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| November 1, 2007 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
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(a) New Guidance Documents
(None today.)
(b) News
Truckers Pension Fund Sues Countrywide for Inflated Stock Prices
Excerpt: "The New England Teamsters and Trucking Industry Pension Fund has sued the CEO of Countrywide Financial over charges that company executive artificially inflated stock prices through share buybacks, Reuters reported." (PLANSPONSOR.com; free registration required)
BISYS is Now Ascensus
BISYS Retirement Services unveiled its new name: Ascensus. (PLANSPONSOR.com; free registration required)
(c) Summaries of Guidance; Filed Comments
Overview: Guidance on Defined Contribution Plan Default Investments (PDF)
4 pages. Excerpt: "The final regulations follow in large part the previously proposed regulations but add a transition provision for stable value funds and permit capital preservation vehicles to be used on a short-term basis." (Drinker Biddle & Reath LLP)
Overview of Final Section 403(b) Regulations: What Plan Sponsors Need to Know (PDF)
Pages 1-6 of 9 pages. Excerpt: "This article provides a . . . comprehensive explanation of how the final regulations will impact plans governed by 403(b) ('403(b) plans') and what employers sponsoring a 403(b) plan should do before the final regulations take effect in 2009." (Trucker Huss)
Overview: Final Regulations on Default Investments
Excerpt: "Although the final regulations seek to encourage plan sponsors to introduce or maintain automatic enrollment features, the new rules apply whether or not a plan implements an automatic enrollment feature." (Ballard Spahr Andrews & Ingersoll, LLP)
(d) Trends, Surveys, Research
Get a Cheap Loan Fast ... From Yourself
Excerpt: "When you're in a bind, the last thing you want to hear is a list of reasons why you shouldn't borrow the money you need. Often, however, that's exactly what you'll hear about taking out a loan against your retirement plan at work. It's easy for financial planning experts to tell you that borrowing from your 401(k) isn't an ideal thing to do. But when times are tight, even people who are pretty smart with their money often have to choose between unattractive options. And compared with some other ways to get the money you need, you can do a lot worse than 401(k) loans." (The Motley Fool)
Participation Rate Not the Only Plan Success Metric
Excerpt: "A Hewitt Associates news release said its poll of more than 300 of mid-to-large companies with 401(k) plans found that sponsors were not only increasingly embracing auto enrollment, but defaulting participants into diversified portfolios - often at a 3% level. Only 25% of companies viewed a high participation rate as the primary measure of success for their 401(k) plans, down from 43% in 2005." (planadvisor)
Does 'Value Driven' Investing Mean Lower Returns? A Look at Socially Responsible Investing
Excerpt: "For most investors who have an interest in SRI, they are often willing to slightly underperform a benchmark for a period of time, if it allows them to keep their personal values aligned with the values of companies held by their portfolio." (Richmond.com)
Overview of Pension Plan Limitations for 2008 (PDF)
Pages 7-8 of 9 pages. Excerpt: "For many of the pension plan limitations, the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. For some, however, the limitation remains unchanged: for instance, for the first time since the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001, the maximum amount of elective deferrals that may be made to 401(k), 403(b) and 457(b) plans, among others, was not increased." (Trucker Huss)
Employment-Based Retirement Plan Participation: Geographic Differences and Trends, 2006 (PDF)
36 pages. Excerpt: "This Issue Brief closely examines the level of participation by workers in public- and private-sector employment-based pension or retirement plans, based on the U.S. Census Bureau's March 2007 Current Population Survey (CPS), the most recent data currently available." (Employee Benefit Research Institute)
South Korea: Corporate Pension Developments
Excerpt: "With the passage of the Employee Retirement Security Act (ERSA) legislation on December 1, 2005, which sets out principles for setting up and managing employer-sponsored retirement plans, multinationals operating in Korea have begun to review their retirement plan structure, benefit obligations and funding mechanisms. The ERSA allows employers to offer both defined benefit and defined contribution plans as an alterative to the existing severance pay system. Here we take a look at how multinational companies are responding to ERSA." (Mercer LLC; free registration required)
