| The BenefitsLink Newsletter - Retirement Plans Edition |  |
March 6, 2001
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Plan Administrator's Interpretation of Compensation Under 401(k) Plan Upheld as Reasonable
Mein v. Carus Corp. (7th Cir. 2001). Excerpt: "This suit for 401(k) benefits arose from a dispute about royalty payments involving an employee who also claimed a 'phantom equity interest' in his employing company.... the employee claimed that contributions to the company 401(k) plan should also have been made with respect to the payments." (EBIA Weekly)
'Brokerage Links' Should Fit Broad 401(k) Goals
Excerpt: "One of the newest options in the ever-expanding world of 401(k) plans is the brokerage link, also known as 'brokerage windows' or 'mutual fund windows.' This option offers more investment opportunities, a change some investors welcome. Before signing up for a brokerage link, you need to advise your participants about how this strategy could affect their retirement savings and the additional costs of time and money they are likely to incur." (CFO.com)
Japan's Un-Retired Work Force
Excerpt: "Necessity, satisfaction send older generation back to work." (MSNBC.com)
The Effect of Old-Age Insurance on Male Retirement: Evidence from Historical Cross-Country Data
By Richard Johnson, Economist (December 2000). Excerpt: "I examine the effect of Old-Age Insurance systems on the labour supply of older men. Male retirement ages are crucial to the solvency of OAI systems. Historical data on participation rates and OAI rules in thirteen developed countries show rapid falls in participation among men aged 60-4 after pensions were extended to them." (Working Paper published by the Federal Reserve Bank of Kansas City)
Opinion: Immodest Proposals From the IRS
Excerpt: "The new rules on distributions from IRAs and employer-sponsored qualified retirement plans simplify the old rules just enough so that the consumer press will get your clients all excited. But the new rules also shuffle things around so much and are still so incredibly complicated that consumers with sizable IRAs probably can't make decisions on their own without consulting an advisor." (InvestmentAdvisor.com)
Ignore Retirees At Your Own Risk
Excerpt: "They are a huge group. Each year they grow larger. And if you've been in business for many years, your retirees might even outnumber your staff. But how much do you know about them? Do you keep in touch? Or did they cease to exist in corporeal form the day they left the building, becoming, instead, a series of numbers associated with your pension plan?" (Montreal Gazette)
ASPA Provides Comments to PBGC on Benefit Valuations In Cash Balance Plan Terminations
Excerpt: "The PBGC has been analyzing the termination (and anticipated termination) of underfunded cash balance plans. As part of the termination process, it is necessary to estimate the present value of benefit liabilities. This calculation does not just affect the money that a sponsor owes the PBGC. It can also affect what the plan participants receive under ERISA 4044." (American Society of Pension Actuaries)
Opinion: Benefits Calculations Protected By Federal Law Are Flat-Out Unfair
Excerpt: "Andrew Lang is angling to alter ERISA. Lang, now 61, spent 29 years of his career as an actuary-more than half of it as a pensions specialist for Towers Perrin in Philadelphia. Along the way, he spotted flaws both in ERISA and Financial Accounting Standards Board rules that determine the value of pension benefits for workers who change jobs, are terminated, or retire early. For these workers, Lang firmly believes that the benefit protected by law is too low." (PLANSPONSOR.com; free registration required)
Getting Ready to Retire: What You Need to Know About Annuities (PDF)
Excerpt: "The Actuarial Foundation, counting public information among its primary goals, is making available this educational paper to assist individuals who are retired or nearing retirement. The intent is to give retirees a source of information on how to manage their assets over their lifetimes by using annuities and other strategies." (The Actuarial Foundation)
Legislative Activity on the Benefits Front - March 2001 (PDF)
(Milliman & Robertson)
Link to Full Text of SEC Proposed Rule on Disclosure of Stock Options and Other Equity Compensation
Excerpt: "We are proposing amendments that would require registrants to disclose, at least annually, information about the total number of securities that have been authorized for issuance under equity compensation plans in effect as of the end of the last completed fiscal year.... The purpose of the amendments is to promote investor understanding of a registrant's equity compensation policies and practices so that investors can make informed voting and investment decisions." (Securities and Exchange Commission)
Newly Posted or Renewed Job Openings (Post Yours!)
| Employee Benefit Tax Manager | for Deloitte & Touche, a Professional Services Firm in OH |
| Sr. Benefit Administration Specialist-Multiple Locations | for Towers Perrin in PA, VA |
| Client Services Representative | for ClearBenefits, Inc. in CA |
| Retirement Plan Administrator | for Keiter, Slabaugh, Penny & Holme, LLC in VA |
| Participant Services Meeting Leader | for KeyBank in WA |
Newly Posted Conferences (Post Yours!)
| SunGard Corbel Client Conference | in FL on June 25, 2001 presented by SunGard Corbel |
| 1-Day "Hot" Topics Update Seminar | in FL on June 27, 2001 presented by SunGard Corbel |
| SunGard Corbel Advanced Pension Conference | in IL on September 12, 2001 presented by SunGard Corbel |
| SunGard Corbel Advanced Pension Conference | in FL on February 13, 2002 presented by SunGard Corbel |
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