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| November 30, 2007 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is DATAIR Employee Benefit Systems, Inc.
(Click on company name or banner to learn more.)
| Software for 401(k), Pension and Flex Administration |
| Pick and choose the software modules you need:
DC/401(k) Proposals & Administration - DB Proposals & Administration - Retirement Plan Documents (Prototype and
Volume Submitters) - Government Forms (5500s, 1099-Rs, 5300s) - Cafeteria Plan Administration & Documents - Participant Termination Calculations - FAS 132 Reporting
Contact sales@datair.com or call 1-888-328-2474. |
(a) New Guidance Documents
Text of PBGC Notice of Flat Premium Rates for 2008: $33 for Single-Employer, $9 for Multiemployer (PDF)
Excerpt: "The adjustments are based on changes in the national average wage index as defined in section 209(k)(1) of the Social Security Act, with a two-year lag -- for example, for 2008, the 2006 index is compared to the baseline (the 2004 index). The new provisions are written in such a way that the premium rate can never go down . . . . [T]he 2008 flat premium rates for PBGC's two insurance programs will be $33.00 per participant for single employer plans and $9.00 per participant for multiemployer plans." (Pension Benefits Guaranty Corporation)
Final PBGC Reg Providing Allocation of Assets Table for 2008 Single-Employer Terminations (PDF)
Excerpt: "This rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans by substituting a new table that applies to any plan being terminated either in a distress termination or involuntarily by the PBGC with a valuation date falling in 2008, and is used to determine expected retirement ages for plan participants. This table is needed in order to compute the value of early retirement benefits and, thus, the total value of benefits under the plan." (Pension Benefit Guaranty Corporation)
Text of PBGC Reg Announcing Maximum Guaranteed Benefit for 2008: $4,312.50 per Month (PDF)
Excerpt: "Thus, the maximum monthly benefit guaranteeable by the PBGC in 2008 is $4,312.50 per month in the form of a life annuity beginning at age 65." (Pension Benefits Guaranty Corporation)
Proposed SEC Regs: Enhanced Disclosure and New Prospectus Delivery Option for Registered Open-End Management Investment Companies (PDF)
36 pages. Excerpt: "The proposed amendments, if adopted, would require key information to appear in plain English in a standardized order at the front of the mutual fund statutory prospectus. The Commission is also proposing rule amendments that would permit a person to satisfy its mutual fund prospectus delivery obligations under Section 5(b)(2) of the Securities Act by sending or giving the key information directly to investors in the form of a summary prospectus and providing the statutory prospectus on an Internet Web site." (Securities and Exchange Commission)
(b) News
Florida Freezes Its Pension Fund as Local Governments Pull Out Over Subprime Mortgage Troubles
Excerpt: "Local governments in recent weeks have been withdrawing billions of dollars from the fund, fearing losses on investments in debt related to subprime mortgages. The rush to get out of the fund began even though a relatively small percentage of the fund is invested in subprime-related debt, and it is unclear what losses the fund may sustain. . . . The state-run fund pools money from local communities so they can get better returns on investments. The Florida fund, known as the Local Government Investment Pool, had about $27 billion in assets until this fall. Its value had fallen to just $15 billion this month because of withdrawals . . ." (New York Times)
New PBGC Data Showns Most Retirees' Benefits Not Reduced by PBGC Plan Takeover
Excerpt: "n a news release, the PBGC said that, while federal pension law limits the benefit amount the PBGC may guarantee when it takes responsibility for a failed pension plan, of more than 525,000 PBGC participants studied, only 16% saw their retirement benefits reduced. The average reduction was 28%, according to the release." (PLANSPONSOR.com; free registration required)
PBGC Deficit Declined to $13.1 Billion in Fiscal Year 2007
Excerpt: "The 2007 results represent a $5 billion improvement over last year's $18.1 billion shortfall." (CCH Pension and Benefits)
Texas Pension Trustees Move Toward Iran Divestment
Excerpt: "Trustees of the state's Employee Retirement System have taken a step toward eventually divesting from companies doing business with Sudan and Iran. But one board member predicts the effort to force political and social change through investment policies will fail." (Houston Chronicle)
(c) Summaries of Guidance; Filed Comments
Overview: IRS Publishes 403(b) Model Plan; Vendors Are Affected
Excerpt: "[T]here are at least two potentially significant ramifications flowing from the guidance that will adversely impact 403(b) plan vendors. First, from the vendor's perspective, supporting the model plan language will require significant effort and expense, and will be difficult to accomplish by the January 1, 2009 effective date. Second, the revenue procedure's guidance on how to treat contracts issued prior to January 1, 2009 must be clarified in order to be workable." (Baker & Daniels LLP)
Text of American Benefits Council Comments on Transition Relief for Proposed IRS Reg Defining Normal Retirement Age (PDF)
5 pages. Excerpt: "[T]he Council has the following concerns with respect to [Notice 2007-69]: [1] From both a substantive and a process perspective, we are very concerned about the statement in Section V of the Notice regarding plans under which the normal retirement age is defined as the earlier of a specified age or a specified number of years of service. [2] We have continuing concerns about the ability of plans to interpret and apply the regulatory rule regarding permissible normal retirement ages." (American Benefits Council)
