| The BenefitsLink Newsletter - Retirement Plans Edition |  |
August 8, 2001 - 13,066 subscribers
Today's sponsor: The Profit Sharing/401(k) Council of America (PSCA) (click)
PSCA thanks the sponsors of 401(k) Day 2001: ADP Retirement Services; American Express; Aon Consulting; BISYS Plan Services; Dreyfus Retirement; Fidelity; Hewitt Services; Manulife Financial; MassMutual Retirement Services; Massachusetts Financial Services; Metlife Retirement & Savings; Morningstar; Neuberger & Berman Management; Northern Trust Company; Oppenheimer & Co.; Putnam; SunTrust Bank; T. Rowe Price Associates; Trustmark; Vanguard; William M. Mercer; and DailyAccess.com for creative contributions to 401(k) Day 2001!
From the IRS: IRC 403(b)/457 Educational Outreach
Excerpt: "[The IRS'] Employee Plans [division] has created a diskette containing information for sponsors and practitioners of IRC 403(b) tax-sheltered annuities and 457 retirement plans which it distributes at benefits conferences, educational events, etc. Provided below is an online (and updated) version of this diskette." (Internal Revenue Service)
Analysis: 457 Plans of State and Local Government and Tax-Exempt Employers After SBJPA and TRA '97 (PDF)
Excerpt: "The purpose of this article is to provide an overview of section 457, identify the differences between an eligible and an ineligible section 457 plan, and discuss those plans which are excepted from the rules and requirements articulated in section 457 and the regulations thereunder. This article will also try to highlight specific situations where plans may not be in compliance with section 457." (Cheryl Press and Robert Patchell, published by the Internal Revenue Service)
Online Benefit Options On the Rise
Excerpt: "The number of companies giving their employees the option of managing their employer-sponsored benefits online has increased significantly, according to a survey. The study by Towers Perrin shows that more than 60% of respondents will allow employees to complete their benefit enrollment online in 2001, more than double the number reported in 2000." (PLANSPONSOR.com)
Court Dismisses Constitutional Challenges To New York Law on Suspension of Pension
The Second Circuit U.S. Court of Appeals has dismissed a plaintiff's constitutional challenges to a New York state law that requires the suspension of payment of pension benefits while a former public employee is reemployed in a new public job. The case is Connolly v. McCall, et al. (No. 00-7631). (Spencernet)
ERISA Industry Committee Submits Suggestions for EGTRRA Guidance from IRS
Excerpt: "I am pleased to enclose ERIC's submission on issues requiring priority guidance under the employee benefit provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001. As you know, ERIC has already submitted preliminary comments on the Act's catch-up contribution provisions.... We hope that the comments will assist the Treasury in identifying and addressing the important employee benefit issues raised by the Act." (ERIC - the ERISA Industry Committee)
House Passes Bill That Would Expand Benefits Under the Railroad Retirement System
On July 31, by a vote of 384-33, the House passed H.R. 1140, the Railroad Retirement and Survivors' Improvement Act of 2001, which would modernize the financing of the railroad retirement system and provide enhanced benefits to employees and beneficiaries. The bill was introduced by Rep. Don Young (Alas.). (Spencernet)
Analysis: QDROs-- What You Need to Know (PDF)
Article starts on page 8. Excerpt: "This article explains key issues for retirement plan administrators and discusses some of the more troublesome aspects in processing qualified domestic relations orders (QDROs)." (Milliman USA)
Opinion: Financial Analysts-- Writing Research That Benefits Their Employers and Themselves
August 2001 edition. Excerpt: "In a disclosure likely to send ripples (of laughter that is) through the investment community, the Securities and Exchange Commission said recently that the independence of Wall Street research analysts may be compromised when they profit personally by buying stock in companies they cover.... We have just experienced the largest evaporation of wealth in modern history. What does the industry have to say for itself?" (Edward A.H. Siedle, Esq. of The Benchmark Companies)
Second Circuit Affirms Dismissal of Class Action Alleging That Xerox Interfered With Benefits
The Second Circuit U.S. Court of Appeals has affirmed a federal district court's dismissal of a class action lawsuit alleging that Xerox Corporation violated ERISA by interfering with workers' rights to benefits. The case is Montesano, et al. v. Xerox Corporation Retirement Income Guarantee Plan, et al. (No. 00-9266). (Spencernet)
Welcome to new BenefitsLink advertiser InvestLink Technologies
Excerpt: "InvestLink Technologies, Inc. was founded in 1996 in NYC to provide a 'best of breed' record keeping system to third-party administrators. CEO Tim Slavin was named Impact Player of the Year in 1999 by DC News, recognizing Investlink's contribution to technology and unique pricing in the industry. InvestLink's Total Service Manager is a Windows-based platform that integrates recordkeeping, information processing, trading & administration."
