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| August 10, 2007 |
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| ASPPA's Annual Conference, October 21-24, 2007 |
| Be a part of it all at ASPPA's Annual Conference this year. Join over 1,500 retirement professionals, choose from over 60 workshops, attend numerous networking opportunities and participate in ASPPA's bi-annual march to the hill. All this and more await you at the Hilton Washington, October 21-24, 2007. Register Now. |
IRS Notice 2007-69: Relief Related to Plan Amendment of Definition of Normal Retirement Age (PDF)
9 pages. Excerpt: "This notice provides temporary relief, until the first day of the first plan year that begins after June 30, 2008, for certain pension plans under which the definition of normal retirement age may be required to be changed to comply with the regulations relating to a plan's normal retirement age that were recently issued under § 401(a) of the Internal Revenue Code. This notice also identifies potential violations of the vesting and accrued benefit requirements for defined benefit plans under § 411 that may arise from a definition of normal retirement age based on a minimum period of service." (Internal Revenue Service)
Final EBSA Regs on Penalty for Failure to Notify Self-Directed Plan Participant of Right to Divest Employer Stock (PDF)
Issued as a 'direct final rule' that takes effect immediately. Public comment that is significant and adverse would cause DOL to withdraw the rule and cancel its effectiveness, but DOL does not anticipate such comment (see https://benefitslink.com/erisaregs/E7-15568.pdf). Excerpt: "Plan administrators must provide this notice not later than 30 days before the first date on which the individuals are eligible to exercise their rights. The notice must set forth the diversification rights provided under section 401(a)(35) of the Code (and parallel section 204(j) of ERISA) and describe the importance of diversifying the investment of retirement account assets. Section 101(m) of ERISA is effective for plan years beginning after December 31, 2006." (Employee Benefits Security Administration, U.S. Department of Labor)
Overview: PPA Technical Corrections Bill Introduced (PDF)
4 pages. Excerpt: "Because the bill has the strong backing of the top leaders of key committees, it has a high likelihood of passage -- although the timing remains unclear. . . . . The provision regarding employers with contributions to defined contribution plans that do not exceed 6% is contrary to the IRS interpretation in Notice 2007-28 and confirms the interpretation of most employers and those in the employee benefits community, including Buck . . . . " (Buck Consultants)
Text of SPARK Institute's Letter to Congress re the 401(k) Fair Disclosure Act (PDF)
4 pages. Excerpt: "We are concerned that the Bill will discourage the formation of new retirement plans, discourage employee participation and savings, significantly increase retirement plan costs, and will create fertile ground for frivolous lawsuits brought by plaintiffs' lawyers primarily seeking settlements from plan sponsors with perceived deep pockets and service providers concerned about their public reputations." (The SPARK Institute)
Questions for Plan Sponsors to Consider Due to the Final 403(b) Regulations (PDF)
2 pages. Excerpt: "The first question for 403(b) plan sponsors is whether to comply early with the new regulations. Plan sponsors should consider . . . . " (Milliman)
Tax-Sheltered Annuity Regs Diminish Differences from Other Salary-Reduction Arrangements, Official Says
Excerpt: "For the first time, the regulations define what a controlled group is for tax-exempt organizations, Architect stated, indicating that governments and steeple churches are excluded from these rules. The rules are based on an 80-percent director/trustee common control test." (CCH Tax Newsletter)
More Evidence That Retirement Savings Crisis Does Exist
Excerpt: "Upon retirement, nearly 45% of households will fall more than 10% short of their target living standard -- even if they work to age 65 and annuitize all their financial assets, including receipts from reverse mortgages on their homes, says the Center for Retirement Research at Boston College." (Employee Benefit News)
Are Formulaic Asset Allocation Programs Putting Savings at Risk?
