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October 27, 2003 - 13,383 subscribers
Today's sponsor: Actuarial Systems Corporation
(Click on company name or banner to learn more.)
ASC - QUALITY SOFTWARE FOR THE PENSION INDUSTRY FOR OVER 20 YEARS ASC provides complete automation for the pension office, including: DC/401(k) and DB administration and valuation systems, sophisticated Compliance Testing, DV Direct Daily Valuation, Advanced Information Manager Database (AIM), and Single-Step Processing. All ASC Technical Support Members were experienced Pension Administrators or Actuaries before joining ASC -- and most have been with ASC for over 10 years.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Gingerly, Companies Offer 401(k) Advice
Excerpt: "So far, 401(k) providers like AIG Valic, Fidelity Investments, Merrill Lynch and Wachovia Retirement Services have begun services that take over employees' account management for a fee, if they wish, making investment decisions based on an unbiased third party's suggestions. And earlier this month, Financial Engines, an independent advice provider, created its own account management offering." (New York Times; one-time registration required)
401(k)s Are Grand, for Mutual Fund Companies Anyhow
Excerpt: "If the sundry investigations into dubious mutual fund practices haven't yet angered you, perhaps this will: The financial services companies overseeing some 401(k) plans are racking up annual profits that can exceed five times the plans' costs." (New York Times; one-time registration required)
2003 Plan Year: Year-End Compliance Reminders for DC Plans (PDF)
6 pages. Excerpt: "Every year, defined contribution plan sponsors must make sure their plans meet certain compliance requirements, including those listed below. This checklist identifies the materials you need to review and will help you track their completion." (CIGNA's Pension Analyst)
Prudential Weighs $2 Billion Cigna Deal
Excerpt: "Prudential Financial has emerged as the lead buyer for Cigna Corp.'s retirement and investment services, a deal estimated to be worth $2 billion, [The Star-Ledger of Newark] reports." (AP via Washington Post)
Do We Have a Retirement Crisis in America?
Click on 'PDF Version' on target page. Excerpt: "This article summarizes findings on the state of the retirement income security of Americans. Trends in pension coverage and participation are documented, as well as the saving rate and net worth of American households. In addition, the composition of federal government expenditures is discussed, and future trends in social insurance programs are detailed." (TIAA-CREF Institute)
More Pension Pain
Excerpt: "With the S&P 500 up 17% so far this year, you'd think the situation would have improved. But a new study by Credit Suisse First Boston ... shows that it is actually getting worse. The reason is persistently low interest rates." (Fortune)
Federal Policymakers Favor Annuities Over Lump-Sum Payments
Excerpt: "After more than a decade of urging employees to save for retirement primarily through DC and DB plans, government officials have taken up the call for retirement income preservation through annuities. Over the past year, federal regulators and lawmakers have proposed a host of recommendations and laws to promote the adoption of annuities by the general public. For example: ..." (BenefitNews.com)
Text of Advisory Opinion 2003-14A on Qualifying Employer Securities in Hughes Spin-Off
Excerpt: "[Y]ou request an opinion as to whether certain stock described below is a qualifying employer security in connection with a proposed exchange (the Exchange) between General Motors Corporation (GM) and several employee benefit plans that it sponsors (the GM Plans). You represent that the Exchange is part of a broader transaction ... whereby GM ... plans to split-off GM's wholly-owned subsidiary, Hughes Electronics Corporation (Hughes)." (U.S. Department of Labor, Employee Benefits Security Administration)
Guide to 2003 Corrective Distribution Forms (PDF)
1 page, with hyperlink to related documents; written for CIGNA customers, but useful for other plan sponsors also. (CIGNA's Pension Analyst)
Overview: 401(k) Plan Will Not Violate Anti-Assignment Rule If It Honors Order for Criminal Fine
Excerpt: "Only the taxpayer that sought the ruling may rely on it. Thus, plan administrators should consult with legal counsel before complying with a FDCPA garnishment order. While private letter rulings provide insight into the IRS's position, factual distinctions between the ruling and a taxpayer's situation may undermine the ability to draw analogies." (EBIA)
Gerhard Schroeder Is Finally Getting Serious About Reform-- Or Is He?
