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| December 11, 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 IRS 'Employee Plans News' (Winter 2007) Issue (PDF)
13 pages. Articles include an interview with the Director of the Employee Plans office and a clickable list of IRS guidance published during the last quarter of 2007. The interview announces that the IRS is maintaining on its Web site two charts that list PPA guidance issued by the IRS, DOL and PBGC (one sorted by topic: http://www.irs.gov/pub/irs-tege/ppa_chart_topic.pdf , the other by Code/ERISA section: http://www.irs.gov/pub/irs-tege/ppa_chart_code.pdf ). Each chart contains hypertext links to the various guidance documents. (Internal Revenue Service)
(b) News
NCPERS Files Amicus Brief in Kentucky Retirement System Case
Excerpt: ""A lower Court ruled last year that the EEOC established a prima facie violation of the ADEA, because the KRS plan is facially discriminatory on the basis of age. KRS had argued that its disability retirement benefits are intended to provide disabled employees with a replacement for the normal retirement benefits that he or she can no longer earn, and that therefore denying those benefits to workers who are already old enough to qualify for normal retirement benefits does not constitute 'arbitrary' age discrimination based on ageist stereotyping in violation of the ADEA. . . . .Oral arguments before the Supreme Court will be heard January 9, 2008." (National Conference on Public Employee Retirement Systems)
Bill Would Allow New Mortgage Withdrawals
Excerpt: "A New York Congressman has proposed allowing homeowners with resetting adjustable rate mortgages to pull up to $25,000 out of retirement accounts or IRAs to be used to pay their mortgages or refinance into a fixed-rate home loan." (PLANSPONSOR.com; free registration required)
(c) Summaries of Guidance; Filed Comments
Overview: Guidance on PPA Provisions Affecting PBGC Annual Reporting and Reportable Events Regs
Excerpt: "The PBGC has issued transitional guidance on the determination of unfunded vested benefits for purposes of its regulations on annual employer reporting (under ERISA §4010) and reportable events (under ERISA §4043). The guidance, issued in the form of a Technical Update, reflects changes made by the Pension Protection Act of 2006 (PPA; P.L. 109-280)." (Wolters Kluwer Financial Services)
Video: Brief Overview of the Fiduciary Responsibilities of a Trustee
Excerpt: "Attorney Bill Ecklund provides a brief overview of a trustee's fiduciary responsibilities, including an eye-opening account of one trustee's experience." (International Foundation of Employee Benefit Plans)
(d) Trends, Surveys, Research
Establish Investment Committee to Be Investment Fiduciary Responsible for Prudently Managing Investment Portfolio (PDF)
Excerpt: "According to LAW.COM, the St. Louis law firm of Schlichter, Bogard & Denton has filed thirteen lawsuits against Fortune 1000 companies. Northrop Grumman, Exelon, Lockhead Martin, International Paper, and United Technologies are among those that have been targeted for breaches in fiduciary duties to their plan participants. Prospectively, there are over a dozen more that will be filed, according to Rick Meigs, President, 401(k)helpcenter.com. These lawsuits seek to establish that plan sponsors and associated fiduciaries violated their duty of 'prudently managing' plans and their assets. The question then becomes, how do plan sponsors best manage personal liability (short of terminating their plan) associated with 401(k) plans." (Robert E. Jamison, Jamison Financial Services, Inc. via)
Defined Contribution Plan Providers Take New Approaches in Wake of the Pension Protection Act, According to Survey
Excerpt: "Janus Capital Group participated in PLANSPONSOR' S 2007 DC survey by sponsoring a series of questions that focused on DC plans' investment evaluation, selection, monitoring and oversight. The survey, conducted between July and September 2007, reflected comments from a cross-section of more than 5,400 DC plan sponsors from a wide range of industries across the country." (Human Resource Executive Online; free registration required)
