| The BenefitsLink Newsletter - Retirement Plans Edition |  |
February 15 and 16, 2001
Today's sponsor: The Plan Sales System (click)
The Plan Sales System is a comprehensive, 16-step system for growing a retirement plan sales practice. It provides detailed resources, contact names and numbers, checklists, charts, handouts, letters, extensive prospecting techniques, descriptions of current market opportunities, and tools for planning and monitoring sales activity.
A Washington Conversation: Reps. Portman & Cardin
Excerpt: "On February 7, PLANSPONSOR.com had an exclusive interview with Reps. Rob Portman, Republican from Ohio, and Benjamin Cardin, a Maryland Democrat, about their pension reform initiative. Below, their plans, the consequences for plan sponsors, and your chance to communicate with the Congressmen." (Plan Sponsor magazine; free registration required)
Year-End Developments Affect Qualified Plans (PDF)
February 2001 issue. Excerpt: "The 'Consolidated Appropriations Act, 2001' revised the definitions of 'compensation' used for determining qualified plan contribution and benefit limits, identifying highly compensated employees (HCEs) and key employees, and performing nondiscrimination testing. Final IRS rules relating to tax withholding from ... nonresident aliens took effect January 1, 2001. The [DOL] issued final rules regarding the required contents of Summary Plan Descriptions (SPDs)." (CIGNA's Pension Analyst)
Union Pacific Offers Early Retirements
Excerpt: "Union Pacific Corp. has offered early retirements to 1,800 employees as part of its plan to cut 2,000 jobs. Employees who are 52 or older and not in senior management positions received packets this week outlining the early retirement option ..." (Associated Press, via Excite!)
Retirement Exit Strategies
Kiplinger's Magazine, March 2001 issue. Excerpt: "Want to jump off the treadmill? These success stories show you the way." (Kiplinger)
The New, New, New Thing: Business Models and Employee Ownership After the Dot-Com Crash
NCEO board member Martin Staubus discusses how high-tech companies must rethink their company stock programs as well as their business strategies in the wake of the dot-com crash of 2000. (National Center for Employee Ownership (NCEO))
Another Question is Answered in the Who's the Employer Q&A Column
Company R decides to put all of its employees, including the owner-president of the company, on the payroll of a staffing firm. It previously sponsored a top heavy plan, which was terminated. The staffing firm has a plan that is not top heavy. Can Company R's employees become a part of the staffing firm's plan without providing top heavy minimum contributions? (BenefitsLink.com)
Another Question is Answered in the Distributions: Taxation and Planning Q&A Column
How do the new proposed regulations on minimum distributions affect lifetime and post-death distributions? (BenefitsLink.com)
Another Question is Answered in the Who's the Employer Q&A Column
My client is four corporations owned by a father or his son (or both). The son is at least age 21. I think I have 2 controlled groups: one comprised of the 2 companies owned by the son, and one comprised of 3 companies. If each of the groups adopts a 401(k) plan, does one company get tested in both groups? I am suggesting giving father an option to tie the four corporations together. (BenefitsLink.com)
Another Question is Answered in the Who's the Employer Q&A Column
Individual X owns 90% of Corporation A. Individual Y (who is unrelated to X) owns the other 10%. X and Y are buying another corporation, as 70/30 owners. Can a 401(k) plan be installed for the acquired company's employees without providing a plan for employees of Corporation A? (BenefitsLink.com)
Another Question is Answered in the Who's the Employer Q&A Column
XYZ, a corporation, is owned by 10 equal physician shareholders. All 10 are employees of XYZ, as are several nurses. Two of the doctors of XYZ and one unrelated doctor start Corporation ABC as equal shareholders, strictly to provide billing services for XYZ and the unrelated doctor's private practice. Does this constitute an affiliated service group? (BenefitsLink.com)
IRS Notice Clarifies Application of FICA, FUTA and Income Tax Withholding To Statutory Stock Options
Excerpt: "[I]n the case of any statutory option exercised before January 1, 2003, the Service will not assess FICA tax or FUTA tax upon the exercise of the option and will not treat the disposition of stock acquired by an employee pursuant to the exercise of the option as subject to income tax withholding." (Internal Revenue Service)
IRS Moratorium On Tax Withholding for ISOs and ESPPs
Excerpt: "... the IRS recently issued Notice 2001-14 which makes it clear that in the case of any ESPP/ISO option exercised prior to January 1, 2003, the Service will not assess FICA tax or FUTA tax upon the exercise of the option and will not treat the disposition of stock acquired by an employee pursuant to the exercise of the option as subject to income tax withholding. This notice does not affect tax withholding for non-qualified stock options." (Kilpatrick Stockton LLP)
Frederic W. Cook Provides Comments to Proposed Changes in Shareholder Approval of Stock Option Plans
Excerpt: "With certain exceptions, both the New York Stock Exchange (NYSE) and the Nasdaq Stock Market generally require that stock option plans in which officers and directors may acquire company stock be approved by shareholders. Certain institutional investors and shareholder activist groups criticize these exceptions as being “unfriendly” to shareholders. We believe that changes to the existing rules may be appropriate, but that the proposal formulated by the NYSE is too restrictive." (Frederic W. Cook & Co., Inc.)
