| The BenefitsLink Newsletter - Retirement Plans Edition |  |
April 26, 2001
Today's sponsor: The Plan Sales System (click)
The Plan Sales System is a comprehensive, 16-step system for growing a retirement plan sales practice. It provides detailed resources, contact names and numbers, checklists, charts, handouts, letters, extensive prospecting techniques, descriptions of current market opportunities, and tools for planning and monitoring sales activity.
Cash Balance Plan Update 2001
Excerpt: "Given the denial of certiorari in Lyons, and with no other case about to reach the appeals level that could come out differently on the calculation of lump sums, pressure is increased on plans that have not followed Notice 96-8 for all years not shielded by the statute of limitations. In this environment, management of any participant claims becomes critical." (Kilpatrick Stockton LLP)
Is It Prudent to Offer Brokerage Accounts to 401(k) Participants?
Excerpt: "For most 401(k) plans, a brokerage account is the medium for offering the widest range of investments which are administratively feasible. At first blush, participant-directed brokerage accounts are attractive ... However, there is more risk to directed brokerage accounts than meets the eye." (Reish Luftman McDaniel & Reicher)
Strike Cripples Greece Despite Government Retreat on Pension Proposals
Excerpt: "Greece was crippled Thursday by a strike that hit schools, hospitals, public transport and state institutions despite a government climbdown on unpopular pension reform. Tens of thousands of Greek workers stayed at home in protest at the planned changes in pensions, leaving Athens's normally choked streets nearly devoid of traffic." (Reuters via Excite News)
Pension Strikes Cripple Greece
Excerpt: "Striking workers from teachers to transport workers brought much of Greece to a standstill Thursday, despite the government' s decision to back off sweeping changes to the pension system." (Associated Press via StarTribune.com)
Court Lets Simpson Civil Verdict Stand; Pension Out of Reach to Successful Plaintiffs Though
Excerpt: "The California Supreme Court today let stand a $33.5 million civil verdict against O.J. Simpson for the deaths of his former wife and a friend of hers.... Simpson lives in Florida on a pension that by law the plaintiffs cannot touch. Florida law also prevents the families of the victims from seizing his house." (Washington Post)
May 2001 Applicable Federal Rates Published in Rev. Rul. 2001-22 (PDF)
Excerpt: "This revenue ruling provides various prescribed rates for federal income tax purposes for May 2001 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code." (Internal Revenue Service)
TSP Countdown
Excerpt: "Federal workers may celebrate May Day this year not by dancing around a maypole, but by analyzing their Thrift Savings Plan accounts. On May 1, just five days from now, two new investment options will become available to TSP participants." (GovExec.com)
JCT Estimates Revenue Effects of Portman-Cardin Bill (PDF)
Excerpt: "Estimated Revenue Effects of H.R. 10, The 'Comprehensive Retirement Security and Pension Reform Act of 2001,' as Ordered Reported by the Committee on Ways and Means on April 25, 2001." (Joint Committee on Taxation)
House Panel OKs Higher IRA, 401(k) Limits
Excerpt: "Legislation to raise contribution limits for individual retirement accounts and 401(k)s was approved Wednesday by the House Ways and Means Committee, despite suggestions by some Democrats that it would do little to improve savings for lower-income workers." (Associated Press)
U.S. House Panel Approves Retirement Savings Bill
Excerpt: "The bill, overwhelmingly approved by the committee on a vote of 35 to 6, raises the maximum annual contribution allowed for Individual Retirement Accounts (IRAs) to $5,000 from $2,000." (Reuters via Excite News)
JCT Executive Summary of Tax Code Simplification Report (PDF)
Excerpt: "Executive Summary of a Study of the Overall State of the Federal Tax System and Recommendation for Simplification." (Joint Committee on Taxation)
CalPERS Declares May to be Retirement Planning Month
Excerpt: "California's public employees are encouraged to consider their eventual retirement needs during the month of May, as the California Public Employees' Retirement System (CalPERS) launches an outreach campaign that designates May as Retirement Planning Month." (Business Wire via Excite News)
Choosing Commissions as Compensation for Financial Advisers
Excerpt: "Last week we discussed fee-based compensation, but some financial advisers and clients prefer a commission-only arrangement. Here, the adviser is compensated through commissions on insurance or investment products the client purchases. Thus, the client is paying the adviser indirectly through the purchase of these products. The amount of commission depends on the product and the agreement between the adviser and the product supplier." (Practitioners Publishing Company)
Near Zero Growth in Nation's 401k Plans Last Year
Excerpt: "Combined investment growth for the nation's 401(k) plans was nearly unchanged last year compared to 1999, with most of the $2 billion increase to $1.7 trillion due to participant contributions and employer matching funds, according to a national survey released today." (Business Wire via Yahoo! Finance)
Newly Posted or Renewed Job Openings (Post Yours!)
| Implementation Project Manager | for Fidelity Investments in MA |
| Communications Consultant | for New York Life Benefit Services in MA |
| 401K Administration Manager | for Paycor in OH |
| Retirement Sales Consultants | for Invesmart in CO, NC |
| Investment Services Officer | for CitiStreet - A State Street and Citigroup company in MA |
| Senior Communications Project Manager | for CitiStreet - A State Street and Citigroup company in MA |
| Health Management Consultant - DH-001229-005 | for Hewitt Associates LLC in VA |
Newly Posted Conferences (Post Yours!)
| Weathering the Economy | in GA on August 24, 2001 presented by AH Enterprises, Inc. |
Newly Posted Press Releases
| Secretary of State Cathy Cox to Address Changes in Employment Law at Arnall Golden Gregory Seminar (Arnall Golden Gregory LLP) |
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