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| January 9, 2008 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is RELIUS Education - Seminars and Conferences for Pension Professionals
(Click on company name or banner to learn more.)
| 2008 Orlando Advanced Pension Conference |
| Orlando, FL - February 6-8. We are back at Walt Disney World®Resort for this important Conference. Leading ERISA experts provide you an up-to-the-minute analysis of the latest legislative and regulatory guidance. Hot topics on the agenda include automatic enrollment, final QDIA regs, PPA '06 forms, Rev. Proc. 2007-44, cash balance plans, final regs for 403(b) plans, 401(k) fees and the new disclosure mandates, and nonqualified deferred compensation arrangements under the final rules. The program also features a Washington update with Brian Graff, "Ask the Experts," concurrent sessions, and over 900 minutes of continuing education credits. Register now.
Relius Education by SunGard. |
Influences on Workers' Asset Allocations in Defined Contribution Accounts
Excerpt: "Defined contribution (DC) plan participants in the private sector who are younger, better-educated, more risk-tolerant, and have an employer-sponsored defined benefit (DB) plan and a longer planning horizon, generally hold a larger share of equities in their DC accounts than other participants. Being married and in good health reduces the likelihood that a household will avoid equities altogether. These and other findings are from Watson Wyatt's recent analysis into asset allocations in DC plans." (Watson Wyatt Worldwide)
Overview: IRS Proposes Regulations Regarding Automatic Contribution Arrangements (PDF)
Pages 1-6 of 9 pages. Excerpt: "The proposed regulations provide much-needed guidance regarding QACAs and EACAs. However, not all issues have been addressed. We are hopeful that the IRS will provide further guidance and clarification of the rules related to these arrangements in the final regulations. Until then, plan sponsors may rely on the rules and guidelines set forth in the proposed regulations." (Trucker Huss)
DOL Cracking Down on 401(k) Plan Oversights
Excerpt: "The Department of Labor is has proposed levying fines of up to $1,000 a day against retirement plan administrators who fail to disclose certain documents to investors." (Wolters Kluwer Financial Services)
Automatic 401(k) Plans Might Not Help Workers Save Enough
Excerpt: "While automatic enrollment helps many people start saving, it often excludes a large segment of workers and steers participants to a contribution rate that is in many cases below the rate these employees would have chosen on their own, the research shows." (The Wall Street Journal)
A Matter of Choice: In Search of the Optimal Investment Lineup
Excerpt: "Many propose a defined contribution investment lineup that helps enable employees to become retirement ready no matter their level of sophistication or degree of interest in investing. This three-tiered framework begins with lifecycle funds, which are quickly becoming the default option for many participants, whether they enroll on their own or through an automatic enrollment program." (National Association of Government Defined Contribution Administrators, Inc.)
Overview of the IRS 2007 Cumulative List (PDF)
Pages 6-8 of 9 pages. Excerpt: "In general, the Cumulative List identifies the changes in qualification requirements that must be taken into account and that are required to be incorporated into the plan document when an application for an opinion, advisory or determination letter is submitted and reviewed by the IRS. The 2007 Cumulative List contains all of the changes in statutes, regulations and guidance that have become effective since December 31, 2001." (Trucker Huss)
Good News for Defined Benefit Plans
Excerpt: "After riding out a rough quarter, defined benefit (DB) plans received some good news in the form of a projected increase in the discount rate used to determine liabilities and expenses. Year-end 2007 disclosure discount rates should increase by at least 25 to 50 basis points relative to the rates in the 2006 disclosures, according to SEI Investments Co." (Treasury & Risk)
Alpha Dynamics: Evaluating the Activeness of Equity Portfolios
Excerpt: "In assessing the relative attributes of active equity investment strategies, many market participants rely on an incomplete tool kit. Common variability statistics such as tracking error and summary characteristics such as the number of holdings in a portfolio provide incomplete insights on the essence of active exposure. This is particularly the case for strategies that emphasize bottom-up stock selection rather than macro strategies such as sector rotation and market timing. In this paper we review two additional metrics; the Coverage Ratio, which measures aggregate overlaps between the weights of individual portfolio holdings and the weights of individual benchmark constituents, as well as the Active Share Ratio, which measures aggregate differences in portfolio holding weights versus the benchmark constituent weights." (National Association of Government Defined Contribution Administrators, Inc.)
Interview with John LaCara, Director, DC Plans, Commonwealth of Massachusetts
Excerpt: "We talk with John LaCara, director of the Commonwealth of Massachusetts deferred compensation plan. John shares with us the structure of their 457 and other retirement plans. He discusses why and how they tailored target-date strategies to their demographics. He also notes the importance of their defined contribution plan in creating sufficient retirement savings." (National Association of Government Defined Contribution Administrators, Inc.)
