| The BenefitsLink Newsletter - Retirement Plans Edition |  |
April 17, 2001
Today's sponsor: COBRAhelp.com (click)
All of your COBRA help in one place. Because what you don't know, CAN hurt you! COBRA Training & Certification * COBRA Seminars * COBRA Procedures Manual * COBRA Quarterly Newsletter * COBRA Software * E-Alert News Updates
Did 1991 IRS Statement On Cash Balance Benefit Accruals Encourage Employers To Adopt Plans?
In a recent letter to Sen. Tom Harkin (Iowa), the General Accounting Office (GAO) concluded that there was 'nothing improper' about the inclusion in the IRC Sec. 401(a)(4) nondiscrimination regulations of a sentence stating that the Internal Revenue Service would not regard cash balance plans as age discriminatory. (SpencerNet)
Pension Contributions May Be Excluded In Debtor's Bankruptcy, According To Second Circuit
The Second Circuit U.S. Court of Appeals has ruled that pension contributions may be excluded from a debtor's disposable income in the debtor's bankruptcy proceedings. The ruling came in New York City Employees Retirement System v. Sapir (No. 00-5045). (SpencerNet)
Teachers Urge Non-Social Security Retirement Systems to Oppose Mandatory Social Security Coverage (PDF)
The NCTR has published online the text of a letter being sent by Senator George Voinovich to other senators, seeking co-signers for a letter to go to President Bush. (National Council on Teacher Retirement)
ASEC, EBRI: Parents Should Teach Kids How to Save, How to Budget
Excerpt: "The survey, released by the American advertisement Savings Education Council and the Employee Benefit Research Institute, showed that 51 percent of parents believe they understand financial matters very well. Yet 55 percent of parents said they carried over credit card debt from month to month, often inspiring the same behavior in their children, Dallas Salisbury, chairman of ASEC, said at a news conference." (Associated Press, via Excite News)
Another Question is Answered in the Correcting Plan Defects Q&A Column
To use the safe harbor correction for inclusion in a qualified plan of an employee who has not completed the plan's minimum age or service requirements, must the amendment cover all of the ineligible employees? (BenefitsLink.com)
Another Question is Answered in the Who's the Employer Q&A Column
Nursing Home Management Company manages 3 nursing homes as its sole business. Aaron owns one of the homes, Betty owns the second, and Charlie owns the third. Aaron is Betty's brother and Charlie is her half-brother. Are these businesses an affiliated service group under 414(m)(5)? All four businesses are incorporated. (BenefitsLink.com)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
I have a railroad Social Security number but I have only worked for a year. I'm now 72. Can I receive any travel benefits? (BenefitsLink.com)
e-Communication: Information When and Where it Counts
Excerpt: "However, while some employers have gone for the obvious, using a Web site to launch general company and product information for both internal and, more frequently, commercial use, many still haven't tapped the power of this technology to communicate HR and benefits information or to reinforce organizational and cultural messages. This article reviews how employers can begin once they've decided to tap in to Internet technology for HR purposes." (Aon Consulting)
Plan's Exclusion of Leased Employees Upheld
Moxley v. Texaco, Inc. (C.D. Cal 2001). Excerpt: "The sole issue in this motion for summary judgment by Texaco was whether excluding leased Employees from participating in an employer's benefits plans violates Section 202 of ERISA. The court noted that plaintiffs cited no cases saying such exclusion violates ERISA, arguing only that Texaco's use of an employee classification to exclude them from benefits was unfair and inequitable." (EBIA Weekly)
Top Executives Are Hedging Their Bets
Excerpt: "Take Steve Jobs, co-founder of Apple Computer Inc. In July 1997, he returned to run the Cupertino, Calif., personal-computer maker -- for $1 a year. In January 2000, grateful board members recognized his role in Apple's recovery by awarding him 20 million stock options exercisable at $43.59 a share (reflecting a subsequent stock split). Today, with Apple shares depressed again, none of his options are worth a dime." (CareerJournal.com)
Graef Crystal: Viacom's Redstone Keeps Stiffing Shareholders
Excerpt: "At 77, CEO Sumner Redstone of Viacom Inc. still finds new ways to stiff shareholders of his New York-based entertainment conglomerate. The man Forbes magazine calls the 14th richest American piled up a fortune estimated at $14 billion with the help of his board's lackey compensation committee, whose members included both his son and daughter." (Graef Crystal, on Bloomberg.com)
"Serious Consideration" of the Expanding and Contracting Fiduciary Duty to Disclose
Excerpt: "There is much confusion in recent case law regarding the fiduciary duty to disclose. This includes everything from intentionally providing misleading information to participants to remaining silent on a subject that needs clarification to knowing the appropriate timing for advising participants of plan changes under consideration and much more ... [as a result] the DOL has issued a Notice of Request for Information about disclosure obligations of plan fiduciaries." (David Levin, Esq. of Kilpatrick Stockton LLP)
"Options Only" Stock Plans -- Still Viable?
Excerpt: "In the article, 'Getting Out from Underwater Stock Options,' (July/August 2000 Forum) we discussed alternatives for employers wishing to enhance stock option programs given the new accounting rules and stock market corrections. In the following article we continue this discussion by presenting a case study of how two actual companies are approaching this dilemma. This article is part one of a two-part series ..." (Aon Consulting)
Newly Posted or Renewed Job Openings (Post Yours!)
| 401(k) Administration Team Leader | for Cache Pension Services, Inc. in AK, NV |
| Employee Benefits Tax Consultant / Detroit | for Deloitte & Touche, a Professional Services Firm in MI |
| 401(k) Pension Analyst | for REPTECH Corp. in CO |
| Employee Benefit Tax Manager | for Deloitte & Touche, a Professional Services Firm in OH |
| Pension Administrator | for Northwest Airlines in MN |
| Compliance Administrator | for Aspen Pension Administrators, Inc. in NM |
| Compensation & Benefits Specialist | for Bank for International Settlements in Location Other Than U.S. |
| ERISA Attorney | for Hodgson Russ LLP in NY |
Newly Posted Conferences (Post Yours!)
| COBRA, HIPAA, Section 125, and FMLA | in MI on April 23, 2001 presented by A.E. Roberts Company |
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