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Sponsored by: ASPPA and WP&BC

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Overview: Dismissal of Deere 401(k) Fee Disclosure Case
Excerpt: "Many people . . . had thought the complaints in these 401(k) fee cases contained sufficient fact allegations that courts would wait until after discovery to decide them. Unexpectedly, the court dismissed the case based on the complaint and the plan documents." (Pension & Benefits Blog)

Judge Throws Out Deere-Fidelity Fee Suit
Excerpt: "Efforts to battle plan sponsors and providers over retirement plan fees have been dealt a major legal setback with a ruling by a federal judge in Wisconsin to throw out an excessive fee suit against Deere & Co. and two Fidelity Investments units." (PLANSPONSOR.com; free registration required)

Overview: Litigation about 401(k) Fees
Excerpt: "By now, most plan sponsors and advisers are aware of the class action litigation against major American corporations and their providers concerning 401(k) costs and revenue sharing. However, less is known about the specific allegations in those lawsuits. This article quotes selected provisions from one of the complaints. The reference to 'defendants' is to the plan sponsor, the committee members and, in some cases, the provider." (Reish Luftman Reicher & Cohen)

America's Top Recordkeepers - Results of the 2007 Survey
Excerpt: "As a complement to our Defined Contribution Survey - which measures how satisfied DC clients are with their providers - the Recordkeeping Survey gives employers the chance to see exactly which products and services each provider offers, as well as listing information on total assets and overall client demographics." (PLANSPONSOR.com; free registration required)

Overview: Final Roth 401(k) Regulations Released
Excerpt: "This latest release of guidance regarding Roth 401(k) contributions did not reduce the amount of administrative obligations that can be placed upon plan administrators." (BNA Tax Management)

Issue Not Whether 401(k) Fee Costs Are Lowest, but Whether They Are Reasonable Relative to the Value
Excerpt: "The Department Of Labor (DOL) continues to focus on the costs of operating 401(k) plans. The concerns are well-placed because of the negative effect of high fees on employees' retirement benefits. Also, this is an area where fiduciaries can, with virtual certainty, improve participants' benefits . . . ." (PLANSPONSOR.com; free registration required)

Opinion: An Urgent Wake up Call for Business on the Retirement of the Baby Boomers
Excerpt: "When the first wave of warnings about the effects of the aging of the baby boomers was sounded at the turn of the century, it was easy to do nothing. After all, things could change by 2011, the year the first of the boomers would reach retirement age. Now, with only a few years to go, there has been a change, but one that only makes the situation worse." (The Century Foundation)

Pensions Dominate Teamsters' Talks with UPS and Freight Carriers (PDF)
1 page. Excerpt: "What makes this set of negotiations so complicated can be covered in one word -- pensions. Or, specifically, pension withdrawal liability. Currently, about 60 cents of every dollar that UPS contributes to pensions goes to fund pensions of retirees of other companies." (Reed Business Information via Know Your Pension)

Participant's Ex-Wife Gets Surviving Spouse Benefits Under QDRO
Excerpt: "A federal judge in Kentucky has ruled that a deceased retirement plan participant's ex-wife should get surviving spouse benefits although the participant had remarried before he passed away." (PLANSPONSOR.com; free registration required)

Who Is a Fiduciary and What Are Plan Assets? (PDF)
19 pages. Excerpt: "Analysis of many questions under the Employee Retirement Income Security Act of 1974 (ERISA) depends on whether a party is a 'fiduciary' with respect to a plan. For example, without fiduciary status, one is not subject to the fiduciary duty standards of ERISA §404(a)(1). In addition, the statute's prohibited transaction provisions apply to transactions caused by a fiduciary, or where a fiduciary deals improperly with a plan or its assets. [Originally published in 2002.]" (The Bureau of National Affairs, Inc. via Drinker Biddle Gardner Carton)

