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May 22, 2003 - 13,225 subscribers
Today's sponsor: Thompson Publishing Group, Inc.
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“HRA’s & Other Consumer-Directed Health Care Plans” 90-Minute Pre-Recorded Audio Conference Are the promised cost savings of consumer directed health plans real or an illusion? What does the future hold for these kinds of plans? How will developments in Congress and the marketplace affect them? What are the design features of successful consumer-directed health plans? Who is currently enrolling in these plans? Attorney and benefits consultant Terry Humo, Esq., addresses these questions and more during this audio conference presented May 20, 2003 and now available on tape or CD.
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Weirton Steel Declares Bankruptcy; Pension Plan Underfunded
Excerpt: "Bankrupt Weirton Steel yesterday reported a first-quarter loss of $74.8 million and said a temporary reprieve from making estimated contributions of $50 million this year to its underfunded pension plan is in jeopardy. For the time being, it doesn't appear the company's inability to provide assurances the Pension Benefit Guaranty Corp. is seeking will prompt the federal agency to take over Weirton's pension plan." (The [Pittsburgh] Post-Gazette)
Multiemployer Pension Plan Funding Problems (PDF)
At pages 1-4 of this 5-page publication. Excerpt: "Many multiemployer pension plan trustees and advisors are learning that the long-term funding of their plans is in jeopardy. The funding problems are generally attributable to three consecutive years of poor investment markets. This article looks at some of the steps being taken to address the funding problems." (Milliman USA)
AARP Offers Free Financial Planning CD Designed for Persons Ages 40 to 60
Excerpt: "The CD is designed for the pre-retiree aged 40 to 60 with limited or no knowledge of personal financial issues. You'll meet families like yours who will guide you through the process to economic security. You'll get interactive exercises that brighten your learning experience as well as special financial tips for women throughout the course.... Order your free CD today! (You will pay only a $4.50 shipping charge.)" (AARP)
Watson Wyatt: Accounting Change Would Sharply Increase Balance-Sheet Cost of Many Cash Balance Plans
Excerpt: "A proposed new accounting approach for determining liabilities in cash balance pensions would artificially drive up the liabilities for many of these plans on corporate balance sheets, according to experts at Watson Wyatt. The Emerging Issues Task Force (EITF) of the Financial Accounting Standards Board (FASB) appeared to reach consensus in favor of the new approach at a meeting on May 15." (Watson Wyatt)
Boise Cascade Prevails on Appeal of ESOP Dividend Deductibility Case (PDF)
14 pages. Boise Cascade Corp. v. U.S., No. 01-36086 (9th Cir. 5/20/2003). Excerpt: "This appeal presents the question of whether payments made by Boise Cascade Corporation ... to redeem stock held by its [ESOP] are deductible as dividends paid pursuant to 26 U.S.C. § 404(k). We conclude, under the circumstances presented by this case, that they are ..." (U.S. Court of Appeals for the Ninth Circuit, via FindLaw.com)
California Bar Submits Comments on Minimum Distribution Regs' Treatment of Trust as IRA Beneficiary (PDF)
19 pages. Excerpt: "On April 16, 2002, the Treasury Department issued ... long-awaited final minimum distribution regulations ... under Internal Revenue Code section 401(a)(9). In most respects, the Final Regulations are a welcomed simplification ... However, naming trusts that may accumulate IRA distributions as IRA beneficiaries is now more confusing and perhaps a trap for the unwary." (State Bar of California, Taxation Section, Estate and Gift Tax Committee)
Protecting Expatriate Retirement Income
Excerpt: "Often employees who relocate internationally experience an unplanned shortfall in post-retirement income. The Corporation's HR leadership partnered with Aon's International Benefits experts to devise a policy to protect expatriates against the risk of retirement income losses." (Aon Consulting)
Overview: IRS Proposes Deemed IRA Regulations (PDF)
Excerpt: "Deemed IRAs, which were authorized in the Economic Growth and Tax Relief Reconciliation Act of 2001, and first became available on January 1, 2003, are separate accounts (or annuities) established by an employer on behalf of employees under its qualified retirement plan that are treated as individual retirement accounts rather than qualified plan accounts." (Kirkpatrick & Lockhart LLP)
ASPA Asserts Dividend Exclusion Would Harm Small Business Retirement Plans if Extended to Annuities
Excerpt: "[W]e ask you to remain mindful of the serious potential for harm to the ability of our nation's small business workers to save for retirement. Specifically, we are referring to the issue of modifying any dividends proposal to extend its benefits to stock held by annuities." (American Society of Pension Actuaries)
Defined Benefit Plan Terminations Accelerating in Great Britain
Excerpt: "More than 40 percent of British firms closed final salary pension schemes to new staff last year in a drive to control costs and shield their balance sheets from volatile markets, a survey on Thursday showed." (Reuters)
Will Baby-Boomers' Retirement Years Go Bust from a Lack of Savings?
