| The BenefitsLink Newsletter - Retirement Plans Edition |  |
June 27, 2001
Today's sponsor: The International Quality & Productivity Center (click)
The International Quality & Productivity Center presents a powerful conference on "Winning Strategies for Measuring & Improving Work/Life Initiatives," July 30-August 1, 2001 at the Hyatt Regency in San Francisco, CA. By attending, you will from over 12 leading organizations on how to improve your workforce and become an "employer of choice," including: Texas Instruments, Inc., Fannie Mae, Eddie Bauer, Inc., DuPont, Wachovia Bank, WFD Consulting, Boston College Center for Work & Family and many more! For more information, please call 1-800-882-8684 or visit: http://www.iqpc.com/G067worklife160701
Retirement Security Advice Act Would Affect Investment Advice to Participants
Excerpt: "Supporters ... say it will encourage more employers to offer more personalized advice services by clarifying that the provider of the advice - not the employer - is liable for any advice-related problems.... Opponents ... say the proposed bill goes too far. Although the bill requires advisers to disclose any conflicts of interest, they still worry that a fund company, for example, would steer business toward its own products at the expense of other equally good or better products." (Associated Press)
Bill Summary & Status: Retirement Security Advice Act of 2001
Includes link to text of legislation recently introduced by Rep. John A. Boehner and others, H.R. 2269, 'to promote the provision of retirement investment advice to workers managing their retirement income assets." (Thomas, from the U.S. Library of Congress)
Another Question is Answered in the Who's the Employer Q&A Column
Mr. Owner owns 100% of company. His son-in-law works there. Does son-in-law own 50% (of his wife's 100% constructive ownership) via the community property laws of California? This is for purposes of IRC sections 318 and 267. Incidentally, Mr. Owner's daughter does not work at the company. (BenefitsLink.com)
Microsoft to Offer mPower Online Financial Advice Service to MSN Money Web Site
Press release. Excerpt: "As a result of mPower's new alliance with Microsoft, CNBC on MSN Money enables its more than 15 million unique visitors each month to get personalized, objective advice that will help them plan for, and achieve, their financial and retirement goals." (Business Week)
Fidelity Introduces Online Portfolio Planner Aggregating 401(k) and Employees' Personal Funds
Press release. Excerpt: "Fidelity Investments [on Tuesday] introduced the first available online planning tool that can integrate data from an investor's multiple accounts, then analyze up to 10 financial goals and help investors develop investment strategies to meet them.... Fidelity PortfolioPlanner(SM) automatically integrates an investor's Fidelity retail accounts and Fidelity-serviced workplace savings plan accounts, minimizing data entry and the need to pull paper account statements." (Business Wire via Yahoo! News)
DOL Obtains Consent Judgment That Requires Firm Owner To Restore $650,000 To Plans
The Department of Labor has obtained a consent judgment that requires the owner of a now-defunct Dorchester, Mass.-based cardboard box manufacturing company to restore $650,000 to the firm's pension and profit-sharing plans. The consent judgment was entered by the U.S. District Court for the District of Massachusetts, in Chao v. Harold J. Cohen, et al. (SpencerNet)
Failure to Answer Employee's Questions About Enhanced Benefits Was Fiduciary Breach
Mullins v. Pfizer Inc. (D. Conn. 2001). Excerpt: "The employee in this case missed out on enhanced early retirement benefits because he retired six weeks before the benefits were announced. He later sued ... arguing that the benefits in question were under serious consideration at the time the employee made inquiries about whether enhancements would be provided and that therefore the company breached its fiduciary duties to the employee by failing to tell him about the anticipated benefits." (EBIA Weekly)
Avoid Litigation by Informing Participants, Says DOL
Excerpt: "Within the past year, the Department of Labor (DOL) has brought an increasing number of lawsuits against sponsors of defined contribution plans. A plan sponsor or fiduciary can prevent DOL action by responding to participants' inquiries and keeping them informed of pertinent plan changes, according to Virginia Smith, director of enforcement with the DOL's Pension and Welfare Benefits Administration (PWBA)." (Thompson Publishing Group)
Form 5500 Penalties Upheld for Plan's Failure to Include Unqualified Accountant's Report
PWBA v. Schneiderman's Furniture, Inc. (ALJ Mar. 23, 2001). Excerpt: "This decision of a DOL administrative law judge is issued under regulations governing how penalties are assessed for deficient or delinquent Form 5500s. The case involves a 401(k) plan that, due to its size, was first required to perform an audit and attach an accountant's report to the Form 5500 ... [T]he accounting firm ... was unable to issue an unqualified report (as required by ERISA)." (EBIA Weekly)