Two Firms Face ERISA Suits over Stock Plan Administration
Excerpt: "Law firms have announced investigations into possible fiduciary breaches under the Employee Retirement Income Security Act (ERISA) involving the administration of retirement plans of Sterling Financial Corp. and Fremont General Corporation which hold company stock." (PLANSPONSOR.com; free registration required)

Do the Fiduciary Duties of Pension Funds Hinder Socially Responsible Investment?
Excerpt: "With reference to the main common law jurisdictions, this article critically examines whether the fiduciary duties of pension fund investors hinder SRI. Contrary to some commonly held beliefs, SRI can often sit comfortably with fiduciary duties to invest prudently. However, legal reforms to improve the climate for SRI would help, as evident by some recent initiatives in several jurisdictions." (Social Science Research Network)

Congress Mulls Revoking Pensions for Disgraced Members
Excerpt: "In all, more than a dozen convicted felons who were formerly members of Congress qualify for more than $900,000 in taxpayer-supported government pensions each year, according to estimates from the National Taxpayers Union, which calculated the benefits based on time of congressional service, eligibility and life expectancy . . . ." (CNSNews.com via SalemWebNetwork.com)

Global Retirement Perspective: June 2007 Issues and Ideas
Excerpt: "[The 13th edition of Global Retirement Perspective is] Mercer's home for thought-provoking insights on retirement and pension issues facing multinational companies." (Mercer Human Resource Consulting LLC and Mercer Investment Consulting, Inc.; free registration required)

Opinion: Peru-U.S. 'Free Trade Agreement' Would Help Lock In Failed Social Security Privatization in Peru
Excerpt: "Despite Democrats' long-standing opposition to social security privatization and the fair trade mandate of the 2006 elections, the May 10 trade 'deal' negotiated between some Democratic leaders and the Bush administration to facilitate passage of the Peru FTA did not remedy the Peru social security privatization problem. [The full report is available in both English and Spanish.]" (Public Citizen)

More IRA Investors Are Taking Control of Their Retirement Funds by Investing in Real Estate
Excerpt: "Real estate has always been permitted in IRAs, but few people know about this option. Financial institutions -- mutual funds, stock brokerages, banks -- are typically where IRAs are held. But investments in other things, most notably real estate, are fully permissible under the Employee Retirement Income Security Act of 1974." (Los Angeles Times; free registration required)

Overview: PPA of 2006 - Major Changes to Multiemployer Defined Benefit Plans in 2008 and Beyond (PDF)
Excerpt: "These developments affect sponsors of and participants in qualified multiemployer defined benefit plans." (Prudential Financial)

Overview: PPA of 2006 Changes Affect Single-Employer Defined Benefit Plans in 2008 (PDF)
Excerpt: "This is one of a series of Pension Analyst publications providing information on specific aspects of the 2006 pension reform legislation affecting defined benefit plans. This publication focuses on those changes that are effective in 2008 and beyond." (Prudential Financial)

Overview: IRS Update of Employee Plan Staggered Remedial Amendment Procedures
Excerpt: "The IRS has updated its employee plan staggered remedial amendment period procedures for individually designed and pre-approved qualified plans under the system of cyclical amendment periods instituted under Code Sec. 401(b)." (Wolters Kluwer Law & Business)

Advice to Take, Advice to Ignore on Retirement
Excerpt: "Experts offer all kinds of rock-solid retirement advice. Mostly, it's ignored. Over the past decade, academics and investment advisers have done a heap of research into retirement issues, including how much to save, when to claim Social Security and how best to draw down a portfolio." (The Wall Street Journal via Tacoma News, Inc.)