Excerpt: "Non-wage labor costs, such as pension contributions and health-insurance payments, are hobbling the economy. They amount to 42% of the average German salary, among the highest in the world, and keep companies from investing in the country." (Time Europe)
GOP Puts Stock In 'Investor Class'
Excerpt: "Based on the findings of a recent Washington Post poll that examined the attitudes and political leanings of Americans with money invested in the financial markets, Republicans could be more correct than Democrats care to admit." (Washington Post)
'Putative Spouse' Under Texas State Law Is Entitled to Surviving Spouse Benefit
Cent. States Pension Fund v. Gray (N.D. Ill. 2003). Excerpt: "This case involved competing claims to the surviving spouse benefit under a defined benefit plan. The plan had commenced survivor benefit payments to the participant's third wife, who was married to the participant at the time of his death. Several months later, the participant's first wife filed for survivor benefits. The participant and his first wife had legally separated in 1971 but never divorced." (EBIA)
Links to Items on Executive Comp, Benefits in General
Witness List and Links to Prepared Written Testimony on Company-Owned Life Insurance
Hearing held on October 23, 2003. Witnesses included the Honorable Greg Jenner, United States Department of Treasury; Davi M. D'Agostino, General Accounting Office; Spencer Tillman, Journalist; the Honorable Frank Keating, American Council of Life Insurers; Andrew Pike, American University - Washington College of Law; Robert Plybon, Association for Advanced Life Underwriting. (U.S. Senate, Committee on Finance)
Financial Executives Comment on Proposed Changes to Disclosure of Post-Retirement Benefits (PDF)
10 pages. Excerpt: "The Committees on Corporate Reporting ('CCR') and Benefits Finance ('CBF') of Financial Executives International ('FEI') appreciate the opportunity to comment on the Financial Accounting Standards Board's (the 'Board') Exposure Draft of the Proposed Statement of Financial Accounting Standards, Employers' Disclosures about Pensions and Other Postretirement Benefits (the 'Exposure Draft')." (Financial Executives Institute)
Studies Reveal Conflicting Trends Among Wages, Benefits
Excerpt: "Which has the greater pull in attracting and retaining workers: fatter paychecks or better benefits? The latest research hasn't settled the question, but it does highlight some of the factors that should go into making this decision." (BenefitNews.com)
Newly Posted or Renewed Job Openings
New Business Technical Consultant
for Diversified Investment Advisors
in NY
ERISA Consultant
for New York Life Investment Management
in MA
Retirement Plan Specialist
for New York Life Investment Management
in MA
Client Servicing Consultant
for New York Life Investment Management
in MA
Defined Benefit Conversion Specialist
for New York Life Investment Management
in MA
Account Executive Director (Retirement Services)
for Principal Financial Group
in OH
Trust Attorney
for M&I Corporation
in MO
Pension Plan Administrator
for LAR Pensions, LLC
in CT
Newly Posted Webcasts
(Post Yours!)
Pension Financial Economics Webcast Series
on November 18, 2003
presented by Society of Actuaries
Pension Financial Economics Webcast Series
on December 9, 2003
presented by Society of Actuaries
Pension Financial Economics Webcast Series
on January 15, 2004
presented by Society of Actuaries
Interview with Washington Post Reporters on Drug Safety Articles
on October 24, 2003
presented by KaiserNetwork.org
Power to Patients: Moving to Consumer Controlled Health Care Decisions
on October 22, 2003
presented by KaiserNetwork.org
Newly Posted Conferences
(Post Yours!)
Retirement Planning: Opportunities & Challenges Facing the Tax-Exempt Employer
in ALL STATES
November 18, 2003
Thompson Publishing Group, Inc.
Newly Posted Press Releases
(Post Yours!)
Grocery Strike is Wrong - Health Care Is Not A Right
(Americans for Free Choice in Medicine, (AFCM))
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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