| The BenefitsLink Newsletter - Retirement Plans Edition |  |
February 21, 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.
Investors Often Get Little Info on 401(k)s
Excerpt: "Whether you get help from a financial adviser or decide to do your own research, you must figure out whether to participate in the plan, how much to put in and how to allocate the money among the choices." (The [Memphis] Commercial Appeal)
Where's the 401(k) Money? A Look at the 401(k) Research Data
Excerpt: "401(k) investments grew to over 1.5 Trillion dollars in 2000. That's $1,500,000,000,000! Where is all this money, and where do the 38 million 401(k) plan members in the United States invest it?" (Greg Hanna, on About.com)
Report: Michigan Government Employees' Pensions in Good Shape
Excerpt: "A commission set up a year ago to check on the financial health of public pension systems throughout the state found that about 50 may be behind in contributions, Gov. John Engler said Tuesday." (Detroit Free Press)
Welcome to new BenefitsLink advertiser Evergreen 401(k)Now
Evergreen 401(k)Now has administered qualified retirement programs for nearly 50 years. Since 1981 they have administered 401(k) plans and have provided bundled daily retirement plan services since 1990. For more information about their services call William Kline at 800-690-9721/704-383-1851 or email him at william.kline@firstunion.com
Unbundling 401(K) Services
Excerpt: "Enter the latest online hopeful, Persumma Financial. Persumma (www.persumma.com) wants to replace traditional plan administrators rather than to supplement their services for an extra fee. It plans to unbundle 401(k) services and parcel out the work to partners. Persumma last month set an enticing flat fee of $12.99 a month per participant. Only Fortune 1,000 companies need apply, however, because Persumma wants to ramp up quickly." (Fort Worth Star-Telegram)
GM Drivers To Get Voice-Activated Online Stock Trading While Stuck in Traffic
Excerpt: "Paving a new way to trade stocks via the Internet, OnStar, a division of General Motors, said Tuesday that it will offer drivers voice-enabled online trading with Fidelity Investments starting this summer." (E-Commerce Times)
New Web Site Aims To Link Investing and Social Values
Excerpt: "In a new twist on the decades-old concept of socially-screened investing, a Web site debuted on Wednesday aiming to help people match their investments with their specific personal beliefs and values." (Reuters via Yahoo! Finance)
Judge: Retired Rhode Island State Pensioner Collected Unlawfully
Excerpt: "But the retired state worker says he'd been told by a retirement counselor he could receive a pension even though he was taking a full- time job with the Town of Bristol." (The Providence Journal)
Restated Version of 2001 Proposed Minimum Distribution Rules, Incorporating 2/21/2001 Corrections
Prepared for you by BenefitsLink. (Internal Revenue Service)
IRS Issues Corrections to Text of Reproposed Required Minimum Distribution Regulations
Excerpt: "This document contains corrections to a notice of proposed rulemaking ... published in the Federal Register on Wednesday, January 17, 2001 (66 FR 3928). These regulations relate to required minimum distributions from qualified plans, individual retirement plans, deferred compensation plans under section 457 and section 403(b) annuity contracts, custodial accounts and retirement income accounts." (Internal Revenue Service)
ASEC Warns Against Cashing Out Your 401(k): Financial Tips on Surviving a Job Loss
Excerpt: "ASEC says refrain from cashing out your 401(k) plan: Either leave your money in your former company's 401(k) plan or defined contribution plan, or 'roll over' the assets into an individual retirement account (IRA). An IRA can be opened at banks, mutual fund companies, or brokerages." (PRNewswire, via Yahoo! Finance)
DOL Information Letter Addresses ERISA's Trust Requirement as Applied to Demutualizations
Excerpt: "This is in response to your request for guidance from the Department of Labor (Department) regarding the alternatives available under the trust requirement of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) with respect to receipt by policyholders of demutualization proceeds belonging to an ERISA covered plan in connection with The Prudential Insurance Company of America's (Prudential) proposed plan of demutualization." (U.S. Department of Labor)
ERISA Advisory Opinion 2001-02A Addresses Fiduciary Aspects of Demutualization
