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July 10, 2007
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Sponsored by: ASPPA and WP&BC

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Banner ad for ASPPA and WP&BC

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

How to Tell the Difference Between Financial Education and Advice
Excerpt: "Recent changes to federal law helped employers feel more comfortable providing investment advice to their workers. However, some confusion remains over the legal distinctions between financial education and investment advice, which triggers extra fiduciary responsibilities." (Employee Benefit News; free registration required)

Issue Brief: Retirement Income Adequacy After PPA and FAS 158: Part One - Plan Sponsors' Reactions (PDF)
32 pages. Excerpt: "A new survey shows that about two-thirds of 'traditional' (defined benefit) pension sponsors have either closed the plan to new hires or frozen it for all participants in the last two years or plan to do so in the next two years." (Employee Benefit Research Institute)

Roth 401(k) Accounts Are Gaining in Popularity, Mercer and EBRI Say
Excerpt: "If current trends continue, Roth 401(k) accounts may soon become the standard feature in defined contribution plans, according to a recent survey conducted by the Employee Benefit Research Institute (EBRI) and Mercer Human Resource Consulting." (Wolters Kluwer Law & Business)

Opinion: Qualified Default Investment Alternatives & Making Decisions About 'Other People's Money'
Excerpt: "A solution that doesn't require a plan sponsor to explain to participants about MPT, or to offer a rationalization about timing and the markets -- and one that, certainly on a net basis, might provide a reasonable return compared with the relative volatility of an asset-allocation alternative." (PLANSPONSOR.com; free registration required)

Opinion: Fiduciary Focus: Fleecing 403(b) Plan Participants (PDF)
7 pages. Excerpt: "The truly wonderful thing about placing the interests of 403(b) plan participants first is that it also actually produces the best outcome for them. A 'win-win' if there ever was one. To help ensure that outcome, though, school district officials must jettison the absurdities currently plaguing so many 403(b) plans. [The target page presents] some suggestions for creating a model 403(b) plan." (Morningstar)

NFL Retirees Feel Forgotten As Fight for Benefits Rages
Excerpt: "'The MLB average pension benefits are three times higher at $36,700 average vs. the NFL's $12,165 average benefit,' former cornerback Bernie Parrish says, using a figure based on the average pensions of all retired players, not just recent ones." (USA TODAY)

Inquiries Raise Questions about New York State Public Employees Pension Fund
Excerpt: "Gov. Eliot Spitzer said . . . that amid continuing investigations of the comptroller's office, the state should consider ending the practice of having the comptroller act as sole trustee of the state's $154.5 billion pension fund." (The New York Times; free registration required)

Report Slams San Jose Public Safety Personnel Injury Pensions
Excerpt: "A new city review disputes claims by San Jose's firefighters and police officers that thin staffing and poor working conditions are to blame for a higher rate of disability retirements than any other large California city." (San Jose Mercury News)

12(b)-1 Fees Come Under Attack Again
Excerpt: "On the heels of the federal appeals court decision rejecting fee-based brokerage accounts, brokers are facing yet another challenge from consumer advocates who are questioning whether 12(b)-1 fees are being used illegally." (Investment News; free registration required)

IRS Eliminates Schedule P, Clarifies Filing 5500 Starts Running of Statute of Limitations Period
Excerpt: "EBIA Comment: This guidance gives employers and their advisors the comfort of knowing that the filing of the applicable Form 5500 and required Schedules (except, of course, the now-eliminated Schedule P) will start the running of the statute of limitations period for the assessment of tax for plan disqualification." (Employee Benefits Institute of America Inc.)

Supplemental EPCRS Submission Procedure and Consequences for Late Pre-Approved Plan Submissions
Excerpt: "The IRS has supplemented the Employee Plans Compliance Resolution System (EPCRS) streamlined submission procedure for a failure to adopt certain amendments in a timely manner and also has described the consequences of late submissions for opinion or advisory letters for pre-approved plans." (Employee Benefits Institute of America Inc.)


