The BenefitsLink Newsletter -
Retirement Plans Edition February 7, 2001 Today's sponsor: the The International Quality & Productivity Center presents a powerful two-day conference: 2d Cir.: Plan Participant's Change Of Beneficiary Was Invalid Without Spousal Consent Excerpt: "A retirement plan participant's change of designation of beneficiary was invalid because the participant never obtained the consent of his separated spouse, whom he originally had designated as his beneficiary. This was the decision of the Second Circuit U.S. Court of Appeals in The Board of Trustees of the Equity-League Pension Trust Fund v. Royce, et al." (Spencernet) Retirees Should Be Conservative in Withdrawing from IRAs, 401(k)s, Experts Say Excerpt: "Take out too much, or invest too conservatively, and you could run your retirement accounts dry before you die. Take out too little and you could be needlessly penny-pinching during retirement years that really could be filled with more vacations, trips to restaurants and other little luxuries. But finding that balance is difficult." (The Buffalo News) John Hancock Funds Unit Leaves Retirement Plan Record-Keeping Business Excerpt: "John Hancock said it was already in discussions to sell the record-keeping unit, which provides records for about 160,000 retirement plan holders and accounts for about $1.7 billion in assets under management." (New York Times; free registration required) Chrysler Workers Receive Early Retirement Offers Excerpt: "Nearly 5,000 salaried employees in DaimlerChrysler AG's Chrysler division received retirement offers Tuesday -- the first slice toward the automaker's goal to cut 26,000 jobs from it's North American arm over the next three years." (New York Times; free registration required) The Global Trend Toward Private Social Security Accounts Excerpt: "Around the world, governments are looking at partial privatization of their systems for providing old-age pensions (Social Security in the United States). The trend toward individual control over government retirement benefits has picked up steam recently in other countries, including Hong Kong, Sweden and Great Britain, where policy-makers have revised their teetering systems under the pressure of aging populations and looming insolvency." (IRAjunction.com) Improving on the Either/Or Pension; British Pensions Emerging Straightjacket Excerpt: "The Government's effort to restructure the UK pension system towards that of the US and its 401(k) plans will culminate in the creation of stakeholder pensions that go on sale on April 6." (The [London] Daily Telegraph) Study Says Disabled Would Lose Benefits Under Social Security Privatization Plan Excerpt: "People with disabilities would lose income and benefits under the major proposals to revamp Social Security by creating individual investment accounts, a new government study said [on February 6, 2001]." (New York Times; free registration required) Another Question is Answered in the Who's the Employer Q&A Column Company A, an e-business consulting firm, plans to spin off Company B, in the same business. Company A will own 20% of Company B. The other 80% of Company B will be owned by its employees (who had been employees of Company A). These individuals no longer will be Company A employees or shareholders. Can Company A's plan still cover these 17 employees? (BenefitsLink.com) Another Question is Answered in the ERISA Benefit Claims Q&A Column I am a participant in a large pension plan. I have worked for the company for many years. I recently divorced. All of my benefit plans list my ex-spouse as beneficiary. Does my divorce automatically change this? If it doesn't, can I change it? (BenefitsLink.com) Another Question is Answered in the ERISA Benefit Claims Q&A Column Our business unit was sold to another company in March 2000. Most of the employees have received paperwork to process their pensions from the old company, but not all have. As of January 2001, the old company changed the pension formula. Since then, employees who receive their pension calculations are receiving the new amount. If all the employees had the same triggering event, shouldn't they be treated the same? (BenefitsLink.com) Former Labor Secretary Reich Sees Perils of Slow Economy Excerpt: "American corporations should not use the slowing economy as an excuse to lay off employees or cut back on perks that help workers maintain a healthy work/life balance, former Labor Secretary Robert Reich warns." (Dallas Morning News) Opinion: Stock Options Are Theft Excerpt: "One of Britain's biggest shareholders yesterday branded the stock option plans enjoyed by many U.S. company directors as 'theft' and called for new stock exchange rules to prevent the mega-pay packages being exported to Europe." (Guardian Unlimited)
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