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October 16, 2003 - 13,400 subscribers
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“Complying With the Wage-Hour Requirements of the Service Contract Act” A 90-Minute Interactive Audio Conference – Thursday, October 23, 2003 * 2:00 p.m. Eastern Time During this 90-minute interactive presentation, employment law attorneys Dan Abrahams and Shlomo Katz will address the basic requirements of the SCA, to include: prevailing wages, fringe benefits, conformances, the Successor Contractor rule and price adjustments. They will also discuss how the SCA can/should affect contractors’ proposals to the government, and more. Register today!
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Contribution and Benefit Base for 2004: $87,900
Excerpt: "For earnings in 2004, this base is $87,900." (Social Security Administration)
IRS Announces Pension Plan Limitations for 2004
Excerpt: "The limitation for defined contribution plans under section 415(c)(1)(A) is increased from $40,000 to $41,000.... The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $200,000 to $205,000.... The limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) is increased from $12,000 to $13,000." (Internal Revenue Service)
Written Testimony of IRS at Senate Hearing on PBGC Deficit and DB Plans Generally (PDF)
11 pages; Mark J. Warshawsky, IRS Acting Assistant Secretary for Economic Policy. Excerpt: "I will discuss the Administration's proposals and ongoing activities aimed at strengthening the long-term health of the defined benefit pension system and thereby improving the retirement security of defined benefit pension participants." (U.S. Senate, Special Committee on Aging)
Audio Report: Pension Insurer in the Red
10/15/2003. Excerpt: "The U.S. agency that rescues failed pension programs has a bigger-than-ever deficit of more than $8 billion. The Pension Benefit Guaranty Corporation might ultimately need its own bailout from taxpayers. NPR's Elaine Korry reports." (National Public Radio)
American Academy of Actuaries Comments on Bayh DB Pension Bill (PDF)
3 pages; 10/7/03. Excerpt: "I am writing on behalf of members of the American Academy of Actuaries' Multiemployer Plans Task Force to comment on S.1610, the Defined Benefit Pension Plan Reform Act of 2003." (American Academy of Actuaries)
Opinion: a Look at the Rotten Structure of the Financial Services Industry
Excerpt: "The manipulation of mutual funds-- nice, safe, comfortable old mutual funds-- is a story heating up nicely.... Add The New York Times Sunday account of how states and municipalities have been talked into bond issues by investment banking firms to cover pension costs, with highly unfortunate results, and you have a creepy and getting-creepier picture of the entire financial services industry." (Molly Ivins in the Salt Lake Tribune)
Opinion: the Great 401(k) Hoax, Continued
Excerpt: "This standard retirement-savings vehicle is still woefully substandard. The only solution is for employees to become far more active." (William Wolman in Business Week)
Updated-- Social Security Individual Accounts: Design Questions (PDF)
10/03. Excerpt: "Neither side in this debate has focused clearly on all the design questions that may be critical to the success or failure of individual accounts. Without taking sides for or against individual accounts, we believe that such questions have important implications, such as limiting free choice in order to hold down costs. Hence, this issue brief is intended to shed light on issues that policymakers would need to address if they were to create an individual account program ..." (American Academy of Actuaries)
Workers For Law Practice Were Employees, and Not Independent Contractors
An attorney exercised sufficient control over two individuals who worked for his law practice and, as a result, the workers were employees of the law practice rather than independent contractors. This was the decision of the U.S. Tax Court in Kumpel v. Commissioner (Docket No. 14339-01. T.C. Memo. 2003-265). (Spencer Benefits Reports)
Links to Items on Executive Comp, Benefits in General
11th Cir.: Heightened Standard Applies To All Decisions of Fiduciary Under Conflict of Interest
Excerpt: "A heightened standard of review should apply to both factual and plan interpretation determinations made by a fiduciary that is operating under a conflict of interest, rather than the deferential arbitrary and capricious standard, according to the U.S. Court of Appeals in Atlanta (CA-11)." (CCH News and Information Library)
Overview: Pennsylvania Commonwealth Court Abolishes Doctrine of Common Law Marriage (PDF)
3 pages. Excerpt: "Although the court's decision is still subject to appeal, it may ultimately have a significant impact on the benefit plans (which recognize common law marriage as the basis for spousal coverage) of all employers with operations in Pennsylvania." (Dechert LLP)
New IRS Chief Plans to Focus on Enforcement
Excerpt: "The new Internal Revenue Service commissioner, with an emphasis different from his predecessor's, says effective enforcement of the tax laws rather than further improving customer service would be the main focus of his administration." (New York Times; one-time registration required)
Microsoft Offers Details On Stock Option Program
Excerpt: "Microsoft employees will soon be able to trade in largely worthless stock options for cash under a new program detailed by the software company on Wednesday." (AP via USA Today)
Newly Posted or Renewed Job Openings
Senior Technical Analyst
for First Trust
in CO
Consulting Actuary
for New York Life Investment Management LLC
in MA
Plan Contribution Services Specialist
for ICMA Retirement Corporation
in DC
Pension Administrator
for Benefit Planning, Inc.
in CA
Retirement Plan Coordinator
for Independent Insurance Agents and Brokers of America
in VA
Plan Services Consultant
for American United Life Insurance Company
in IN
Administrative Assistant
for 401(k) Advisors
in CA
Newly Posted Conferences
(Post Yours!)
ABC's of 401(k) Plan Administration
in CA
November 20, 2003
Western Pension & Benefits Conference - Orange County Chapter
Newly Posted Press Releases
(Post Yours!)
2004 Standard Mileage Rates Set — 800,000 More Businesses Eligible
(Internal Revenue Service)
IRS Announces Pension Plan Limitations for 2004
(Internal Revenue Service)
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