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Today's sponsor is ASPPA

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(a) New Guidance Documents

IRS Revenue Ruling 2008-5: Application of 'Wash Sale' Code Provision to Securities When Using Roth IRA (PDF)
4 pages. Excerpt: "If an individual sells stock or securities for a loss and causes his or her individual retirement account or Roth IRA to purchase substantially identical stock or securities within 30 days before or after the sale, is the loss on the sale of the stock or securities disallowed? . . . HOLDING: The loss on the Sale of stock is disallowed under § 1091." (Internal Revenue Service)

(b) News

Technical Corrections Bill Not Acted Upon by Congress; New Funding Rules Are Effective 1/1/2008 Without Guidance from the IRS
Excerpt: "Last night, Congress adjoined without acting on H.R. 3361, the House of Representative's version of the Pension Protection Technical Corrections Act of 2007. The Senate passed S. 1974, the Senate version of the Pension Protection Technical Corrections Act of 2007. The House could still pass their version of the bill after the holiday recess but it will not be in time to delay PPA's new funding rules for defined benefit plans." (Pension Protection Act Blog)

Charles E.F. Millard Sworn In as Director of Pension Benefit Guaranty Corporation
Excerpt: "Appointed by President Bush in May and confirmed by unanimous consent of the Senate on Dec. 14, Millard is the first individual to hold the title Director of the PBGC." (BenefitsLink.com)

Groups Question Federal Thrift Savings Plan Interfund Transfer Restrictions
Excerpt: "A federal Thrift Savings Plan advisory panel on Wednesday appeared divided as to whether a new plan to restrict the number of transfers participants can conduct each month is the best way to address the issue of frequent trading activity. The Employee Thrift Advisory Council, which consists of labor unions and other federal employee groups, probed whether officials could implement an alternate plan that would curb frequent trading while preserving the rights of participants to protect their accounts." (GovExec.com)

UPS and Teamsters Extend Pension Deal
Excerpt: "The International Brotherhood of Teamsters Union has extended its pensions agreement with shipping and delivery company UPS for a further five years, following ratification by members." (Global Pensions)

Principal Unveils Comprehensive Education Program to Help Non-Profits and Financial Professionals with Complex 403(b) Rule Changes
Excerpt: "To help financial professionals and their clients navigate this major transition, The Principal--which provides services to 4,885 non-profit plans, covering nearly 550,000 participants --has created a comprehensive program. In addition to providing support to help comply with the new requirements, The Principal is offering two white papers and an easy-to-use guide that summarize the regulations and provide analysis of their implications . . . ." (Business Wire via The News & Observer Publishing Company)

(c) Summaries of Guidance; Filed Comments

ICI Provides Input on Technical Issues Concerning 'Qualified Default Investment Alternatives'
Excerpt: "ICI's question-and-answer format to its remarks covers topics such as the transition period for fiduciary relief under ERISA and the application of market timing restrictions on plan participants who decide to move assets out of the default investment." (Investment Company Institute)

Datair Publishes Handy Summary of PBGC and IRS Interest Rates Applicable to Qualified Retirement Plans
Bravo! Excerpt: "Quick reference to current and historical IRS limits, PBGC rates, and links to other sources of rate information." (Datair)

Overview: PBGC Proposal to Amend Regs on Information Disclosure in Plan Terminations
Excerpt: "The PPA requires plan administrators to disclose information submitted to the PBGC in connection with distress termination filings and plan administrators and plan sponsors to disclose information submitted to the PBGC in connection with PBGC-initiated terminations." (Wolters Kluwer Financial Services)

Overview: DOL Proposed Protocol to Assess Penalties on Failed Disclosures
Excerpt: "Under PPA, DOL has the authority to consider civil fees of up to $1,000 per day against plan administrators who fall short in disclosing such information." (Employee Benefit News; free registration required)

Overview: DOL Proposed Regulations on Fee and Conflict of Interest Disclosures by Service Providers (PDF)
6 pages. Excerpt: "The proposed regulations are likely to have a significant impact on service providers and plan sponsors of both pension and welfare plans. The proposed regulations and class exemption would be effective 90 days after publication of the final regulations, which are anticipated late in 2008. Comments are due by February 11, 2008." (Miller & Chevalier Chartered)

(d) Trends, Surveys, Research

Updated: Congressional Research Service Fact Sheet on the Retirement Savings Tax Credit (PDF)
2 pages. Excerpt: "The Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16) authorized a non-refundable tax credit of up to $1,000 for eligible individuals who contribute to an IRA or an employer-sponsored retirement plan. The credit was first available in 2002, and as enacted in 2001, it would have expired after the 2006 tax year. The Pension Protection Act of 2006 (P.L. 109-280) made the retirement savings tax credit permanent." (U.S. Library of Congress, Congressional Research Service)

Adviser's Help Can Enrich 401(k)
Excerpt: "Many 401(k) retirement plans offer investors access to online or over-the-phone chats with someone who can answer investment questions, and it appears that those who don't ask for help can end up with less money in their portfolios. A new Charles Schwab examination of the 401(k) plans it oversees found that investors who rely on some professional advice for investment decisions enjoy greater returns than those who go it alone." (AP via Courier-Post)

Retirement Investment Diversification in the Year Ahead
Excerpt: "Effective diversification involves allocating one's money among a variety of asset classes -- different investment animals. Let's begin with the two asset classes with which folks are most [familiar] -- equities and bonds." (Employee Benefit News; free registration required)

(e) Policy, Opinion, Advocacy

Opinion: The Long Overdue Florida Public Pension Clean-Up
Excerpt: "In the months after [a 2002 speech in Florida] we were contacted by single trustees from various pension boards who were concerned about their investment consultants. The pension fund performance reports we reviewed all showed the same ugly results: horrendous underperformance and extensive self-dealing involving consultants." (Benchmark Financial Services, Inc.)