Picture of European Employee Share Ownership in 2007: Comparing 14 European Countries and Austria (PDF)
7 pages. Excerpt: "This information is based on EFES database, including all European groups whose market capitalisation was more than 200 millions Euro in May 2007. These are 2.500 groups, employing 33 millions people, on which 41 Austrian groups." (European Federation of Employee Share Ownership)
IRA Assets and Contributions, 2006 (PDF)
Pages 2-9 of 16 pages. Excerpt: "Record assets in 2006: Individual retirement account (IRA) assets reached a record $4.23 trillion in 2006, a growth rate of 16.5 percent from 2005, resuming a trend that was interrupted only by the stock market retrenchment from 2000-2002." (Employee Benefit Research Institute)
Survey Report: How Retirees Manage Money To Make It Last Through Retirement
Excerpt: "The study identifies five different asset management styles among respondents: Investor, Manager, Thrifty, Undisciplined and Troubled. The Thrifty group has the most interest in seeking a guaranteed lifetime income solution, followed by the Undisciplined, then Troubled and Manager, and Investor." (AARP / American Council of Life Insurers)
Five Key Errors in Designing Equity Compensation Plans in Closely Held Companies
NCEO Executive Director Corey Rosen discusses the errors commonly made in closely held companies when deciding on an equity compensation program. (National Center for Employee Ownership)
Poll Shows Most Americans Stymied at Saving
Excerpt: "Fifty-two percent of Americans say that they cannot afford to save or that they are saving inadequately, according to a survey released . . . by Wachovia Corp. and the Consumer Federation of America." (Investment News; free registration required)
(e) Policy, Opinion, Advocacy
Call for Papers -- Incorporating Self-Adjusting Mechanisms into Retirement Systems
Excerpt: "This Call for Papers is being issued as part of the Society of Actuaries Pension Section Council's Retirement 20/20 project. It stems from discussions at the 2006 Retirement 20/20 conference where self-adjusting mechanisms were identified as a key component for successful future retirement systems. Potential submitters are encouraged to review the report from the 2006 conference, 'Building the Foundations for New Retirement Systems,' and the paper by John Turner, 'Autopilot: Self-adjusting Mechanisms for Sustainable Retirement Systems.'" (Society of Actuaries)
Call for Papers -- Changing the Signals to Impact Retirement Behavior
Excerpt: "This Call for Papers is being issued as part of the Society of Actuaries Pension Section Council's Retirement 20/20 project. It stems from discussions at the 2006 Retirement 20/20 conference where signals were discussed as a potentially important mechanism to change future retirement behavior. In further discussions at the 2007 conference, it was unclear whether new signals to impact behavior should be developed or existing signals should be adjusted." (Society of Actuaries)
Links to Items on Executive Comp, Benefits in General
Changes in Employee Benefits You Should Be Thinking About as 2007 becomes 2008
Discusses change in minimum vesting requirement, single-sum distributions from defined benefit plans, more. Excerpt: "In our field of law, the wonder and anticipation of the holidays are always joined by two other year-end phenomena: effective dates and deadlines. This eBenefits Alert discusses the most significant changes in the employee benefits arena that we should be thinking about as 2007 becomes 2008. Links to more detailed discussions are included for some topics." (Gray Plant Mooty)
Overview of Age, Sex and Disability Discrimination in Employee Benefit Plans
Excerpt: "At the federal level, the primary statutes addressing issues such as these are the Age Discrimination in Employment Act (ADEA), the Americans With Disabilities Act (ADA) and Title VII of the Civil Rights Act of 1964. Understanding these statutes is, therefore, crucial for an employer maintaining employee benefit plans today." (Tax Management Inc.)
