| The BenefitsLink Newsletter - Retirement Plans Edition |  |
June 14, 2001
Today's sponsor: DATAIR (click)
PC-based BENEFIT ADMINISTRATION SOFTWARE for Pensions, Profit-Sharing, 401(k), and Cafeteria plans used by TPAs and Plan Sponsors for proposals, enrollment, documents, administration, trust accounting, voice response, task management, government and participant reporting. Modules operate independently or fully integrated for data sharing, speed, accuracy, efficiency & savings. Visit www.datair.com
$26 Million First Union Settlement Gets Judge's Approval
Excerpt: "A federal judge has formally approved a $26 million settlement of two class-action lawsuits alleging First Union Corp. acted in its own interest, rather than for the benefit of its employees, in managing its 401(k) plans." (Richmond [Va.] Times-Dispatch)
Surveys Showing Most People Don't Manage Their 401(k) Funds Well
Excerpt: "Of 401(K) Participants Surveyed About Their Portfolios: 50% have an allocation plan -- but only 33% of that group do anything to maintain right mix." (Time.com)
Provisions In New Tax Law Affect Public Sector Retirement Plans (PDF)
2 pages. Excerpt: "EGTRRA repeals the §403(b) maximum exclusion allowance. It also repeals coordination of the §457 deferral limit with the elective deferral limits for §401(k) and §403(b) plans." (The Segal Company)
Creditors, Including PBGC, to Talk With Labor About LTV
Excerpt: "Creditors of LTV Steel said Wednesday they will begin new talks with steelworkers and the company to reach an agreement to save the ailing company. United Steelworkers of America president Leo Gerard welcomed the announcement. He said workers and creditors both have a stake in making sure the company continues to operate." (Associated Press via StarTribune.com)
Wisconsin High Court Backs Constitutionality of State Pension Boost
Excerpt: "In a decision that affects nearly 350,000 public employees and retirees, a divided state Supreme Court on Tuesday upheld the constitutionality of a boost in the state pension enacted in late 1999." (The Milwaukee Journal-Sentinel)
Wisconsin Court Ruling Calls for Pension Increase for State Workers
Excerpt: "State pension officials said Wednesday they are poised to pay retroactive pension increases called for by a state Supreme Court ruling upholding the constitutionality of a pension boost... The court's decision also means that about 252,000 currently employed members of the Wisconsin Retirement System - including state, local and school district workers - will receive improved benefits upon retiring." (The Milwaukee Journal-Sentinel)
Wisconsin Supreme Court Upholds Pension Increase
Excerpt: "Workers covered by the state' s $61 billion retirement system will get increased pensions under a law upheld Tuesday by the state Supreme Court." (StarTribune.com)
Description of Present Law and Certain Proposals on Charitable Giving (PDF)
11 pages. Excerpt: "The Subcommittees on Select Revenue Measures and on Human Resources of the House Committee on Ways and Means have scheduled a joint hearing on issues relating to charitable giving and individual development accounts for June 14, 2001.... Section 102 of H.R.7 would provide an exclusion from gross income for otherwise taxable IRA withdrawals from a traditional or a Roth IRA for qualified charitable distributions." (Joint Committee on Taxation)
IRS Determination Letter Process from A to Z
Excerpt: "The taxpayer group [which included the IRS and a select group of taxpayer organizations] met at the IRS Cincinnati Centralized Determination Site to discuss the future of the IRS Determination Letter Program, especially new issues surfacing as a result of GUST1 amendments and the resulting unprecedented number of anticipated determination letter requests." (White & Case, LLP)
Assessing Your Clients' Investment Knowledge
Excerpt: "An [investment] adviser must determine a client's investment knowledge to be able to serve his best interests and fulfill the adviser's fiduciary responsibilities. Once he knows the client's level of understanding, he can provide investment education." (Practitioners Publishing Company)
Women Must Be Protected by Social Security, Bush Told
Excerpt: "Exerting their power for the first time as a united bloc, all 10 Democratic women senators yesterday demanded that the needs of women not be left out of proposals for improving Social Security." (Seattle Post-Intelligencer)
EGTRRA! EGTRRA! Read All About It! (PDF)
4 page summary of the new tax act. (Milliman USA)
Economic Growth and Tax Relief Reconciliation Act of 2001 Employee Benefits Provisions
Excerpt: "The Act increases contribution and benefit limits, facilitates portability, and alleviates regulatory burdens. President Bush signed the Act into law this week. This Legal Alert summarizes the most significant EGTRRA changes." (Kilpatrick Stockton, LLP)
Overview of the Economic Growth and Tax Relief Reconciliation Act of 2001
The June 2001 issue of the law firm's Compensation, Benefits and Employment Law Focus publication. Excerpt: "The Act does not contain a deadline for amending tax-qualified plans with respect to the changes made to existing law by the Act ... However, as is always the case, tax-qualified retirement plans will need to be brought into operational compliance with the Act-mandated changes ..." (White & Case, LLP)
Prudential's Plan to Demutualize May Have Fiduciary Impact on Benefit Plans and their Sponsors (PDF)
Excerpt: "The impending conversion of Prudential Insurance Company of America from a mutual company to a publicly traded corporation raises important considerations for employee benefit plans and plan sponsors. Pursuant to Prudential's plan of demutualization, certain eligible policyholders will receive compensation in the form of shares of Prudential stock, cash or policy credits (i.e., enhancements to policy value)." (Proskauer Rose LLP)
EEOC Announces Victory in ADEA Reduction-in-Force Case
Excerpt: "The suit, filed jointly with the Office of the Attorney General for the Commonwealth of Massachusetts, charged [Bull HN Information Systems, Inc. of Billerica, Mass.] with discriminating against older workers in connection with a series of reductions-in-force (RIFs) by requiring them to sign unlawful waivers of claims in violation of the Age Discrimination in Employment Act of 1967 (ADEA), as amended." (Equal Employment Opportunity Commission)
Analysis: IRS Will Assess Employment Taxes on Statutory Stock Options Exercised Beginning in 2003
Excerpt: "The Internal Revenue Service announced on January 18 (Notice 2001-14) that employers will have to pay FICA and FUTA taxes on the gains their employees realize when they exercise incentive stock options or options granted under qualified employee stock purchase plans (which, together, will be referred to as 'statutory options'). However, the notice also announces that the IRS is not going to assess employment taxes on exercises of statutory options that occur before January 1, 2003." (White & Case, LLP)
Newly Posted or Renewed Job Openings (Post Yours!)
| Health & Welfare Associate | for Aon Consulting, Inc. in MD |
| Qualified Retirement Plans Manager | for National City in OH |
| Plan Administrator | for Matthews Benefit Group, Inc. in FL |
| 401(k) Compliance Specialist | for Inner Dependent, In-House Compliance Department in CA |
| 401(k) Senior Administrator | for A family-oriented environment that is stable yet on the cutting edge! in CA |
| Benefits Researcher | for LIMRA International in CT |
| Employee Benefit Analyst | for Watson Wyatt & Company in MA |
Newly Posted Conferences (Post Yours!)
| Advanced Cafeteria Plans | in OR on July 19, 2001 presented by Employee Benefits Institute of America LLC (EBIA) |
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