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December 6, 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.)
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(a) New Guidance Documents

IRS 30 Year Treasury Securities Rate Updated for November 2007
30 Year Treasury Securities Rate for November 2007: 4.52% (Internal Revenue Service)

IRS Composite Corporate Bond Rate Table Updated for December 2007
Corporate Bond Weighted Average Interest Rate = 5.90 for December 2007 (Internal Revenue Service)

(b) News

6th Circuit: Widow Gets Retirement Assets When Plan Beneficiary Designation Form Not Signed
Excerpt: "Because the wife of a law firm employee never executed documents waiving her claim to her husband's retirement plan savings, she should now receive those funds, a federal appellate court has ruled. The 6th U.S. Circuit Court of Appeals decided that Debbie Sandler should be awarded the retirement plan assets even though she and husband David had signed a prenuptial agreement in which she gave up rights to the money." (PLANSPONSOR.com; free registration required)

International Update, November 2007: Recent Developments in Foreign Public and Private Pensions
Excerpt: "This monthly publication covers recent developments in foreign private and public pensions, social security, and retirement." (U.S. Social Security Administration)

Excessive Fee Suit Gets Class Action Approval
Excerpt: "A 401(k) participant excessive fee lawsuit against a Connecticut-based manufacturer has been certified as a class action, moving it one step further through the legal process." (planadvisor)

Insurers to Protect Executive Life of New York Annuitants
Excerpt: "Insurers are joining to protect the flow of benefits to 11,000 individuals receiving payments from structured settlement annuities and other annuities originally written by Executive Life Insurance Company of New York." (The National Underwriter Company; free registration or paid subscription required)

(c) Summaries of Guidance; Filed Comments

2007 Plan Year: Year-End Compliance Reminders for Defined Contribution Plans Subject to ERISA (PDF)
6 pages. Excerpt: "This information applies to qualified defined contribution plans and 403(b) plans that are subject to Title I of ERISA. Every year, plan sponsors must make sure their plans meet certain compliance requirements, including those listed below. This publication identifies the materials you need to review and will help you prepare for year-end." (Prudential Retirement)

2007 Year-End Compliance Reminders for Defined Contribution Plans not Subject to ERISA (PDF)
3 pages. Excerpt: "This information applies to defined contribution plans, such as qualified governmental plans (including 'grandfathered' 401(k) plans), qualified church plans that do not elect to be covered by ERISA ('non-electing church plans'), 403(b) programs, and section 457 plans that are not subject to Title I of ERISA. Every year, defined contribution plan sponsors should make sure their plans meet certain compliance requirements, including those listed below. This publication identifies the materials you need to review and will help you prepare for year-end." (Prudential Retirement)

Overview: IRS Model 403(b) Plan and Orphan Contract Guidance
Excerpt: "The IRS released Rev. Proc. 2007-71, providing model 403(b) plan language for public schools. The procedure also provides guidance on certain annuity contracts and custodial accounts (collectively referred to as 'contracts') issued before January 1, 2009, the effective date of the regulations." (SunGard Corbel LLC)

California Provides Updated Figures for Calculating Tax Basis in IRAs of Retirement Plan Participants
Excerpt: "The December issue of the California Franchise Tax Board's (FTB's) Tax News summarizes corporation franchise and income tax and personal income tax legislation enacted in 2007, . . ., explains the differences in federal and California law regarding the adjusted gross income (AGI) phase-out limits for traditional individual retirement accounts (IRAs) . . . ." (CCH Incorporated)

(d) Trends, Surveys, Research

Employees Raiding 401(k)s, CFOs Say
Excerpt: "The latest Duke University/CFO Magazine Global Business Outlook Survey, which polls 573 finance chiefs in the U.S. and 1,275 globally, finds that year-end employee bonuses will fall by 10 percent this year compared to 2006. That decline could be especially painful at a time when more employees are dipping into their retirement accounts in order to pay bills." (CFO.com)

2007 Defined Contribution Survey
Excerpt: "Nearly 5,500 plan sponsors contributed to this year's survey . . . ." (PLANSPONSOR.com; free registration required)

Retirement As a Mess of Maybes -- The 'How Much Do I Need' Question
Excerpt: "Helpful advice is everywhere, but retirees and preretirees may wonder if we are creating a numerical Tower of Babel. Wall Street Journal Getting Going columnist Jonathan Clements in a January 17, 2007, article entitled 'How to Survive Retirement -- Even if You're Short on Savings,' noted varying solutions to the withdrawal enigma. One approach is 'to limit the yearly portfolio withdrawal rate to 3% or 4%, equal to $3,000 or $4,000 for every $100,000 saved.' (At this point you may want to have a shot of scotch or a crying towel handy for the less-than-mega-wealthy client who stares slack-jawed and mumbles, 'That $3,000... is that per month or per year?')" (Financial Advisor)

(e) Policy, Opinion, Advocacy

2007 Risks and Process of Retirement Survey: Report of Findings (PDF)
126 pages. Excerpt: "The purpose of the study was to evaluate Americans' awareness of potential financial risks in retirement, how this awareness impacts the management of their finances with respect to retirement, and how Americans are managing the process of leaving the workforce." (Society of Actuaries)