IRA Owners Get New Savings Breaks in Tax Bill
Excerpt: "The new rules boost the annual maximum contribution limit, make it easier for savers to combine assets in IRAs and employer-savings plans, offer a tax credit to low-income savers, and permit new catch-up contributions for workers over age 50. Here's a review of the new laws set to take effect January 1, 2002." (mPower Cafe)
GAO Report: Opportunities to Improve DOL's SAVER Act Campaign
27 pages. Excerpt: "Because the second [DOL-sponsored retirement savings] national summit is to be held this year, in 2001, you asked us to provide you with information concerning the implementation of the act. Specifically, we agreed to (1) identify major accomplishments of the 1998 summit and issues that might affect future summits, (2) describe DOL's outreach program, and (3) determine what DOL knows about the effectiveness of the summit and outreach program." (U.S. General Accounting Office)
Opinion: Might Be Best Not to Save Too Much for Retirement
Excerpt: "Take care that your retirement savings plans aren't too successful. A recent study suggests that aggressive retirement saving raises lifetime taxes and lowers lifetime spending for low- and moderate-income workers.... By contrast, retirement saving delivers as advertised for couples earning high incomes." (Fort Worth Star-Telegram)
Women Forced to Delay Retirement
Excerpt: "Hundreds of thousands of women in their 60's, part of the surge of divorces that started a generation ago, are finding themselves forced to stay in the work force because they lack sufficient money to retire. Wages in effect are becoming their pensions." (New York Times; free registration required)
Opinion: Bush Puts Biggest Women's Issue Ever On the Table
Excerpt: "Listen to Mom. And then maybe you will listen more carefully to the Bush administration's commission to privatize Social Security.... The government's biggest program for women isn't low-interest loans for female entrepreneurs or research into breast cancer. It's Social Security." (Marie Cocco in Newsday)
Annual Study of Small-to-Midsize and Large Company Boards: 2001 (PDF)
24 pages. Includes statistics on board compensation matters: retainer fees, board meeting fees, non-cash compensation, stock-option grants, stock awards, more. (The Segal Company)
Newly Posted or Renewed Job Openings (Post Yours!)
| 401(k)/DC Pension Consultant | for CBIZ Retirement Services Inc. in NY |
| Benefits Policy/Negotiations Project Managers | for University of California in CA |
| Benefits Policy/Negotiations Consultant | for University of California in CA |
| Sales Consultant | for Transamerica - The Winning Organization in TX |
| Sr. DB Supervisor | for Prestigious, privately held, full service consulting firm in CA |
| Consulting Services Supervisor | for A client who loves small to mid-size niche experience! in CA |
| DC Plan Administrator | for Aspen Pension Administrators, Inc. in NM |
| Retirement Plan Director | for CapTrust Financial Advisors in NC |
| ERISA Attorney | for ADP, Inc. in NJ |
| Director of Compliance | for Interactive Retirement Systems, Ltd. in MN |
| Health Plan Auditor/Consultant - LT-010626-004 | for Hewitt Associates LLC in IL |
Newly Posted Conferences (Post Yours!)
| Getting the Most out of your ESOP: Building a High Performance Culture Through Employee Ownership | in MO on September 24, 2001 presented by National Center for Employee Ownership |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Chicago (Oak Lawn) | in IL on October 2, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Atlanta | in GA on October 2, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Phoenix | in AZ on October 2, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Spokane, WA | in WA on October 2, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Evansville | in IN on October 9, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Davenport | in IA on October 9, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Houston | in TX on October 9, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Salt Lake City | in UT on October 9, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Omaha | in NE on October 16, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Ft. Lauderdale | in FL on October 16, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Las Vegas | in NV on October 16, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Lexington, KY | in KY on October 16, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - El Paso | in TX on October 22, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Minneapolis | in MN on October 23, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Indianapolis | in IN on October 23, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Dallas | in TX on October 23, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Peoria | in IL on October 23, 2001 presented by A.E. Roberts Company |
Newly Posted Press Releases
| CIGNA Retirement & Investment Services Lands Real Estate Firm's 401(k) Business (CIGNA Retirement & Investment Services) |
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