Option "Repricing" One Year After FIN 44
Excerpt: "The FASB severely restricted issuers' ability to 'reprice' options with its release last March of FASB Interpretation No. 44 (FIN 44).... Despite this rule, over the past year issuers whose stock price has declined and whose employees hold 'underwater' options ... have found ways of providing nearly the same economic benefit to optionees without adverse accounting consequences and, in many cases, without additional dilution." (Stephen G. Driggers, Esq. of Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP )
Newly Posted or Renewed Job Openings (Post Yours!)
| Pension Specialist | for Western Growers Association (leading agricultural trade association) in CA |
| Business Development Consultant-Benefits Administration | for Towers Perrin in CA, IL, MA, MD, NJ, PA |
| 401(k) Pension Analyst | for REPTECH Corp. in CO |
| Retirement Plan Analyst | for The Paragon Consulting Group in CA |
| administrator | for Redwood Administrators, Inc. in NJ |
| Director of Employee Benefits | for Global Oil & Gas Company in OK |
| Benefit Analyst (Paralegal) | for HayGroup in PA |
| Compensation & Benefits Manager | for CyberSource Corp. The leading provider of eCommerce transaction services. in CA |
| Implementation Project Manager | for INVESCO Retirement, Inc. in GA, NC |
| Trust Employee Benefit Business Development Officer | for Old Kent Bank - Northern Michigan Region in MI |
| Trust Accountant | for Mand Marblestone & Danziger, P.C. in PA |
| Benefits Consultant/Manager | for Johnson & Johnson in NJ |
| PSC Project Leader | for Buck Consultants in NJ |
| ERISA Specialist | for Transamerica Life Companies in CA, IL |
| Regional Compliance Manager | for Transamerica Life Companies in CA |
| 401(K) Product Director | for Transamerica Life Companies in CA |
| Senior Service Consultant | for Transamerica Life Companies in CA, IL |
Newly Posted Conferences (Post Yours!)
| Fundamentals of Retirement Plans | in MA on May 3, 2001 presented by Greater Boston Chapter: Intl Society of Certified Employee Benefit Specialists |
| Leaves of Absence: State and Federal Requirements | in MA on April 10, 2001 presented by Greater Boston Chapter: Intl Society of Certified Employee Benefit Specialists |
| Fundamentals of Health & Welfare Plans | in MA on September 27, 2001 presented by Greater Boston Chapter: Intl Society of Certified Employee Benefit Specialists |
| Form 5500 Workshop • March 21- May 30 • 51 Locations | in AL, AZ, CA, CO, CT, DC, FL, GA, HI, IA, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, NC, NE, NJ, NM, NY, OH, OK, OR, PA, TN, TX, UT, WA, WI on March 21, 2001 presented by SunGard Corbel |
| Form 5500 Workshop March 21- May 30 | in OR on April 5, 2001 presented by SunGard Corbel |
| Executive Retreat On Pension Reform | in MA on June 18, 2001 presented by Harvard University and World Bank Institute |
Newly Posted Press Releases
| Nicholas W. Ferrigno, Jr. and Frank J. Bitzer release The Insider's Guide to DOL Plan Audits. (Greenebaum Doll & McDonald) |
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Copyright 2001 BenefitsLink.com, Inc.
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