Text of Pension Protection Technical Corrections Act (S. 1974), as Passed by Senate (PDF)
40 pages. Excerpt: "To make technical corrections related to the Pension Protection Act of 2006." (U.S. Senate via American Benefits Council)

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Links to Items on Executive Comp, Benefits in General

Options Still Dominate Executive Compensation Package
Excerpt: "The median value of total retirement benefits of Fortune 500 CEOs in 2006 was only about half that of their outstanding options awards, according to a new study." (PLANSPONSOR.com; free registration required)

A Look at Some 409A Traps for Foreign Deferred Compensation Arrangements and Foreign Employees
Excerpt: "Section 409A generally does not apply to foreign employees. However, 409A does lay a few traps for the employers with individuals working outside the U.S. The following is a very brief summary you might want to keep handy: . . . . When a nonresident alien (NRA) earns deferred compensation for work outside U.S. and subsequently becomes U.S. resident before the compensation is vested, the deferred compensation is generally subject to Section 409A." (Michael S. Melbinger of Winston & Strawn LLP)

ICI Makes Recommendations on SEC Exemptive Application Proposal
Excerpt: "ICI believes that a recent SEC proposal, with minor modifications, would improve the efficiency and effectiveness of the agency's exemptive application process, thus allowing for fund industry innovation while still affording effective investor protections." (Investment Company Institute)

Overview: Rule 144 Adopting Release (PDF)
5 pages. Excerpt: "The SEC is adopting a six-month holding period for the resale of restricted securities of reporting companies by affiliates and non-affiliates. Restricted securities of non-reporting issuers will have a one-year holding period. The SEC believes that these new holding periods are appropriate given the differences in the amount of information available for reporting and non-reporting companies." (Drinker Biddle & Reath LLP)

An Update on USERRA from the Multiemployer Perspective (PDF)
6 pages. Excerpt: "The effect of the Uniformed Services Employment and Reemployment Rights Act (USERRA) on multiemployer employee pension and health care plans is the subject of this Q&A." (International Foundation of Employee Benefit Plans)

Executive Compensation Update, December 2007 (PDF)
13 pages. The newsletter includes articles titled: IRS Postpones Year-End Deadline for Code Sec. 409A Changes; New Rules Issued on Reporting of Company-Owned Life Insurance Contracts; SEC Announces Scrutiny of 10b5-1Trading Plans; Court Upholds Plan Administrator's Interpretation in 'Claw Back' Case; Bad Facts Make Bad Law: Another Adverse Ruling in a Backdating Case; Consider Adopting Stock Option Award Guidelines; Executive Roth Plans: A New Funding Concept for Nonqualified Plans; and, Year-End Reminder: Determining When to Deduct Employee Bonuses can be Tricky. (Winston & Strawn LLP)

Most of Past Year a Bumpy Ride for Federal Employees on Pay and Benefits Issues
Excerpt: "President Bush's decision to give most employees a day off on Christmas Eve came on the heels of an announcement that the Pentagon was scrambling for money to pay civilian employees' salaries as a result of budget delays and might have to start issuing furlough notices. Lawmakers from both sides of the aisle have stepped in to suggest that the Defense Department find an alternative that would prevent furloughs. But the fact that the situation got to this point at all represents a fundamental problem with shaping federal employee pay and benefits policies." (GovExec.com)

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Newly Posted Events

HIPAA And Health Law Compliance Assistance Seminar - Free
in Oklahoma on January 16, 2008
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Living up to DC Plan Fiduciary Responsibilities: Plan Administration and Investments Webcasts
in Alaska on January 10, 2008
presented by International Foundation of Employee Benefit Plans

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Newly Posted Press Releases

ExpertPlan Develops Private Label 401(k) Product with Brock Asset Management
ExpertPlan

Union Announces Lowered Costs for Republic VEBA Participants
United Steelworkers

Consumer Group Condemns Bogus 'Hellhole' Report As Dishonest And Unfair
Center for Justice & Democracy

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

Paralegal
for Trucker Huss, A Professional Corp.
in CA

Manager
for The Hartford
in CT

Retirement Sales - Inside Sales/Payroll
for ExpertPlan, Inc.
in NJ

Benefits Analyst
for North Memorial Health Care
in MN

Profit-Sharing (and Pension) Administrator
for ERISA Pension Systems
in FL

Retirement Plan Administrator
for Howard Simon & Associates
in IL

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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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