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Watson Wyatt Says Annuities will Improve DC Plan Options Excerpt: "Employers will begin offering annuities as an investment option within 401(k) plans as a way to ensure greater retirement security on behalf of their employees, predicts Watson Wyatt Worldwide in a recent white paper." (PLANSPONSOR.com; free registration required) Cash Balance Plans in the New Millennium (PDF) 6 pages. Excerpt: "Although the PPA is of great help to employers who plan to convert their defined-benefit plans to cash balance plans in the future, the law remains unchanged and unsettled for most cash balance plans. It is estimated that one-half of all U.S. defined-benefit pension plans are cash balance plans that converted before the PPA and remain subject to the old rules." (Jones Day) Court Says Participant Can Still Sue Despite PBGC as DB Plan Trustee Excerpt: "A federal appellate court has ruled that a defined benefit plan participant can still pursue a fiduciary breach claim against the plan's investment manager even though the plan had been turned over to the nation's private-sector pension insurer." (PLANSPONSOR.com; free registration required) Pension Rights Center Comments Submitted to the Department of Labor Regarding 401(k) Fees (PDF) 3 pages. Excerpt: "We are writing to respond to the Department of Labor's request for information regarding fee disclosure in participant-directed 401(k) plans. . . . The RFI's stated purpose is 'to ensure that participants and beneficiaries have the information they need to make informed decisions about the management of their individual accounts and the investment of their retirement savings.'" (Pension Rights Center) American Benefits Council Fast Facts on 401(k) Plans - Defined Contribution Plan Fees (PDF) 1 page. Excerpt: "The Council recently provided substantial input to the U.S. Department of Labor on a full range of issues relating to 401(k) plan fees, including: current best practices among employers and service providers; the scope, frequency, methods and costs of disclosure; the different kinds of plan fees and the importance of investment education." (American Benefits Council) How Much Do Americans Depend on Social Security? (PDF) 23 pages. Excerpt: "Many low-income workers depend almost entirely on Social Security for their retirement income, but it is often assumed that high-wage workers can maintain their standard of living without Social Security benefits due to their private pensions and savings. Surprisingly, however, even high-wage workers depend on Social Security for a substantial portion of their retirement income and would significantly change their consumption and saving behavior in the absence of Social Security." (National Center for Policy Analysis) Editorial: Pensions and the Mortgage Mess Excerpt: "[F]aced with growing numbers of retirees, some pensions -- including those for police and firefighters in Ohio and Dallas -- have been unable to resist making these risky investments in an attempt to increase their returns. Public and private pension funds have also plowed tens of billions into hedge funds, which have been piling into mortgage-related securities." (The New York Times; free registration required) The Fourth Pillar: Retirement Choices 28 pages. Excerpt: "The Four Pillars have their origin in the traditional 'three-legged stool' of retirement security: Social Security, Employment-Based Plans, and Personal Savings. To this, Prudential has added a fourth Pillar, Retirement Choices, to capture lifestyle and financial choices that are taking on greater significance given the changing nature of retirement in America." (Prudential Financial) Sponsored by: ASC & The ASC Institute (Click on company name or banner to learn more.)
