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July 3, 2007
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Rev. Proc. 2007-49: Changes to EPCRS for Pre-Approved Plans Submitting After Deadline (PDF)
Excerpt: "This revenue procedure describes the consequence to a sponsor or practitioner maintaining a pre-approved plan that submits its plan for review after the established deadline in section 16 of Rev. Proc. 2007-44 . . . . This revenue procedure also modifies the streamlined VCP application procedure for failures set forth in section 11.01 and Appendix F of Rev. Proc. 2006-27 . . . ." (Internal Revenue Service)

Overview: Class of 401(k) Plan Participants Certified in 'Revenue Sharing' Case (PDF)
Excerpt: "On June 26, 2007, U.S. District Judge John W. Darrah certified a class of former, current, and future 401(k) Plan participants in Loomis v. Exelon Corp. . . . . Plaintiffs in this case have sued the employer . . . and various other defendants alleged to be Plan fiduciaries, claiming that defendants have breached their fiduciary duties to the participants by allowing investment managers and other service providers to charge allegedly unreasonable fees to the Plan . . . ." (Sutherland Asbill & Brennan LLP)

Overview: Opinion Dismissing Deere 401(k) Fee Suit Creates Split of Authority
Excerpt: "In a closely watched case in the Western District of Wisconsin, a federal judge on June 21 dismissed claims that Deere & Co. breached its fiduciary duties under ERISA by permitting participants in its 401(k) plan to pay excessive fees." (Spencer Fane Britt & Browne LLP)

Hewitt Report: Global Survey of Retirement Plan Accounting Assumptions, June 2007 (PDF)
5 pages. Excerpt: "Reporting the results of Hewitt Associates' global survey of fiscal 2006 year-end accounting assumptions for employee benefit plans in 22 countries, as well as aggregated results for the Euro Zone." (Hewitt Associates)

In Germany, Retirement Age Increase and Employer Subsidies Put in Place
Excerpt: "After intense debate, the German government has implemented an increase in the retirement age and accompanying subsidies for companies that hire older workers." (Watson Wyatt Worldwide)

Opinion: Questioning Conclusions in GAO Report about Pension Plan Consultants
Excerpt: "The gist of that report: '[P]ension plan consultants assisting significant numbers of pension plan sponsors may have conflicts of interest, as a result of their affiliations or business arrangements with other firms that could affect the advice they provide to these sponsors.' However, let me draw your attention to two words in that long sentence: 'may' and 'could.'" (planadvisor ponderings)

Encouraging Spanish-Speakers' Participation in Retirement Plans
Excerpt: "When planning an education meeting to present a 401(k) or other retirement plan to Spanish-speakers, the first thing many employers do is call a translation company. This is exactly what ABC Concrete, a small concrete company located outside Denver, Colo., did in 2002." (Employee Benefit News; free registration required)

Math Error Botches Enron Payouts
Excerpt: "More than 20,000 former Enron employees who late last year got back a fraction of the retirement funds they lost when the company crumbled have learned they were either overpaid or underpaid because of a math error." (The Oregonian)

Overview: Final 415 Regulations Related to Governmental Defined Benefit Plans (PDF)
15 pages. Excerpt: "The final regulations consolidate statutory changes and IRS guidance issued since the regulations were last updated in 1981. They clarify and, in some cases, substantially modify the prior regulations. The final regulations generally become effective for plan limitation years beginning on or after July 1, 2007; however, extended effective dates are provided for governmental plans as described at the end of this memorandum." (Gabriel Roeder Smith & Company)

In Portugal, Significant Changes Made to Social Security System
Excerpt: "Changes to the Social Security system that went into effect on June 1, 2007, will alter the way benefits are calculated and otherwise attempt to ensure the system's sustainability as the number of retirees grows." (Watson Wyatt Worldwide)

Malta Proposes New Laws for Retirement Funds
Excerpt: "New regulations for retirement plans and funds are being drafted in Malta. The Malta Financial Services Authority is drafting the Retirement Pensions Act to replace the island's Special Funds (Regulation) Act. The proposed bill lays out a new regulatory framework for the retirement programs and their service providers." (Business Insurance)

Overview: PPA '06 Challenges - Preparing to Satisfy New and Revised Compliance Requirements (PDF)
2 pages. Excerpt: "This Spotlight briefly notes the implications of these new and revised requirements and outlines an action plan for preparing to enhance current processes and procedures to ensure ongoing compliance, which is expected to become increasingly challenging." (The Segal Group, Inc.)

