| The BenefitsLink Newsletter - Retirement Plans Edition |  |
June 4, 2001
Today's sponsor: Employee Benefits Webcast (click)
Webcast coming up June 14! "EGTRA! EGTRA! Learn All About It!" Instructor: Lawrence L. Grudzien, Benefits Attorney with Buck Consultants. Presented by Technical Answer Group. Click to register now and purchase this Technical Answer Group webcast through BenefitsLink.
IRS Requires Amendments to Plan Compensation Definitions Due to Qualified Transportation Fringes
Excerpt: "Qualified plans must be operated in accordance with the CRA amendments [which change the definition of compensation under IRC section 414(s) and 415 to reflect the amount of the compensation reduction elected for qualified transportation fringes] for plan and limitation years beginning on or after January 1, 2001. Plan amendments that are needed as a result of the CRA amendments must be adopted within the GUST remedial amendment period." (Internal Revenue Service)
IRS Provides New Options in Drafting 415(b) Rules in Defined Benefit Volume Submitter, M&P Documents
Excerpt: "Previously, the Master and Prototype program and the volume submitter program have permitted only one of the three methods (Method 2) described in Q&A-14 of Rev. Rul. 98-1. These programs also have required the RPA '94 Freeze Date to be the same date as the plan's § 417(e) effective date (i.e., the plan's date as of which the RPA '94 changes to § 417(e)(3) apply)." (Internal Revenue Service)
Enriching Human Capital: Retirement Plans and the 2001 Tax Act
44-page summary of the bill's significant provisions; easy to read. Excerpt: "In this time of economic uncertainty, enhancing employees' recognition, use, and appreciation of all benefits is even more important. In this booklet we have simply outlined the changes and made a few observations. But we see significant opportunities--and a few challenges--for maximizing employees' real and perceived value of the retirement benefits plan sponsors are currently providing." (Deloitte & Touche)
From Investment Company Institute: Legislation Contains Retirement and Other Savings Provisions
Excerpt: "Significant provisions include those that increase contribution limits to 401(k), 403(b), 457, SIMPLE plans and IRAs, permit 'catch-up' contributions to IRAs and employer-sponsored plans for individuals 50 and older, permit after-tax 'Roth' contributions to 401(k) and 403(b) plans, enhance portability, and modify current top-heavy rules. The bill also expands Education IRAs and Section 529 qualified tuition programs... Highlights of the bill are listed below." (Investment Company Institute)
CFO.com Publishes Online 401(k) Buyers' Guide
Excerpt: "Looking to change your 401(k) services provider? Shopping for one for the first time? Or are you just curious about the state of the market for providers? Here are the data, tables, and resources you'll need to make your next 401(k) decision." (CFO.com)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
My dad had to retire early on disability under Railroad Retirement. My mother quit her job to take care of him. Now my father has died but my mother has learned that she can't get a widow's benefit for two more years until she reaches 60. How are railroad widows too young to draw benefits supposed to get along without a widow's benefit? (BenefitsLink.com)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
My Railroad Retirement bebefit begins in June 2001. I have 37 years of service, and I just turned 60. If and when the proposed changes to the Railroad Retirement System become law, will the reduction in my annuity for retiring before 62 be eliminated back to June 2001? (BenefitsLink.com)
Another Question is Answered in the Who's the Employer Q&A Column
Suppose you have a doctor who owns 100% of a professional corporation and 50% of a partnership. He as an individual provides management and medical services to the partnership. There is no cash flowing between the partnership and the professional corporation. The two entities are totally separate in every way-- clients, employees, business names, etc. I know they are not a traditional affiliated service group, but could they be a management function group under IRC section 414(m)(5)? (BenefitsLink.com)
Morningstar Associates Expands Alliance with SunGard, Adds 1,000 Retirement Plans
Excerpt: "Morningstar Associates, LLC, has expanded its alliance with SunGard Corbel, making Morningstar® ClearFuture(SM) available to nine national Third Party Administrators served by Relius(TM) Administration, SunGard Corbel's recordkeeping software. The newest providers of the Morningstar ClearFuture online retirement planning service collectively administer more than 1,000 plans with a reach of more than 50,000 retirement plan participants ..." (PR Newswire, via Yahoo! Finance)
Opinion: Tax Planning May Be Futile
Excerpt: "[T]he new bill turns the code into a kind of perpetual-motion machine, with rates shifting, benefits coming and going, provisions phasing in and phasing out until taxpayers' minds reel." (Washington Post)
Connecticut Newspaper Says Feds Following Pension Trail In Bridgeport
Excerpt: "For more than two years, the administration of Mayor Joseph P. Ganim conducted a campaign to steer work overseeing multi-million dollar police and fire pension funds to a longtime friend of the mayor." (Connecticut Post via MSNBC.com)
Universal Pensions Sold To Bisys For $85 Million
Excerpt: "After a quarter century of building Universal Pensions Inc., founder Arnie Johnson on Friday announced the sale of his company to a public retirement services corporation based in New Jersey for about $85 million.... UPI, a privately-held company founded in 1975, supports about 4, 000 401k plans with administration and record-keeping services. The company also offers training and consulting services related to the industry." (Associated Press via StarTribune.com)
What to Do With a Rehired Participant
Excerpt: "When a participant is eligible to participate in the plan, either on initial eligibility or in a rehire, the participant must be notified of that right. Fail to provide that notice, and you have an operational failure that could lead to a loss of plan qualification." (Small Business Council of America)
Dealing With Underwater Stock Options
Excerpt: "At some point in their lives, most companies that grant stock options to their employees will have to deal with a decline in stock price. For many companies, that time is now. A decline in stock price is a concern for companies that grant stock options because all those wonderful stock options they granted are placed 'underwater' by the decline. An underwater option is one in which the option's exercise price exceeds the current market price of the company's stock." (Barbara Baksa of E*TRADE via Fed.org)
Newly Posted or Renewed Job Openings (Post Yours!)
| Plan Coordinator | for Trustar Retirement Services in MA |
| Defined Contribution Plan Administrator | for Jordan & Andrews, Consultants and Actuaries in CA |
| 401(k) Document Compliance Analyst | for Automatic Data Processing - Retirement Services in NJ |
| Plan Administration Analyst | for First American Trust in CA |
| 401k Conversion Reconciliation Analyst | for Automatic Data Processing - Retirement Services in NJ |
| Pension Technical Consultant | for AccuDraft in FL |
| Operations Manager | for Ceridian in VA |
| Plan Administrator | for 401k Plus, Inc. in TX |
| Sr. Defined Benefit Implementation Project Manager | for Unifi Network/PricewaterhouseCoopers in NJ |
| Health & Welfare Manager | for AECOM Technology Corporation in CA |
| Defined Benefit Specialist | for Paragon Consulting Group in ALL STATES |
Newly Posted Conferences (Post Yours!)
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Long Island | in NY on September 11, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Washington, DC | in VA on September 11, 2001 presented by A.E. Roberts Company |
| Annual Educational Conference | in FL on October 3, 2001 presented by Southern Employee Benefits Conference |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Mobile | in AL on September 11, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Wichita | in KS on September 11, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Jackson | in MS on September 18, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - New York City | in NY on September 18, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Anaheim | in CA on September 18, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Baltimore | in MD on September 18, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Charleston | in WV on September 18, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Birmingham | in AL on September 25, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Parsippany | in NJ on September 25, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Hartford | in CT on September 25, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - New Orleans | in LA on September 25, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Pasadena | in CA on September 25, 2001 presented by A.E. Roberts Company |
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