| The BenefitsLink Newsletter - Retirement Plans Edition |  |
April 4, 2001
Today's sponsor: The Retirement Plan Distribution Book (click)
The Retirement Plan Distribution Book: No other resource is as comprehensive, yet accessible by everyone who has to answer distribution questions-- from customer service representatives to legal counsel. Available now, from National Underwriter Company, publishers of other fine compliance books including Tax Facts.
Proposed Plan Loan Rules Under Fire
Excerpt: "The proposed plan loan rules ... would discourage participation in 401(k) plans, speakers at an IRS hearing charged. Issued July 31, 2000, along with a set of final rules for loans treated as distributions under Code Section 72(p), the proposed rules would set new standards for the suspension of loan repayments during a participant's military service, for a participant's eligibility for a new loan when a prior loan has defaulted and for the refinancing of plan loans." (Thompson Publishing Group)
IRS Diskette Provides Free Info on 403(b) and 457 Plans
Excerpt: "Employee Plans has created a diskette containing information for sponsors and practitioners of IRC 403(b) tax-sheltered annuities and 457 retirement plans which it distributes at benefits conferences, educational events, etc. Provided below is an online (and updated) version of this diskette." (Internal Revenue Service)
Racketeering Charge Against New York Life Dismissed
Excerpt: "A federal judge has thrown out racketeering claims in a lawsuit that accuses the New York Life Insurance Company of charging tens of millions of dollars in excess fees to retirement plans it maintains for its workers and sales agents. But the judge ruled that a trial could proceed to consider the suit's claim that New York Life violated its duty of loyalty to its workers and agents by charging their retirement plans up to 25 times the market rate for managing such funds." (New York Times; free registration required)
Summary of New Required Minimum Distribution Rules
Excerpt: "This article focuses on the RMD determinations applicable to RMDs paid from defined contribution qualified retirement plans ('qualified plans') and IRAs." (Ted Rice, published by the Minnesota State Bar Association)
Would Raising IRA Limits Bolster Retirement Security for Lower- and Middle-Income Families?
Full report. Excerpt: "Raising the IRA contribution limit would likely not do anything to increase the amount these taxpayers save for retirement. This proposal thus would have virtually no effect on the vast majority of middle-class families ... Furthermore, the proposal could have two deleterious effects -- it could result in a reduction in pension coverage among low- and moderate-income workers in small businesses and also could lead to a reduction in national saving." (Center on Budget and Policy Priorities)
New Study Outlines Long-Term DC Market Strategy For Mutual Fund Industry
Excerpt: "The key to remaining an active and profitable player in the emerging DC marketplace will be exploiting new technology and adapting it to virtually every facet of business." (IOMA's DC Plan Investing newsletter)
Strengthening Pension Plan Governance in Canada
Excerpt: "Proposed guidelines for pension plan governance that promote timely and cost-effective delivery of benefits and the administration of pension plans in the best interests of plan members and other beneficiaries were approved by the Canadian Association of Pension Supervisory Authorities (CAPSA). At its semi-annual meeting in Toronto yesterday, CAPSA -- the association of Canada's pension regulators -- also announced it intends to consult broadly on these guidelines later this spring." (Canadian Association of Pension Supervisory Authorities press release)
Analysis: Supreme Court Preempts State Designation of Beneficiary Statute
Excerpt: "This ruling should make interstate administration of plans easier, as it allows plan administrators to rely on the plan documents to determine the appropriate beneficiary. This ruling also may make it easier to argue other state laws affecting a plan's 'system for processing claims and paying benefits' are analogous to those impacting distribution schemes and thus should be preempted." (McCalla Thompson law firm)
Retaining Key Employees and Terminating Non-Performers While Protecting Trade Secrets
Excerpt: "In today's information age, companies are increasingly coming to realize that some of the most critical elements for their success are their key employees and the information, procedures, plans, developments and strategies which they hold as confidential ... Given these circumstances, how does today's enlightened employer protect these critical assets?" (Haynes and Boone, LLP)
Ex-utility CEO Has $828,845 Pension
Excerpt: "If you don't think a few years on the job can be lucrative, just talk to former Florida Progress Corp. chief executive Richard Korpan. In addition to raking in $17.4-million last year in salary, bonus and severance pay with the sale of the utility holding company to Carolina Power & Light Co., Korpan walked away with a nice retirement package: an $828,845 annual pension for the rest of his life." (St. Petersburg Times)
Summary of 2000 Regulatory and Other Developments Affecting Executive Compensation
Includes discussions of stock plan accounting issues, SEC issues, new insider trading rule, more. (Frederic W. Cook & Co., Inc.)
Tax Revolt: Small Businessmen Take on Uncle Sam
Excerpt: "The Internal Revenue Service has taken aim at a new group of tax protestors: dozens of small business owners who have stopped withholding taxes from their employees' paychecks." (CBSnews.com)
Newly Posted or Renewed Job Openings (Post Yours!)
| Defined Contribution Plan Administrator | for Jordan & Andrews, Consultants and Actuaries in CA |
| Pension Benefits Assistant | for Producer-Writers Guild of America Pension Plan in CA |
| Pensions/401(k) ERISA Compliance Specialist | for Pensioncareers Ltd. in NJ, NY |
| Assistant Manager of New Business | for DailyAccess.com, Inc. in AL |
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