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March 11, 2003 - 13,085 subscribers
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Text of H.R. 1000, the Pension Security Act of 2003, as Reported Out of Committee (PDF)
Amendment in the nature of a substitute, adopted by voice vote (source: http://edworkforce.house.gov/markups/108th/fc/hr1000/35main.htm). (U.S. House of Representatives, Committee on Education and the Workforce)
Democrats Point to 'Flaws' in Pension Security Act
Excerpt: "[Congressman George Miller (D-CA)] said that the Bush/Boehner bill was deeply flawed and risky to employees' retirement health. Specifically, he pointed out that the Bush/Boehner bill: [will] open new, dangerous loopholes that will jeopardize all employee's retirement investments by allowing for the first time self-interested investment firms to serve as the principal financial advisor to employees." (Democratic Staff of the U.S. House of Representatives, Committee on Education and the Workforce)
Democrats Respond to Reporting of Pension Security Act Out of Republican-Controlled Committee
Excerpt: "House Republicans on the Education and Workforce Committee have rejected Democratic efforts to protect the traditional pensions of older employees and to give more protection and control to employees with 401(k) investments." (Democratic Staff of the U.S. House of Representatives, Committee on Education and the Workforce)
Description of 2002 Tax Credit for IRA and Salary Reduction Contributions
Excerpt: "Contributions to traditional and Roth IRAs as well as to employer-sponsored 401(k) plans count toward computing the credit. So does money you put into a Savings Incentive Match Plan for Employees, or SIMPLE, plan; a 403(b) annuity; a governmental 457 plan; or a salary reduction Simplified Employee Pension (SEP). The credit is based on your total contributions to all your eligible retirement accounts, not for contributions to each." (Bankrate.com)
DOL to Hold Hearings on Proposed PT Exemption for Donation of Stock to Northwest Airlines DB Plan
Excerpt: "In response to the solicitation of comments from interested persons, the Department has received over 500 letters, e-mails, faxes or phone calls, of which more than 300 request that a hearing be held on the proposed exemption.... The concerns expressed generally related to the proposed contribution of Pinnacle Stock instead of a cash contribution to the Plans; the value and method of valuation of the Pinnacle Stock; the effects of the proposed transactions on the Plans; ..." (U.S. Department of Labor, Employee Benefits Security Administration)
Employers Want to Change Interest Rates Used in Pension Calculations
Excerpt: "The 30-year Treasury bond [is] used in pension law to make two key calculations in traditional plans: the present value of promised future benefits-- a plan's liabilities-- and the size of a lump-sum payment when a worker chooses one instead of a lifetime stream of income, known as an annuity. Now, the stability of the 'long bond,' coupled with its dwindling supply since the Treasury stopped issuing it, has driven its price up and its interest rate to historic lows." (Washington Post)
Present Law and Background Relating to DB Plans and the Financial Position of the PBGC (PDF)
61 pages; prepared for a March 11, 2003 hearing before the U.S. Senate's Finance Committee. (U.S. Congress, Joint Committee on Taxation)
Cut In Pension Earnings Expectation By Fidelity Sends Signal
Excerpt: "If Fidelity Investments, the world's biggest mutual fund firm, is ratcheting back expectations for its own employee pension plan, what does that say about the financial future for the rest of us?" (The Boston Globe)
Democratic Staff of Education and Workforce Committee Posts Web Page on Cash Balance Plan Issues
Includes press releases, statements, letters and photos. (Democratic Staff of the U.S. House of Representatives, Committee on Education and the Workforce)
AARP Issues Call for Members to Contact Congress About Proposed IRS Cash Balance Plan Regs
Excerpt: "Express your views. Contact your members of Congress and the IRS to weigh in on the Treasury Department's proposed regulations for cash balance pensions. Under the proposed regulations, older and long-term employees caught in a conversion from a traditional defined benefit pension plan to a cash balance plan are likely to be harmed in two ways: ..." (AARP)
Bill Would Allow Florida Teachers to Continue Working Longer While Participating in DROP
Excerpt: "[T]he [Florida] House State Administration Committee moved quickly Monday to extend the mandatory retirement deadline in the DROP program for teachers. Rep. Fred Brummer, sponsor of the bill extending the term of the Deferred Retirement Option Program from five to eight years for teachers, said he hopes to prolong the careers of at least 3,000 teachers who would otherwise have to quit by June 30." (The Bradenton [Fla.] Herald)
Pension Rights Project in Upper Midwest Receives Federal Grant
Excerpt: "The Minnesota Senior Federation's Pension Rights Project has joined forces with the Coalition of Wisconsin Aging Groups Elder Law Center of Madison, Wis., to form the Upper Midwest Pension Rights Project. The new project recently received a $150,000 grant from the Federal Administration on Aging to provide pension counseling and advocacy to residents of the upper Midwest." (PR Newswire via the [Minneapolis] Star Tribune)
401(k) Account Balances Fell By 4% in 2001, But Asset Allocation Remained Unchanged
The average balance in a 401(k) plan account fell by nearly 4% in 2001 to $58,785, reflecting the continuing decline in the stock market, according to the latest analysis of the Employee Benefit Research Institute (EBRI)/Investment Company Institute 401(k) plan data base. The data base tracks the behavior of 14.6 million 401(k) plan participants holding more than $632 billion in assets. (SpencerNet)
Links to Items on Executive Comp, Benefits in General
Commentary: Companies Looking for an Alternative to Stock Options
Excerpt: "First, in a world where earnings are going to be charged for every form of compensation, with no 'get out of jail' free card issued to stock options, should a company continue to use those beasts, or should it think about alternative forms of compensation? And second, if a company does stick with options, how can it, legitimately, engineer the lowest possible charge to earnings?" (Graef Crystal on Bloomberg.com)
Newly Posted or Renewed Job Openings
Pension Administrator
for Means & Associates, LLC
in CA
Accounting/Pension Tech
for Third Party Administrating Firm
in MN
Investment Specialist
for Principal Financial Group
in IA
Newly Posted Conferences
(Post Yours!)
DOL Positions in the Enron Litigation: What Do They Mean for Plans and Plan Fiduciaries?
in ALL STATES
March 27, 2003
ABA Joint Committee on Employee Benefits; Other Organizations
Newly Posted Press Releases
(Post Yours!)
Benefit Software Inc. Eases the Pain of Open Enrollment for K. Hovnanian
(Benefit Software Inc.)
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