| The BenefitsLink Newsletter - Retirement Plans Edition |  |
August 10, 2001 - 13,066 subscribers
Today's sponsor: Glasser LegalWorks (click)
This timely "how to" program will address new DOL claims procedures, the avoidance of fiduciary liability after the Harris Trust decision, identifying conduct that might trigger a DOL investigation under its Strategic Enforcement Plan, and more. Designed for ERISA fiduciaries, investment advisors, and in- house, corporate, tax, labor, and insurance counsel. September 21 in Chicago; October 24 in New York. Click for full details!
Many Employers Will Want to Amend Plans This Year
Excerpt: "[M]any employers will want to either change their pension plan to a 401(k) plan or add a 401(k) feature to their profit sharing plan prior to next year.... [F]or employers who decide that a safe harbor 401(k) plan is more advantageous than a 401(k) plan, or who want to go from a SIMPLE to a 401(k) plan, those changes need to be made and implemented prior to the 2002 plan year." (Greg Matthews, published by the Small Business Council of America)
North Carolina Withholds Pension Contribution to State Fund
Excerpt: "A decision by Gov. Mike Easley to withhold a July payment to the state employees pension fund drew the ire Wednesday of lawmakers and the largest employees' group." (WNCN via MSNBC.com)
When Deductions Are Additions: New Tax Act Means Big Changes for Plan Sponsors
Excerpt: "For defined benefit plans, the law increases the maximum benefit that can be provided to a participant in a qualified plan. This allows companies to distribute more of a top executive's benefits through a qualified plan and to deduct more of the contributions to the plan." (CFO.com)
Increasing Pension Coverage & Benefits and Preparing for Retirement (PDF)
74 pages. Adobe PDF version of Powerpoint-like presentation on July 17, 2001 to the ERISA Advisory Council. Covers a considerable amount of data and trends. (Ron Gebhardtsbauer of the American Academy of Actuaries)
Opinion: Simple Diversification Works
Excerpt: "More money. Less worry.... The question is how to get both. The conventional answer is to invest your money with a fund-manager-hero but that, at best, is an uncertain process. So I would like to suggest an alternative: Concentrate on a simple portfolio with two basic assets--- a stock index fund and a bond index fund." (Scott Burns of The Dallas Morning News)
Are Americans Saving Enough for Retirement? (PDF)
12 pages. Excerpt: "... reports in the popular press often warn that Americans are not saving enough for retirement. How accurate are these warnings? Are Americans jeopardizing their well-being in their later years through inadequate retirement preparations?" (Cori E. Uccello published by the Center for Retirement Research at Boston College)
The Trend in Lifetime Earnings Inequality and Its Impact on the Distribution of Retirement Income
Excerpt: "This [working] paper examines the trend in career earnings profiles and lifetime earnings inequality using a new data set that links micro-census information from a Census Bureau survey ... with the summary earnings records (SER) maintained by the Social Security Administration. It then considers the implications of these trends for the trend of Social Security replacement rates and future changes in the inequality of pension income." (Barry Bosworth, Gary Burtless and Claudia Sahm, published by the Center for Retirement Research, Boston College)
Opinion: Federal Thrift Savings Plan Expert Will Shed Light on Social Security Reform
Excerpt: "In the first sign of the direction the 16-member, bipartisan commission wants to take Social Security reform, Co-Chairman Daniel Patrick Moynihan wants Roger Mehle who crafted the investment plan in the late 1980s to tell the panel how the Thrift Savings Plan works. And whether it can become the model for partially privatizing the troubled New Deal-era retirement program." (Washington Times)
Employee Ownership Update for August 10, 2001
NCEO executive director Corey Rosen reviews the latest stock plan developments, including new legislation in Korea, a NLRB decision clarifying the legality of employee involvement committees (often found at dedicated ESOP companies and the like), and comments from the chair of the Financial Accounting Standards Board (FASB) indicating that FASB is not inclined to revisit the issue of stock option accounting. (National Center for Employee Ownership)
Labor Secretary's Remarks to the Labor and Employment Section of the American Bar Association
Excerpt: "It used to be that the number-one labor problem in America was unemployment. Even now, of course, we are worried about people who are unemployed, and we have a number of programs designed to help those who have lost their jobs find new ones. But the most difficult problem facing our workforce today is not unemployment per se, but the skills gap that exists between new jobs that are being created and the skill level of many job seekers." (Secretary of Labor Elaine L. Chao)
Some Insiders Exploit New Insider-Selling Rules
Excerpt: "Corporate executives are increasingly taking advantage of new rules on insider selling that critics say allow them to have their cake and sell it, too. The rules let executives, directors and other insiders regularly dispose of their companies' shares with minimal disclosure, even when they have inside information that will affect the stock." (CareerJournal.com)
Opinion: Cisco's Stock Option Excess
Excerpt: "Financial results would be very different if options were reflected on the income statement. Cisco is one company that has a history of issuing options in excess." (The Motley Fool; free registration required)
Newly Posted or Renewed Job Openings (Post Yours!)
| ACTUARY | for San Diego Pension Consultants, Inc. in CA |
| Retirement Plans Analyst | for M&M/MARS in NJ |
| 401(k) Administrator | for The Benefit Center, Inc. in NH |
| Pension Analyst | for Full Service TPA in NC |
Newly Posted Webcasts (Post Yours!)
| State of Managed Care Quality | on September 8, 2001 presented by National Committee for Quality Assurance |
Subscribe to the Welfare Plans Edition, too (click)
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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