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The BenefitsLink Newsletter -
Retirement Plans Edition
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June 7, 2001
Today's sponsor: The Profit Sharing/401(k) Council of America (PSCA) (click)


   Are You Ready For Regulatory Change?   LEARN ABOUT PENSION REFORM WITHOUT LEAVING YOUR DESK
   PSCA, the nationally recognized organization that was instrumental in bring
   you the 401(k) plan, presents What You Need to Know TODAY About HR 1836
      --Choose from three, 2-hour teleconference sessions: June 13, 19 or 28.
      --Hear experts from top law firms and the PSCA professionals
        who worked to pass HR 1836.
      --Receive a FREE copy of CCH Inc.'s new analysis of the legislation.
   Go to the Solution Source at www.psca.org to learn more!

Ten Years From Now, Will Retiring Baby Boomers Cause a Stock Market Meltdown?
Excerpt: "In the '80s and '90s they got a taste for stocks, helping to drive the greatest bull market in the country's history. But what will happen when the boomers retire? Will they stampede out the gates and leave the market in ruins?" (The Wharton School of the University of Pennsylvania)

For Savers, Benefits of Tax Bill Don't End With Rebates
Excerpt: "In addition to increasing the maximum contributions to 401(k)s, the legislation will help those who have not been funding their programs in the past, [Mark Niziak of New York Life Benefit Services] says. 'The catch-up clause in the legislation applies to those over age 50 and is a remarkable change as it encourages older employees to save for their future,' the pension expert says." (The Sacramento Bee)

Lump Sum Termination Payments Were Not Entitled To Priority In Firm's Bankruptcy
Lump sum cash payments due upon termination pursuant to employment contracts were not entitled to priority status in a company's bankruptcy proceedings. This was the decision of the Tenth Circuit U.S. Court of Appeals in Bachman, et al. v. Commercial Financial Services, Inc. (SpencerNet)

Tax Act Creates Mighty Estate Planning Tool
Excerpt: "Gifting money towards your children's retirement accounts yields them an immediate tax deduction, tax-deferred growth and maybe a matching contribution from their employer. What do you get? Peace of mind that the money won't be blown before it can grow." (Forbes via Yahoo! Finance)

Disappointed North Carolina State Employees Plan to Appeal Ruling on State Pension Fund Case
Excerpt: "The State Employees Association of North Carolina announced Wednesday it is filing an appeal of Judge Narley Cashwell's dismissal of its lawsuit challenging Gov. Mike Easley's diversion of $151 million in employer retirement contributions to a State budget- balancing escrow account." (PR Newswire, via Yahoo! Finance)

Tax Bill's Catch-Up Provision for Over-50 Individuals Does Not Yet Apply to Fed Thrift Savings Plan
Excerpt: "Congress will have to amend the 1986 Federal Employees Retirement System (FERS) Act to allow such extra contributions in the TSP, but [Rep. Connie Morella, R-Md] is on the case." (GovExec.com)

Tax Cut Disappoints Conservatives, Who Decry Gimmicks, Trade-Offs
Excerpt: "President Bush's tax cut plan faced fierce attacks from Democrats as it made its way through Congress in record speed. But, as the president signs the legislation at the White House today, the most surprising aspect of his achievement is the disappointment the final product has produced among conservative tax cut advocates." (Washington Post)

World Bank Says British Pensions Too Costly, U.S. Proposed Reforms Make Little Sense
Excerpt: "Britain's pension system is too costly, Germany's pension reforms were a positive step and proposed reforms to U.S. pensions make little sense, the editor of a new World Bank study said Wednesday." (Reuters via Excite News)

(Following items also appear in Welfare Plans Edition)


Principal Benefits Provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (PDF)
8 pages. Excerpt: "This Alert focuses on the employee benefits provisions. Although most of them affect retirement plans, several relate to health and welfare plans. Plan sponsors will need to examine the long list of changes and determine how best to take advantage of them." (Aon)

Andersen Human Capital Alert Describes Principal Provisions of Tax Act (PDF)
June 1, 2001 issue; 14 pages. Includes discussion of recent IRS private letter rulings of interest, as well as other employee benefits developments. (Andersen)

Form 5500 Workshop Provides Guidance For Satisfying Annual Report Rules
Excerpt: "Among the issues that may arise are: how a change in the name of the plan sponsor needs to be reported, where a pre-1999 late Form 5500 should be filed, whether a Form 5500 needs to be filed for a 403(b) plan to which an employer made matching contributions, may only one Form 5500 be filed for a cafeteria plan that provides health insurance, dental insurance, medical reimbursement, and other welfare benefits ..." (CCH)

ASPA Asks PWBA To Grant Blanket Extension For Filing Year 2000 Form 5500 Reports
In a May 29 letter to the Department of Labor's Pension and Welfare Benefits Administration (PWBA), the American Society of Pension Actuaries (ASPA) requests a blanket extension for filing the year 2000 Form 5500 annual return/report. (SpencerNet)

New from EBRI: Employer Spending on Benefits 1999 (PDF)
The June 2001 issue of Facts from EBRI, a monthly publication providing timely statistics on a variety of employee benefit issues. (Employee Benefit Research Institute)

Issues in Accounting for Stock Compensation Under APB Opinion 25 and FASB Interpretation 44 (PDF)
15 pages. Set of consensus points reached by the Emerging Issues Task Force as of June 6, 2001. (Frederic W. Cook & Co., Inc.)




Newly Posted or Renewed Job Openings (Post Yours!)
Plan Administrator for Creative Plan Designs, Ltd.
in NY
ERISA/Employee Benefits Attorney for Perkins Coie LLP
in WA
Assistant Administrator for Retail Wholesale Department Store and International Union -- An Employee Benefit Organization
in AL
Employee Relations Manager for RMH Teleservices
in PA
Quality Control Document Specialist for SunAmerica Financial
in CO
Flexible Spending Account/125 Consultant for Leggette Actuaries
in TX
Senior Pension Processor for Zenith Administrators
in MD

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