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| July 13, 2007 |
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Chart: SIMPLE IRA, SIMPLE 401(k), Safe Harbor 401(k) and QACA Comparison
As of July 13, 2007. (McKay Hochman Co., Inc.)
UAL Can't Stop Pilots' Pension Suit Against Union, Judge Says
Excerpt: "UAL Corp., parent company of United Airlines, failed to quash a lawsuit filed on behalf of about 1,700 pilots claiming their union didn't adequately defend their pensions as the carrier emerged from bankrup.tcy." (Bloomberg News)
Note: Cost Accounting Standards Bd Seeks Comments on Harmonization of PPA with CAS 412 and 413
Excerpt: "The Office of Federal Procurement Policy, Cost Accounting Standards Board (the Board), is inviting public comments concerning a Staff Discussion Paper on the harmonization of Cost Accounting Standards 412 and 413 with the Pension Protection Act (PPA)." (International Foundation of Employee Benefit Plans)
California Local and State Pension Plans Healthier Than Decades Ago, According to Report
Excerpt: "A state commission charged with finding ways to pay for increasing retirement benefits to public employees learned Thursday that California governments are coming up $63 billion short in their bid to fully fund pension programs. But there also was good news in a California Research Bureau report presented to the governor's commission: Local and state governments are in better shape than they were decades ago -- funding 89 percent of their pension obligations." (The Contra Costa Times; free registration required)
Overview: IRS Instructs 412(i) Insurance Plans How to Become Retroactively Subject to Funding Rules
Excerpt: "Code Sec. 412(i) plans are not subject to the funding rules that apply to other defined benefit plans if they meet all of the requirements of Code Sec. 412(i)." (Wolters Kluwer Law & Business)
Rhode Island Auditor Tells Pension Plan Horror Tale
Excerpt: "In Rhode Island, 25 communities run 37 pension plans for their employees, and 21 of those plans are in trouble because the municipalities aren't putting away enough money. Those statistics are featured in a report on the pension plans administered by Rhode Island localities published on July 6 by Auditor General Ernest A. Almonte." (Bloomberg News)
Strategies for Handling a Plan Termination or Freeze (PDF)
2 pages. Excerpt: "Consider these strategies whether terminating a defined benefit pension plan immediately (and purchasing annuities), purchasing annuities over time, or defeasing assets through a business transaction. " (Aon Consulting)
Overview: Annuitization of Defined Benefit Accruals (PDF)
5 pages. Excerpt: "[This paper talks] about the financial and fiduciary aspects of two alternatives to winding up a defined benefit pension plan--termination (with immediate settlement of all benefits) versus a potentially more cost effective process of purchasing annuities over time." (Aon Consulting)
Enhancing Security for Frozen Defined Benefit Pension Plans (PDF)
5 pages. Excerpt: "[This paper talks about] how an alternative to traditional insured annuitization would work and evaluate its benefits as well as some of its legal, technical, and practical issues." (Aon Consulting)
California Governor's Commission Releases Report on Funding Status of Public Pension Plans
Excerpt: "[T]he Governor's Public Employee Post-Employment Benefits Commission released a study concluding that California's governments face an estimated $63 billion shortfall in pension obligations. The study examined pension systems representing 99% of the state's current public pension obligations from all levels of government." (Forbes.com)
Testimony of American Benefits Council to 2007 ERISA Advisory Council Working Group on Participant Benefit Statements (PDF)
9 pages. Testimony of Douglas O. Kant, Senior Vice President and Deputy General Counsel, Legal Department, FMR Corp., On Behalf of The American Benefits Council Before the 2007 ERISA Advisory Council Working Group on Participant Benefit Statements, Washington D.C., July 12, 2007. (American Benefits Council)
Testimony of DOL Official to ERISA Advisory Council Working Group on Participant Benefit Statements (PDF)
9 pages. Testimony of Robert Doyle, DOL Director of Regulations and Interpretations on July 12, 2007. (American Benefits Council)
Opinion: Shadow Looming Over Stock Market Is Idea of 'All' the Baby Boomers Retiring at Once
Excerpt: "[E]ven though boomers will be retiring, successive waves of younger cohorts will be continually replenishing the pool of savers. And the boomers' kids (and egad, their kids) will be saving at greater rates than boomers did. Another way of saying this is that, thus far, boomers have not saved very much." (SmartMoney)
Chart: Comparative Features of Alternative Plans
SEP, Profit Sharing, Money Purchase and Defined Benefit Comparison Chart as of July 13, 2007. (McKay Hochman Co., Inc.)