Links to Items on Executive Comp, Benefits in General
Easing into Retirement
Excerpt: "[Y]ou may have a great deal of leverage to name the conditions under which you want to continue working. You may find that your employer would be thrilled to have you stay on board as a part-time employee, even if it means continuing to pay for employee benefits like health insurance. By remaining open to creative solutions while keeping your resolve to get what you want from your final years of work, you may be able to negotiate an arrangement that will make both you and your employer happy." (The Money Times)
Overview: SEC Adopts Amendments to Rule 144 and 145 and Other Reforms
Excerpt: "In November and December 2007, the Securities and Exchange Commission adopted amendments to: revise restrictions on the resale of restricted securities under Rule 144 and the restriction on securities acquired in business combination transactions under Rule 145 of the Securities Act; expand the eligibility of Forms S-3 and F-3 to a larger number of companies for primary offerings of securities; expand the number of companies that qualify for the SEC's scaled disclosure for smaller reporting companies; provide two exemptions from the registration requirements of the Exchange Act for compensatory employee stock options; and adopt amendments relating to the information required by Form D and mandate electronic filing of Form D after a phase-in period." (Jones Day)
Overview: SEC Revises Rules 144 and 145 (PDF)
4 pages. Excerpt: "On December 6, 2007, the Securities and Exchange Commission (the 'Commission') issued the final rule on the revisions to Rules 144 and 145 under the Securities Act of 1933. The final rules will be effective on February 15, 2008 and will apply to securities acquired before and after such date." (Haynes and Boone, LLP)
Opinion: SEC Should Update and Expand Executive Pay Database
Excerpt: "Cox and his fellow commissioners unveiled a database on Dec. 21 that allows investors to find the compensation -- including bonus and stock options -- for top executives of the 500 largest U.S. companies. That's a first, and it's part of the SEC's attempt to get greater transparency for investors on executive compensation. The problem is that there are no plans to update the database or expand it beyond the 500 companies. SEC spokesman John Heine said the commission views it as a ``demonstration project'' and it's not ``an ongoing effort.''" (Bloomberg News)
Opinion: With Its New CEO Incentive Plan, AmEx Has Created a Better Model for Executive Compensation
Excerpt: "[I'd] advise four key groups - CEOs, board members, government officials, and presidential candidates - to study the remarkable grant of stock options that American Express's (AXP, Fortune 500) board recently gave CEO Ken Chenault." (Fortune via CNNMoney.com)
Newly Posted Events
403(b) Written Plans and How They Affect Existing Contracts
Nationwide on January 29, 2008
presented by SunGard Relius
Automatic Enrollment & Default Investments Workshop
in Colorado on January 15, 2008
presented by SunGard Relius
Automatic Enrollment & Default Investments Workshop
in Pennsylvania on January 17, 2008
presented by SunGard Relius
Automatic Enrollment & Default Investments Workshop
in Massachusetts on January 18, 2008
presented by SunGard Relius
Automatic Enrollment & Default Investments Workshop
in Texas on January 23, 2008
presented by SunGard Relius
Automatic Enrollment & Default Investments Workshop
in North Carolina on January 24, 2008
presented by SunGard Relius
I-9 Form Mistakes & Omissions: The Right Way To Verify I-9 Eligibility
Nationwide on January 24, 2008
presented by HRTrainingCenter.com
Participant Forms & Notices Workshop
in Colorado on January 15, 2008
presented by SunGard Relius
Participant Forms & Notices Workshop
in Pennsylvania on January 17, 2008
presented by SunGard Relius
Participant Forms & Notices Workshop
in Massachusetts on January 18, 2008
presented by SunGard Relius
Participant Forms & Notices Workshop
in Texas on January 23, 2008
presented by SunGard Relius
Participant Forms & Notices Workshop
in North Carolina on January 24, 2008
presented by SunGard Relius
Participant Forms & Notices Workshop
in Kansas on January 24, 2008
presented by SunGard Relius
Participant Forms & Notices Workshop
in Georgia on January 25, 2008
presented by SunGard Relius
Why Is This Guy Still On My Health Plan - And What Can I Do About It?
Nationwide on January 16, 2008
presented by HRTrainingCenter.com
Newly Posted Press Releases
Survey Finds 11% of Organizations Pay Expenses Related to Medical Tourism
International Foundation of Employee Benefit Plans
PBMI Offers New Drug Benefit Training Workshop
Pharmacy Benefit Management Institute (PBMI)
Former SunTrust Executive Joins CAPTRUST Financial Advisors
CAPTRUST Financial Advisors
Seasoned Insurance Industry Executive Joins Century Healthcare
Century Healthcare
Newly Posted or Renewed Job Openings
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Relationship Manager
for Federated Investors
in PA
Retirement Plan Industry Strategic Marketing & Advertising Specialist
for RG Wuelfing & Associates/The SPARK Institute
in CT, NC
Senior Pension Administrator
for American Fiduciary Corporation
in MA
Employee Benefits Allocations Manager
for BB&T (Branch Banking and Trust)
in NC
Compliance Account Manager
for First Niagara Benefits and Consulting Group
in NY
DC Plan Administrator
for Campbell Albrecht
in CA
Regional Director, Defined Contribution Specialist
for Great-West Financial Services
in DC
Compliance Specialist
for The Newport Group
in NC
Relationship Manager
for New York Life Retirement Plan Services
in MA
Strategic Communications Consultant
for New York Life Retirement Plan Services
in MA
ERISA Consultant
for New York Life Retirement Plan Services
in MA
Training Specialist
for New York Life Retirement Plan Services
in MA
Defined Contribution Conversion Project Leader
for New York Life Retirement Plan Services
in MA
Senior Account Executive - Group Employee Benefits
for BWD Group LLC
in NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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