| The BenefitsLink Newsletter - Retirement Plans Edition |  |
October 17, 2001 - 12,184 subscribers
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Revenue Ruling 2001-51 Provides Guidance on Increased Section 415 Limits Under EGTRRA
The ruling provides guidance on (1) benefit increases that may be provided as a result of the increased § 415 limitations under EGTRRA; (2) plan amendments that may be adopted to take into account the increased § 415 limitations under EGTRRA; (3) the effect of the increased § 415 limitations under EGTRRA on other qualification requirements; and (4) how the 'sunset' provision of EGTRRA is taken into account for purposes of §§ 412 and 404. (Internal Revenue Service)
The Effects of Adopting Cash-Balance Pension Plans
Excellent article. Excerpt: "The negative effect on older workers has led to a number of recent legal actions questioning whether these plan conversions are discriminatory. In addition to Congress, four federal agencies--the IRS, the EEOC, the Labor Department, and the GAO--are now investigating the question of age discrimination in converting to the cash-balance plans. Tax deductions may be disallowed if plans are found to discriminate." (Business Horizons via FindArticles.com)
Form 5306-A Revised for Use by Institutions Sponsoring SEPs or SIMPLE IRAs
Excerpt: "New Form 5306-A is now available for immediate use. The new form is to be used by sponsors of prototype simplified employee pensions (SEPs) and prototype SIMPLE IRA plans to apply for opinion letters on these documents." (Internal Revenue Service)
Federal Interest Rates Announced For Pensions
The following interest rates have been announced for use in the operation and administration of qualified pension plans: Oct. 2001 Mid-Term Applicable Federal Rate (AFR) 4.59% (SpencerNet)
Some Former Outboard Marine Employees May See Cuts Despite PBGC Takeover
Excerpt: "Retired Outboard Marine Corp. workers may lose some pension benefits next year when a federal agency takes over the company' s pension plan, union officials said. The takeover announcement means that hourly employees who opted for early retirement after the company's Milwaukee plant closed could miss out on supplemental pension benefits." (StarTribune.com)
Tax Credit Helps Lower-paid Workers Save for Retirement
Excerpt: "Lower-paid workers may be getting little notices from their employers in the next few weeks reminding them that if they contribute to a company retirement plan or an individual retirement account next year, the government will pick up part of the tab. The benefit comes in the form of a 'Saver's Tax Credit' enacted as part of the big tax-cut package Congress passed earlier this year." (San Jose Mercury News)
No More Free Rides for Pension Fund Managers
Excerpt: "The stock market has produced many different kinds of losers this year. Your company and its pension plan may very well be one of them. Corporate and government pension plans responsible for paying retirees set amounts of money each year, known as defined benefit plans, were spectacular winners during the bull stock market of the 1990s. Now, the facts and assumptions of investing life are changing for the administrators of those plans." (Boston Globe)
"Socially Responsible Investments" Group Publishes Guide for Trustees
Excerpt: "The guide, aimed at institutional investors such as pension funds, universities, religious organizations, and foundations, includes analyses of financial performance and fiduciary issues that support the case for sustainable and responsible investing. It also details strategies that institutional investors can use to identify risk and capitalize on market opportunities, while generating social and environmental benefits." (PLANSPONSOR.com; free registration required)
Companies Face Employment, Benefits Issues After Attacks
Excerpt: "In the wake of the September 11 terrorist attacks, the Department of Defense (DOD) has been authorized to call up military reservists. Their mobilization brings up many questions regarding the employment status and benefits of employees called to military service. The Uniformed Services Employment and Reemployment Rights Act (USERRA) governs the health care and pension benefits of these employees." (Watson Wyatt)
Newly Posted or Renewed Job Openings (Post Yours!)
| Pension Consultants/Administrators; F/T & P/T | for Northern NJ Mid-Size Pension Consulting Firm in NJ, NY |
| Tax Specialist-5500 Reporting | for Fidelity Investments in TX |
| Senior Plan Implementation Analyst | for Invesmart in PA |
| Quality Assurance Specialist | for Invesmart in PA |
| Operations Team Leader | for Invesmart in PA |
| Supervisory Benefits Advisor | for U.S. Department of Labor, Pension and Welfare Benefits Administration in DC |
Newly Posted Conferences (Post Yours!)
| Private Money Managers for Individuals and Fiduciaries | in MD on October 24, 2001 presented by Morgan Stanley |
| Private Money Managers for Individuals and Fiduciaries | in MD on November 14, 2001 presented by Morgan Stanley |
Newly Posted Press Releases
| BaseCamp Ventures Closes $4 Million Funding Round with ExpertPlan (ExpertPlan) |
| NuView Systems, Inc. and Arc7 Technology Solutions Team Together on Implementation Services (NuView Systems, 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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