Links to Items on Executive Comp, Benefits in General Text of IRS 'Frequently Asked Questions' Document for School Teachers About Effect of Section 409A (PDF) 4 pages; dated 8/7/2007 (no document number specified). Excerpt: "The questions and answers below explain that, for purposes of section 409A: [i] School districts are not required to offer their employees an election between being paid over the school year and being paid over a 12-month period [ii] School districts that choose to offer such an election need not make any changes prior to 2008 and their employees will not be subject to additional taxes [and iii] Any changes required for 2008 are likely to be minor." (Internal Revenue Service) Global Report, Second Quarter 2007, Shows Moderate Reforms (PDF) 7 pages. Excerpt: "As the talent pool shrinks in certain countries due, in part, to aging populations and global labor mobility, many of these reforms address opening the labor market while protecting employees' rights and keeping the retirement and health care systems sustainable." (Hewitt Associates) Overview: IRS to Define Severance Pay Plan, Substantial Risk of Forfeiture Under Code Sec. 457 Excerpt: "The IRS has announced that it intends to issue guidance, applicable to nonqualified deferred compensation plans of state and local governments and tax exempt entities under Code Sec. 457, which will define the terms 'bona fide severance pay plan' and 'substantial risk of forfeiture.'" (Wolters Kluwer Law & Business) Overview: SEC's Rules on Executive Compensation: Illuminating the Disclosure Requirements Excerpt: "The disclosures required under the previous rules did not adequately reflect how executive compensation packages have evolved and increased in complexity over time. The amended rules are intended to better disclose these new forms of compensation and provide sufficient flexibility to address additional forms and types of compensation as developed in the future." (The New York State Society of CPAs) A Reasonable Approach to Severance and Change-in-Control Payments Excerpt: "The areas for reconsideration include: Full or partial gross-ups triggered by a change-in-control event; Age, service or formula enhancements for supplemental executive retirement plans (SERPs) triggered by either severance or a change-in-control event; Full-cash severance payouts rather than those that sunset after a period of service; Full protections for any termination following a change-in-control event; Single-trigger equity vesting at a change-in-control event." (Watson Wyatt Worldwide) Court Rejects General Evidence Regarding Mailing Procedures for Summary of Material Modifications Excerpt: "EBIA Comment: The courts are not always this demanding in terms of proof of mailing, but as this outcome illustrates, generalized evidence of mailing procedures may not always be enough. In our view, employers (and third-party service providers that mail required materials) should be prepared to produce particularized descriptions of company mailing procedures -- showing that materials were simply delivered to the company mailroom may not be sufficient." (Employee Benefits Institute of America Inc.) Newly Posted Events Dealing With Documents -- The New EGTRRA Updating Rules Under Rev. Proc. 2007-44 Nationwide on September 12, 2007 presented by American Society of Pension Professionals & Actuaries (ASPPA) ERISA Claims Fundamentals in Florida on February 13, 2008 presented by West Legalworks ERISA Claims Fundamentals Workshop in New York on October 24, 2007 presented by West Legalworks Plan Administration Workshop with Joan Gucciardi, MSPA, CPC, MAAA, Summit Benefit & Actuarial Services in Pennsylvania on September 7, 2007 presented by ASPPA Benefits Council of Delaware Valley The Eight Benefits Conversations: Recalibrating Health and Welfare Teleweb Nationwide on August 23, 2007 presented by International Foundation of Employee Benefit Plans Newly Posted Press Releases Communication, Information Tools Critical to Success of Consumer-Directed Health Plans, Watson Wyatt and RAND Corporation Study Finds Watson Wyatt New Rule Will Not Affect Teacher Salaries in Upcoming School Year Internal Revenue Service (IRS) Report Subscriptions, ACH Processing, and Payment Updates Mark Summer Upgrade of Travis Software's WebCOBRA.com Travis Software Corp. USA Today Names NCOA's BenefitsCheckUp.org a Cyberspace "Gem" National Council on Aging (NCOA) Transcend Technologies Group Partners with HRAnswerLink to Enhance Group Benefits Manager(TM) with HR Compliance Tools Transcend Technologies Group, Inc. SPARK Institute Comments To Congress, DOL & SEC About Concerns With "401(k) Fair Disclosure Retirement Security Act" The SPARK Institute Newly Posted or Renewed Job Openings (Post a Job | View All Jobs | RSS Feed ) Consulting Attorney for Towers Perrin in NY Pension Plan Administrator for Pension Consultants, Inc. in CT Participant Communication Consultant for StanCorp Equities Inc in PA Regional Sales Consultant for The Retirement Advantage, Inc. in IN, OH Handy Links:
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