Excerpt: "This is in response to your request ... in connection with The Prudential Insurance Company of America's (Prudential) proposed plan of demutualization. You ask whether Prudential will be acting in a fiduciary capacity when it provides its policyholders with certain information regarding the allocation of demutualization proceeds attributable to those policyholders. You also ask whether Prudential would be acting in a fiduciary capacity if it implements a specified 'default' method ..." (U.S. Department of Labor)
Ohio Workers Urged to Buy Their Company
Excerpt: "The same day that Fraser Papers Inc. told employees it would shut down the West Carrollton mill, managers at Appleton Papers made a pitch to their workers in West Carrollton and elsewhere to buy the company from its British parent." (Dayton [Ohio] Daily News )
225 Lexmark Workers Take Early Retirement Buyout
Excerpt: "About 225 employees at Lexmark International's Lexington headquarters have accepted an early-retirement buyout package, leaving an additional 300 to be laid off by year's end, the company said yesterday.... Those who were offered the incentive package will receive one week's pay for every year on the job, up to a maximum of six months' pay." (Lexington Herald-Leader )
Understanding The New Minimum Distribution Rules
Excerpt: "The three main changes made by the new rules are: 1. [A] simplified method for calculating required distributions at and after the required beginning date ... 2. For post-death required distributions, the 'applicable distribution period' will be the life expectancy of the designated beneficiary who actually inherits the benefits ... 3. The debate about 'which is the best method of determining life expectancy' (fixed term, joint recalculation or 'split' method) disappears." (Natalie Choate, on ATaxPlan.com)
'Enhanced' Index Funds: What's In a Name?
February 21, 2001. Excerpt: "Now that the stock market is coming back down to earth, investors may show renewed interest in index funds and particularly in enhanced index funds, which seek slightly higher returns by employing active management techniques." (IRAjunction.com)
Many Ways to Check Out Mutual Funds
Excerpt: "Mutual fund investors have more information than ever to help them make decisions, but sifting through it all can be intimidating and frustrating." (New York Times; free registration required)
Welcome to new BenefitsLink advertiser J. Jeffrey Knapp
1967 Michigan Law grad and former ERISA attorney has recruited 177 exec. comp./ benefits/ ERISA attorneys/consultants for Hew. Packard, Mellon Cap. Mgt., law firms from 5 to 2,000+ attys, Big 5 accounting firms, top 3 benefit consulting firms. Current searches in NYC, Seattle, San Diego, Austin/Dallas/Houston, San Francisco, Silicon Valley, Chicago, Atlanta, D.C., other locations. See J. Jeffrey Knapp Benefits/Legal Search at www.benefitsrecruiter.com.
Newly Posted or Renewed Job Openings (Post Yours!)
| 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 |
| DC/Pension Consultant | for Stable large privately held independent consulting company in CA |
| Sr. 401-(k) Administrator | for A cutting edge company that is a driving force in the bundled product competitive market in CA |
| Pension Actuary Review or Consulting Business Development | for A progressive company were the value of skills are both recognized and honored in CA |
| Compliance Analyst | for One of top 5 players in US in 401(k), services and consulting!! in CA |
| DC/Pension Consultant | for Top notch all-around privately held independent consulting company in CA |
| Plan Administrator | for Nationwide Retirement Plan Services in FL |
| Team Leader for Defined Contribution Plan Administration Team | for INVESCO Retirement, Inc. in GA |
| Benefits Consultant I | for National Rural Electric Cooperative Association in VA |
Newly Posted Conferences (Post Yours!)
| Estate Planning for Distributions from Qualified Plans and IRAs: Focusing on the New Proposed Regulations for Minimum Required Distributions under Section 401(a)(9) | in ALL STATES on March 28, 2001 presented by ALI-ABA (American Law Institute-American Bar Association Committee on Continuing Professional Education) |
| Form 5500 Workshop • March 21- May 30 • 51 Locations | in AZ, CA, NC on March 22, 2001 presented by SunGard Corbel |
| Form 5500 Workshop • March 21- May 30 • 51 Locations | in CA, FL on March 28, 2001 presented by SunGard Corbel |
Newly Posted Press Releases
| ExpertPlan Closes Second Round Funding (ExpertPlan) |
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