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1 Employee Retirement Income Security Act (ERISA) A Fiduciary is any person (eg, trustee, plan administrator, employer of cer and director plan sponsor, or investment adviser) who (1) Exercises any discretionary authority or control over plan management (2) Exercises any authority or control over management or disposition of plan assets (3) Renders investment advice for a fee or other compensation (4) Has discretionary authority or responsibility over plan administration B IRS involvement (1) All new plans must be submitted to the IRS for approval (2) Monitors operation of existing plans (3) Interprets existing law and issue regulations to be applied to all plans (4) Rules on matters of employer deductibility of plan contributions C Department of Labor (DOL) involvement (1) Monitors investment of plan assets and the actions of those in charge of administering plans (2) Shares with the IRS oversight of prohibited transactions D Created the Pension Bene t Guarantee Corporation (PBGC) (1) Mandatory insurance for de ned bene t plans; annual premium $19/year/participant (2) Plan termination insurance under PBGC (a) Guaranteed (basic) bene ts nonforfeitable i Retirement bene ts ii Death bene ts in pay status iii Survivor bene ts in pay status iv Disability bene ts owed or in pay status (b) Bene t must be a pension bene t (c) Participant must be eligible for bene t at time of plan termination (d) Nonguaranteed bene ts i Retirement bene ts in excess of PBGC limit ii Medical insurance premiums/bene t (e) Limitations i Monthly payments only no lump sum ii Guaranteed monthly bene t cannot be greater than employee s gross monthly income during the ve consecutive years of highest earnings iii Maximum age 65 monthly bene t adjusted annually along with the Social Security wage base (SSWB) changes ($3,579 in 2002) E Quali ed plan terminations (1) General information (a) QRP are established for the bene t of the participant and his or her bene ciaries (b) The plan must be permanent (2) Termination of plan (a) Termination cannot be implemented arbitrarily (b) Termination must be because of business necessity.



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When the values of the transactions do not match, the increase or decrease in the value of the rm absorbs the difference, as with the sale of myrrh discussed earlier Double-entry accounting merely recognizes that any need to count some transaction in the business creates the need to count at least one additional offsetting transaction Further, if all the entries are matched with entries to equity, the offsetting equity amount not only describes the net bene t or detriment to the rm but also quanti es the net entry required to complete the description of the transaction Note that modern accounting does follow the pattern of matching each change in asset and liability with a change in equity but in a way that will be described in s 4 and 5.





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Realize that updates to data are the only operations where a transaction rollback has an effect It doesn't matter if we roll back a data retrieval because no side effects occurred as a result Also, most databases don't allow you to roll back any DDL processing, such as when tables are created, just DML statements By default, JDBC commits each update to data when you call executeUpdate() For example, the following code results in three transaction commits:

After we add a few more features to our accounting system, the receipt of 10 gold coins will be instead matched with an equal entry called SALES, and the reduction in inventory that cost 5 gold coins will be paired with a 5-gold-coin entry called COST OF GOODS These are called temporary accounts that will be netted and reclassi ed as equity at some point in the future..

stmtexecuteUpdate("UPDATE employee set salary = 110*salary WHERE id=1"); stmtexecuteUpdate("UPDATE employee set salary = 110*salary WHERE id=5"); stmtexecuteUpdate("UPDATE employee set salary = 110*salary WHERE id=6");

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Committing after each executeUpdate() can be suboptimal in terms of performance It can also be downright dangerous if you're performing a series of operations that should logically be bundled in a single transaction, such as the account transfer example mentioned earlier To change the default transaction-processing style, developers simply need to set an attribute of the connection:

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266 - Retirement Planning (c) Termination must follow speci c rules governing allocation of plan assets (3) Voluntary termination (a) Standard termination A single employer may terminate under this type of termination if the plan has suf cient assets for bene t liabilities Plan assets must be distributed according to ERISA (b) Distress termination A single employer may terminate under distress termination if the plan does not have suf cient assets to pay vested bene ts (where employer is in bankruptcy (BK) proceedings or will be able to continue in business only if relieved of outstanding pension liabilities) Employer must provide to PBGC actuarial certi cation of asset values and bene t liabilities (4) Involuntary termination The PBGC may terminate an underfunded plan for one or more of the following reasons: (a) Plan does not comply with minimum funding standard (b) Plan cannot pay bene ts when due (c) Plan has unfunded liabilities following a distribution of more than $10,000 to an owner (d) If plan is not terminated, loss to the PBGC is expected to be unacceptably high (5) Switching from DBP to DCP (a) Requires the DBP to be terminated (b) Creation of a new DCP (c) Voluntary standard termination (d) 100 percent vesting of affected participants (e) Distribution of plan assets in accordance with ERISA (6) Switching from a DBP to a cash balance plan (a) Requires only amending the DBP (b) Avoids vesting, distribution, and plan termination (7) Priority for allocating plan assets (must precede asset reversion) (a) Employee voluntary contributions (b) Employee mandatory contributions (c) Certain annuity payments in pay status (d) Other guaranteed (insured) bene ts (e) Other vested bene ts that are not guaranteed (f) All other plan-provided bene ts (8) Reversion of residual assets to employee (a) 50 percent penalty on assets reversions (b) Penalty reduced to 20 percent if employer (1) transfers 25 percent of potential reversion amount to a replacement plan, or (2) increases the participants accrued bene ts by at least 20 percent 2 Department of Labor (DOL) regulations ERISA of 1974 A Established guidelines for quali ed and nonquali ed employee bene t plans involving retirement income B Established nondiscriminatory rules for favored employee groups: highly compensated employees and key employees C Established vesting schedules for employees.

ClassforName("oraclejdbcdriverOracleDriver"); Connection conn = DriverManagergetConnection( "jdbc:oracle:thin:@MyOracleDb", "scott", "tiger"); /* Do not commit each update immediately */ connsetAutoCommit(false);

Create ConsoleApp.java in your src directory. Create the Java file from within Xcode by selecting src and Control-clicking. Select Add New File... from the context-sensitive menu. Choose Empty File from the Other template catalog as shown in Figure 3.3, and create it in the src directory. If there is an extra reference to the file in the Groups & Files tree, remove the reference.

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