| The BenefitsLink Newsletter - Retirement Plans Edition |  |
May 31, 2001
Today's sponsor: The Profit Sharing/401(k) Council of America (PSCA) (click)
Pension Reform Will Affect Your Plan! Prepare Now For 2002 Retirement Changes. Two Hours Of Answers Without Leaving Your Desk. Click Here - https://benefitslink.com/m/a_d.cgi?a_d=2001_05_31_retirement
Highlights of the Economic Growth and Tax Relief Reconciliation Act of 2001
Excerpt: "[R]etirement plan professionals need to immediately acquaint themselves with the new rules to properly advise their clients in the weeks and months ahead. What follows is a brief summary highlighting the most important pension and retirement arrangement changes." (SunGard Corbel)
Court Decision in Wisconsin Public Employee Pension Ruling Could Require Many Benefit Recalculations
Excerpt: "The state Department of Employee Trust Funds is bracing for busy days once the state Supreme Court issues a decision on the constitutionality of a public employee pension improvement law.... While the overall law raises pension benefits of thousands of retirees by an average 17 percent, opponents objected to a provision giving employers, including the state of Wisconsin, a $200 million temporary holiday from contributing to the Wisconsin Retirement System." (StarTribune.com)
Federal Thrift Savings Plan Limits Increase Under New Tax Bill
Excerpt: "The current annual limit on TSP contributions is $10,500. Under the tax bill, the limit will rise to $11,000 in 2002, $12,000 in 2003, $13,000 in 2004, $14,000 in 2005 and $15,000 in 2006." (GovExec.com)
New SEC Rules Implementing Gramm-Leach-Bliley May Affect 401(k) Industry Business Practices
Excerpt: "[O]n May 11, 2001, the SEC issued a complex set of interim final rules that impose strict limits on bank securities activities ... compensation arrangements with broker-dealers should be reviewed for possible compliance issues. In order to provide banks time to come into compliance with the interim final rules, the SEC has allowed banks to remain altogether exempt from broker registration until October 1, 2001." (Groom Law Group)
Facts About Funds, May 2001 Edition (PDF)
14 pages. Excerpt: "A Guide to Investment Company Institute Research About Mutual Funds & Mutual Fund Shareholders" (Investment Company Institute)
GAO Says SEC Report Provides Useful Information and Recommends Improved Fee Disclosure
Excerpt: "This letter responds to your request that we comment on the findings and recommendations in the December 2000 Report on Mutual Fund Fees and Expenses by the Securities and Exchange Commission's (SEC) Division of Investment Management." (General Accounting Office)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
Will Railroad Retirement payments be corrected to reflect the right Cost-of-Living increase in January 2000? If so, when will the adjustment be made? (BenefitsLink.com)
Beneficiary Card Controls: Former Spouse Gets Benefits Allegedly Waived in Divorce Decree
Heggy v. Am. Trading Employee Retirement Acc't Plan, 2001 Tex. App. LEXIS 3172 (Tex. Ct. App. 2001). Excerpt: "... assuming that a divorce decree includes sufficient language to remove an ex-spouse as beneficiary, several federal circuit courts would hold that the decree operates as a waiver of the ex-spouse's beneficiary rights. Such courts apply 'federal common law' to effectively alter the beneficiary designation in favor of others ..." (EBIA Weekly)
More Firms Cut Workers Ranked At Bottom To Make Way For Talent
Excerpt: "... companies are finding ranking systems less tidy than they anticipated, and the systems are sparking lawsuits from almost every direction." (USA Today)
IRS Cancels Hearing On Proposed Rules Regarding Electronic Furnishing of W-2 Forms
The Internal Revenue Service has canceled the public hearing that had been scheduled for June 4 on the agency's proposed regulations relating to the voluntary electronic furnishing of payee statements on Form W-2. (SpencerNet)
Tax Law Will Mean Refunds, Rate Changes
A readable but detailed summary of the new law. (USA Today)
Repricing Underwater Stock Options
9 pages. Well-written. Excerpt: "Despite attempts to restrict or eliminate repricing, many companies still believe repricing is necessary to attract the type of talent needed to compete in today's marketplace." (Andersen)
Newly Posted or Renewed Job Openings (Post Yours!)
| Employee Benefits Associate | for Trucker Huss, APC in CA |
| Senior Administrator | for Alliance Benefit Group of Houston in TX |
| Client Services Associate | for Delaware Investments in PA |
| Daily Valuation Administrator | for ARIS Corporation in PA |
| Production Support Specialist | for CNA TRUST in CA |
Newly Posted Conferences (Post Yours!)
| Healthcare Quality Information: Empowering & Educating Employees about Health Care | in NY on June 19, 2001 presented by New York Metropolitan Area Chapter of ISCEBS |
| The New Required Minimum Distributions Rules | in FL on May 8, 2001 presented by ASPA Council of Central Florida |
Newly Posted Press Releases
| Cutting Health Plan Costs by Eliminating the Managed Care Middleman (A.J. Lester & Associates, Inc.) |
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