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| June 14, 2007 |
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Overview: IRS Updates Staggered Remedial Amendment Procedures
Excerpt: "CCH Comment. EP is committed to making the staggered cyclical amendment system work and has responded with significant clarifications and changes in its updated procedures. . . . The new revenue procedure provides more detail on adoption deadlines for interim and discretionary amendments, including special deadlines for governmental and tax-exempt employers." (CCH Tax News)
IRS Adjusts Determination Letter Application Cycles
Excerpt: "The Internal Revenue Service (IRS) has issued Revenue Procedure 2007-44, which modifies plan amendment and determination letter application cycles for plans to accommodate provisions in the Pension Protection Act of 2006 (PPA) including permanency of the Economic Growth Tax Relief and Reconciliation Act (EGTRRA)." (PLANSPONSOR.com; free registration required)
Text of IRS's Defined Benefit Listing of Required Modifications and Information (PDF)
162 pages. Excerpt: "This information package contains samples of plan provisions that have been found to satisfy certain specific requirements of the Internal Revenue Code as amended through the Gulf Opportunity Zone Act of 2005 (Pub. L. 109-135), as well as certain law changes under the Pension Protection Act of 2006 (Pub. L. 109-280), as described in Notice 2007-3, I.R.B. 2007-2 255, the 2006 Cumulative List of Changes in Plan Qualification Requirements." (Internal Revenue Service)
Overview: Final Roth 401(k) Regulations
Excerpt: "Employers should ensure their trustees and third-party administrators comply with the final Roth 401(k) distribution, rollover and taxation rules." (McDermott Will & Emery)
Why Some Workers Don't Take 401(k) Plan Offers: Inertia versus Economics
25 page PDF. (Center for Research on Pensions and Welfare Policies)
Individual Account Investment Options and Portfolio Choice: Behavioral Lessons from 401(k) Plans
Excerpt: "This paper examines how the menu of investment options made available to workers in defined contribution plans influences portfolio choice. Using unique panel data of 401(k) plans in the U.S., we present three principle findings." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full-text)
PPA and 2007 Pension Funding: What in the World Are We Waiting For? (PDF)
Pages 4-7 of 34. Excerpt: "Concerning the Pension Protection Act (PPA) and certainty, there are two related misconceptions: Misconception #1: Now that PPA is law, we finally have clarity on pension funding rules. Misconception #2: PPA extends current rules through 2007. So, if we don't have all the details of the new law, at least this year is clear enough." (Society of Actuaries)
Representative of the TSP's Employee Thrift Advisory Council Is Hoping to Change Survivor Rule
Excerpt: "There's little doubt that the Thrift Savings Plan is a highly valued and attractive investment program for federal employees. But should participants pass away, their spouses might not see the full benefits. Currently, a surviving spouse beneficiary must either accept the assets of the TSP account as a lump sum, with the tax consequences, or have the assets transferred to a rollover Individual Retirement Account." (GovExec.com)
Hewitt Federal Legislation Quick Guide Updated as of June 12, 2007, for Retirement Plans (PDF)
6 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding retirement plans. (Hewitt Associates)
Text of 'Pension Security Act of 2007' (PDF)
3 pages. Excerpt: "To amend title I of the Employee Retirement Income Security Act of 1974 to require in the annual report of each defined benefit pension plan disclosure of plan investments in hedge funds." (U.S. House of Representatives via American Benefits Council)
Report/Paper/Presentations from the 2006 Retirement 20/20 Conference
Excerpt: "In our global economy, many companies are now looking to attract qualified workers from around the world. What kind of retirement benefits, if any, should companies commit to remain competitive internationally? To best answer this question in a global market, we need to keep ourselves abreast of what is happening in other countries. Has the optimal solution been found somewhere else to address retirement savings accumulation and decumulation issues?" (Society of Actuaries)
What People Expect of a Pension Plan (PDF)
Pages 23-26 of 34. Excerpt: "New funding and accounting rules may alleviate some issues for cash balance plans, but they will make matters worse for traditional annuity plans, and they will increase public unrest. The root of the problem, however, is not in the funding and accounting rules. It is in the lump sum rules. The solution is to permit a single interest rate, e.g., 8 percent, for computing a lump sum cash-out. Funding and accounting can then follow suit and use the same interest rate." (Society of Actuaries)
You've Worked Hard, Saved and Just Retired: How Do You Manage Your Finances Now?
