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| June 15, 2007 |
Sponsored by: ASPPA and WP&BC
(Click on company name or banner to learn more.)
| The Western Benefits Conference - July 22-25, 2007 |
| Benefits by the Bay, the best of two in one! Jointly sponsored by WP&BC and ASPPA, this conference has been designed with all retirement professionals in mind. Seven industry specific targeted learning tracks, the latest market trends, compliance issues and networking opportunities await. Get early bird registration discounts and learn more at www.asppa.org/wbc or www.westernpension.org |
IRS Final Regs: Governmental Retirement Plan Sponsors Acting as Nonbank Trustees of Deemed IRAs (PDF)
6 pages. Excerpt: "These final regulations amend ยง1.408-2(e) of the regulations to provide that a governmental unit may serve as the trustee of any deemed IRA established by that governmental unit as part of its qualified employer plan if that governmental unit establishes to the satisfaction of the Commissioner that the manner in which it will administer the deemed IRA will be consistent with the requirements of section 408." (Internal Revenue Service)
Qualified Default Investment Alternative -- The Investment Advisor's Role (PDF)
4 pages. Excerpt: "Plan sponsors often turn to investment advisors for assistance in managing their fiduciary roles and responsibilities. Considering the added complexities associated with QDIAs, I believe that the investment advisor will play an even more critical role in their application." (InvestmentNews via Fiduciary 360)
Overview: IRS's Final Roth 401(k) Regulations
Excerpt: "The final regulations became effective April 30, 2007. They generally apply to taxable years beginning on or after January 1, 2007, although certain provisions apply to employees' taxable years beginning on or after January 1, 2006." (Watson Wyatt Worldwide)
401(k) Record Keeper Changes by Plan Sponsors
Excerpt: "[T]he percentage of plans thinking of changing record keepers or actively searching began dropping in January 2006 as measured by the 401kExchange Opportunity Index. Based on almost 4,000 monthly surveys with sponsors, the Index has been slowing down and shows no sign of increasing based on April 2007 YTD results." (Employee Benefit Advisor)
Committee on Fund Governance - Best Practice Principles (PDF)
31 pages. Excerpt: "Over the past several years institutional investors have successfully encouraged publicly owned companies to adopt and follow a multitude of corporate governance practices. However, they have not always been as vigilant in applying governance best practices to the funds for which they are responsible." (Stanford Law School)
When Trying to Save on the Budget, New Jersey Drove Up Pension Costs
Excerpt: "In 2002, struggling to close a huge budget gap, the New Jersey Legislature hurriedly passed a bill offering thousands of state employees generous early retirement packages. Unions applauded because layoffs had been averted. Gov. James E. McGreevey claimed the state would save millions by cutting its payroll." (The New York Times; free registration required)
Miscalculation of Benefits not a Fiduciary Breach
Excerpt: "The U.S. District Court for the District of Massachusetts has determined that miscalculations of pension benefits by a human resources employee and a plan's online payment calculator do not constitute a fiduciary breach under the Employee Retirement Income Security Act (ERISA)." (PLANSPONSOR.com; free registration required)
Russian Association for Employee Ownership
Excerpt: "An international conference on employee ownership in Russia was held on June 7-8, 2007 in Rostov-on-Don, Capital of South Russia . . . . The Conference decided to set up a new Russian Association for Employee Ownership . . . ." (European Federation of Employee Shareownership)
Employee Ownership Update for June 14, 2007
NCEO Executive Director Corey Rosen discusses the NCEO's new Employee Ownership 100 list, featuring the largest 100 majority employee-owned companies in the U.S.; a settlement by Marriott International in an investigation of its ESOP by the IRS and Department of Labor; and just what you have been waiting for, an employee ownership poem, An Employee Owner's Lament. (National Center for Employee Ownership)
Questions on Pension Protection Act Persist Despite Recent IRS Guidance
Excerpt: "A panel [convened May 12, 2007] consisting of employee benefits practitioners and representatives from the IRS and DOL recently attempted to clarify recent IRS guidance arising from the passage of the Pension Protection Act of 2006 (PPA; P.L. 109-280)." (Wolters Kluwer Law & Business)
An Inside Look at the Investment Principles of Vanguard® Target Retirement Funds
Excerpt: "In this interview, John Ameriks, Ph.D., a principal and senior investment analyst in Vanguard's Investment Counseling & Research group, provides some insight on Vanguard's investment philosophy, sophistication, customization, and other issues related to the Target Retirement Funds." (Vanguard)
Public Policy Monograph: Social Security Reform Options (PDF)
31 pages. Excerpt: "This paper describes and analyzes Social Security reform options that address that program's financial challenges. It is intended to be comprehensive, but emphasizes proposed reforms that are currently receiving the greatest attention in the Social Security debate. Within this framework, this paper provides the necessary historical context to enable the general reader to understand more fully the implications of the various proposals." (American Academy of Actuaries)
In Germany, Trend to Fund Pension Liabilities Accelerates
Excerpt: "A recent Towers Perrin survey of pension arrangements at the 30 German DAX companies -- the largest firms in the country -- reveals for the first time that they all now use off-balance-sheet funding for their pension liabilities, with the contractual trust arrangement (CTA) the most popular approach. In the aggregate, nearly two-thirds (65%) of the pension liabilities at these firms were externally funded in 2006." (Towers Perrin)
Where Retirement Works - The Netherlands - 'The Globe's No. 1 Pensions Country'
Excerpt: "In early June, the Organization For Economic Cooperation and Development (OECD)--the club of the world's wealthy and almost wealthy nations--released a 208-page document perversely titled Pensions at a Glance. Inside is a rundown of how generous OECD members are to their burgeoning ranks of retirees. The U.S. is near the bottom . . . ." (Time Inc.)