Links to Items on Executive Comp, Benefits in General

6th Circuit Holds Unpaid Employer Contributions Do Not Fall Within Bankrup.tcy Discharge Exceptions
Excerpt: "In this case, the Sixth Circuit Court of Appeals addressed the question of whether the United States Bankrup.tcy Code excludes from discharge a debt that an employer owes for failing to contribute to employee benefit funds. The Court held that it does not. The issue in the case involved employer contributions only as further explained [in the target page]." (Health Plan Law blog by Attorney Roy F. Harmon III)

Overview: IRS Issues Ruling on Section 83 Stock Transfers
Excerpt: "The Internal Revenue Service (IRS) has issued Revenue Ruling 2007-49 which sets forth the tax consequences under Internal Revenue Code Section 83 when restrictions are imposed on substantially vested stock causing that stock to become substantially nonvested." (International Foundation of Employee Benefit Plans)

International Update, June 2007
This monthly publication covers recent developments in foreign private and public pensions, social security, and retirement. (U.S. Social Security Administration)

Overview: DOL's Final LM-30 Union Reporting Rule
Excerpt: "Nearly two years after proposing to update a union financial disclosure form and after getting hit with more than 1,000 public comments, the U.S. Department of Labor (DOL) has released the final rule governing form LM-30." (PLANSPONSOR.com; free registration required)

Employee Benefits Developments, July 2007
A brief look at developments in Employee Benefits law from June and July 2007, including cases, rulings, and opinions. (Hodgson Russ LLP)

Current Benefit Approaches Are Not Working As Well They Should for Employers or Employees
Excerpt: "Employee benefits are coming up short for employers and workers, a recent survey from Towers Perrin shows. About 75% of senior managers think their benefits package is not effective at meeting cost control objectives, while 58% indicate their program is not helpful at recruiting workers." (Employee Benefit News via CareerJournal.com)


Newly Posted Events

Cafeteria Plan Compliance: Handling Status Change Rules - Including HSA Considerations
Nationwide on July 26, 2007
presented by HRTrainingCenter.com

The 22nd Annual National Institute on Compensation for Executives and Directors
in New York on November 12, 2007
presented by ABA Joint Committee on Employee Benefits

The FMLA Intermittent Leave Headache - Webcast
Nationwide on July 31, 2007
presented by Business 21 Publishing


Newly Posted Press Releases

Average CEO Gets $65K in Perks, Watson Wyatt Data Services Finds
Watson Wyatt

Survey Shows Employers Continuing to Cut 'Traditional' Pension Plans, But Often Add to 401(k) Benefits As Well
Employee Benefit Research Institute (EBRI)

New Customized Dental Product Makes Any Mouth Smile
Principal Financial Group

Council Testifies Before DOL Advisory Panel on Need For Expanded Financial Literacy
American Benefits Council

Retirement Online Primer Course for the Canadian Insurance Industry Introduced by International Foundation of Employee Benefit Plans
International Foundation of Employee Benefit Plans

National Business Coalition on Health Elects New Board Officers
National Business Coalition on Health

John Hancock Unit Developing 401(k) Rollover Solution Program
John Hancock Retirement Plan Services

5th Annual 412(i)Summit
Executive Benefits Design Group


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401(k)/Executive Compensation Consultant
for Investech Retirement Plan Services
in FL

Employee Benefits Account Manager
for L/B/W Insurance & Financial Services, Inc.
in CA

Manager, Retirement Proposals and Implementation
for National Rural Electric Cooperative Association (NRECA)
in DC, VA

401(k) Administrator
for West Pension Solutions, LLC
in MD

Defined Contribution Analyst
for Jacob, Haxton & Boord LLC
in OH

Analyst Assistant
for Jacob, Haxton & Boord LLC
in OH

Qualified Plan Administrator
for Bentley Employee Benefits Group, LLC
in RI

Account Executive - Client Relationship Management
for Diversified Investment Advisors, Inc.
in DC, MD, VA

Pension Administrator
for Preferred Pension Planning Corporation
in NJ




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