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| July 30, 2007 |
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Fact Sheet: The 401(k) Fair Disclosure for Retirement Security Act of 2007 (PDF)
1 page. Excerpt: "The 401(k) Fair Disclosure for Retirement Security Act of 2007 would address two key areas of concern: hidden fees and conflicts of interest." (U.S. House Education and Labor Committee)
Opinion: Putting Together Some Workable Principles on Retirement Plan Fee Disclosure
Excerpt: "It's hard to credibly argue that we shouldn't be telling participants how much they are paying for these retirement programs. On the other hand, we -- rightfully, and this was a big part of the combined trade organization communication -- don't want participants to focus obsessively on fees alone. In this business, as in life generally, sometimes you get what you pay for, after all." (PLANSPONSOR.com; free registration required)
For Keogh Plans, a Technicality Could Crack a Nest Egg: Failure to Update Plan Document
Excerpt: "Tens of thousands of people who expect to realize their dreams of financially secure retirements thanks to hefty balances in their Keogh plans are actually at risk for a tax-related ordeal, financial advisers say." (The New York Times; free registration required)
Overview: Court Will Hear Case of Denied Relief for 401(k) Losses Allegedly Due to Fiduciary Breach
Excerpt: "The U.S. Supreme Court granted certiorari in the case of LaRue v. DeWolff, Boberg & Associates, Inc. (450 F.3d 570 (4th Cir. 2006), cert. granted (U.S. June 18, 2007) (No. 06-856))." (Hewitt Associates)
Rangel Statement on 401(k) Fees
Excerpt: "House Ways and Means Committee Chairman Charles B. Rangel issued the . . . statement [Friday, July 27] on the introduction of the 401(k) Fair Disclosure for Retirement Security Act of 2007." (U.S. House of Representatives, Committee on Ways and Means)
Are 401(k) Investment Committees Protecting Your Assets?
Excerpt: "By law, and on paper, companies that offer a 401(k) plan should have in place an investment committee. By law, and on paper, those investment committees should have in place criteria by which they will choose which mutual funds to offer employees. And they should have in place criteria by which they will keep or toss mutual funds from the menu being offered employees." (CNNMoney.com)
Overview: Final IRS Regulations on 403(b) Plans
Excerpt: "Most of these rule changes make 403(b) plans even more similar to 401(k) plans." (BISYS Retirement Services)
Overview: IRS Final Regulations Providing Comprehensive Guidance on 403(b) Plans
Excerpt: "The final regulations update prior rules last adopted in 1964 and reflect legislative and regulatory developments released over the past 40 years, including amendments made by ERISA, the Small Business Job Protection Act of 1996 (SBJPA), the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and the Pension Protection Act of 2006 (PPA; P.L. 109280) . . . ." (Wolters Kluwer Law & Business)
Summary of Key Provisions of the Final 403(b) Regulations (PDF)
Excerpt: "The final regulations are the first comprehensive re-write of the tax rules affecting 403(b) arrangements since 1964 and will require significant changes to virtually all 403(b) arrangements." (Davis & Harman LLP via American Benefits Council)
Dow Chemical Launch of Cash-Balance Plan - One of Few Companies to Make Such a Move Since PPA
Excerpt: "Because the new pension law resolved the legal uncertainty that had surrounded cash-balance plans in recent years, it was expected to generate renewed corporate interest in such plans. It hasn't. Yet." (Financial Week; free registration required)
Target-Date Funds Leave Retirees Out in the Cold
Excerpt: "Up until now, target-date funds have been designed to manage investor assets up to, not through, retirement -- a flaw that could leave many retirees broke or taking on excessive risk in their golden years, according to a study released today by Wilshire Funds Management." (Financial Week; free registration required)
Guarding Nest Eggs Through Annuities: Future Retirees Buying Products that Shield Them from Losses
Excerpt: "Americans eyeing retirement increasingly are buying insurance products to protect their nest eggs, securing regular payments even if Wall Street stumbles. The products: variable annuities with living benefits riders." (The Charlotte Observer, N.C. via Human Resource Executive Online; free registration required)
Overview: IRS Officially Eliminates Schedule P of Form 5500 (PDF)
1 page. Excerpt: "The IRS has announced that Schedule P of Form 5500 has been eliminated for 2006 and later years. The filing of a plan's Form 5500 will be treated as an annual return by the plan's trust and the trust's statute of limitations period will start on the later of the date the Form 5500 is required to be filed or the date it is actually filed." (Buck Consultants)
U.S. Rep. Rahall to Testify in Support of Extending Veteran Pension Benefits
Excerpt: "'As the law currently stands, full pension benefits are awarded only to those veterans who have served during a declared 'period of war,' a distinction that mistakenly leaves out an alarming number of brave men and women who have proudly served our nation in uniform,' Rahall said." (HuntingtonNews.Net)