Excerpt: "[E]ven as it becomes more important for workers to prepare for retirement, surveys and other data indicate that many plan participants confess to having little or no understanding of these vital tools. Worse, because of the complex nature of 401(k)s and other plans, employee contributions tend to be far lower than they should, increasing the likelihood that employees will outlive and outspend their retirement funds." (The Wharton School of the University of Pennsylvania)
Links to Items on Executive Comp, Benefits in General
Full Text of IRS Group on Abusive Tax Shelters; Includes Notes re 401(k) Accelerators, Abusive MEWAs (PDF)
Excerpt: "The Advisory Committee on Tax Exempt and Government Entities (ACT) created the TE/GE Abusive Tax Shelters Involving Tax-Exempt and Government Entities Project Group to study how the Tax Exempt and Government Entities (TE/GE) Division could better respond to abusive tax shelters and other abusive tax schemes. The goal of this project has been to identify various strategies that can be used by TE/GE ..." (Internal Revenue Service)
Analysis: Senate-Passed Tax Bill Includes Executive Compensation 'Reforms' (PDF)
10 pages. Excerpt: "The following portions of this memorandum describe in greater detail the purported rationale for the new rules proposed in the [Jobs and Growth Tax Relief Reconciliation Act of 2003], the proposed changes themselves (including some of the many questions created by the statutory language), and some of the effects on common executive compensation arrangements." (Sutherland Asbill & Brennan LLP)
Exec's Severance Provides Peek Behind Corporate Veil
Excerpt: "[I]n a rare peek into the corporate boardroom, [uniform maker Cintas Corp.] recently published the text of [former executive Robert Buck's] severance agreement as part of a filing with the Securities and Exchange Commission." (The Cincinnati Post)
Do Shareholders Have the Clout to Rein in Executive Pay?
Excerpt: "Warren Buffett's latest attack on excessive executive compensation is another chapter in the long-running saga about how much to pay top business leaders, and how to limit the compensation of those who are deemed to be making too much." (The Wharton School of the University of Pennsylvania)
AP Corrects Stock Options Expensing Story
Excerpt: "In a May 19 story about Silicon Valley's resistance to expensing stock options, The Associated Press reported erroneously the financial impact that the accounting change would have on the results of the area's 35 largest tech companies." (AP via Las Vegas Sun)
Intel Shareholders Vote Against Expensing of Stock Options, Though Not By Large Margin
Excerpt: "Accepting the arguments of management, Intel Corp. shareholders on Wednesday voted down a proposal that called on the chip maker's board of directors to expense employee stock options.... The measure, submitted by the United Brotherhood of Carpenters and Joiners of America Pension Fund, received 47.55 percent of the vote." (AP via the Nando Times)
Newly Posted or Renewed Job Openings
Group Health Insurance Sales/Account Management
for Great West Life & Annuity
in PA, TX, WA
Participant Recordkeeper
for Marshall & Ilsley Corporation
in WI
Pension Administrator/Analyst
for Abacus Benefit Consultants Inc.
in RI
Benefits / ERISA Compliance Sr. Consultant - Boston, MA
for PricewaterhouseCoopers
in MA
Newly Posted Conferences
(Post Yours!)
403(b) Plan Specialty Workshop (Half-Day Seminar)--offered throughout the country, various dates and locations beginning 7/9 through 7/25
in CA, CO, DC, GA, IL, IN, KS, MA, MN, NC, NY, TX
July 9, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Charlotte
in NC
July 9, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--San Francisco
in CA
July 9, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Washington,
in DC
July 18, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--offered throughout the country, various dates and locations beginning 7/9 through 7/25
in CA, CO, DC, GA, IL, IN, MA, MN, MO, NC, NY, TX
July 9, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Charlotte
in NC
July 9, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--San Francisco
in CA
July 9, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Washington,
in DC
July 18, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Kansas City, MO
in MO
July 24, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Dallas
in TX
July 25, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Houston
in TX
July 24, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Denver
in CO
July 23, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Minneapolis
in MN
July 18, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Indianapolis
in IN
July 18, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Chicago
in IL
July 16, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Boston
in MA
July 16, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Orange County (LA area)
in CA
July 10, 2003
SunGard Corbel
457 Plan Specialty Workshop (Half-Day Seminar)--Atlanta
in GA
July 10, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Dallas
in TX
July 25, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Kansas City
in MO
July 24, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Houston
in TX
July 24, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Denver
in CO
July 23, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Minneapolis
in MN
July 18, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Indianapolis
in IN
July 18, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Chicago
in IL
July 16, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Boston
in MA
July 16, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Orange County (LA area)
in CA
July 10, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Atlanta
in GA
July 10, 2003
SunGard Corbel
Proposed FLSA Exemption Regulations Changes
in ALL STATES
June 25, 2003
Thompson Publishing Group
Proposed FLSA Exemption Regulations Changes
in ALL STATES
June 25, 2003
Thompson Publishing Group
457 Plan Specialty Workshop (Half-Day Seminar)--Syracuse
in NY
July 18, 2003
SunGard Corbel
403(b) Plan Specialty Workshop (Half-Day Seminar)--Syracuse
in NY
July 18, 2003
SunGard Corbel
Newly Posted Press Releases
(Post Yours!)
Evolution Benefits Secures $5.5 Million in Financing
(Evolution Benefits)
Labor Department Obtains Final Settlement of Lawsuit Against U.S. Alliance Fiduciaries
(U.S. Department of Labor, Employee Benefits Security Administration)
TIAA-CREF Temporarily Suspends Sale of After-Tax Deferred Annuities
(TIAA-CREF)
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