New Law in Belgium on the Supervision of Pension Funds
Excerpt: "Employers in Belgium are adjusting to a sweeping set of pension reforms from legislation that went into effect this year. The changes address the management, governance, investments and funding levels of the country's pension funds." (Towers Perrin)
U.K. Lowers Cap on Pension Contributions
Excerpt: "The U.K. government has lowered its proposed cap on the amount of money it will allow individuals to put into a new pensions plan aimed at encouraging more retirement savings." (PLANSPONSOR.com; free registration required)
Letter to IRS Outlining Key Issues Awaiting Guidance for 2007 (PDF)
3 pages. Excerpt: "Attached [to the letter] is a list of what we consider key issues awaiting guidance. This is not a comprehensive list of all the guidance needed but rather the most important needs for 2007. We list the issues in order of urgency within broad topic areas such as funding, hybrid plan, and benefit restriction rules." (American Academy of Actuaries)
Sponsored by: Cassidy Retirement Group
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| 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
State Law Misrepresentation of Benefits Claim Under ERISA Plan Not Basis for Preemption
Excerpt: "An employee's state law claims seeking rescission of his participation in a pension plan and reliance damages in the form of benefits he relinquished by leaving his former job were not preempted by ERISA, ruled the Sixth Circuit Court of Appeals." (Wolters Kluwer Law & Business)
Clawbacks Make a Comeback - Many Firms Adopting Some Type of Formal Recoupment Policy
Excerpt: "Clawback. Disgorgement. Recoupment. These are all pretty harsh words to describe a company's decision to take back an executive's compensation that wasn't deserved. But most shareholders today expect companies to have and use recoupment policies when justified." (Towers Perrin)
Newly Posted Events
Dept. of Labor Workshop for Defined Contribution Plans
in Connecticut on June 20, 2007
presented by National Institute of Pension Administrators-CT Chapter
Guns and Hoses
in California on September 16, 2007
presented by Institute for International Research
The Savvy Self-Funding Healthcare Conference & Expo
in Missouri on August 20, 2007
presented by Savvy Self-Funding Healthcare Conference & Expo
Newly Posted Press Releases
GREAT-WEST RETIREMENT SERVICES® ANNOUNCES MANAGED ACCOUNT PROGRAM SURPASSES $1 BILLION
Great-West Retirement Services
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Market Development Specialist / Wholesaler
for Transamerica Retirement Services
in CA, CO, GA, IL, IN, MA, MN, NJ, PA, TX
Employee Benefits & Executive Compensation Associate
for Morgan, Lewis & Bockius LLP
in PA
Manager, Client Services
for AST Capital Trust Company
in AZ
Conversion Manager
for AST Capital Trust Company
in AZ
Senior Trust Administrator
for AST Capital Trust Company
in DE
Vice President, Legal
for AST Capital Trust Company
in AZ
Manager HR Compensation
for Philip Morris USA
in VA
Training Coordinator
for The Newport Group
in FL
Consulting Actuary
for CBIZ Benefits & Insurance Services
in MD, NJ
Retirement Plans Analyst
for Saks Fifth Avenue
in NY
Pension Plan Administrator/Pension Plan Actuary
for The Waage Law Firm
in CA
Quality Improvement Director
for Great-West Corporate
in KS
Signing Bonus / Senior DC Plan Administrator
for Berlin, Ramos & Company
in MD
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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