Some Federal Employees Nearing Retirement Seem to Take Sick Leave at Higher Rates Than Younger Counterparts
Excerpt: "When employees covered by the Federal Employees Retirement System retire, they don't receive a benefit offered to those retirees covered by the old Civil Service Retirement System -- the ability to convert unused sick leave into a pension benefit. The different policies may explain why FERS employees are using more sick leave than their CSRS counterparts as they approach retirement, a report by the Congressional Research Service said." (The Washington Post; free registration required)
(e) Policy, Opinion, Advocacy
Group Statement to Special Committee on Aging of Hearing on Hidden 401(k) Fees (PDF)
6 pages. Written statement for the record to the U.S. Senate Special Committee on Aging in the hearing on 'Hidden 401(k) Fees: How Disclosure Can Increase Retirement Security' held Wednesday, October 24, 2007, submitted on behalf of the ERISA Industry Committee, Society for Human Resource Management, National Association of Manufacturers, U.S. Chamber of Commerce, and the Profit-Sharing/401k Council of America. (Profit Sharing/401(k) Council of America)
Testimony on Behalf of American Benefits Council, American Council Of Life Insurers, and Investment Company Institute at Hearing on Hidden 401(k) Fees
Excerpt: "Our goal is an effective 401(k) system that functions in a transparent manner and provides meaningful benefits at a fair price in terms of fees. At the same time, we all must bear in mind that unnecessary burdens and cost imposed on these plans will slow their growth and reduce participants' benefits, thus undermining the very purpose of the plans." (Investment Company Institute)
ICI Statement at Hearing on 'Hidden 401(k) Fees: How Disclosure Can Increase Retirement Security'
Excerpt: "The mutual fund industry is committed to meaningful 401(k) disclosure, which is critical to ensuring secure retirements for the millions of Americans that use defined contribution plans. We thank the Committee for the opportunity to submit this statement and look forward to continued dialogue with the Committee and its staff." (Investment Company Institute)
On the Web -- A Ways and Means Retirement Savings Survey
Excerpt: "Recently the Committee on Ways and Means held a hearing examining the appropriateness of fees associated with 401(k), 403(b) and 457 retirement plans. In an effort to help us better serve you, please take a minute to respond to this survey to let us know how you feel and to ensure you receive information that suits your interests." (U.S. House Committee on Ways and Means)
Defined Contribution Plans: The Challenge of Achieving Benefit Adequacy
Excerpt: "For multinationals that are looking to DC retirement plans as a key benefit component, the country trends described above should aid in decision making. Specifically, companies should: Review their existing plan against current local best practice; Within local regulatory frameworks, adopt aspects from more advanced countries that have positive outcomes, ahead of local trends; Update their plans when necessary to keep pace with changing trends and employee needs." (Mercer LLC; free registration required)
The Pension Landscape: What Do All the Surveys Tell Us?
Excerpt: "Over the past few years, many surveys have been completed on pension plan funding in all the major geographies around the world, with the press reporting the funded status of pension plans for the S&P 500 and FTSE 100 companies, among others. Generally speaking, the surveys have shown a gradual improvement in funded status since the bear market of 2000-2002, but what do these surveys really tell us? Do the rising numbers mean that the overall health of the system is improving?" (Mercer LLC; free registration required)
The Battle to Extend IRA Donations
Excerpt: "Will tax breaks for donating IRA distributions to charity have a future? Many charitable organizations and congressional leaders are now asking that question, as a provision of the Pension Protection Act of 2006 sunsets on December 31." (On Wall Street)
Gullible's Travels: Journeys in Plan Design
Excerpt: "Many of you will have encountered the 'Does investing plan assets in equities instead of bonds really generate shareholder value?' version of this debate. As a gullible young actuary, I was convinced that equities were the better choice. Now, as a gullible older actuary, I have been convinced that there is little difference between the two." (Mercer LLC; free registration required)
Links to Items on Executive Comp, Benefits in General
Agencies Release 'Information Only' Copies of 2007 Form 5500 Series