ICI Requests Guidance on Retirement, Education Savings, and Tax Issues
Excerpt: "The Institute recently urged the Treasury Department and Internal Revenue Service to include certain items -- relating to investment companies and their shareholders, education savings, and retirement security -- in their 2007-2008 Guidance Priority List." (investment Company Institute)

Group Letters to Congress Regarding 'Greater-of' Backloading Issue (PDF)
8 pages. (American Benefits Council)

Social Security Fixer-Uppers
Excerpt: "Two organizations have produced easy ways to start thinking about what needs to be done. The American Academy of Actuaries produced the Social Security Game with a challenging invocation -- 'You fix it!' And the Center for Retirement Research has produced what looks like the Little Golden Book of Social Security, called 'The Social Security Fix-It Book.'" (The Washington Post; free registration required)

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Sponsored by: AllianceBernstein Institutional Investments

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Links to Items on Executive Comp, Benefits in General

Sixth Circuit Expands Rule Governing Plan Versus SPD Conflicts
Excerpt: "In this recent Sixth Circuit opinion, the Court expands its prior holding that summary plan description language prevails over conflicting plan language to include instances in which the SPD conflicts with a conflicting plan interpretation." (Health Plan Law blog by Attorney Roy F. Harmon III)

GAO Testimony: Social Security Numbers - Use is Widespread and Protection Could Be Improved (PDF)
18 pages. Excerpt: "[T]he potential for misuse of the SSN has raised questions about how private and public sector entities obtain, use, and protect SSNs. Accordingly, this testimony focuses on describing the (1) use of SSNs by government agencies, (2) use of SSNs by the private sector, and (3) vulnerabilities that remain to protecting SSNs." (U.S. Government Accountability Office)

MetLife's 5th Annual Study of Employee Benefits Trends
Excerpt: "This year's findings make a compelling case that benefits strategy holds the key to one of employers' most pressing challenges: the need to recruit and retain the best talent in an increasingly competitive labor market." (Metropolitan Life Insurance Company)

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Newly Posted Events

Advisory Council on Employee Welfare and Pension Benefit Plans; 138th Full Council Meeting; Notice of Meeting
in District of Columbia on July 11, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Advisory Council on Employee Welfare and Pension Benefit Plans; Working Group on Fiduciary Responsibilities Update and Revenue Sharing; Notice of Meeting
in District of Columbia on July 11, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Advisory Council on Employee Welfare and Pension Benefit Plans; Working Group on Financial Literacy; Notice of Meeting
in District of Columbia on July 10, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Advisory Council on Employee Welfare and Pension Benefit Plans; Working Group on Participant Benefit Statements; Notice of Meeting
in District of Columbia on July 12, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Hearing on Computer Model Investment Advice Programs for IRAs
in District of Columbia on July 31, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

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Newly Posted Press Releases

ExpertPlan Jumps into Mid to Large Size Retirement Market, Hires Industry Veteran
ExpertPlan

New Fiduciary Education Campaign Announced by Presidium Retirement Advisers
Presidium Retirement Advisers, Inc.

Employer Costs For Employee Compensation - March 2007
U.S. Department of Labor, Bureau of Labor Statistics

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Newly Posted or Renewed Job Openings
( Post a Job | View All Jobs )

Plan Administrator
for PensionMetrics, Ltd.
in IL

Senior Conversion Analyst
for Administaff
in TX

Processing Team Specialist
for Administaff
in TX

Defined Benefits Sr. Analyst
for Affiliated Computer Services
in NJ

Sr Account Mgr-Retirement Plans
for Standard Insurance Company
in OR

Defined Benefits Analyst
for Affiliated Computer Services
in NJ

Compliance Analyst - ERISA/Retirement Plans
for T Rowe Price
in MD

OmniPlus Analyst
for Global System Solutions
in ANY STATE, CO

Enroller-Worksite Mkts, Lisle, IL
for ING, Financial Services
in IL

Pension Assistant
for Retirement Plan Administrators, LLC
in GA

Employee Benefits Services Coordinator
for Growing, dynamic financial services firm
in TX

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Handy Links:

• View Today's Active Message Threads
• Using the Web for Employee Benefits Research (hypertext article)
• Employee Benefits Library

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