Excerpt: "[According to a new study by the Compass Institute, a think-tank dedicated to investment strategy research for employer-sponsored retirement plans,] FAA's such as lifecycle, target date, balanced funds, managed accounts and Monte Carlo simulation will not protect participants from risk because FAA approaches expose participants to the highest risks over market cycles." (Employee Benefit News)
Ohio Attorneys Write 'Protecting Your Pension for Dummies' Book
Excerpt: "The idea for the book came about, because after years of representing pensioners in the courts, [two partners at partners in Gary, Naegele & Theado said they] wanted to give people the tools to know what questions to ask and how to handle potential problems." (The [Lorain OH] Morning Journal)
FINRA Conducting Sweep Examination of Pitches to Retirees and Section 72(t) Withdrawals (PDF)
4 pages. Excerpt: "The Financial Industry Regulatory Authority ('FINRA') recently initiated a sweep examination of broker-dealers that may be targeting 'potential or early retirees. In particular, FINRA appears to be focusing on customer accounts that utilize Section 72(t) of the Internal Revenue Code to withdraw money from qualified retirement accounts prior to age 59-1/2. FINRA's sweep examination is a significant expansion into this area . . . ." (Sutherland Asbill & Brennan LLP)
Kentucky Adopts Deemed IRA for Public Employees
Excerpt: "Public employees in Kentucky can keep their individual retirement account (IRA) assets in a separate account within their 401(k) plan, as of July 1, 2007." (PLANSPONSOR.com)
IRS Notice 2007-67: Indian Tribal Pension Plans Under the Pension Protection Act of 2006 (PDF)
2 pages. Excerpt: "The purpose of this notice is to extend the transitional relief provided to plans of Indian tribal governments and certain related entities under Notice 2006-89, 2006-43 I.R.B. 772, to the date that is six months after guidance is issued under § 414(d) of the Code, as amended by section 906 of the Pension Protection Act of 2006, on the determination of whether a retirement plan maintained by an Indian tribal government is a governmental plan with the meaning of § 414(d) of the Code." (Internal Revenue Service)
Links to Items on Executive Comp, Benefits in General
Benefits Cost Increases Rebound
Excerpt: " Benefits costs rose more quickly than salaries for the period from March to June 2007, according to the most recent Employment Cost Index from the Department of Labor's Bureau of Labor Statistics (BLS). This is in contrast to last quarter's BLS statistics, when benefits costs rose less quickly than salaries for only the second time in the last five years." (CCH Pension)
CEO Found Guilty in First Criminal Trial Related to Stock-Option Backdating
Excerpt: "In a stunning victory for government prosecutors, Gregory Reyes, the former hard-charging chief executive of Brocade Communications Systems, was found guilty Tuesday in the nation's first criminal trial related to stock-option backdating. The jury, which deliberated for 5-1/2 days, convicted Reyes of all 10 counts of securities fraud." (Human Resource Executive Online)
We Are Sorry to Report the Passing of Philadelphia ERISA Lawyer Brett Kates
Excerpt: "Mr. Kates was a frequent contributor to our message boards (b2kates): over 600 messages that helped his colleagues. See also https://benefitslink.com/boards/index.php?showtopic=36347. (Philadelphia Inquirer)
EBSA Seems to be Cracking Down on Multiemployer Plan Service Provider Gifts
Excerpt: "The International Foundation of Employee Benefit Plans (IFEBP) has reported on what appears to be stricter enforcement by some offices of the Department of Labor's Employee Benefits Security Administration (EBSA) of rules regarding service provider gifts and entertainment for multiemployer plan trustees or administrators." (PLANSPONSOR.com)
Newly Posted Events
Employee Benefits Conference
in West Virginia on October 4, 2007
presented by West Virginia Bar Association
Retirement Plan Vendor Analysis and Benchmarking: A Fiduciary Responsibility
in California on September 5, 2007
presented by International Society of Certified Employee Benefit Specialists - Orange County Chapter
Shaping the Future: Innovative Solutions for Today's Health Care Challenges
in Pennsylvania on September 6, 2007
presented by Pittsburgh Business Group on Health
Newly Posted Press Releases
PBGC Assumes Scovill Fasteners Inc. Pension Plan
Pension Benefit Guaranty Corporation (PBGC)
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs |
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ERISA Attorney
for O'Neil, Cannon, Hollman, DeJong S.C.
in WI
Director, Employee Benefits
for Raley's
in CA
New Business Project Manager
for National Retirement Plan Services Firm
in
Sr. Director, Benefits (Health & Welfare / Savings & Retirement)
for Saks Fifth Avenue
in CT, NY
Tax Senior: Comp & Benefits - Global Enterprise Services
for Deloitte, LLP - Washington National, Tax Practice
in ANY STATE, DC
Conversion Manager
for Princeton Retirement Group, a Merrill Lynch Co.
in GA
Investment Advisor
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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