Retirement Plans Edition
January 3, 2001
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Personal 401(k) Plans: Could Some Employees Fall Through the Cracks?
Excerpt: "An intriguing idea for total portability of 401(k) plans ... would permit each individual to manage his or her own plan, choosing any investment and account manager ... The employer would have no authority or responsibility for the choice of investments-- and presumably no liability. When the individual changed jobs, he or she would make no changes in the plan other than telling the new employer where to send the employer matching contribution." (Thompson Publishing Group)
American Academy of Actuaries Comments on Proposed Actuarial Standard re Plan Amendments (PDF)
Excerpt: "In general, we have significant concerns about the proposed ASOP. It does not focus purely on actuarial concepts, which makes us wonder exactly what its purpose is. We suggest stepping back and looking at a bigger picture. We recommend starting with an ASOP that addresses projecting benefits, before narrowing it down to projections in situations where there have been plan amendments." (American Academy of Actuaries)
What GUST provisions apply to defined benefit plans of local governments?
Given the fact that many ERISA and Code provisions do not apply to governmental plans, what provisions of GUST and other new developments apply to such plans? (BenefitsBoards.net)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
Does a wife's Tier 2 rate increase when she becomes a widow? What are the percentages that a wife would receive before and after the husband-participant's death? (BenefitsLink.com)
Another Question is Answered in the Correcting Plan Defects Q&A Column
If an ineligible employee is inadvertently permitted to make elective deferrals to a 401(k) plan, can the plan sponsor treat the defect as resulting from a 'mistake of fact,' so the deferrals can be distributed to the employee without using an IRS remedial correction program? (BenefitsLink.com)
Employees Who Took Early Retirement Were Not Eligible Under Later, Better Plan
McCall v. Burlington Northern Railroad Co. (5th Cir. 2000). Excerpt: "The employees in this case accepted an early retirement package induced in part by summary plan description statements to the effect that if any other retirement plans were offered in the future, 'the benefits would not be as good as those contained in this plan.' Four years later, when a new early retirement plan containing better benefits was offered to current employees ..." (EBIA Weekly)
Social Security Reform: Implications for State and Local Government Employees and Retirement Plans
Excerpt: "Although Congress has not acted to resolve Social Security’s financial problems, the beginning of a new presidency may prompt debate. Thus, states, local governments, their employees, and their retirement systems need to assess how possible changes to the System would affect them." (Cynthia L. Moore, for the National Council on Teacher Retirement)
Ex-employee owes money to former employer; OK to take it from his plan distribution?
Interesting discussion on our message boards. Comments or additional ideas? Join in! (BenefitsBoards.net)
Can a calendar year 401(k) plan still change to a safe harbor plan for 2001 (after 12/1/2000)?
Interesting discussion on our message boards. (BenefitsBoards.net)
Another Question is Answered in the 401(k) Plans Q&A Column
About a month ago, our company, a Silicon Valley software startup with about 40 people, announced a 401(k) plan for which many of us signed up. The trustee of the plan is the father of one of the company founders. A couple of days ago we were told by a fellow employee that our 401(k) investments were subject to a 6% commission paid to the trustee. (BenefitsLink.com)
(Following also appears in Welfare Plans Edition)
Stock Option Fundamentals: Vesting And Expiration (2d in Series)
Excerpt: "Once an option expires, however, you lose the right to exercise it. That's why it's essential that you understand the vesting and expiration provisions of each stock option grant so that you take full advantage of your options-- or at least don't forfeit their value." (MyStockOptions.com; free registration required)
| Health and Welfare Associate | for Towers Perrin in CA, MA, MO, NJ, NY |
| Health and Welfare Consultant | for Towers Perrin in CA, CT, IL, MA |
| Benefit Administration Associate-Multiple Locations | for Towers Perrin in NJ, VA |
| 401(k)/Retirement Plan Administrator | for Stephen Eldridge & Company, Inc. in NH |
| Employee Benefits Tax Consultant | for Deloitte & Touche, a Professional Services Firm in NE |
| DC Administrator for TPA Firm | for Pension Investors Corp. of Orlando in FL |
| Employee Benefit Tax Manager | for Deloitte & Touche, a Professional Services Firm in OH |
| Retirement Plan Administrator | for ERISA Services, Inc. in TN |
| enrolled actuary | for chicago suburban pension firm in IL |
| Benefits Manager | for Unitrin Services Company in IL |
| Health Management Consultant - DH-001229-005 | for Hewitt Associates LLC in VA |
| ERISA Compliance Supervisor | for National City Corporation in OH |
| Senior Operations Officer | for CitiStreet - A State Street and Citigroup company in MA |
| Senior Benefits Analyst | for The Evenium Group in NY |
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