| The BenefitsLink Newsletter - Retirement Plans Edition |  |
October 19, 2001 - 12,184 subscribers
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Analysis: IRS Rev. Rul. 2001-51 Provides Guidance on Section 415 EGTRRA Changes for DB Plans
Excerpt: "Is a plan amendment needed to make the EGTRRA changes effective? That depends on whether the plan incorporates IRC §415 by reference.... [Also, if a] plan's normal retirement age is less than 65, the plan must be designed so that the operation of the new IRC §415(b) will not cause a violation of the requirements under IRC §411 regarding nonforfeitability and actuarial increases for late retirement." (TRI Pension Services, Inc.)
Analysis: IRS Guidance on EGTRRA's Benefits and Contribution Limits (PDF)
Excerpt: "The IRS has issued Revenue Ruling 2001-51, providing guidance on several issues related to the increased maximum limits on benefits and contributions for retirement plans under the tax law enacted earlier this year. The guidance clarifies the application of the new limits in 2001 for noncalendar-year plans, requiring, in some cases, retroactive payments to terminated participants." (Milliman USA)
Plan Sponsors: What Bear Market? DB Plans Still Plumping Corporate Bottom Lines
Excerpt: "What bear market? A recent study by actuarial firm Milliman USA shows that the 20 largest companies' defined-benefit pension plans added almost $7 billion in corporate profits to their companies' bottom line during 2000. And they're likely to top that number this year." (CFO.com)
California Pension Fund Sues Steakhouse Executives
Excerpt: "California Public Employees Retirement System has sued top officials and board members of Lone Star Steakhouse, claiming they cost the company and its shareholders more than $100 million through 'self-dealing' transactions." (Associated Press via Excite News)
DOL Sues Plan Trustee For Failing To Remit $17,000 In Employee Contributions
The Department of Labor has filed a lawsuit against Neil E. Hansen, a trustee of the Sec. 401(k)/profit-sharing plan maintained by Craig, Colo.-based Health Care Services, for failing to remit $17,000 in employee contributions to the plan. The suit was filed in the U.S. District Court for the District of Colorado, as Chao v. Hansen (Civil Action No. 01-WM-1727). (Spencernet)
IRS Announces New Revisions of Determination Letter Application Forms
Announcement 2001-109. Excerpt: "[W]hile applicants are strongly encouraged to use the 2001 revisions to these forms, applicants may continue to submit determination letter applications on the prior versions of the revised forms (or on Form 5303) through December 31, 2001, consistent with the procedures in section I.G of Announcement 2001-77." (Internal Revenue Service)
2002 Social Security Taxable Wage Base is $84,900
Excerpt: "The OASDI tax rate for wages paid in 2002 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $84,900 would contribute $5,263.80 to the OASDI program in 2002, and his or her employer would contribute the same amount." (Social Security Administration)
Analysis: Military Duty Protected Under USERRA (PDF)
2 pages. Includes discussion of USERRA's impact on 401(k) plan participants, health & welfare plan participants and employer stock option holders. (Jenkens & Gilchrist)
When the National Guard Calls Up an Employee
Excerpt: "Companies face two major issues when employees are called up. First, how to replace them or handle their responsibilities. And second, what to do about salary and benefits-- should you as an owner continue paying reservists or guard members or provide their families with health insurance?" (Associated Press via Excite News)
Newly Posted or Renewed Job Openings (Post Yours!)
| Pension Investigator | for U.S. Department Of Labor - Pension And Welfare Benefits Administration in IL |
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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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