Retirement Plans Edition
January 24, 2001
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Revenue Procedure 2001-17, Online Here in HTML Format
Excerpt: "This revenue procedure updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of section 401(a), section 403(a), or section 403(b)... but that have not met these requirements for a period of time. This system, the Employee Plans Compliance Resolution System (EPCRS), permits plan sponsors to correct these failures and ... continue to provide their employees with retirement benefits on a tax-favored basis." (Internal Revenue Service)
European Pensions And Global Finance: Continuity or Convergence? (PDF)
1/23/2001 draft. Excerpt: "... the paper focuses on three threads or themes. Why the demographic crisis is a crisis not just a transition; why global finance is deeply implicated in any European solution to the demographic crisis, and; whether continental European countries will be able to maintain their inherited retirement income systems in the face of competition from the Anglo-American model." (Professor Gordon L Clark, University of Oxford)
Retirement Plan's Error Discloses Personal Data
Excerpt: "The envelope that was supposed to contain his quarterly 401(k) statement had his name and the words "personal and confidential" stamped on it. But when Duncan Phenix tore it open Monday night, he found his boss's information instead." (Washington Post)
Employer's Inaccurate Tax Info Was Fiduciary Breach; Court Holds Door Open on Damages
Griggs v. E.I. DuPont De Nemours & Company (4th Cir. 2001). Excerpt: "The facts in this case involve a long-time employee (Griggs) who elected to participate in an early retirement program. Although Griggs was not initially interested in early retirement, he re-evaluated his position after receiving detailed, written information from his employer (DuPont) regarding his ability to receive a lump-sum distribution of the early retirement benefit and roll it over on a tax-free basis ..." (EBIA Weekly)
IRS Change of IRA Withdrawal Rules Good News Indeed
Excerpt: "Instead of a maze of rules and regulations-- where people had the option to 'recalculate' life expectancy every year or to fix their life expectancy-- there is a new table that applies to almost everyone (the most notable exceptions being people whose spouse is more than 10 years younger, who must use a different calculation table jokingly referred to in tax circles as the 'trophy wife table')." (Boston Globe)
Proposed Regulations Would Simplify Required Minimum Distributions
Excerpt: "These proposed regulations include a model amendment that may be used by plan sponsors that wish to rely on the proposed regulations before their effective date. The regulations specifically provide that plan sponsors should not adopt amendments other than the model amendment to conform their plans to the changes in these proposed regulations before the publication of final regulations." (EBIA Weekly)
IRS Updates Procedures for Revenue Rulings, Information Letters and EP Technical Advice
Griggs v. E.I. DuPont De Nemours & Company (4th Cir. 2001). Excerpt: "Internal Revenue Bulletin 2001-1 ... contains the IRS annual update of eight Revenue Procedures (Rev. Procs. 2001-1 through 2001-8) governing revenue rulings, information letters and technical advice for employee plans and exempt organizations." (EBIA Weekly)
Wisconsin Union Loses Effort to Enact Parts of Pension Law
January 2001 issue. Excerpt: "An attempt by Wisconsin’s largest teachers union to lift a legal hold on parts of the state’s new pension law was denied Dec. 29 by the state Supreme Court." (Texas Association of Public Employee Retirement Systems Federal Report)
Pension Deal Appealed by Two City of Milwaukee Workers, Implications are Far-Reaching
January 2001 issue. Excerpt: "In a move that could affect virtually all Milwaukee, Wis., city taxpayers, workers and retirees, a pair of city employees on Dec. 27 appealed a judge’s ruling that approved a massive pension settlement between the city and its unions." (Texas Association of Public Employee Retirement Systems Federal Report)
Oklahoma Legislature Set to Debate Conversion to DC Plan
January 2001 issue. Excerpt: "Oklahoma’s newly sworn-in legislature will consider legislation that would allow for the creation of a potentially sizeable defined contribution (DC) plan for state and local government employees. The new plan would be offered as an option to the 68,000 participants of the Oklahoma Public Employees Retirement System (OPERS), which oversees a $6 billion defined benefit (DB) plan." (Texas Association of Public Employee Retirement Systems Federal Report)
Philadelphia City Council Moves to Close Police Pension Loophole
Excerpt: "The target is a law that lets civilian city workers collect police pensions without serving on the force. A vote will be held in February." (Philadelphia Inquirer)
Steelworker Pensions OK; Other Benefits Uncertain
Excerpt: "As shadows of despair reminiscent of the 1980s descend on the U.S. steel industry, steel workers and retirees are wondering to what extent the debilitated industry will be able to pay for the retirement benefits it has promised." (Pittsburgh Post-Gazette)
Proposed Regulations Permit Notices to Interested Parties to be Provided Electronically
Excerpt: "The regulations are proposed to be effective with respect to applications made to the IRS after the regulations become final; however, they may be relied upon for guidance prior to becoming final." (EBIA Weekly)
(Following also appears in Welfare Plans Edition)
DOL Clarifies Plan Expense Position
Excerpt: "While DOL characterized the guidance as merely 'clarifying' its position on plan expense issues, it is clear that DOL has retreated from some of the more aggressive positions taken in enforcement actions in 2000. The key element of the guidance is the acknowledgement that when determining payment of plan expenses, the analysis should focus on the settlor vs. fiduciary nature of the expense, rather than on whether the plan sponsor receives any benefit." (Groom Law Group)
| Benefits Administrator | for Lynden Incorporated in WA |
| M & A Tips from the Trenches | in CA on March 7, 2001 presented by Western Pension & Benefits Conference, San Francisco Chapter |
| Common Myths of Investment Education Programs | in CA on March 14, 2001 presented by Western Pension & Benefits Conference, San Francisco Chapter |
| Membership Appreciation Night featuring a Social Security Debate | in CA on April 17, 2001 presented by Western Pension & Benefits Conference, San Francisco Chapter |
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