Note: IRS Closes GUST Program for Pre-Approved Defined Benefit Pension Plans
Excerpt: "The IRS is taking this action because the timely submission period for the initial EGTRRA six-year amendment/approval cycle for pre-approved defined benefit plans is now open (as described in Revenue Procedure 2007-44)." (International Foundation of Employee Benefit Plans)
Buck Consultants Comments to Treasury on Cash Balance Conversion Issue (PDF)
1 page. Excerpt: "Buck Consultants has written to senior officials at the Internal Revenue Service and U.S. Treasury requesting that they reverse an IRS position that threatens to revoke the tax-qualified status of certain cash balance pension plans with generous conversion provisions." (Buck Consultants)
Links to Items on Executive Comp, Benefits in General
South Carolina Report Suggests Benefits Changes
Excerpt: "Among the suggested changes: Raise the time of service for new employees to receive full benefits to 30 years from 28 years, and require them to enroll in a 401(k)-style retirement program instead of a traditional pension; Provide incentives to state employees to reduce health care costs, such as allowing mail-order prescriptions and broadening coverage of generic drugs." (The State)
Multiemployer Benefit Plans - Q&A Web Site
Excerpt: "The purpose of this page is to describe multiemployer plans and explain their structure and use." (International Foundation of Employee Benefit Plans)
Generational Gaps Continue in the Workforce
Excerpt: "Employers are finding it's increasingly difficult to gauge which benefits to prioritize, particularly as the workforce diversifies and multiple generations mix together on an increasing basis, experts say." (Employee Benefit News; free registration required)
Newly Posted Press Releases
PBGC Protects Coudert Brothers Pension Plan
Pension Benefit Guaranty Corporation (PBGC)
According to MetLife Study, Many Employers Looking to Expand Benefits Offerings That Extend into Retirement
MetLife
Free Web Site Clarifies Structure and Purpose of Multiemployer Benefit Plans
International Foundation of Employee Benefit Plans
Workplace Options Partners with EAP Expert To Provide New Enterprise Software Solution
Workplace Options
Major Employer Coalition, Incentives and Technology Provider Announce Partnership to Encourage Healthy Employee Behavior
Midwest Business Group on Health
Cammack LaRhette Consulting's Second Article in 403(b) Learning Series
Cammack LaRhette Consulting
Five New Member Companies Join CIKR to Represent Independent 401(k) Recordkeepers
Council of Independent 401(k) Recordkeepers (CIKR)
Health Fitness Corporation: Healthy Workforce Act Would Pave Way to Build Healthier Workforce, Reduce Health Care Costs
Health Fitness Corporation
UBS Global Asset Management Reports Continued Improvement in US Pension Fund Fitness
UBS Global Asset Management
Valley Residents Can Learn How to Self Direct Retirement Funds Into Real Estate
RealSource Retirement Services
Newly Posted or Renewed Job Openings
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Pension Plan Administrator
for JADE Plan Services
in TX
Business Development Officer - DC Sales
for Payden & Rygel
in AL, AR, FL, GA, IA, IL, IN, KS, KY, LA, MI, MN, MO, MS, NC, ND, NE, OH, OK, SC, SD, TN, VA, WI, WV
Assistant Director, RPG Web Strategy
for Hartford Life
in CT
DB Benefits Operations Mgr
for Hewitt Associates
in NJ
Relationship Manager
for The Online 401(k) (www.theonline401k.com)
in CA
Relationship Manager, Retirement Plan Services
for First National Bank, Fort Collins
in CO
Qualified Plan Recordkeeping Manager
for First National Bank of Omaha
in NE
Team Lead - Retirement Services Operations
for Charles Schwab
in AZ
Attorney - ERISA, Investments, COBRA
for 1199SEIU Benefit and Pension Funds
in NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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