6 pages. Excerpt: "On January 4, 2007, U.S. Representatives Howard Berman (D-CA) and Howard 'Buck' McKeon (R-CA) reintroduced the Social Security Fairness Act of 2007 (H.R. 82) to repeal the Social Security Government Pension Offset (GPO) and Windfall Elimination Provision (WEP)." (Gabriel Roeder Smith & Company)

Overview: IRS Defines Normal Retirement Age (PDF)
2 pages. Excerpt: "The IRS recently issued final regulations defining normal retirement age for defined benefit or money purchase pension plan purposes, including benefit accrual and minimum vesting rules under Section 411. These regulations, which are generally effective May 22, 2007, finalize one aspect of proposed regulations issued in 2004 that were designed to sanction certain phased-retirement programs." (Buck Consultants)

Rollover to IRA of Nonspousal Beneficiary Allowed Where Plan Promised to Amend to Comply with PPA
Excerpt: "A direct trustee-to-trustee transfer of a deceased participant's plan assets to the IRA of a nonspousal beneficiary subsequent to a plan amendment allowing such direct transfers to non-spouses may be accomplished as a tax-free rollover, the IRS has privately ruled." (Wolters Kluwer Law & Business)

7th Circuit Opinion Permits Suit by Former ESOP Participants - A Balanced View Of Standing To Sue
Excerpt: "In this opinion, the Judge Posner analyzed the current confusion over standing in ERISA cases in the context of a suit by retired employees who had cashed out their retirement benefits provided through an ESOP." (Health Plan Law blog by Attorney Roy F. Harmon III)

Highlights for Public Retirement Systems of New Section 415 Regulations
Excerpt: "On April 5, 2007, the IRS published new section 415 regulations. 72 Fed. Reg. 16878. These regulations solve one critical issue for most public sector retirement systems -- how to treat COLAs." (Hanson Bridgett Marcus Vlahos & Rudy, LLP)

Overview: New ADEA Cash Balance Rules and Governmental Plans (PDF)
Pages 1-2 of 6. Excerpt: "While governmental plans are generally not subject to the vesting and benefit accrual rules of IRC § 411, they are subject to the ADEA. Under the new ADEA rules, a cash balance plan or other 'applicable defined benefit plan' will not be treated as age discriminatory if, under the terms of the plan, a participant's 'accrued benefit' is equal to or greater than that of a 'similarly situated' younger individual." (Gabriel Roeder Smith & Company)

Patenting Employee Benefits Advice
Excerpt: "A couple of professional organizations have raised concerns regarding whether tax strategies or employee benefits strategies should be patentable. Calling a strategy 'patented' carries with it an air of government approval of the strategy which is not accurate since the patent and trademark office reviews patent applications to determine if the idea is novel, useful and not obvious." (Pension & Benefits Blog)

Towers Perrin U.S. Legislative Tracking Charts -- Retirement -- Updated June 6, 2007 (PDF)
5 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)

Overview: Treasury Issues Final Section 415 Regulations-- Application to Defined Benefit Plans
Excerpt: "The final regulations generally reflect the proposed regulations with a few significant modifications. The final regulations also add provisions related to the Pension Protection Act of 2006 (the 'PPA'). The IRS has included proposed conforming changes to regulations under sections 401(a)(9), 401(k), 403(b) and 457 of the Code." (Hanson, Bridgett, Marcus, Vlahos & Rudy, LLP)


Sponsored by: Cassidy Retirement Group

(Click on company name or banner to learn more.)
Banner ad for Cassidy Retirement Group

Just published "A Manager's Guide to Strategic Retirement Plan Management"!

Daniel Cassidy, President of Cassidy Retirement Group, has written a detailed, comprehensive guide for managers to understand and succeed at the ongoing process of managing a company's retirement plan. If motivating your employees is important to you as a manager, this book is an essential key to your success. The book is available now through BenefitsLink Bookstore.

(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

Compliance Checklist 2007 for Plans That Are Not Subject to ERISA (PDF)
13 pages. Excerpt: "The Checklist incorporates requirements for Governmental and Nonelecting Church Plans, Non-ERISA 403(b) Programs, 457 Plans, and Nonqualified Executive Benefit Plans, and provides information on the materials that you will need to file, filing due dates, and agencies to which the filings should be made." (Prudential Financial)

Early Dialogue May Get Retirees To Stick Around
Excerpt: "By the time companies initiate conversations with older workers about what they can do to get those employees to stay, it's often too late, said Bruce Monte, director of retirement plans at PepsiCo, during a presentation at the WorldatWork Total Rewards Conference this month in Orlando, Florida." (Workforce Management; free registration required)

Summary Plan Descriptions Written with the User in Mind (PDF)
4 pages. Excerpt: "In this article, we focus on organization and usability -- how information can be effectively organized so employees and HR professionals are able to easily find what they need, as well as accessibility -- determining the appropriate mix of electronic and paper formats to ensure users can get the information they need while employers continue to comply with applicable regulations." (Aon Consulting)

Building the Workplace of the Future - Aon Consulting's 2007 Benefits and Talent Survey (PDF)
4 pages. Excerpt: "In January 2007, Aon Consulting conducted a survey of 2,172 U.S. employers to examine their current benefit and talent strategies as well as their future plans to attract, retain, develop, and reward employees. The survey focused on four areas of critical concern -- health care, retirement, employee communication, and talent." (Aon Consulting)

Overview: IRS Change to 'Covered Employees' Subject to Code Section 162(m) Limitations
Excerpt: "On June 4, 2007, the Internal Revenue Service issued Notice 2007-49 addressing identification of 'covered employees' subject to the limit on deductible compensation imposed by section 162(m) of the Internal Revenue Code, and eliminating the uncertainty that had existed since the Securities and Exchange Commission amended its executive compensation disclosure rules on September 6, 2006." (Thelen Reid Brown Raysman & Steiner LLP)

Towers Perrin U.S. Legislative Tracking Charts -- Human Resources -- Updated June 6, 2007 (PDF)
8 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)


Newly Posted Press Releases

Woburn, Mass., Employer is Ordered to Restore More Than $240,000 to Employee Benefit Plan, Settling U.S. Labor Department Lawsuit
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Guardian Study Reveals Wellness/Benefits Disconnect
Guardian

New Program to Provide Employee Benefits Communications Strategies to Boost Recruitment, Retention and Benefits ROI
HRx Communications

Spending Too Much on Healthcare? Unique Employer-Designed Conference Can Help
Savvy Self-Funding Healthcare Conference & Expo


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Compliance Specialist / Record Keeper
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for Ingham Group, a premier full service Tier One TPA
in FL, SC

Client Services Specialist
for BenefitStreet, Inc.
in CA

Underwriter - Health & Welfare (small group)
for Aon
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Internal DC Wholesale Leader
for Payden & Rygel
in CA




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