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The BenefitsLink Newsletter -
Retirement Plans Edition
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February 28, 2001
Today's sponsor: EmployeeBenefitsJobs.com (click)


   299 employee benefits jobs - $200 buys 60 days.   507 employee benefits candidates - no charge to post.   We're one of the top 50 recruiting sites on the Web. We want
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Businessman and Company Placed On Probation, Fined for Embezzling 401(k) Funds
Excerpt: "A St. Louis businessman and former trustee of the Woodson Products Company 401(k) Plan was sentenced Feb.16 to three years probation, including four months of home confinement, and fined $40,000. In addition, Woodson Products Company, L.L.C.was placed on two years probation and fined $75,000." (U.S. Department of Labor press release)

Putting 401(k)'s Online: Add Choice, Save Trees
Excerpt: "Both old and new economy employers are relying more on the Internet to help deliver and manage employee benefits. According to a report by Forrester Research, a third of employers are using Web-based benefit management systems, and more than half of them plan to abandon their paper systems in the next five years." (New York Times; free registration required)

The Spectre of Global Aging
Excerpt: "Some things we can glimpse, and one of them is global aging. It is a specter that stalks most advanced societies. During the next half-century, most wealthy societies -- the United States is a conspicuous exception -- will lose population; all will have older populations. This is a collective change that will profoundly influence the world economy..." (Washington Post)

Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
I receive a disability annuity from Railroad Retirement. When I become 65 will I get an increase because I will be eligible for normal retirement benefits? How about Social Security? (BenefitsLink.com)

Another Question is Answered in the Plan Qualification: Nondiscrimination Q&A Column
If a plan has been using current year data for non-discrimination testing, can it now switch to prior year data? If it can, can it next year switch back to current year? (BenefitsLink.com)

Another Question is Answered in the Plan Qualification: Nondiscrimination Q&A Column
Small law firm has a profit sharing plan. Participants (associates and office staff) generally get around 5% of salary; two of the three partners (because of an age-based allocation formula) get $30,000 a year. Will this plan pass the nondiscrimination requirements? (BenefitsLink.com)

Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
I have nine years and six months of Railroad credits earned between 1967 and 1976. I only need another six months to become vested. I've worked long enough and have earned a high enough salary to receive the maximum in Social Security benefits without my railroad credits. Would it be worth my while to go back to railroad work and become vested? Would I lose anything by doing so? (BenefitsLink.com)

PBGC Takes Over Underfunded Outboard Marine Defined Benefit Plan, Creates Web Page for Plan
Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) today announced it is taking over the underfunded pension plan covering more than 10,000 people who worked for Outboard Marine Corp., Waukegan, Ill., a manufacturer of recreational boats and engines now in bankruptcy liquidation." (Pension Benefit Guaranty Corporation)

Retirement Issues for Late Gen Xers: Persons Born 1971 to 1981
Excerpt: "The retirement issues facing this young group are diverse and challenging. The decisions they make will have a significant impact on the financial landscape of our country several decades from now." (Greg Hanna, on About.com)

Bush Underlines Campaign Pledges on Social Security
Excerpt: "President Bush made good tonight on his campaign promise to push for the creation of personal investment accounts within Social Security, telling Congress that encouraging workers to buy stocks and bonds is the best way to deal with the looming financial strains on the retirement system." (New York Times; free registration required)

Many Minorities Face Grim Pension Picture
Excerpt: "The grim economic realities of retirement faced by Milagros Medina and her husband represent a widespread problem facing Latino and other minority workers in California, officials say." (Sacramento Bee)

(Following items also appear in Welfare Plans Edition)


72-Page Outline of Employee Benefits and Executive Compensation Arrangements (PDF) - Corrected URL - We really, really mean it this time
This prominent law firm's publication provides a splendid overview of all of the principal kinds of deferred compensation, equity compensation, qualified retirement plans and welfare benefit plans. (Venable, Baetjer, Howard & Civiletti, LLP)

Text of DOL Guidance on Delinquent Filer Program
Excerpt: "Plan administrators should continue to comply with the DFVC Program requirements published ... April 27, 1995 ... except to the extent otherwise provided below.... [F]ilers who are using the 1999 or a subsequent version of the [Form 5500] should include a copy of all the pages of the Form 5500 (dated with original signature(s) but without any schedules and attachments)." (U.S. Department of Labor press release)

DOL Announces Guidance on Delinquent Filer Program
Excerpt: "The DFVC Program was started in 1995 to assist plan administrators who are delinquent in filing Form 5500 Series annual reports with the federal government. The guidance clarifies procedures for filers using the 1999 and subsequent years Form 5500 under the DFVC Program. The guidance is provided in response to questions from plan administrators about participation in the program." (U.S. Department of Labor press release)

TurboTax Estimator: How would President Bush's Tax Plan Affect You?
Excerpt: "On February 8, 2001, President Bush laid out his proposal for a $1.6 trillion tax cut. Now you can see how his tax proposals would affect YOUR taxes for 2001! We've updated our estimator to show you how you fare under current rules, and how you would fare if President Bush's proposals passed without any changes." (Quicken TurboTax)




Newly Posted or Renewed Job Openings (Post Yours!)
401(k)/DC Pension Consultant for CBIZ Retirement Services Inc.
in NY
401(k) Retirement Plan Administrators for Third Party Administrative Firms
in CA
Employee Benefit Tax Manager for Deloitte & Touche, a Professional Services Firm
in OH
Benefits Specialist Paralegal for Powell Goldstein Frazer & Murphy LLP (A National Law Firm)
in GA
Benefits Administrator for Vinings Management Corporation
in GA
Managing Consultant for The O'Quinn Group, Inc.
in MA
Client Service Manager, Health and Welfare Benefits Outsourcing for Benefits Outsourcing Company
in MA, NH
Marketing Project Manager for Transamerica
in CA



Newly Posted Press Releases
Still River Retirement Planning Software, Inc. Takes New Approach to Analyzing Roth IRA Rollovers (Still River Retirement Planning Software, Inc.)

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