| The BenefitsLink Newsletter - Retirement Plans Edition |  |
November 19, 2001 - 12,541 subscribers
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Employees' 401(k) Accounts Sink with Enron
Excerpt: "Enron, the once-mighty energy giant, took millions of dollars of its employees' retirement savings down with it as it collapsed with shocking swiftness during the past month." (The Oregonian)
Pension Funds Weigh Options Over Enron Collapse
Excerpt: "Some big pension funds that invested in Enron Corp. said on Friday they are considering legal options in the wake of the energy giant's stock collapse and a regulatory probe of its dealings." (Reuters via Yahoo! News)
ASPA Comments to IRS on Importance of Section 414(k) Accounts in Defined Benefit Plans
Excerpt: "Code section 414(k), created by ERISA, allows a plan to have individual accounts within a defined benefit pension plan. In practice, we see these accounts providing participants, upon a distributable event and with proper spousal consent, the ability to transfer their benefit from the defined benefit plan and convert that benefit into a defined contribution account within the same plan." (American Society of Pension Actuaries)
Overview: Cross-Testing of New Comparability Plans
On June 29, 2001, the IRS issued final regulations establishing requirements that must be met by 'new comparability plans' that use cross-testing to show that the profit-sharing portion of the plans are nondiscriminatory. A new comparability plan is a defined contribution plan (e.g., a 401(k) plan) using allocation rates that result in most of the contributions being allocated to highly-compensated employees. The regulations are effective for plan years beginning on or after January 1, 2002. (Sanders, Schnabel & Brandenburg, P.C.)
Ding Dong, the MEA Witch is Almost Dead
Excerpt: "An extra special treat awaits 403(b) investors this holiday season courtesy of the Economic Growth and Tax Relief Reconciliation Act of 2001 -- the elimination of the horribly complicated Maximum Exclusion Allowance (MEA)." (403bWise.com)
Senators Introduce Independent Investment Advice Act
Sens. Jeff Bingaman (N.M.) and Susan Collins (Maine) have introduced S. 1677, the Independent Investment Advice Act of 2001. The bill is an alternative to H.R. 2269, the Retirement Security Advice Act, which recently was approved by the House Ways and Means Committee. S. 1677 would amend ERISA Sec. 404(e) to create a safe harbor for defined contribution plan sponsors in the designation and monitoring of investment advisers for plan participants. (Spencernet)
Analysis: IRS Proposes to Tax Stock Options Under FICA
Excerpt: "The bad news for employers is that the IRS has concluded that an employee does receive taxable wages under FICA and FUTA when exercising a statutory stock option. The good news is that the proposed regulations are not scheduled to become effective until January 1, 2003." (Faegre and Benson LLP)
Former N.J. Sen. Williams Dies
Excerpt: "Known as 'Pete,' Williams fought for a range of social welfare laws and urban transit programs. He was instrumental in passage of such landmark laws as the Employee Retirement Income Security Act, which protects worker pensions, and the Coal Mine and Health Safety Act." (StarTribune.com)
Newly Posted or Renewed Job Openings (Post Yours!)
| 401(k)/Retirement Plan Administrator | for Rudd & Company PLLC in ID |
| Administrator | for Summit Benefit & Actuarial Service, Inc. in OR |
| Benefits Manager | for Wachovia Corporation (Crawford, Slevin & Hicks - insurance subsidiary) in MD |
| Benefits Consultant | for Zurich North America in IL |
Newly Posted Conferences (Post Yours!)
| Certificate of Achievement in Public Plan Policy (CAPPP) | in FL on February 26, 2002 presented by International Foundation of Employee Benefit Plans |
| Certificate of Achievement in Public Plan Policy (CAPPP) | in FL on February 28, 2002 presented by International Foundation of Employee Benefit Plans |
| Certificate of Achievement in Public Plan Policy (CAPPP) | in CA on August 3, 2002 presented by International Foundation of Employee Benefit Plans |
| Certificate of Achievement in Public Plan Policy (CAPPP) | in Canada on September 21, 2002 presented by International Foundation of Employee Benefit Plans |
| Certificate of Achievement in Public Plan Policy (CAPPP) | in CA on October 15, 2002 presented by International Foundation of Employee Benefit Plans |
| Certificate of Achievement in Public Plan Policy (CAPPP) | in CA on October 18, 2002 presented by International Foundation of Employee Benefit Plans |
| Benefit Communication Strategies | in WI on May 22, 2002 presented by International Foundation of Employee Benefit Plans |
| Managing Benefits In An Online Environment | in WI on May 20, 2002 presented by International Foundation of Employee Benefit Plans |
| Managing Vendor/Partnering Relationships | in WI on October 7, 2002 presented by International Foundation of Employee Benefit Plans |
| 35th Annual Canadian Employee Benefits Conference | in Canada on August 9, 2002 presented by International Foundation of Employee Benefit Plans |
| Canadian Investment Institute | in FL on November 25, 2002 presented by International Foundation of Employee Benefit Plans |
| Essentials of Canadian Public Service Benefits | in FL on May 7, 2002 presented by International Foundation of Employee Benefit Plans |
| French Investments Institute | in Canada on May 30, 2002 presented by International Foundation of Employee Benefit Plans |
| Ottawa Legislative Update | in Canada on May 9, 2002 presented by International Foundation of Employee Benefit Plans |
| Advanced Trustee Management Standards | in Canada on April 4, 2002 presented by International Foundation of Employee Benefit Plans |
| Advanced Trustee Management Standards | in Canada on May 7, 2002 presented by International Foundation of Employee Benefit Plans |
| Advanced Trustee Management Standards | in Canada on June 3, 2002 presented by International Foundation of Employee Benefit Plans |
| Advanced Trustee Management Standards | in Canada on July 8, 2002 presented by International Foundation of Employee Benefit Plans |
| Advanced Trustee Management Standards | in Canada on August 10, 2002 presented by International Foundation of Employee Benefit Plans |
| Advanced Trustee Management Standards | in FL on November 23, 2002 presented by International Foundation of Employee Benefit Plans |
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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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