The BenefitsLink Newsletter -
Retirement Plans Edition
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July 26, 2000
Detailed Chart Comparing Current Laws to the Provisions in Portman-Cardin as Passed by House (PDF)
Very nicely done. Requires the free Adobe Acrobat Reader to view or print (see www.adobe.com) (Association of Private Pension and Welfare Plans)
Clinton Administration's Position on H.R. 1102, Comprehensive Retirement Security and Pension Reform
Excerpt: "The Administration strongly opposes H.R. 1102, the Comprehensive Retirement Security and Pension Reform Act, as proposed to be amended by the Committee on Ways and Means (text of H.R. 4843)." (Office of Management and Budget)
IRA and Pension Reform Bill Gains Momentum; Magnitude of House Support Stunning
Excerpt: "The House on July 19 voted overwhelmingly (401-25) in favor of a package of retirement savings and pension reform changes that will increase IRA and 401(k) plan contribution limits, permit 'catch-up' contributions to those accounts, and modify the rules governing private pension plans to increase participation and enhance portability." (Ernst & Young)
Automatically Enrolling Employees in 401(k) Plan Not A Cure All, Hewitt Finds
Excerpt: "Can automatic enrollment ... provide employers and employees with a false sense of security? According to a new study ... by Hewitt Associates, in conjunction with faculty and researchers from Harvard University and the Wharton School of the University of Pennsylvania, employees may need to take a more active approach when choosing their contribution rate and investment fund elections." (Hewitt Associates)
SUED BY YOUR OWN EMPLOYEE?
Being sued by an employee doesn’t sound like fun. This article takes a look into the ever growing problem of fiduciary liability and how to manage it. First published in the newsletter of the Oregon Legal Management Association. (401kHelpCenter.Com)
CalPERS To Vote Against Steris Corporation Compensation Committee Members
Excerpt: "The California Public Employees' Retirement System (CalPERS) announced today that it will vote against two compensation committee members at Ohio-based STERIS Corporation in protest of the 'outrageous' contract being awarded to the Company's departing Chief Executive Officer and Chairman Bill R. Sanford." (California Public Employees' Retirement System)
Archer's Substitute Bill for H.R. 4844, the Railroad Retirement And Survivors' Improvement Act (PDF)
The bill was favorably reported out of the Ways and Means Committee on July 25, 2000. (Joint Committee on Taxation)
Is a right of first refusal an "option" for purposes of the commonly-controlled group rules?
Popular message thread. Does it make a difference if the right of first refusal has not yet vested? (BenefitsBoards.net)
If Plan Misses Minimum Top-Heavy Contributions, Must "Key Employees" Get Make-Up Contributions?
Popular message thread. Excerpt: "As part of self correction could the employer only make the contribution for the non-keys? Alternatively, could all of the owners (5% or more) make an election not to receive the TH contribution?" (BenefitsBoards.net)
(Following also appears in Welfare Plans Edition)
New and Free! Post Your Company's Press Releases Here, About Employee Benefits Products or Services
Get the word out fast by using our easy online form to add your company's employee benefits-related press release on the Employee Benefits Press Releases page on BenefitsLink. There is no charge! You can even link to your company's logo. (Note: this free page is only for use by companies providing services or products to employee benefit plans.) (BenefitsLink)
Welcome to new BenefitsLink advertiser VeriSource Services, Inc.
VeriSource Services, Inc. offers employer groups a variety of custom designed ASP outsourcing services. These include Automated Enrollments, full service COBRA administration, Retiree Billing services and/or General Recordkeeping Services including monthly premium statement calculations. VeriSource Services is a viable alternative to licensing and maintaining a separate software system for benefit enrollment data collection, storage and distribution. (BenefitsLink.com)
Welcome to new BenefitsLink advertiser Palmer & Cay Consulting Group
Palmer & Cay offers clients the opportunity to access one of the most sophisticated employee benefit and financial service operations in the Southeast. Their staff of 300 benefit professionals represent the interests of the region's largest employers. The major insurance markets recognize their associates as leaders within the benefits industry. Visit www.palmercay.com to see why they are ranked as one of the nation's leading professional services firms. (BenefitsLink.com)
Treasury Department Launching Web Portal To Collect Payments
Excerpt: "The U.S. Treasury Department on Tuesday unveiled a new Internet portal aimed at making it easier for citizens and companies to do everything from paying for a camping license to paying fines. The new initiative, called Pay.gov, to be launched in the fall, will offer access to federal agencies around the clock. Capable of processing any of the 80 million federal transactions currently handled, the system will cut collection costs and eliminate paper processing ..." (The Standard)
2d Cir: Plan Was "Top Hat" Even Including 15% of Bank's Workforce
Demery v. Extebank Deferred Compensation Plan. Excerpt: "This approval of an executive group constituting 15.34% of the bank's workforce pushes the percentage test about as far as a court has been willing to go." (Magner Financial Network)
After All Wang's Millions, Computer Associates Shareholders Get Index Fund-Type Investment Return
Excerpt: "How much would you be willing to pay an S&P 500 Index fund manager? Would you pay him almost $800 million over seven years for simply duplicating the returns on the index, a job that could be handled by a reasonably bright child?" (Graef Crystal, on Bloomberg.com)
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