Note: IRS Eliminates Form 5500 Schedule P
Excerpt: "The elimination of Schedule P is effective for the 2005 and later plan years for Form 5500-EZ filers. For all other Form 5500 series filers, the elimination of Schedule P is effective for the 2006 and later plan years." (International Foundation of Employee Benefit Plans)

ABC Issues Action Alert: Treasury Department Must Reconsider Backloading Rules for Participants' Sake
Excerpt: "Action Requested: Contact your Congressional representatives and ask them to urge the committees of jurisdiction (the Senate Finance Committee, the Senate Health, Education, Labor and Pensions (HELP) Committee, the House of Representatives Ways and Means Committee and the House Education and Labor Committee) to request that the U.S. Treasury Department and Internal Revenue Service (IRS) reconsider their interpretation of the backloading rules." (American Benefits Council)

Pension Fund Stock Suit against Coke Generates $1.3B Damage Estimate
Excerpt: "A finance professor retained by a pension fund as an expert in its company stock suit against Coca-Cola Co. has determined that shareholders lost more than $1.3 billion when the company improperly inflated revenues." (PLANSPONSOR.com; free registration required)

Socially Responsible Funds Gain Following; Can Be Complicated and Time-Consuming for Plan Sponsors
Excerpt: "Socially responsible investing is gaining fans in the defined-contribution world. But using socially responsible funds in such a plan can be tricky. There's debate about how well such funds perform, and they have a reputation for carrying heavier fees. Moreover, selecting such an investment can be complicated and time-consuming for plan sponsors." (Financial Week; free registration required)

New Online book: What Women Need to Know about Retirement
Excerpt: "This book and its authors are here to tell all working women two important things. First: You Can Do It. Second: You Are Not Alone. We are here to share the practical wisdom gained from experiences like yours, to help you take control of your life and prepare for your retirement." (Heinz Family Philanthropies and The Women's Institute for a Secure Retirement)

Miller Brewing Company Employees Use Computer Savvy to Retain Pension Benefits
See fifth item on target page. Excerpt: "Using a web site and a variety of online strategies, including blogs and mass e-mails, to attract attention to their problem, the 'Miller women' were able to protect their pensions and win some important concessions from the Miller Brewing Company." (Pension Rights Center)


Links to Items on Executive Comp, Benefits in General

Rev. Rul. 2007-48: Taxability of Beneficiary of Non-Tax-Exempt Employees' Trust (PDF)
18 pages. Includes discussion of income, FICA and FUTA taxes. Amplifies Rev. Rul. 74-299. Excerpt: "Issue: When an employer contributes to a nonexempt employees' trust on behalf of highly compensated employees, what are the Federal tax consequences to the employees, the employer, and the trust of contributions to the trust, vesting of an employee's interest in the trust, and distributions from the trust?" (Internal Revenue Service)

Letter on Financial Accounting and Reporting for Other Post-Employment Benefits in Public Plans (PDF)
2 pages. Excerpt: "On behalf of the American Academy of Actuaries' Joint Committee on Retiree Health, we would like to address misinterpretations of a letter promulgated by our committee. That letter has recently been used as justification for proposed legislation in Texas that would nullify the requirement of governmental entities to establish financial reporting liabilities for promised retiree health benefits." (American Academy of Actuaries)

Overview: Form LM-30 Rules Finalized
Excerpt: "The rules are effective August 16, 2007." (International Foundation of Employee Benefit Plans)


Newly Posted Events

Implementing the Great Game of Business: Tools, Pitfalls and Case Studies
Nationwide on July 18, 2007
presented by National Center for Employee Ownership

The NCEO ESOP Communications Power Point Template
Nationwide on August 2, 2007
presented by National Center for Employee Ownership


Newly Posted Press Releases

Securian's Minnesota Life Group Insurance Hosts Free Web Presentation on Marketing Benefits to Employees
Securian Retirement Services

Premium Conversion Cafeteria Plan Forms Now Available from BenefitPublications.com
Benefit Publications, LLC

SureWest Launches Fitness and Dependent Care Programs to Foster Employee Work/Life Balance
SureWest Communications


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