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The BenefitsLink Newsletter -
Retirement Plans Edition
BenefitsLink logo

April 24, 2001
Today's sponsor: Employee Benefits Webcast (click)


   Determination of Required Minimum Retirement and Death
Distributions from Qualified Plans, IRAs, 457(b) Plans
and 403(b) Plans - Instructor: Larry Grudzien of Buck
Consultants   Presented LIVE on Monday May 14th at 1 p.m.
EST by Technical Answer Group. Available for purchase
through BenefitsLink - click to register!


How Does the Internet Affect Trading? Evidence from Investor Behavior in 401(k) Plans (PDF)
Working paper; 69 pages. Excerpt: "We analyze the impact of a Web-based trading channel on trader behavior and performance in two large corporate 401(k) plans. After 18 months of Web access, trading frequency at the sample firms doubles relative to a control group of firms without a Web channel. Web trades tend to be smaller than trades made through other channels and Web traders tend to have smaller portfolios than other traders ..." (James J. Choi, David Laibson, Andrew Metrick; published by the Wharton School)

In a Buy-Out, Don't Sell Out Your 401(K) Plan
Excerpt: "OK, you decided to take that buyout offer and leave your job. It's scary; your life is changing. Unless you're ready to retire, you have to find a new job, maybe a new career. But what are you going to do about your 401(k) plan at the old job? What you decide can save or cost you thousands of dollars. Basically, you've got five choices...." (Scripps Howard News Service)

Securities Law Issues for KSOPs
Excepted from the NCEO's newsletter for its members, this is a summary of the securities laws affecting combination ESOP/401(k) plans ('KSOPs'). (The National Center for Employee Ownership (NCEO))

ASPA CE Requirements are Now Mandatory for all Designated ASPA Members
Excerpt: "ASPA's Board of Directors recently voted in favor of a resolution stating that, beginning with the 2001-2002 CE cycle, all ASPA designated members will have to comply with ASPA CE requirements. Previously, ASPA CE requirements were voluntary, rather than mandatory, for credentialed members who received their designations prior to 1990." (American Society of Pension Actuaries)

Pension Plan Fiduciaries Were Not Liable For Losses Under Bankruptcy Code
The fiduciaries of two pension plans also were 'fiduciaries' within the meaning of the Bankruptcy Code, but the fiduciaries were not liable under the Bankruptcy Code for alleged breaches of duties with respect to the pension plans. This was the decision of the Ninth Circuit U.S. Court of Appeals in Blyler v. Hemmeter. (SpencerNet)

Recommended Links on Employee Ownership Issues in the United States and Abroad
Excerpt: "Our staff selected all of the following links for their extensive resources and usefulness relative to employee ownership issues." (Foundation for Enterprise Development)

Congress Seems Likely To Redraw Pension Law
Excerpt: "Congress is set to begin voting this week on the most sweeping overhaul of pension law since the mid-1980s, increasing the amounts workers could contribute to retirement accounts and encouraging small businesses to create new plans or enhance existing ones." (Boston Globe)

Senate, House Pass Bankruptcy Reform Bills That Include Pension Benefit Protections
By a vote of 83-15, the Senate has passed S. 420, the Bankruptcy Reform Act of 2001. Previously, by a vote of 306-108, the House passed its version of bankruptcy reform legislation as H.R. 433, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2001. Both bills include identical provisions that would protect a debtor's retirement benefits in bankruptcy proceedings. (SpencerNet)

Checklist of Qualified Plan Amendments for 2001
Excerpt: "Under current IRS procedures, qualified retirement plans generally must be amended and submitted to the IRS for review by the end of their 2001 plan years. To simplify that process and make sure plan sponsors make all necessary changes, we have prepared handy checklists." (Groom Law Group)

Few Investors Ran from the Market Bear
Excerpt: "When the stock market soared last week after the latest interest-rate cuts, it came as no surprise to American investors. Most of them never lost faith. While many on Wall Street were gnashing their teeth over the year-long bear market, Main Street hung onto its stocks, its 401(k) investments, and its long-term confidence. A new nationwide survey finds that only 9 percent of US investors took money out of the market during the past six months, when the outlook seemed darkest." (Christian Science Monitor)

(Following items also appear in Welfare Plans Edition)


Graef Crystal: Raytheon Rewards CEO for a Pitiful Performance
Excerpt: "Whenever I see a newly recruited executive taking free shares instead of option shares, I figure he's a wimp with little faith in his ability to perform. Raytheon Co. CEO Daniel Burnham's underwhelming performance over the past two years has confirmed my low expectations, and probably his own." (Graef Crystal, on Bloomberg.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
Plan Administrator for Benefit Resources, Inc.
in CA
Defined Contribution Plan Administrator for Texas Benefit Planning, Inc.
in TX
Sales - Employee Benefits for Patterson//Smith Associates
in DC, MD, VA
Benefits Specialist for Administaff
in GA
Relationship Manager for Fidelity Investments
in UT
BENEFITS SPECIALIST for Quest Diagnostics Incorporated
in NJ



Newly Posted Conferences (Post Yours!)
5500's - A Practical Guide and Workshop in MD on May 17, 2001
presented by The Baltimore Chapter, ISCEBS



Newly Posted Press Releases
Financial Planning Interactive and 401kExchange Announce Alliance (401kExchange.com)
MyBenefitSource Launches Broker Referral Program (MyBenefitSource)

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