| The BenefitsLink Newsletter - Retirement Plans Edition |  |
July 12, 2001
Today's sponsor: The Plan Sales System (click)
Want to grow your retirement plan sales practice? The Plan Sales System is a comprehensive, 16-step system. You'll have detailed resources, contact names and numbers, checklists, charts, handouts, letters, extensive prospecting techniques, descriptions of current market opportunities, and tools for planning and monitoring sales activity. Click to order!
HTML Version of Revenue Ruling 2001-30 Providing Further Guidance for New Comparability Plans
Excerpt: "This revenue ruling provides guidance with respect to the application of IRC section 1.401(a)(4)-8(b) ... relating to compliance of certain new comparability and similar defined contribution plans with the nondiscrimination requirements of IRC section 401(a)(4) of the Internal Revenue Code.... Allocations are defined benefit replacement allocations if they satisfy the basic conditions in the regulations and the specific conditions prescribed in this revenue ruling." (Internal Revenue Service)
403(b) Gets a Little More Like Its Cousin
Excerpt: "There's one group of retirement savers -- maybe 6 million people -- whom I think of as forgotten. They're primarily teachers, health-care workers and employees of nonprofit organizations. They contribute to a type of retirement plan called a 403(b)." (Jane Bryant Quinn in the Washington Post)
Investing in Real Estate: Laying a Foundation for Improved Risk-Adjusted Returns (PDF)
4 pages; considerable discussion of asset allocation and modern investment portfolio theory. Excerpt: "[T]he performance of real estate over the last five years has been stable with double-digit returns. This experience is likely to increase interest in real estate among pension plans, especially given the projected lower returns for fixed-income investments and recent volatility of common stock prices." (The Segal Company)
Comparing Periodic and Lump-sum Investing
Excerpt: "A client may seek your advice about how to invest a significant sum he recently received, perhaps as a bonus, an inheritance, or sale of an asset. He's not sure whether to invest it all immediately or over time, and he wants to know what you think. You need to be prepared to discuss the merits and dangers of both plans." (Practitioners Publishing Company)
Another Question is Answered in the Who's the Employer Q&A Column
Physicians A, B & C form corporation XYZ and establish a pension plan covering the three physicians and 15 employees. Six years later physician A resigns to start his own corporation and sells all of his stock to B and C. He hires some of the employees of the XYZ corporation and establishes a pension plan for his employees. Must his employees be given vesting service credit for their earlier employment with corporation XYZ? (BenefitsLink.com)
Analysis: Employee Benefits Provisions Under the Economic Growth and Tax Relief Reconciliation Act of 2001 (PDF)
5 pages; well-written; attractive newsletter layout. (Proskauer Rose LLP)
Analysis: IRS Issues Final Regulations and Revenue Ruling on Cross-Testing
Excerpt: "Generally, highly compensated employees tend to be older as a group than non-highly compensated employees; thus, cross-tested plans can be used to give higher contributions to highly compensated employees.... Many employers will find that cross-testing remains a useful design despite the new limitations." (EBIA Weekly)
Analysis: IRS Guidance on Remedial Amendment Period for EGTRRA
Excerpt: "In Notice 2001-42, the IRS prescribes the remedial amendment period for amending qualified plans to reflect the legislative changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Notice 2001-42 also provides guidance on several ancillary issues, as described below." (EBIA Weekly)
Analysis: IRS Simplifies Determination Letter Process
Excerpt: "IRS Announcement 2001-77 simplifies the IRS determination letter process for 401(k) plans and other qualified retirement plans. Here are some highlights ..." (EBIA Weekly)
Analysis: IRS Guidance on EGTRRA Amendment Process
Concise summary for practitioners. Excerpt: "The key points of Notice 2001-42 are ..." (The Segal Company)
Welcome to new BenefitsLink advertiser Anlyn Ltd.
Excerpt: "Anlyn specializes in the management of printing and fulfillment of personalized materials, particularly Benefits Enrollment Kits and Pension Statements. Our forte is complex, high-profile projects. Our strong organizational skills allow us to control complex issues caused by HMO plan changes, incorrect data, legal issues or other problems that arise during production. We pay careful attention to detail. Anlyn can provide full management or specific services for a project."
Form 5500 Blanket Extension Unlikely Despite ASPA Efforts
Excerpt: "The U.S. Department of Labor is unlikely to grant a blanket extension of time for plans to file the annual Form 5500 information return for the 2000 plan year, according to Brian Graaf, executive director of the American Society of Pension Actuaries, in an email to ASPA members on July 11." (BenefitsLink)
Newly Posted or Renewed Job Openings (Post Yours!)
| Pension Administrator/Accountant | for First Mercantile Trust Company in TN |
| Client Service Manager | for ING-Aetna Financial Services in CT |
| Pension Accounting | for The Allied Companies in MI |
| Plan Administrator/Compliance Analyst | for Ceridian in VA |
Newly Posted Webcasts (Post Yours!)
| The Potential for Discrimination in Health Insurance Based on Predictive Genetic Tests | on July 11, 2001 presented by KaiserNetwork.org |
Newly Posted Conferences (Post Yours!)
| ERISA Fiduciary Conference | in IL on September 21, 2001 presented by Glasser LegalWorks |
| ERISA Fiduciary Conference | in NY on October 24, 2001 presented by Glasser LegalWorks |
| ERISA Litigation Conference | in NY on October 1, 2001 presented by Glasser LegalWorks |
| ERISA Litigation Conference | in CA on October 29, 2001 presented by Glasser LegalWorks |
| ERISA Litigation Conference | in FL on February 14, 2002 presented by Glasser LegalWorks |
Newly Posted Press Releases
| 1POINT ANNOUNCES FAITH BASED 401K PLATFORM USING THE TIMOTHY PLAN (1Point Administration Services) |
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