| The BenefitsLink Newsletter - Retirement Plans Edition |  |
June 15, 2001
Today's sponsor: Employee Benefits Webcast (click)
"EGTRA! EGTRA! Learn All About It!" Instructor: Lawrence L. Grudzien, Benefits Attorney with Buck Consultants. Presented by Technical Answer Group. Click now to purchase this Technical Answer Group webcast through BenefitsLink.
Opinion: Pension Reform Secures Retirement for All
Excerpt: "While the [Portman-Cardin] bill has passed the House seven times, most recently with 407 votes out of 435 members, opponents say that it only benefits the 'rich.' ... There are several reasons why the catch-up provision is important for lower paid families, as well as middle and high-income families." (Thompson Publishing Group)
Hewitt Prepares Study on Self-Directed Brokerage Accounts
Excerpt: "Hewitt conducted the study to learn why employers do or do not offer self-directed brokerage accounts and fund windows, how the plans are structured, and how participants use them.... More than half of the companies surveyed (55%) currently offer, will add, or are considering adding a self-directed brokerage account within the next 18 months." (Hewitt Associates)
EGTRRA Impact On Government Retirement Plans
Excerpt: "Public sector retirement programs are treated very well under the new tax changes. The new rules increase the amounts that are payable by public sector systems, the amounts that can be deducted by public employees for retirement savings, and expand the funds that can be used to purchase service from public retirement systems." (Hanson Bridgett Marcus Vlahos & Rudy, LLP)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
Our father retired last year after 44 years of service. He only received his pension for seven months before he died. He and our mother were divorced for 15 years, and we know that she will be eligible for monthly benefits at 60. What will happen to the rest of my father's contribution to the Railroad Retirement Fund? (BenefitsLink.com)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
Are there any death benefits for survivors of a vested rail worker who had retired before 1963? (BenefitsLink.com)
38-Year Repayment Schedule Caused Loans To Be Treated As Taxable Distributions
A series of plan loans that, by their terms, required 999 biweekly payments under what amounted to a 38-year repayment schedule constituted taxable distributions. This was the ruling of the U.S. Tax Court in Campbell v. Commissioner (SpencerNet)
House Votes to Cut Securities Fees
Excerpt: "The House voted overwhelmingly Thursday to reduce fees that investors and companies pay the government, a change that supporters called a $14 billion tax cut over 10 years." (Associated Press via Excite News)
EGTRRA Impact On GUST Updates
Excerpt: "On Monday, June 11, officials with the Treasury and IRS met with representatives of various organizations to discuss issues relating to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). The focus of the meeting was to identify the provisions of EGTRRA that will require guidance from the IRS and/or modifications to plan documents. In addition, there was some discussion regarding the impact that EGTRRA will have on the GUST updating process." (SunGard Corbel)
Ontario Teachers' Pension Plan Continues to Press for Changes in Corporate Stock Options
Excerpt: "In 1990, the typical large cap U.S. company granted 1.2% of its outstanding shares in options. Today, the average accumulated overhang for Standard & Poor's 500 composite index is nearly 13%--double the percentage of 1990. This means the financial effect of options on shareholders is greater than ever." (Benefits Canada)
Comparison of Current Law and New Law Under EGTRRA
14-page table, in HTML (online) format. (Groom Law Group)
Andersen Executive Compensation Newsletter
2nd quarter 2001 edition. Articles include: 'Stock option awards; The lessons we should remember: Respect your employees and the importance of stock options; Rescission of stock option exercises; Stock option alchemy: turning lead into gold." (Andersen)
IRS To Survey Businesses To Measure Compliance Burden
The Internal Revenue Service has announced that it is conducting a survey to measure the time and cost burden placed on business taxpayers in complying with federal income tax laws and regulations. (SpencerNet)
Fidelity Investments Expands Its Stock Option Business to Offer Administrative Services
Press release. Excerpt: "Fidelity Investments(R) today announced it has expanded its stock option offerings from execution-only services for individual investors to include full plan administration for companies wanting help managing their employee stock plan needs ... Fidelity provides real-time exercises and Web-based educational content for employees, automated record keeping and share/money movement, comprehensive reporting, as well as a dedicated service team for the company." (Business Wire via Excite News)
Newly Posted or Renewed Job Openings (Post Yours!)
| Employee Benefit Analyst | for Watson Wyatt & Company in MA |
| 401(k) Recordkeeping Manager | for PFPC in MN |
| Recordkeeper/Administrator - Defined Contribution Plans | for Oak Brook, Illinois-based employee benefit and human resources consulting firm in IL |
| Service Integration Manager - Marlborough , Massachusetts | for Fidelity Investments in MA |
| Actuarial Analyst | for Watson Wyatt in CA |
| Benefits/Payroll compliance Analyst | for Domino's Pizza in MI |
| Internal sales/sales support representative | for National Retirement Services Institution in Denver in CO |
Newly Posted Conferences (Post Yours!)
| Health Care Update- Results of Mercer Foster Higgins Survey | in VA on June 28, 2001 presented by Richmond Chapter- ISCEBS |
| Family And Medical Leave Act In Alabama | in AL on August 28, 2001 presented by Lorman Education Services, Inc |
| Form 5500 Workshop | in WA on August 21, 2001 presented by ASPA |
| Advanced Defined Contribution Workshop | in PA on August 27, 2001 presented by ASPA |
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