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| August 3, 2007 |
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Primary Drivers of 401(k) Pricing
Excerpt: "[In the target document we] explore the demographic factors and plan design features that drive these fees. These are: Plan administration services; Plan assets and account balance; and, Consulting services." (Employee Benefit News; free registration required)
Study Finds Auto Enrollment in 401(k) Plans Generates Gains for Both Employers and Employees
Excerpt: "Enhancing 401(k) programs with automatic features can generate a double-barreled investment success, enabling employees to save more for retirement and employers to better recruit and retain those employees. That key finding is in a recent report, 'Enhancing 401(k) Value and Participation: Taking the Automatic Approach,' released by the American Association of Retired Persons (AARP) . . . ." (Wolters Kluwer Law & Business)
Fiduciary Focus: Fleecing 403(b) Plan Participants - Part 5
Excerpt: "After clearing their minds of the prattle often voiced by insurance companies and other offending providers, school district officials should then be in a position to start with a clean slate and define clearly the kind of model 403(b) plan they want (I described that model in last month's column) and then work back from that goal, filling in the process along the way." (Morningstar)
No Crisis for Canadian and U.S. Pension Funding, According to Study
Excerpt: "DBRS, a Toronto-based credit rating agency, has concluded from its annual study assessing pension plans '...that public perception of serious funding problems in pension plans, in both Can.ada and the United States, is a myth.'" (PLANSPONSOR.com; free registration required)
How the Massachusetts Pension System Is Manipulated
Excerpt: "A 2000 retirement plan called 'Retirement Plus' allowed long-term teachers to increase their pension by an extra 2 percent of their final average salary for each year they worked over 24 years -- meaning a 12 percent boost for teachers who worked 30 years, for example. One trade-off was an increase in teacher pension contributions." (The News Courier)
West Virginia Government Employees Get Another Option for Retirement
Excerpt: "An additional retirement plan for state, county and municipal employees -- similar to private employees' 401(k) plan -- is being advocated by state Treasurer John Perdue, with an extra bonus for state workers." (The Charleston Gazette)
Opinion: Political Pandering Precipitates Pension Problem, in Kentucky
Excerpt: "The state's behind in its pension obligations by at least $12 billion, yet part-time politicians - part time - have it set up so even they can continue to fatten themselves at the public trough." (Bluegrass Institute)
The Ever-Changing Retirement Plan Marketplace
Excerpt: "Ahh, the retirement plan marketplace. The landscape seems to change every time we turn around. After a long period of modest change since the passage of EGTRRA, our industry is faced with sudden changes for plan sponsors, participants and financial advisors alike. To get a handle on the latest issues, [the target page will] summarize our most pressing topics." (Benefits Selling)
Getting Some Estate Planning Help from Your Employees, and the Government, with an ESOP
Excerpt: "[I]t is clear from reading the tax shorthand that the government wants to encourage long-term financial planning for its citizens. It is also clear that the government is very interested in helping employees secure ownership interests in the companies they work for (mostly through ESOPs as we have discussed many times in the past). It is even clearer that the government is interested in incentivizing the better off among us to subsidize the less fortunate through charitable giving." (The Beyster Institute)
Links to Items on Executive Comp, Benefits in General
Overview: IRS to Modify Key Rules for 457(f) Plans
Excerpt: "In Notice 2007-62, the IRS and the Treasury have announced plans to publish guidance which would apply the Code §409A definition of substantial risk of forfeiture (see Treas. Reg. §1.409A-1(d)) to 457(f) plans. The 409A definition is much more narrow than the §83 definition." (SunGard Corbel LLC)
As Workers Retire, Small Companies Face a Talent Crunch
Excerpt: "For any company with older employees, the statistics are grim. Over the next two decades, 78 million baby boomers will turn 65, the traditional retirement age. That's going to create a talent shortage, particularly in industries such as health care, education, engineering, and financial services." (Inc.com)
Working Paper: Health Risk in Retirement and Retirement Wealth
Excerpt: "This paper examines the extent to which private savings responds to the availability of a social insurance program." (University of Michigan Retirement Research Center)
On Satisfaction with Federal Benefits, It Depends on Who You Ask
Excerpt: "The hearing subject was 'Federal Benefits: Are We Meeting Expectations?' Linda M. Springer, the president's chief adviser on the civil service, said she thought so because surveys show that federal employees are highly satisfied with their benefits. 'We are largely meeting expectations,' she said." (The Washington Post; free registration required)
The Expat Zone - A Drama
Excerpt: "In EBA's coverage of expatriate benefit offerings it has come to our attention that some advisers think managing expat employees is a challenge alive with drama. Richard Polak, president and CEO of international benefits and human resources company, IBIS Advisors decided to share a bit of his inner thespian with us in his theatrical debut: 'The Expat Zone' . . . ." (Employee Benefit News; free registration required)
Severance for Executives in a Post-409A World - Common Myths and Misconceptions (PDF)
7 pages. Excerpt: "These rules are complex and a full-scope review of Section 409A and severance is beyond the scope of this Client Alert. However, we thought it would be useful to correct common misconceptions about how Section 409A affects severance and other separation payments to executives under the 2007 Final Regulations." (Baker & McKenzie)
Rule 10b5-1 Plans Under Scrutiny: The Next Executive Stock-Timing Story? (PDF)
6 pages. Excerpt: "The SEC has recently turned its attention to a review of insider stock sales made under prearranged trading plans intended to comply with SEC Rule 10b5-1 ('10b5-1 plans'). Because of the SEC's enhanced scrutiny, we expect 10b5-1 plans to become a new enforcement target." (Jones Day)
Newly Posted Events
Final Rules on Section 403(b) Tax-Sheltered Annuity Plans Exploring and Understanding the Changes - Webcast
Nationwide on August 9, 2007
presented by ALI-ABA (American Law Institute-American Bar Association)
NTSAA Webinar Series - The Final 403(b) Regs
Nationwide on August 7, 2007
presented by National Tax Sheltered Accounts Association
Understanding the Final 403(b) Regulations
Nationwide on August 9, 2007
presented by Convergent Retirement Plan Solutions, LLC
Webcast: Final Code §403(b) Regulations: It's Finally Here!
Nationwide on August 16, 2007
presented by ASPPA (American Society of Pension Professionals & Actuaries)
Newly Posted Press Releases
Barry L. Klein Joins Blank Rome LLP as Partner
Blank Rome LLP
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Director - Client Services
for Retirement Capital Group
in CA
Benefits Specialist
for The Children's Aid Society
in NY
Plan Administration Specialist
for Boston Financial Data Services
in MA
WRS Market Manager
for Wachovia
in MD
Assistant Actuary
for Standard Insurance Company
in OR
Disability Benefits Analyst
for Standard Insurance Company
in NY
Retirement Plans -Participant Services Rep
for Standard Insurance Company
in OR
New Business Defined Contribution Analyst -I, II or Senior
for Standard Insurance Company
in OR
Sr Account Mgr-Retirement Plans
for Standard Insurance Company
in OR
Sr Defined Contribution Analyst
for Standard Insurance Company
in OR
Pension Administrator
for CPActuaries
in FL, VA
Senior Director, Insurance Program Development & Management
for National Rural Electric Cooperative Association (NRECA)
in VA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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