Excerpt: "[Speakers at a recent Wharton Impact Conference titled, 'Managing Retirement Payouts: Positioning, Investing and Spending Assets'] explored emerging patterns in spending during retirement and debated new ideas to help retirees manage their finances after leaving the workforce." (Wharton School of the University of Pennsylvania)
Workers in Peru Allowed to Return to Public Pension System
Excerpt: "All workers in Peru who currently participate in the private defined contribution system will be able to return to the public pay-as-you-go pension system, according to a new law that went into effect on March 28, 2007." (Watson Wyatt Worldwide)
Overview of Pension Reform in Jamaica (PDF)
Pages 16-22 of 34. Excerpt: "The pension reform process in Jamaica has evolved over the past two decades. It accelerated and became a priority after a meltdown of the financial sector in the nineties. This crisis caused the government a huge increase in debt financing to support the sector and led them to institute extensive financial reforms." (Society of Actuaries)
Retirement Plan Design and Investments: Trends in Europe - Insights for North America (PDF)
Pages 10-15 of 34. Excerpt: "European pension funds face challenges similar to those facing North American plans, so developments in Europe may help U.S. and Canadian plan sponsors find their way to a reasonable resolution of their current problems." (Society of Actuaries)
Book Review: Individual Accounts for Social Security Reform: Intl. Perspectives on the U.S. Debate (PDF)
Pages 8-9 of 34. Excerpt: "The U.S. Social Security system has depended on the sage advice and leadership of actuaries since its inception in 1935 with President Franklin Roosevelt's signing the Social Security Act into law. This legacy of actuarial leadership continues today and with the approaching election, it is important to arm yourself with facts to make an informed judgment-no matter where you fall on the political spectrum. Read this book and then decide for yourself." (Society of Actuaries)
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Links to Items on Executive Comp, Benefits in General
Nonqualified Deferred Compensation: 2007 Strategic Planning for IRC Section 409A (PDF)
14 pages. Excerpt: "[Aon Consulting has focused on planning for] the practical next steps for employers to consider in addressing their obligations under the final regulations. [W]e will also suggest practical solutions to address the Section 409A requirements in ways that minimize both disruption to the employer and the impact on internal administration and the participating executives. Finally, we have set forth the documentary requirements which must be complied with by the end of calendar year 2007." (Aon Consulting)
DOL Enforcement Litigation Year to Date
Excerpt: "[On the target page] are listed ERISA enforcement actions initiated by the U.S. Department of Labor in 2007 as reported by the Employee Benefit Security Administration. The actions are divided into criminal and civil categories." (Health Plan Law blog by Attorney Roy F. Harmon III)
U.S. Carmakers to Seek Labor Cost Cuts
Excerpt: "Industry analysts say that survival of the three U.S. companies is at stake. The three automakers based near Detroit generally pay about 30 percent more per hour in wage, pension and health care costs than Japanese automakers." (AP via The New York Times; free registration required)
Growing Older in America: The Health & Retirement Study
Excerpt: "Published in 2007, this colorful data book describes the HRS's development and features and offers a snapshot of research findings based on analyses of the Study's data. Sections of the report look at older adults' health, work and retirement, income and wealth, and family characteristics and intergenerational transfers." (National Institute on Aging)
Coalition of Large Employers Puts Forth Proposal for National System of Health, Pension Benefits
Excerpt: "The New Benefit Platform recognizes that a secure retirement must include health care coverage and provides an opportunity for post employment coverage. It proposes a new structure for providing benefits through independent Benefit Administrators who would compete with each other based on quality, use of information technology, plan design and cost. Each Benefit Administrator would be required to offer plans for a core set of 'lifetime security' benefits-- health, retirement and short-term savings." (ERISA Industry Committee)
Hewitt Federal Legislation Quick Guide for June 12, 2007, on Human Resources & Employment Law (PDF)
11 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding human resources and employment law. (Hewitt Associates)
Newly Posted Events
Adjusting to 100% Risk Adjustment
in California on June 27, 2007
presented by Healthcare Web Summit
Newly Posted Press Releases
Major Grant to Pension Rights Center Highlights Importance of Retirement Security
Pension Rights Center
MCOL Training, Reference and Learning CD-ROMs
MCOL
Prudential Sponsors The 60 Summits Project in Promoting the Adoption of a New Paradigm Aimed at Preventing Needless Work Disability
Prudential Financial, Inc.
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Defined Benefit Client Account Manager
for New York Life Retirement Plan Services
in MA
Service Manager - Employer Market
for Security Benefit
in KS
Administrator
for Benetech, Inc.
in CA, GA
Pension Manager
for Southern California UFCW Unions and Drug Employers Trust Funds
in CA
Assistant Pension Administrator (Defined Benefits)
for Qualified Benefits, a BenefitStreet company
in CA
Request for Proposal Consultant
for Diversified Investment Advisors
in NY
Administrator
for CMC Retirement and Employee Benefits Specialists, Inc.
in CA
Implementation Project Manager - LCM Product Rollout
for Fidelity Investments
in NC
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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