Employers Refocus Strategies to Promote a ''Culture of Health and Financial Security,'' According to MetLife Study
Excerpt: "After decades of focusing on health coverage as the exclusive avenue of providing financial protection against medical costs, employers are starting to shift to a focus on wellness and prevention. With health care cost inflation outpacing national inflation, employers are looking to newer strategies to drive a healthier workforce. According to MetLife's 5th Annual Employee Benefits Trend Study, more than one-fourth (28%) of all employers - and nearly half (49%) of companies with 500 or more employees offer some type of a wellness program as a workplace benefit . . . ." (Human Resource Executive Online; free registration required)
Income of the Elderly Population Age 65 and Over, 2006 (PDF)
Pages 10-15 of 16 pages. Excerpt: "This article reviews the latest available data on the older population's income (from the U.S. Census Bureau's March 2007 Current Population Survey) and how it has changed over time, as well as how the elderly's reliance on these sources varies across demographic characteristics." (Employee Benefit Research Institute)
Equity Incentives in Limited Liability Corporations (LLCs)
This article discusses the difficult question of how to provide equity incentives in limited liability companies (LLCs). (National Center for Employee Ownership)
Overview of Year-End Planning Opportunities for Deferred Compensation Plans
Excerpt: "Although the IRS has now given employers until the end of 2008 to amend their deferred compensation plans to comply with Section 409A of the Internal Revenue Code, there are still some year-end planning opportunities available with respect to the these plans." (Mitchell Silberberg & Knupp LLP)
Gen Y Brings Entitlement Attitude to the Workforce
Excerpt: "A new CareerBuilder.com survey found 87% of responding hiring managers and HR professionals said some or most Gen Y (age 29 and younger) workers feel entitled to more in terms of compensation, benefits and career advancement than do workers from older generations.' (PLANSPONSOR.com; free registration required)
Newly Posted Events
Know Your Fiduciary Responsibilities - An Update on Pension Protection Act and Related Guidance for Practitioners - Archived from December 6, 2007 Webcast
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
SPARK Accredited Retirement Plan Consultant (ARPC) Classroom Training Session
in New York on February 13, 2008
presented by SPARK -- Society of Professional Asset-Managers and Record Keepers
Newly Posted Press Releases
Watson Wyatt Study Reveals Strong Link Between CEO Realizable Pay and Performance
Watson Wyatt
U.S. Labor Department Publishes 2007 Form M-1 For Multiple Employer Welfare Arrangements
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
PPA Webcast Archive Available Online
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Employers Refocus Strategies to Promote a ''Culture of Health and Financial Security,'' According to MetLife Study
MetLife
ING US Wealth Management Reinforces the Importance of Stable Value Investments to Plan Participants Actively Seeking Stability of Their Retirement Savings
ING Group
Bridges to Excellence Announces New Implementation Programs for Health Plans and Additions to Board of Directors
Bridges to Excellence (BTE)
Newly Posted or Renewed Job Openings
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401(k) Client Service Account Executive
for BISYS Retirement Services
in PA
Account Manager II
for The Standard
in CA, OR, WA
New Business Account Manager
for The Standard
in OR, PA
Benefits Implementation Manager
for Hewitt Associates
in NJ
Senior Account Manager
for Charles Schwab
in TX
Business Development Specialist
for ING, US Financial Services
in CA, IN, KY, MS, NY, OH, PA, TN, WV
Health and Welfare Analyst
for Constantin Control Associates
in NJ
Actuary/Actuarial Candidate for Defined Benefit Software Customer Support
for DATAIR Employee Benefit Systems, Inc.
in IL
Retirement Plan Manager
for Capital Group Companies
in VA
In-House Employee Benefits Counsel
for The National Rural Electric Cooperative Association (NRECA)
in VA
Pension Administrator
for Lurie Besikof Lapidus & Company, LLP
in MN
Benefits Administrator
for Benefits Administrators & Consultants (BAC)
in CO
Vice President - Northwest Region (TPA)
for Zenith Administrators
in WA
Account/Client Service Manager (TPA) - Las Vegas
for Zenith Administrators
in NV
Benefits Communication Specialist
for FPL Group, Inc.
in FL
Director Benefits and Compensation Accounting, MMBMI
for MassMutual Financial Group
in MA
Healthcare Employee Benefit Consultant
for Plante & Moran, PLLC
in MI
Director Family Market Development
for MassMutual Financial Group
in MA
Plan Administrator
for Blue Ridge ESOP Associates
in VA
E. B. Trust Administrator
for BB&T
in NC
Installation Conversion Consultant
for Wachovia Corporation
in MN
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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