(d) Trends, Surveys, Research
Pension Plans Explore Interest Rate Swaps to Address Funding, Liability Volatility
Excerpt: "The use of interest rate swaps as a financial instrument has continued to balloon since 1982, when Sallie Mae decided to swap the interest payments on its first fixed rate intermediate bond for a floating rate note tied to the three-month Treasury bill rate. It hasn't been until fairly recently, however, that there has been a groundswell of curiosity about and use of interest rate swaps by the defined benefit plan sponsor community." (Vanguard)
RFP's for Investment Advisors -- Their Time May be Coming
Excerpt: " While most mid-market and larger Defined Contribution plans routinely send out an RFP when shopping for a new record keeper, very few plans of any size use the same process for an advisor. Many plans have inherited their current advisor and most have never conducted a formal search or review process." (401kExchange.com)
(e) Policy, Opinion, Advocacy
Towers Perrin Legislative Tracking Charts - Retirement (PDF)
11 pages. Excerpt: "These charts summarize selected federal legislation that would affect employer benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
The 'Third Rail': Presidential Candidates Take on Social Security
Excerpt: "Below are the Social Security proposals and suggestions made so far by the front-runners. Those front-runners were determined by the results of CNN's most recent national polls in which a candidate got at least 10 percent of the vote. Among the Democrats, they are Hillary Clinton, Barack Obama and John Edwards. From the Republican field, there is Rudy Giuliani, John McCain, Mitt Romney, Fred Thompson and Mike Huckabee." (CNN.com)
Sponsored by: University Conference Services
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| Is Your Plan Management Textbook Outdated? |
| Comprehensive legislative changes, increased regulatory scrutiny, mounting litigation and unprepared participants have created whole new chapters on plan management. With all of these changes, you need to update your textbook today. The Mid-Sized Retirement & Pension Plan Management Conference, January 27-30, 2008, at the Hilton in the Walt Disney World®, Orlando, Florida is your chance to study with the best. Keynote speaker Ann Combs, former Assistant Secretary of Labor and head of the Employee Benefits Security Administration, headlines an outstanding lineup of speakers in 40+sessions. Make plans now to attend and move to the head of the plan management class.
Presented by the University of North Carolina's Kenan-Flager Business School in conjunction with leading retirement plan providers and advisors |
| (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) |
Links to Items on Executive Comp, Benefits in General
November 2007 Employee Benefits Update from Reinhart Boerner (PDF)
9 pages. Nice overview for retirement and health plans, including selected compliance deadlines and a discussion of IRS guidance on yield curve and segment rates for calculating pension plan funding and lump sum interest rate. (Reinhart Boerner)
Towers Perrin Legislative Tracking Charts - Human Resources (PDF)
12 pages. Excerpt: "These charts summarize selected federal legislation that would affect employer benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
Newly Posted Events
Deferred & Executive Compensation Conference
in District of Columbia on December 5, 2007
presented by U.S. Chamber of Commerce's Center for Capital Markets Competitiveness and the ERISA Industry Committee
Update on Disability Discrimination with Craig J. Davidson, CEBS
Nationwide on January 15, 2008
presented by Davidson Marketing Group -- FutureOffice Network
Newly Posted Press Releases
Most PBGC Retirees Receive Full Earned Benefit, Study Shows
Pension Benefit Guaranty Corporation (PBGC)
Labor Department Court Order Bars West Virginia Investment Advisor From Providing Service To Employee Benefit Plans
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Survey Finds Many Employers Are Using Automatic Features in Defined Contribution Plans
International Foundation of Employee Benefit Plans
ftwilliam.com announces the release of its 2007 Form 5500 software
ftwilliam.com
Research Confirms Correlation Between PBM Transparency and Employer Satisfaction
Pharmacy Benefit Management Institute (PBMI)
Jason Jaworoski
Lambert & Carney Benefits Group, LLC
401k Coach ~ Announces Master's Program in 2008
401k Coach Program
Veterinary Pet Insurance Poll Reveals Insured Pets Visiting the Doctor More Than People
Veterinary Pet Insurance
Partnership for Workplace Mental Health Launches Database of Employer Innovations
American Psychiatric Foundation
Newly Posted or Renewed Job Openings
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Senior Retirement Plan Consultant, Defined Contribution/Daily Valuation (DC/DV)
for BenefitStreet
in NY
Pension Administrator
for Howard A. Feinstein Associates, Inc.
in IL
Director-Project Management
for MassMutual Financial Group
in MA
Retirement Services Facilitator
for National Life Group
in VT
Account Executive - Retirement Services
for The Principal Financial Group
in OH
Defined Benefit Plan Administrator
for Howard Simon & Associates
in IL
Director, Project Manager
for MassMutual Financial Group
in CT
Staff Assistant
for Benefit Services of Hawaii
in HI
Account Manager, Employee Benefits
for ABD Insurance and Financial Services
in CA
Producer, Special Accounts
for ABD Insurance and Financial Services
in CA
Consulting/Marketing Manager
for Associated Pension Consultants
in CA
Supervisor, Investment Processing
for Princeton Retirement Group, a Merrill Lynch Co.
in NC
Knowledge Management Editor
for Administaff
in TX
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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