| BenefitsLink Retirement Plans Newsletter |   |
February 5, 2003 - 12,861 subscribers
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ASPA: Small Business Workers Will Lose Retirement Benefits if Proposal is Enacted
Excerpt: "It is an understatement to suggest that the impact of these proposals on small business retirement plan coverage will be anything less than devastating. If enacted, a small business owner would be able to actually save more on an individual basis between an LSA and an RSA ($15,000) than if he or she established an ERSA ($12,000 in 2003) even before the added costs of employer contributions and the administrative burdens." (American Society of Pension Actuaries)
Highest Earners Get Most Benefits in Bush Retirement Savings Proposals
Excerpt: "The proposals made last week would provide new tax breaks to the nation's highest earners, while likely cutting the number of employers offering 401(k) savings plans. New benefits to the wealthiest would arise by raising limits on contributions to tax-sheltered savings plans, said Dean Baker, co-director of the Center for Economic and Policy Research in a Washington, D.C." (San Diego Union-Tribune via NewsAlert.com)
ERSA: Teachers and Not-for-Profit Workers Might Finally Have the Retirement Plan They Deserve
Excerpt: "In the battle to improve retirement plans, the Bush administration has dropped the big one. As far as teachers and not-for-profit workers are concerned, it couldn't have happened a moment too soon. Since 1958, these employees have been held captive by the needlessly complex, decidedly inferior 403(b) plan." (403bWise.com)
4th Cir.: Pension Plan May Eliminate COLA Benefit for Those Retired Before Benefit Was Added
Excerpt: "In Board of Trustees of the Sheet Metal Workers' National Pension Fund v. Commissioner of Internal Revenue, the U.S. Court of Appeals for the Fourth Circuit ruled that trustees of a pension fund acted legally when they amended the plan to eliminate a cost-of-living adjustment (COLA) for participants who were retired at the time the COLA provision was adopted." (The Segal Company)
American Academy of Actuaries Says PBGC is Not In 'Crisis' (PDF)
Excerpt: "Ron Gebhardtsbauer, senior pension fellow for the American Academy of Actuaries, said [on January 30, 2003] that the federal agency that insures private pension plans is 'not in crisis, but is facing the 'perfect storm' of declines in the stock market, low interest rates and an increase in large bankruptcies.' He was commenting on the annual report of the Pension Benefit Guaranty Corporation (PBGC) ...'" (American Academy of Actuaries)
Correction: Not All Actuarial Organizations Are Alike
In the February 3, 2003 issue of the BenefitsLink Retirement Plans Newsletter (and on our web site's Buzz page for that date) two links were incorrectly identified as pointing to articles authored by the Society of Actuaries (www.soa.org). Instead, the articles were authored by the American Academy of Actuaries (www.actuary.org). BenefitsLink sincerely regrets the error. (BenefitsLink)
Statements in Opposition to Proposed Cash Balance Plan Conversion Rules
Janice Winston (Verizon); Larry Cutrone(AT&T); Janet Krueger (IBM); Jimmy Tarlau (National Organizing Coordinator of Communications Workers of America). Excerpt (statement of Mr. Tarlau): '[W]e believe that these IRS rules will create downward pressure on pension benefits for all workers and will increase the pressure on our members to accept changes that are not in their interest." (Democratic Staff, U.S. House Education & the Workforce Committee)
What Does Ownership Mean to Employees?
Consultant Loren Rodgers discusses what ownership of company stock means to employees who receive it through a benefit plan such as an ESOP. (National Center for Employee Ownership)
Short Stints In State Posts Boost Pensions of Two Former New Jersey Lawmakers
Excerpt: "Two former legislators who received state jobs after being defeated in the 2001 elections have both retired just days after they completed the minimum time needed to qualify for pension enhancements worth tens of thousands of dollars a year." (CBSNewYork.com)
Buyer's Market Makes It Easier To Revamp 401(k) Plans
Excerpt: "Due to the competitive pressures facing providers of plan services, all areas of plan management-- administration, participant Web-access, investment choices-- have been improved." (Mass High Tech)
Links to Items on Executive Comp, Benefits in General
Wall Street Journal Reports Sprint Forced Out 2 Execs Over Tax Shelter for Stock Option Income
Excerpt: "The Sprint executives are now facing potentially heavy financial losses and tax challenges by the IRS, according to the report. There is not any indication that LeMay and Esrey did anything illegal." (Reuters via New York Times; one-time registration required)
Retention Bonuses for BlueCross BlueShield Execs Might Violate Maryland State Law
Excerpt: "Retention payments for executives of CareFirst BlueCross BlueShield if the company is sold appear to violate the 'anti-bonus' law passed last year by the Maryland legislature, a consultant to the insurance commissioner testified yesterday." (The Baltimore Sun)
Newly Posted or Renewed Job Openings
Employee Benefits Sales Representative
for Great West Life & Annuity
in MI, TX
Account Manager - Insurance Benefit Plan
for Pension Parameters, Inc.
in NY
401k Analyst
for CPI
in PA
Benefits Administrator
for Craford Benefit Consultants
in CA
OmniPlan - OmniPlus Consultant
for DC Specialists
in ALL STATES
Newly Posted Webcasts
(Post Yours!)
Briefing on Single Payer Proposal with Representative John Conyers
on February 4, 2003
presented by Physicians for a National Health Program
Newly Posted Conferences
(Post Yours!)
Employee Benefits Update
in ALL STATES
February 11, 2003
American Bar Association's Joint Committee Employee Benefits, Others
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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