Another Question is Answered in the Who's the Employer Q&A Column
For several years our company has taken advantage of the "Work Opportunity" and "Welfare to Work" tax credits. We are nearing completion of our first year of leasing our employees from a Professional Employer Organization. The question of "who's the employer" has arisen on several subjects, but now we wonder who can take the WOTC and WTW credits-- us or the PEO? (BenefitsLink.com)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
With the proposed changes in railroad pensions, I can retire at 60 on a full pension. But I've heard that I will have to pay my own insurance benefits until I'm 61. Is that true? What about my wife's insurance (she's 14 months younger than I am)? (BenefitsLink.com)
Another Question is Answered in the Stock Options, Restricted Stock and Other Long-Term Employment Incentives Q&A Column
In a Section 423 stock purchase plan, is it possible for the plan to provide that the employee will lose the 15% discount if he or she sells the stock within 6 months of purchase? (BenefitsLink.com)
August 1 Issue of Andersen's Human Capital Compensation and Benefits News Brief
Articles include: nondiscrimination rules for church and government plans delayed again; Section 530 employment-tax relief applied on entity-by-entity basis; nonaccountable plan per diems held to be 100 percent deductible; Weller bill would limit use of 10-or-more employer plan exception; wellness programs found to reduce workers' compensation costs; Congress approves renaming of education IRAs; administration supports allowing federal employees to keep frequent flier miles. (Andersen)
Table of Computer, Software CEO Pay
Excerpt: "The following table shows 23 U.S. chief executives in the computer and software industries who, after taking account of differences in company size, earned more than 100 percent above industry averages during 2000. Another table shows the seven industry CEOs who turned out to be the lowest paid." (Graef Crystal, on Bloomberg.com)
Key Factors in the Evolution of Employee Benefit Regulation (PDF)
Thoughtful and timely; the article starts on page 4. Excerpt: "Stepping back from the statutory and regulatory details and looking at the major forces and trends affecting employee benefits may be helpful in understanding government policy. Moreover, the insight gained may help plan sponsors better manage the difficult issues and competing interests involved in the design of their benefit programs." (Milliman USA)
Prudential Policyholders Vote Overwhelmingly In Favor of Demutualization
Press release. Excerpt: "Nearly 92 percent voted to approve the Plan of Reorganization. The policyholder vote, which ended July 31, was a critical milestone on Prudential's journey to become a publicly-held company." (Business Wire via Yahoo! News)
ASPA Provides Comments to DOL on Use of Electronic Media for Plan Disclosures
Excerpt: "On June 30, 2000, the Electronic Signatures in Global and National Commerce Act ... became law. We urge the Department to actively support the implementation of the Act on behalf of participants, beneficiaries, plan sponsors, and employers by recognizing that employee benefit plans and their participants will benefit from the ability to convert, to the extent it is prudent to do so, to electronic, paperless plan administration." (American Society of Pension Actuaries, Government Affairs Committee)
Think Tank: President's Criticism of Us on Cost of the Tax Cut Falls Short
Excerpt: "In short, the Administration's estimate that the cost of the full tax cut is 1.0 percent of GDP relies upon gimmicks embedded in the tax bill to make that cost appear lower than it actually is. The Center's estimate, which reflects the Joint Tax Committee's estimate of the cost of the tax cut if all provisions of the tax cut are extended, is the legitimate estimate of the tax cut's long-term cost if it is made permanent." (Center on Budget and Policy Priorities)
Newly Posted or Renewed Job Openings (Post Yours!)
| Actuarial Analyst | for Watson Wyatt in CA |
| 401(k) / Retirement Plan Administrator | for Howard Simon & Associates, Inc. in IL |
| Employee Benefit Legal Assistant | for Smith, Underwood & Perkins, P.C. in TX |
| Defined Contribution and General Pension Administrator or Trainee | for Small Consulting Firm in Ormond Beach, FL in FL |
| DC Plan Administrator | for Markley Actuarial Services, Inc. in PA |
| Benefits Manager | for S.J. Wexler Associates, Inc. in CT |
| Account Manager | for McGraw Wentworth in MI |
Newly Posted Conferences (Post Yours!)
| C-1, C-2(DB), C-2(DC), C-3, and C-4 Weekend Classes | in IL on November 10, 2001 presented by ASPA |
| Pension (EA-2 Segment A) Examination Preparation Course | in CA on September 29, 2001 presented by ASPA |
| Pension (EA-2 Segment A) Examination Preparation Course | in IL on October 5, 2001 presented by ASPA |
| Pension (EA-2 Segment A) Examination Preparation Course | in DC on October 12, 2001 presented by ASPA |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Richmond, VA | in VA on November 6, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Tallahassee, FL | in FL on November 6, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Syracuse, NY | in NY on November 6, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Philadelphia, PA | in PA on November 6, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Tampa, FL | in FL on November 6, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Boston, MA | in MA on November 6, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Providence, RI | in RI on November 13, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Albany, NY | in NY on November 13, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - St. Louis, MO | in MO on November 13, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Orlando, FL | in FL on November 13, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Virginia Beach, VA | in VA on November 27, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Buffalo, NY | in NY on November 27, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Wilmington, DE | in DE on November 27, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Jacksonville, FL | in FL on November 27, 2001 presented by A.E. Roberts Company |
| FMLA; Coordinating FMLA, ADA, and Workers' Comp; COBRA; HIPAA; and Section 125 - Kansas City, MO | in MO on November 27, 2001 presented by A.E. Roberts Company |
Newly Posted Press Releases
| SYSCOM Launches PERSpectives™ Pension Information Administration Product; Fully Integrated Information System Provides Host of Benefits to Retirement and Pension Programs (SYSCOM, Inc.) |
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Copyright 2001 BenefitsLink.com, Inc., but you may freely distribute this email newsletter in whole. This newsletter is edited by David Rhett Baker, J.D.
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