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| October 2, 2007 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is ASPPA
(Click on company name or banner to learn more.)
| 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. |
(a) New Guidance Documents
(None today.)
(b) News
High Court Wants U.S. Government Comment on AT&T Pension Plan Appeal
Excerpt: "The U.S. Supreme Court [yesterday] asked the Solicitor General's Office to comment on an appeal by an AT&T Corp. pension plan facing a $31.2 million judgment in a class-action lawsuit over lump-sum retirement benefits paid to some retirees." (MarketWatch)
New Teachers in Michigan Will Pay More for Retirement
Excerpt: "Newly hired teachers in Michigan will have to contribute more to the state pension system and work longer to get maximum health insurance benefits once they retire." (AP via Michigan Live LLC)
U.S. Bank Hit with Class Action Cash Balance Conversion Suit
Excerpt: "A lawsuit accusing U.S. Bank of using an improper discount rate when converting participants' balances in a defined benefit plan to an opening balance for a cash balance plan has been filed in the U.S. District Court for the Eastern District of Missouri." (PLANSPONSOR.com; free registration required)
(c) Summaries of Guidance; Filed Comments
Overview: Treasury Letter Confirms IRS Will Administer Combined Plan Deduction Using PPA Correction
Excerpt: "The U.S. Department of Treasury sent a letter . . . to Congress indicating that the Internal Revenue Service (IRS) will administer the combined plan deduction limit under Internal Revenue Code Section 404(a)(7), consistent with Pension Protection Act technical correction bills currently pending in Congress." (Hewitt Associates)
(d) Trends, Surveys, Research
Details of 2008 Michigan Retirement Research Center Projects
Examples of project titles are as follows: 'Are All Americans Saving Adequately for Retirement' and 'How Does Modeling of Retirement Decisions at the Family Level Affect Estimates of the Impact of Social Security Policies on Retirement?' (University of Michigan Retirement Research Center)
Insurance Firms Locking Up More of 401(k) Market
Excerpt: "Reaping the rewards of their success in meeting plan sponsors' expectations about installation and ongoing service support, insurance companies have captured a larger share of the small to mid-size, adviser-driven 401(k) market. This was the primary conclusion of a new study by Hynes Associates, a research firm specializing in retirement and investment issues, according to a news release." (planadvisor)
Working Paper: Asset Allocation within Variable Annuities - The Impact of Guarantees
Excerpt: "The latest generation of variable annuity contracts contains equity put options plus longevity insurance. The marketing material for these products often claims that these new riders should induce purchasers to take on more financial risk. This chapter examines whether this is indeed the case. Using a unique database, we document that policyholders do in fact adopt higher equity exposures when these riders are selected. We also examine the theoretical merits of the marketing advice . . . ." (Pension Research Council; registration required to download fulltext of paper)
ESOP Terminations: A Report on the Reasons Companies Terminate Employee Stock Ownership Plans (PDF)
24 pages. Originally published April 17, 2007. Excerpt: "This report describes the results of the first phase of a research project on the reasons companies terminate employee stock ownership plans (ESOPs). It summarizes interviews with company leaders at former ESOP companies and suggests directions for the quantitative research planned for phase 2 of this project." (National Center for Employee Ownership)
Cerulli Report Shows 'Embedded-Advice Funds' to Continue Growth Pattern
Excerpt: "A new Cerulli Associates report forecasts a continued growth in 'embedded-advice funds' -- mostly target-date/lifecycle offerings -- taking a holistic view of all of the investor's assets. The report, The Cerulli Edge - U.S. Asset Management Edition, also said the next generation of the target-date/lifecycle products will go beyond what Cerulli said was the current products' limited construction and rebalance mechanisms. Newer versions of the funds will include more than the current products' predetermined asset mix . . . ." (PLANSPONSOR.com; free registration required)
Investment Advice Provision by Plan Sponsors Most Common Change Prompted by PPA
Excerpt: "Offering investment advice to plan participants is the most common change made by health care plan sponsors as a result of the Pension Protection Act (PPA), with 85% saying that was the case." (PLANSPONSOR.com; free registration required)
(e) Policy, Opinion, Advocacy
Zelinsky on the Reality of ERISA Social Investing
Excerpt: "Ed Zelinsky (Cardozo) has a thoughtful and provocative piece on the issue of social investing in the pension context. Here's a snippet from the National Law Journal . . . ." (Workplace Prof Blog)
Links to Items on Executive Comp, Benefits in General
ABA Tax Section, Law Firms, Urge Delay in 409A Compliance Until End of 2008
Excerpt: "The American Bar Association Section of Taxation and a group of 96 law firms have asked the IRS and Treasury to push back until January 1, 2009 the deadline for deferred compensation plans to comply with 'all aspects' of the final Code Sec. 409A regulations . . . and, at the same time, extend the good faith compliance period to December 31, 2008. " (Wolters Kluwer Financial Services)
Overview: Limited Section 409A Documentary Compliance Relief Leaves Much to be Done by Year-End (PDF)
4 pages. Excerpt: "This notice is welcome news for many employers but, in general, it does not relieve them from having to finalize their plan designs by year-end. Employee benefits attorneys and employer groups have banded together to request a further delay in the compliance date for the final regulations, but the outcome of these efforts cannot be predicted at this point." (Buck Consultants)
Newly Posted Events
Benefits Legislative Update
in California on October 9, 2007
presented by International Society of Certified Employee Benefit Specialists, Northern California Chapter
Newly Posted Press Releases
Benefit Software Releases Fringe Facts® Communicator 7.2; Enhanced Version Provides Benefits Brokers with a Fast and Easy Tool to Produce High-Impact Total Rewards Statements for Clients
Benefit Software Inc.
U.S. Labor Department Obtains Consent Judgment Restoring More Than $100,000 to Orlando, Fla.-based ZHA Inc. 401(k) Plan
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Four Organizations Win Limited Competition to Train Older Workers
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
The ESOP Association and Employee Ownership Foundation Announce Creation of New Employee Ownership Blog
ESOP Association
MassMutual Officially Launches Its Fiduciary Warranty and Third-Party Certification to the Defined Contribution Market
MassMutual
ANB Introduces ANBTrust, a Unique Discretionary Trustee Service for Retirement Plans
American National Bank of Texas (ANB)
Enrollment in High-Cost Health Plans Will Dominate the US Healthcare Market by 2020, Predicts Booz Allen
Booz Allen Hamilton
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs |
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Retirement Plan Document and Forms System Sales Representative
for SunGard Relius
in FL, GA
Installation/Conversion Specialist
for Professional Capital Services LLC
in PA
401(k) TPA Account Executive
for Small Broker/TPA Firm in NYC
in NY
Assistant Pension Administrator- Daily Valuation
for BenefitStreet
in NY
Senior Retirement Plan Consultant, Defined Contribution/Daily Valuation (DC/DV)
for BenefitStreet
in NY
Retirement Plan Consultant (Defined Contribution/401(k))
for BenefitStreet
in NY
Client Relationship Manager
for Strategies LLC
in CO
Director of Retirement Plan Operations
for Tycor Benefit Administrators
in PA
Account Administrator-Daily Recordkeeping
for McCready and Keene, Inc.
in IN
Health and Welfare Group Account Manager
for Great Lakes Employee Benefit Services, Inc.
in MI
Director Health & Welfare
for Buck Consultants
in OH
Benefits Compliance Professional
for Aerojet - Sacramento
in CA
Senior Operations Administrator
for Charles Schwab
in AZ, OH
Sr. Benefits Planning Analyst
for Aerojet - Sacramento
in CA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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