Links to Items on Executive Comp, Benefits in General

Audio Files: Who Will Hire Me When I'm 64? Challenges in Increasing the Employment of Older Workers
Listen to the opening remarks and presentations of the December 4th event. (Urban Institute)

Longer Lives Mean Higher Retirement Ages
Excerpt: "Faced with citizens who are living longer and higher social security costs, governments around the globe have instituted a 'broad increase' in social security retirement ages, according to a new Mercer report." (PLANSPONSOR.com; free registration required)

Overview: Correction Program for Nonqualified Deferred Compensation Plans (PDF)
5 pages. Excerpt: "On December 3, 2007, the Treasury Department and the Internal Revenue Service (IRS) issued Notice 2007-100 (Notice), which gives taxpayers a limited ability to correct certain operational failures of a nonqualified deferred compensation plan to comply with Section 409A of the Internal Revenue Code (Code) and applicable Treasury and IRS guidance (Section 409A)." (Morgan, Lewis & Bockius LLP)

Listing of IRS Published Guidance for January-November 2007
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)

The IRS Federal, State and Local Governments Newsletter, January 2008 (PDF)
17 pages. Excerpt: "This is the semiannual newsletter of the office of Federal, State and Local Governments (FSLG) of the Internal Revenue Service. Our mission is to ensure compliance by federal, state, and local governmental entities with federal employment and other tax laws through review as well as through educational programs." (Internal Revenue Service)

Human Resources Technology and Employer Satisfaction
Excerpt: "Web-based technology has revolutionized HR delivery capabilities for most employers, especially in administering health and retirement benefits. Overall, companies are satisfied that 21st century technology has allowed them to improve efficiency and increase transparency with the delivery of those benefits." (Employee Benefit News; free registration required)

CEO/Compensation Consultant 'Conflicts' Slammed by Congress
Excerpt: "Some of the largest companies in the U.S. use outside compensation consultants with 'significant conflicts of interest' to determine CEO pay, according to a report released today by California Rep. Henry Waxman, the Democratic chairman of the House Committee on Oversight and Government Reform." (Financial Week; free registration required)


Newly Posted Events

403(b) Guidance - IRS Rev Proc 2007-71 Webinar
Nationwide on December 11, 2007
presented by Convergent Retirement Plan Solutions, LLC

FMLA: Fundamentals and More Teleweb
Nationwide on December 18, 2007
presented by International Foundation of Employee Benefit Plans


Newly Posted Press Releases

Big Employers Still Committed to Health Benefits, but Employer Groups Pushing for Fundamental Changes
Employee Benefit Research Institute (EBRI)

New Aetna Rx-Savings(SM) Program Cuts Cost for Medications Used to Treat Chronic Health Conditions
Aetna

CIGNA International Introduces New Expatriate Benefits Information Web Site
CIGNA Corporation

MassMutual Announces New Thought-Provoking PBS Series on Retirement
MassMutual

New Report Reveals Diabetes a Greater Problem in Chicago Than Other Communities
Midwest Business Group on Health

Multiple Consumer Needs Lead to More Product Choices in the Retirement Income Market
Diversified Services Group, Inc. (DSG)

Accor Services USA Launches New Web Site
Accor Services North America

A Powerful Combination - SASI and TruPay have partnered together to offer their respective services to businesses looking for intelligent, cost-effective approaches to their payroll and employee benefit needs.
SASI

Pension Benefit Guaranty Corporation Addresses Offline Tape Liability with Index Engines Enterprise eDiscovery Platform
Index Engines


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Compliance Research Consultant
for Diversified Investment Advisors
in NY

Pension Paralegal/Specialist and Administrator
for J.P. Schlachter & Associates, Inc.
in OH

401k Manager
for Paycor
in OH

Compensation & Benefits Senior Manager
for Deloitte Tax, LLP
in DC, VA

Sr. Benefits Analyst
for Futurestep, a Korn/Ferry Company
in NY

Regional Sales Consultant, Kansas City, MO area
for Gallagher Retirement Services
in MO

Account Executive -- DC Plans
for Retirement Management Services, LLC
in KY

Defined Benefit Plan Administrator
for Rosenfeld/Tortu Retirement Planning Co., Inc.
in NY

Senior Relationship Manager
for AST Capital Trust Company
in AZ

Client Services Manager
for AST Capital Trust Company
in AZ

Omni BA
for Group H, Inc.
in ANY STATE, CO

Team Leader I - Standard Retirement Services
for Standard Retirement Services
in OR

Team Leader - New Business - Standard Retirement Services
for Standard Retirement Services
in OR

Employee Benefits - Tax Senior
for Deloitte Tax, LLP
in GA, NC

Employee Benefits - Tax Senior Manager
for Deloitte Tax, LLP
in GA, NC

401k Plan Manager
for George Weston Bakeries
in PA

Pension Consultant Manager
for Prudential Financial
in IA

Compliance Specialist
for Merrill Lynch
in NJ

Global Benefits Specialist
for Oxfam America
in MA

ERISA Specialist
for King & Spalding
in GA




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