BenefitsLink Retirement Plans Newsletter for June 11, 2001

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The BenefitsLink Newsletter -
Retirement Plans Edition

June 8 - 11, 2001

Today's sponsor: 4myBenefits (click)

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Getting the Most in Retirement Benefits From Tax Cut Takes Work
June 8, 2001 issue. Excerpt: "The tax cut President Bush signed into law Thursday offers goodies for retirement savers, but to get the most out of it, you'll really need to save -- a lot. You'll also need to make some hard choices about how to deploy your savings." (USA Today)

Principal Set to Offer Stock for First Time
Excerpt: "Principal Financial Group Inc., the nation's largest provider of 401(k) retirement plans, filed documents Friday to sell $2.1 billion worth of stock to the public late this year or early in 2002." (Omaha World-Herald)

Analysis: Another Top Hat 401(k) Wraparound Plan Approved in IRS Letter Ruling
Excerpt: "In a recent private letter ruling, the IRS has approved another 401(k) 'wraparound' arrangement, this time in connection with a top hat plan. The IRS has a history of approving such arrangements, in which current year salary deferrals are initially held in a nonqualified deferred compensation plan." (Taxline)

Chart of 415, Etc., Limits Updated for H.R. 1836, Economic Growth and Tax Relief Reconciliation Act
The legislation, signed June 6 by President Bush, modified limits for 401(k), 403(b), 457, and SIMPLE plans, overall section 415 limits on contributions and benefits, and maximum compensation which can be taken into account. Carol Calhoun's handy chart, which show such limits as they have existed since 1996, has now been amended to include the year 2002 limits as modified by the legislation. (Calhoun Law Group, P.C.)

Another Question is Answered in the Who's the Employer Q&A Column
Lawyer A owns 1/3 of two entities: a corporation and an LLP taxed as a partnership. Both entities practice law. The LLP is regularly associated with the corporation in providing services for third parties. Other than Lawyer A's common ownership, there is no overlapping or cross ownership between the two entities. Are the LLP and corporation an affiliated service group? (BenefitsLink.com)

Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
My rail pension began on January 1, 2001. I'm 60 and I'm wondering just how much I can earn this year without losing any of my pension. (BenefitsLink.com)

President Signs Tax Cut Bill That Includes 16 Separate Pension Reform Provisions
On June 7, President George W. Bush signed into law H.R. 1836, the Economic Growth and Tax Relief Reconciliation Act of 2001. It has been designated as P.L. 107-16. In addition to the increases in the retirement plan dollar limitations and the other provisions previously reported, P.L. 107-16 makes numerous changes to pension law. In total, the law contains 66 separate provisions that modify pension law (SpencerNet)

Opinion: United Airlines' ESOP Woes
Excerpt: "Employee ownership, and in particular its participatory culture, can give companies a competitive edge in the marketplace. Research shows that this only holds true, however, if workers firmly believe they are helping to lead the company. A perfect case study is United Airlines' Employee Stock Ownership Plan (ESOP), launched in 1994 when United Airlines' workers bought a majority stake in the company." (Risk Management)

Chart of Upcoming Tax Changes, Year by Year
Excerpt: "2001: The Treasury sends refunds in late summer. The child credit increases from $500 to $600. The top four income rates -- 39.6 percent, 36 percent, 31 percent and 28 percent -- are each reduced by half a percentage point." (St. Petersburg Times)

(Following items also appear in Welfare Plans Edition)

2001 Tax Legislation: Employee Benefit Provisions (PDF)
10 pages. Excerpt: "The more significant changes in the employee benefits rules are summarized below. The repeal of the estate and generation-skipping transfer taxes will also figure significantly in planning for retirement security, and these provisions are also summarized." (Sutherland Asbill & Brennan LLP)

Last Chance To Be Included In Benefits Managers' Survey
Charles D. Spencer & Associates, Inc., continues to collect information for its 2001 Spencer survey of benefits managers and employee benefits departments. Hundreds of companies and more than 600,000 employees already have been counted, with the average benefit managers' salary topping $76,000. (SpencerNet)

Newly Posted or Renewed Job Openings (Post Yours!)

Pension Specialist

for Western Growers Association (leading agricultural trade association)
in CA

Employee Benefits Tax Consultant / Detroit

for Deloitte & Touche, a Professional Services Firm
in MI

401(k) and DC Plan Administrator

for Capax - Pension Services in Modesto, CA
in CA

Pension Trust Administrator

for First Trust Corporation
in CO

Education Consultant for Defined Contribution Plans

for Key Bank
in WA

Pension Administrator

for Benefit Planning, Inc.
in CA

Record Keeper

for Vinings Management Corporation
in GA

Account Processor

for Invesmart of Austin, Inc.
in TX

401(k) Valuation Administrator

for Invesmart of Austin, Inc.
in TX

Technical Consultant - QDRO

for Towers Perrin
in PA

Vice President of Benefits

for Baker-Parker and Associates, a Retained Executive Search Firm
in TX

Defined Contribution Group Plan Administrator

for State Street Research & Management Company
in MA

Defined Contribution Plan Administrator

for R. J. Michalski, Inc.
in CT

Newly Posted Conferences (Post Yours!)

Family And Medical Leave Act, California Family Rights Act And Other California Leaves Of Absences

in CA on July 13, 2001
presented by Lorman Education Services, Inc.

Family And Medical Leave Act In Wisconsin

in WI on July 26, 2001
presented by Lorman Education Services, Inc.

Family And Medical Act In New York

in NY on July 26, 2001
presented by Lorman Education Services, Inc.

Family And Medical Leave Act In Virginia

in VA on July 25, 2001
presented by Lorman Education Services, Inc.

The Family And medical Leave Act In Texas

in TX on July 18, 2001
presented by Lorman Education Services, Inc.

Family And Medical Leave Act In Arkansas

in AZ on July 10, 2001
presented by Lorman Education Services, Inc.

Family And Medical Leave Act In New York

in NY on July 12, 2001
presented by Lorman Business Center, Inc.

Family And medical Leave Act In South Carolina

in SC on July 12, 2001
presented by Lorman Education Services, Inc.

IBIS Institute - An Introduction to International Employee Benefits

in IL on August 27, 2001
presented by Charles D. Spencer & Associates, Inc. - Int'l Benefits Information Service (IBIS)

The Basics of Distributions from Qualified Plans and IRAs: The Ever-Changing Mysteries Revealed! (Program No. VPC0719)

in ALL STATES on July 19, 2001
presented by ALI-ABA (American Law Institute-American Bar Association Committee on Continuing Professional Education)

HIPAA and Other Health Laws: Compliance Assistance Seminar

in NY on June 15, 2001
presented by U.S. Department of Labor, Pension and Welfare Benefits Administration in cooperation with the New York State Department of Insurance