Excerpt: "The Employee Benefits Security Administration (EBSA), IRS, and PBGC have released advance information copies of the 2007 Forms 5500, 5500-EZ, and instructions." (Wolters Kluwer Financial Services)
Brief Analysis: The Coming Tax Tsunami
Excerpt: "Over the next 25 years American taxpayers will face a fiscal tsunami. The first of the baby boomers will be eligible for early retirement beginning next year, and will be eligible for Medicare in 2011. The last of the Baby Boom generation, born in 1964, will reach normal retirement age (67 years) in 2031. Most baby boomers are approaching their peak earning years when they have the greatest capacity to save for retirement. Many failed to save when they were younger and need to catch up. Unfortunately, expected tax increases will make it increasingly difficult for each succeeding age cohort to save for retirement. Following are some of the tax hikes coming down the pike." (National Center for Policy Analysis)
Executive Remuneration Library: Coverage of Performance, Measurement, and Reward Issues
Excerpt: "[The] Executive Remuneration Perspective is Mercer's regular publication offering in-depth coverage of performance, measurement and reward topics. [Their] library allows you to browse through the list of recent issues and link directly to those that interest you." (Mercer LLC; free registration required)
Newly Posted Events
Autoenrollment and Default Investments: the New 401(k)Safe Harbors
Nationwide on November 29, 2007
presented by ABA Joint Committee on Employee Benefits
Employee Record Retention - What to Keep to Avoid Employment Litigation
Nationwide on November 27, 2007
presented by Thompson Interactive, A Division of Thompson Publishing Group
FMLA and Medical Certification - How To Deal With Complex Situations
Nationwide on November 15, 2007
presented by Thompson Interactive, A Division of Thompson Publishing Group
Getting to Universal Health Insurance Coverage: 20th Annual Conference
in District of Columbia on January 31, 2008
presented by National Academy of Social Insurance
How to Turn Your Problem Employees Into Assets
Nationwide on November 14, 2007
presented by Thompson Interactive, A Division of Thompson Publishing Group
Non-Compete Agreements-Are They Legally Enforceable
Nationwide on November 20, 2007
presented by Thompson Interactive, A Division of Thompson Publishing Group
Should Your Corporation Be Crisis Certified? How the New Law Will Affect You
Nationwide on November 7, 2007
presented by Thompson Interactive, A Division of Thompson Publishing Group
Using Captives in Employee Benefits Teleweb
Nationwide on November 15, 2007
presented by International Foundation of Employee Benefit Plans
Newly Posted Press Releases
IRS Seeks Applications for TE/GE Advisory Committee
Internal Revenue Service (IRS)
American Voters Worry Their Retirement Plans Are Inadequate
Americans for Secure Retirement (ASR)
Andrews Federal Credit Union (AFCU) Offers Retirement Gap Analysis for Employees through Flexible Synapses Technology
Synapses Inc.
Highmark Blue Cross Blue Shield Program Rewards Members for Enhancing Their 'Healthstyle'
Highmark Blue Cross Blue Shield
Newly Posted or Renewed Job Openings
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Plan Administrator
for Beneco, Inc.
in AZ
Defined Contribution Retirement Plan Administrator
for Loren D. Stark Company, Inc.
in TX
Wanted: Somebody with the right kind of limited DB/DC experience
for Hunter Benefits Consulting Group, Inc.
in CO, IL
Pension Administrator
for Snyder Cohn
in MD
Plan Administrator
for Clifton Capital Partners, Inc.
in TX
Senior Account Executive - Group Employee Benefits
for BWD Group LLC
in NY
Senior Account Executive - Group Employee Benefits
for BWD Group LLC
in PA
Pension Analyst
for Affiliated Computer Services
in NJ
Pension Administrator
for Valley Forge Consulting Corporation
in PA
Defined Benefits Sr Analyst
for Affiliated Computer Services
in NJ
Pension Administrator
for California Retirement Plans, Inc.
in CA
Compliance Specialist
for Benetech, Inc.
in GA
Team Leader - New Business - Retirement Plans
for Standard Retirement Services
in OR
Defined Contribution Account Manager II - Retirement Plans
for Standard Retirement Services
in WA
Pension Consultant
for Spectra Associates, Inc.
in PA
Plan Specialist - Plan Sponsor Desk (Los Angeles)
for Transamerica Retirement Services
in CA
Retirement Plan Services Senior Associate
for Goodman & Company
in VA
Retirement Plan Services Supervisor - Senior Manager
for Goodman & Company
in VA
Pension Plan Administrator/Pension Plan Actuary
for The Waage Law Firm
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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