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April 29, 2004 - 13459 subscribers
Today's sponsor: SunGard Corbel Inc.

(Click on company name or banner to learn more.)

Significantly Reduce Your Research Time!
Unsure what the Department of Labor is requiring on your 5500s
and where to find the answers? The 5500 Filing Guide is designed
to help you understand annual Form 5500 rules for pension and
welfare benefit plans – covering what the government is asking
and why they are asking for it – updated for 2003 Forms.
Available as an electronic reference tool built right into
Relius® Government Forms 5500, or in a hardcopy, printed format.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
PBGC On Pace To Set Record for Plan Takeovers
Excerpt: "While the economy may be on the rebound, the Pension Benefit Guaranty Corp. this year may take over a record number of failed pension plans." (Business Insurance)

Do Cash Balance Plans Still Make Sense for Small Employers? (PDF)
At pp. 1-8 of 17-page document; very nice examples. Excerpt: "[W]hile much of the publicity surrounding cash balance plans has been negative, many cash balance plan approaches are not controversial. In fact, these types of plans can be very advantageous for smaller employers who are seeking larger (defined benefit) tax deductions than they can get in a defined contribution plan. Certainly, this is an approach that plan designers should consider ..." (Global Benefit Advisors, LLC)

Calculating Deduction Limits for Self-Employed Individuals (PDF)
At pp. 9-11 of 17-page document; very nice examples. Excerpt: "It is early 2004 and you need to figure out how much your client can deduct for a qualified plan contribution. It seems like such a simple task...." (Global Benefit Advisors, LLC)

The One Fund Solution for 403(b) and 457(b) Participants?
Excerpt: "When it comes to participating in a 403(b) and/or 457(b) there are essentially two ways to go: do it yourself or use an advisor. The sheer complexity of investing can send even the savviest saver running for advice. The mutual fund industry believes it has the cure for the aspiring do-it-yourselfer looking to simplify saving for retirement." (403bWise.com)

Houston Pension Fund Shortage Is Expected To Increase
Excerpt: "The estimated amount of Houston's main municipal pension funding shortfall could go up substantially within the next two weeks, after the pension board voted Wednesday to let its new actuarial consultant take into account a significant employee-enrollment trend that had been previously ignored." (Houston Chronicle)

ESOP Allows Louisville Firm to Survive Founder's Death
Excerpt: "Firm officials 'wanted the company to stay as it had been,' so they decided to take matters into their own hands and formed an employee stock ownership plan (ESOP) ... That desire to keep the company together and as it had operated for 25 years was so strong and employees 'wanted it so badly, they put all their money into it' ... In some ways, employees 'went more on feelings than making a lot of money.'" (Business First via bizjournals.com; one-time registration required)

Lifetime Earnings, Social Security Benefits, and the Adequacy of Retirement Wealth Accumulation (PDF)
42 pages. Working paper by Eric M. Engen, William G. Gale, and Cori Uccello. Excerpt: "We show that reductions in social security benefits could have significant deleterious effects on the adequacy of saving, especially among low-income households. We also show that, controlling for lifetime earnings, households with high current earnings tend to save far more adequately than other households.' Executive summary at http://www.bc.edu/centers/crr/papers/summary/wp_2004-10.pdf (Center for Retirement Research at Boston College)

Valuing Assets in Retirement Saving Accounts (PDF)
78 pages. Working paper by James M. Poterba. Excerpt: "This paper illustrates the potential differences in the value of a dollar of invested in a bond, or in corporate stock, inside and outside tax-deferred accounts. It draws on a range of data sources to calibrate the value of the tax burden, and the benefit of compound growth, for assets held in retirement accounts ...' Executive summary at http://www.bc.edu/centers/crr/papers/summary/wp_2004-11.pdf (Center for Retirement Research at Boston College)

