| The BenefitsLink Newsletter - Retirement Plans Edition |  |
May 9, 2001
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Managers Face a Challenge When Veterans Retire Early
Excerpt: "At a time when managers must constantly embrace new technology and new global markets, however, severing such links to the past may weaken their credibility with the remaining employees. The past is an important touchstone, anchor and building block in any company." (CareerJournal.com)
The Coming Retirement Crunch
Excerpt: "What can plan sponsors do to address the future retirement boom? They can start by mapping out--to the greatest extent possible--their human capital needs 10 and 20 years down the road.... Should employers amend their plans to remove generous early retirement provisions? This is a dangerous road to travel with the potential for litigious potholes. Still, there have been plans where the early retirement provisions were made less generous while other plan benefits were improved." (Benefits Canada)
Correction After DOL Voluntary Compliance Letter is Not "Settlement" for Purposes of ERISA Penalty
Huffer v. Herman (S.D. Ohio 2001). Excerpt: "ERISA Section 502(l) authorizes the imposition of a penalty against a fiduciary equal to 20 percent of the 'applicable recovery amount' when a fiduciary breach is corrected pursuant to a settlement agreement with the DOL. In this case, the fiduciaries of two employee benefit plans challenged the imposition of an ERISA Section 502(l) penalty following their voluntary correction of a fiduciary breach." (EBIA Weekly)
MRDefenses
Excerpt: "Everything you always wanted to know about estate planning with the new minimum required distribution rules.... The recent changes in the minimum distribution rules are a blessing not only for IRA owners and retirement plan participants, but also for their beneficiaries, who will now be able to stretch their inheritances over the course of their own lifetimes.... for most cases they reduce the minimum required distribution (MRD) for the IRA owner or retirement plan participant ..." (James Lange, CPA, Esq., published by the Roth IRA Advisor)
50% Increase In Pensions Approved for Pennsylvania Legislators; Less for Workers, Teachers
Excerpt: "Without a word of debate yesterday, state lawmakers increased their pensions 50 percent and granted lesser increases to all state employees and public school teachers. The vote capped weeks of furious deal-making between legislative leaders and Gov. Tom Ridge." (Pittsburgh Post-Gazette)
Pennsylvania Pension Increases for Teachers, Legislators Approved By Wide Margin
Excerpt: "Delivering the second installment of an intricate political deal, state lawmakers yesterday approved pension increases for themselves and thousands of other government workers, including teachers." (The [Philadelphia] Inquirer)
Equities Evaluation
Excerpt: "A Yale University economics professor forecasts a zero return on equities over the next 10 to 20 years. What can pension funds do? ... Pension funds can hope that [the professor] is mistaken. But it's safer to anticipate a lower level of return from the equity portion of their asset mix. In this light, what action should pension funds take?" (Benefits Canada)
Pulling the Plug on Your Investment Manager
Excerpt: "One of the toughest decisions facing pension plan fiduciaries is whether, and when, to terminate the services of a money manager. The decision to replace an investment manager is usually precipitated by a significant event at the investment firm or by perceived or actual underperformance.... indecision on the part of plan fiduciaries can lead to extended periods of poor performance." (Benefits Canada)
Nationwide Greek Strike Over Pensions Coming May 17
Excerpt: "The largest union grouping in Greece said Tuesday that it would join others in a 24-hour strike May 17 against government plans for pension reform." (International Herald Tribune)
Opinion: Bush Appointment of Moynihan as Co-Chair of Commission Is True Political Genius
Excerpt: "Rightfully, Mr. Bush refused to apologize for the fact that all of the members of the newly formed commission have expressed support for the idea of partial Social Security privatization. Indeed, appointing former New York Democratic Sen. Daniel Patrick Moynihan as the commission's Democratic co-chairman was a stroke of political genius." (Washington Times)
Cluster of Stories, Opinions and Source Documents on President Bush's Social Security Commission
Excerpt: "The Century Foundation is a research foundation that undertakes timely and critical analyses of major economic, political, and social institutions and issues. Nonprofit and nonpartisan, the Foundation was founded in 1919 and endowed by Edward A. Filene." (The Social Security Network, a Century Foundation Project)
National Retiree Legislative Network Debuts
Excerpt: "The National Retiree Legislative Network, Inc. (NRLN) is a District of Columbia Nonprofit social welfare organization. NRLN was started by several large retiree organization from corporations that are household names.... We are in the process of reaching out to the more than 20,000,000 retirees nationwide who receive or once received pensions, health benefits or both and wish to keep, regain or recover those benefits." (National Retiree Legislative Network)
Newly Posted or Renewed Job Openings (Post Yours!)
| Health and Welfare Associate Consultant | for Arlen Group in CA |
| Pension Plan Administrator | for Benefit Associates, Inc. - Orange, CA in CA |
| Senior Pension Administrator | for The Kagan Company in CA |
| Benefits Manager | for San Joaquin County in CA |
| Retirement Plan Consultant | for A Prestigious Management Consulting Firm in ALL STATES |
Newly Posted Conferences (Post Yours!)
| Qualified Plan Design and Administration | in CO on June 25, 2001 presented by Accountant's Education Services |
| Qualified Plan Design and Administration | in CO on October 1, 2001 presented by Accountant's Education Services |
| Qualified Plan Testing and Advanced Issues | in CO on June 27, 2001 presented by Accountant's Education Services |
| Qualified Plan Testing and Advanced Issues | in CO on October 3, 2001 presented by Accountant's Education Services |
| Executive Compensation | in CO on July 12, 2001 presented by Accountant's Education Services |
| Executive Compensation | in CO on January 17, 2002 presented by Accountant's Education Services |
| What's New In Behavioral Health Care | in CA on May 23, 2001 presented by The Los Angeles Chapter of ISCEBS |
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