Overview on Retirement Plan Governance
Excerpt: "The goal in putting a system of plan governance in place is not to get bogged down in the wave of current litigation or agency enforcement initiatives that could be expensive to resolve and ultimately have a negative impact on your company's productivity and its bottom line. It's all really just about having an awareness of the current environment, implementing and following some common sense policies and procedures . . . ." (The Metropolitan Corporate Counsel)
Hewitt Global Retirement Update, July 2007 (PDF)
2 pages. Excerpt: "This update summarizes recent legislative developments and trends related to retirement and financial management and highlights recently passed and pending legislation that may require employers to take action to comply with new rules or review existing plans." (Hewitt Associates)
Teamsters Multiemployer Pensions: Needed Changes May Finally Be On the Way (PDF)
19 pages. Excerpt: "This report attempts to put more color on a number of areas, including looking at the assets and liabilities, participant and retiree demographics, highlights of the Pension Protection Act, how benefits and contributions are set (it is both bizarre and mind-boggling), and finally some general comments on the three main public companies in the funds [discussed in the report]." (Raymond James & Associates, Inc. via Know Your Pension)
Social Security Offsets: Policies Public Employees Love to Hate and Don't Understand
Excerpt: "Do you administer a public pension for employees not covered by Social Security? If so, you may be aware of two laws that can offset, or perhaps eliminate, Social Security benefits employees may have earned on the side or may be due from a spouse. Questions are understandable, given the complexity of these laws: the windfall elimination provision and the government pension offset. This article intends to clarify these government offsets." (National Association of Government Defined Contribution Administrators, Inc.)
Links to Items on Executive Comp, Benefits in General
Overview: IRS Previews Guidance on Section 457 Plan Issues (PDF)
2 pages. Excerpt: "In Notice 2007-62, the IRS has announced that it will issue guidance under Section 457. The notice outlines the anticipated guidance and how it will mesh with guidance issued under Section 409A, and requests comments." (Buck Consultants)
Overview: California Amends Regulations on Compensatory Stock Plans (PDF)
3 pages. Excerpt: "Effective July 9, 2007, the California Corporations Commissioner adopted amendments to the compensatory plan regulations under the California Corporate Securities Law of 1968. The amended rules eliminate many restrictive requirements, such as minimum vesting and pricing, to provide greater flexibility to companies in drafting compensatory benefit plans such as stock option or stock purchase plans." (Pillsbury Winthrop Shaw Pittman LLP)
Overview of New Benefits Bills in House
Excerpt: "[F]rom Spencer's Benefits Reports: Between June 12 and July 23, the following benefits-related bills were introduced in the House. Included are House bills to require disclosure of plan investments in hedge funds (H.R. 2683) and to provide tax incentives to encourage small business health care plans (H.R. 2737)." (Wolters Kluwer Law & Business)
Benefit Plans: Potential Liability Issues Facing Board, Corporate Officers, and Plan Fiduciaries
Excerpt: "With a more precise plan document, the odds improve in litigation to obtain dismissals of defendants who are not actually involved in the fiduciary functions that are the subject of the law suit." (Howard Shapiro via The Metropolitan Corporate Counsel)
Newly Posted Events
Ask Our Expert: Health Care Reform - Webcast
Nationwide on July 30, 2007
presented by Hewitt Associates LLC
Hot Topics in Retirement: 2007 - Webcast
Nationwide on July 30, 2007
presented by Hewitt Associates LLC
State and Local Health Care Reform - Webcast
Nationwide on July 30, 2007
presented by Hewitt Associates LLC
Newly Posted Press Releases
The Standard to Acquire DPA and MasterPlan Advisors
Standard Insurance Company
NAPFA Challenges The DOL To Adopt Tougher ERISA Disclosures
National Association of Personal Financial Advisors (NAPFA)
SunTrust Introduces GamePlan(SM) for a More Secure Retirement
SunTrust Banks, Inc.
Multnomah Group Expands into Northern California
Multnomah Group
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Pension Professional
for The Paragon Alliance Group
in PA
Compliance Manager, Retirement
for TRI-AD Actuaries
in CA
Defined Benefit Client Account Manager
for New York Life Retirement Plan Services
in MA
HR Benefits Analyst
for PPL Services
in PA
Pension Services Consultant
for CUNA Mutual Group
in WI
Manager, Benefit Plan Operations
for Sentinel Benefits Group, Inc.
in MA
Director of Retirement Plan Operations
for Tycor Benefit Administrators
in PA
Senior ERISA Consultant
for Tofias PC
in MA
401(k) Plan Administrator
for Tofias PC
in MA
Senior Compliance Specialist
for Merrill Lynch
in NJ
Participant Education Presenter
for Total Benefit Communications
in ANY STATE
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