The Effect of Social Security on Divorce and Remarriage Behavior (PDF)
36 pages. Working paper by Stacy Dickert-Conlin and Cristian Meghea. Excerpt: "Before December 1977, the Social Security law entitled divorcees to claim auxiliary benefits on their ex-spouse's record only if the marriage lasted at least 20 years. One of the 1977 amendments of the Social Security rules shortened the minimum duration ... to ten years.' Executive summary at http://www.bc.edu/centers/crr/papers/summary/wp_2004-09.pdf (Center for Retirement Research at Boston College)

Opinion: Social Security Time Bomb Ticking, But Candidates Aren't Talking
Excerpt: "President Bush has been willing to discuss Social Security reform, at least conceptually. He would allow younger workers to privately invest a portion of their Social Security taxes through individual accounts. But, so far he has been unwilling to put any political capital behind such proposals." (Cato Institute)

Links to Items on Executive Comp, Benefits in General

GE Execs Hear Complaints From Retirees At Annual Shareholder Meeting
Excerpt: "The chief executive of General Electric Co. delivered an upbeat financial report at the conglomerate's annual shareholder meeting Wednesday, but he was greeted by angry retirees who say their pensions do not reflect the company's strong performance." (WAVE)

Maine Governor Signs Domestic Partner Bill
Excerpt: "Gov. John Baldacci signed a bill Wednesday creating domestic partnerships in Maine. The new law, which takes effect in 90 days, extends domestic partnership rights to heterose.xual or g.ay adults who live together under long-term arrangements." (AP via MaconTelegraph.com)

Amid G.ay Marriages, Some Domestic Partner Benefits Get Axed
Excerpt: "Now that it is about to be legal for same-sex couples to marry, some Massachusetts employers are eliminating domestic-partner benefits for g.ay workers, requiring them to say 'I do' if they want to keep their partners on their insurance." (AP via Contra Costa Times)

Text of Treasury Department's Third Quarterly Update of the 2003 - 2004 Priority Guidance Plan (PDF)
40 pages; April 23, 2004 update. (U.S. Department of the Treasury)

The Effects of Health Insurance and Self-Insurance on Retirement Behavior (PDF)
78 pages. Working paper by Eric French and John Bailey Jones. Excerpt: "We find that for workers whose insurance is tied to their job, shifting the Medicare eligibility age to 67 will significantly delay retirement. However, we find that the plan to shift the Social Security normal retirement age to 67 will cause an even larger delay.' Executive summary at http://www.bc.edu/centers/crr/papers/summary/wp_2004-12.pdf (Center for Retirement Research at Boston College)

Newly Posted Events

ABA Retirement Services Conference
in District of Columbia on June 27, 2004
presented by American Bankers Association

Form 5500 for Welfare Plans - A Special Two-part Program
Nationwide on May 25, 2004
presented by SunGard Corbel

Get More From Your Executive Coaching Dollar Audio Conference
Nationwide on May 13, 2004
presented by Thompson Interactive, A Division of Thompson Publishing Group

How Can Information Technology Improve Health Care Quality?
in District of Columbia on May 7, 2004
presented by Alliance for Health Reform
Newly Posted Press Releases

RW Benefit Communications and Benefit Software Inc. Successfully Launch TotalCompTM Online for Chicago-Based Company
(Benefit Software Inc.)

Total Debt Burden for Older American Families Generally Stable But Housing Debt Up
(Employee Benefit Research Institute (EBRI))

Government and Regulatory Initiatives Endanger America’s Retirement Security
(AFP)

FreeERISA.com is pleased to announce that our website has been updated with the latest information from the Department of Labor
(FreeERISA.com)

HSA Report Announces Weekly Delivery Option
(benefits information group)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Manager, Compliance Testing
for Diversified Investment Advisors
in NY

Senior Healthcare Underwriter
for NRECA
in VA

Defined Contribution Pension Administrator
for Iron Administration, LLC
in IL

Plan Administration Manager
for Boston Financial Data Services
in MA

Pension Consultant
for Small Plan Firm With DB Concentration
in IL

401(k) retirement plan administrator
for APEX Benefits Administration
in WA

401(k) Daily Valuation Team Leader
for Associates in Excellence
in CA

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