| The BenefitsLink Newsletter - Retirement Plans Edition |  |
June 28, 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 or click on the link above!
Retired PG&E Executives Seek Full Pensions in Bankruptcy Case
Excerpt: "While Pacific Gas & Electric Co. hopes to pay millions of dollars in bonuses to retain its current managers, dozens of retired high-ranking PG&E executives have lined up as creditors in the utility's bankruptcy case, saying part of their pensions have stopped coming. The retirees--ranging from chief executive officers to vice presidents--are upset to find themselves among those owed money by the company they once ran, their attorney said." (Los Angeles Times)
Another Question is Answered in the Who's the Employer Q&A Column
A father owns 3 companies that constitute a controlled group. His 2 adult sons together own 2 other companies they recently purchased; that's a separate controlled group. The father co-signed with the sons for their purchase. Does that mean all 5 companies now are part of the same controlled group? (BenefitsLink.com)
Submission of the ERISA Industry Committee to Treasury Regarding the Anti-Backloading Rules
Excerpt: "The ERISA Industry Committee ('ERIC') has very serious concerns with the way the Internal Revenue Service is currently applying the anti-backloading rules in Code ยง 411(b) to plans with alternative benefit formulas -- plans providing each participant with the greatest benefit produced by any of the plan's alternative formulas.... The Service is currently applying the anti-backloading rules in a way that discourages plans from frontloading benefit accruals." (ERISA Industry Committee)
Funds Being Paid to Many Participants in Terminated DB Plans Due to Lawsuit Against PBGC
Excerpt: "Welcome to the Page/Collins Settlement Website ... The benefits are payable under a 1996 settlement with the Pension Benefit Guaranty Corporation, involving some 12,000 pension plans nationwide that were terminated between 1976 and 1981." (LostPension.net)
Recordkeepers Roll Out More Bells and Whistles: 2001 Survey
Excerpt: "[A]ccording to PLANSPONSOR's 2001 Annual Recordkeeping Survey ... nearly all (95%) offer some type of Web-based account lookup capability for participants, as well as online transfers (89%) and contribution investment changes (79%). The vast majority (83%) offered some kind of savings calculators." (PLANSPONSOR.com; free registration required)
Amending Qualified Plans for GUST (PDF)
5 pages; well done. Excerpt: "[C]lients are asking us when they must amend their qualified plans for GUST ... We must answer them, it all depends. Our answer is, It depends upon the type of plan they have adopted, such as individually designed, a master and prototype (M&P), or volume submitter, and upon the individual sponsor of the M&P or volume submitter plan adopted." (Lanning R. Hochhauser, Esq. of Datair Employee Benefit Systems, Inc.)
Retirement Income: Working Toward a 5 Percent Solution
Excerpt: "A financial planner in El Cajon California, [William] Bengen addressed the questions a multitude of readers have asked. 'If I cut back on expenses in bad markets and raise them in good markets, can't I withdraw more from my retirement nest-egg?' ... [Y]ou can be 100 percent certain of remaining solvent for 30 years of retirement with a starting withdrawal rate of 4.58 percent." (Scott Burns of The Dallas Morning News)
Assessing Your Client's Risk Tolerance with PPC's Risk Tolerance Survey
Excerpt: "Last time we discussed the concept of assessing client risk tolerance as a key to developing an appropriate investment portfolio. In this article, we will introduce PPC's Risk Tolerance Survey as a primary tool for advisers to use to gain this understanding." (Practitioners Publishing Company)
Retirement Planning for $20-- 20 Million Users Expected by 2005
Excerpt: "The $20 annual service by mPower Advisors, a San Francisco start-up, is a featured retirement tool on the personal finance 'megasite' launched Tuesday by MSN MoneyCentral and CNBC." (The Mercury News)
New International Accounting Standards Board May Try to Impose an Earnings Charge for Stock Options (PDF)
Excerpt: "Two 'leadership projects,' accounting for employee stock options and business combinations, are at the top of the agenda for fast-track action by the newly formed International Accounting Standards Board ('IASB').... A final decision to proceed with the stock option project will be made in July. The intent would be for any new stock option accounting standard that evolves from this process to be adopted by all eight nations, including the U.S." (Frederic W. Cook & Co., Inc.)
Newly Posted or Renewed Job Openings (Post Yours!)
| Defined Contribution Plan Administrator | for The Ross Companies in NY |
| Health Plan Auditor/Consultant - LT-010626-004 | for Hewitt Associates LLC in IL |
| Pension Consultant | for Fidelity Investments in MA |
| Pension Administrator | for B & B Benefits Administration, Inc. in CA |
| Manager, Employee Benefits | for Memorial Health University Medical Center in GA |
| Customer Service Representative - Retirement and Financial Services | for Fast Growing Retirement and Financial Services Department in Silicon Valley in CA |
| Employee Communications Consultant | for CitiStreet- A State Street and Citigroup company in MA |
Newly Posted Conferences (Post Yours!)
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Louisville | in KY on October 30, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Chicago, O'Hare | in IL on October 30, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Des Moines | in IA on October 30, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Albuquerque | in NM on October 30, 2001 presented by A.E. Roberts Company |
Newly Posted Press Releases
| Larkspur Data and 401kExchange Deliver 401(k) Services to Financial Professionals (401kExchange.com) |
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