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March 19, 2003 - 13,088 subscribers
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Groom Law Group Comments on Proposed Cash Balance/Age Discrimination Regs
Excerpt: "While the proposed rules conclude that cash balance plans are not inherently age discriminatory, the rules would greatly limit the options available to plan sponsors who wish to implement a cash balance or other hybrid-plan design. In particular, the rules would have the unfortunate and surprising effect of limiting the use of special features designed to ease the transition to cash balance for older employees." (Groom Law Group)
Analysis: First Circuit Decision Approves of Cash Balance Plan's Wearaway Provision (PDF)
Excerpt: "[T]he court held that BankBoston's switch to a cash balance-only plan benefit did not result in any forfeiture of an accrued benefit in violation of ERISA's anti-cutback provision because 'no accrued benefits were reduced; only expected benefits were reduced, which BankBoston could, under the law, modify or eliminate.'" (Seyfarth Shaw)
Low Rates Put Cracks In Retirees' Nest Eggs
Excerpt: "The lowest interest rates in decades may be helping to keep the American economy afloat, but to retirees who depend on interest-bearing accounts to live, the low rates have been crippling." (Reuters via The Orange County [Calif.] Register)
American Benefits Council Provides Background Memo on Pension Accounting Issues (PDF)
Excerpt: "The Council is concerned that changes to the current accounting rules for pensions may present a serious threat to the employer-sponsored defined benefit pension system. The purpose of this memorandum is to provide background on the issue and to solicit input on (a) the appropriate position of the Council on this issue and (b) what activities that the Council can and should take on behalf of member companies in the debate." (American Benefits Council)
Many People in Their 50s Plan to Continue Working Past Retirement Age
Excerpt: "In recent years, research has indicated that people who are currently in their 50's plan to continue working after they reach retirement age. Labor force participation among workers aged 55 to 64 increased 2 percent in 2001, according to the Center for Retirement Research at Boston College." (New York Times; one-time registration required)
Link to New York Times Special Section on Retirement
March 19, 2003. (New York Times; one-time registration required)
Arguing Against Equities, Even for the Long Haul
Excerpt: "The debate is broken down into two main camps. By far the larger of the two clings to the traditional faith in stock-market investing. The other camp, smaller but gaining advocates, especially in academia, is challenging what it terms the cult of equities, calling instead for a return to extremely conservative bond investments." (New York Times; one-time registration required)
Link to the 2003 OASDI Trustees Report
Excerpt: "The Board of Trustees reports each year on the current and projected financial condition of the Social Security program, which is financed through two separate trust funds.... The report on the current financial status of the funds includes an accounting of the actual income and expenditures for the last year." (Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds)
'201(k)' Accounts Have Workers Seeking Help on Investment Choices
Excerpt: "In years past, people could only find personalized advice by hiring financial planners outside of their jobs. Now, however, a growing number of employers are helping their workers make investment decisions." (Chicago Tribune; one-time registration required)
Actuaries for Teachers Association Respond to 2003 Wilshire Report on State Retirement Systems (PDF)
3-page letter from Gabriel, Roeder, Smith & Company. Excerpt: "Although we are pleased that Wilshire's 2003 report has been expanded to better show the distribution of system funding, we still believe the report's alarmist tone, selective use of statistics, and use of technical terms without better explanation paints a misleading picture of state and state teacher retirement plan funding. Our specific concerns regarding the report follow ..." (National Council on Teacher Retirement)
Pilots Bear Brunt of Airlines' Woes
Excerpt: "[P]ilots of major airlines face the loss of comfortable salaries, dreams and million-dollar retirement plans. 'We're all terrified,' said [American Airlines pilot Herb McKinley], 44. 'The pension is why I'm here -- so when I'm an old man I'll have something to live off of.'" (The [Raleigh, N.C.] News & Observer)
Newly Posted or Renewed Job Openings
Defined Benefit Pension Administrator
for Qualified Plan Actuarial & Administration Firm
in MI
Invesmart
for Lead Enrolled Actuary
in OH
Pension Benefit Advisor
for Guardian Life Insurance Company-Chicago, IL
in IL
401(k) Administrator - Defined Contribution
for The Pension Service, LLC
in MA
Institutional Pension Consultant
for TIAA-CREF
in IL
Vice President/Sales
for Stone & Associates
in CA
Manager, Strategy & Design, Compensation & Benefits
for Capital One
in VA
Manager, Health and Welfare, Total Rewards
for Capital One
in VA
Plan Administrator/Manager
for ARG, INC.
in ALL STATES
Newly Posted Conferences
(Post Yours!)
PSCA Technology Conference
in MA
May 1, 2003
The Profit Sharing/401(k) Council of America
HIPAA Implementation Issues for Welfare and Financial Benefit Plan Sponsors
in UT
March 21, 2003
Western Pension & Benefits Conference
IFEBP Certificate Series
in NY
May 15, 2003
International Foundation of Employee Benefit Plans
IFEBP Certificate Series
in WI
April 24, 2003
International Foundation of Employee Benefit Plans
Newly Posted Press Releases
(Post Yours!)
ALEXANDER HAMILTON INSTITUTE RELEASES NEW FREE REPORT: "Q&A On Exempt Vs. Non-Exempt"
(Alexander Hamilton Institute)
Labor Department Sues Retirement Plan Trustee For Misusing Plan Assets to Pay Legal Fees
(U.S. Department of Labor, Office of Public Affairs, Chicago)
SunGard Corbel Introduces Electronic Reference Tool
(SunGard Corbel)
Barclays Global Investors Leverages Institutional Scale for Smaller 401k Plans
(Internet Investment Education, LLC)
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