| The BenefitsLink Newsletter - Retirement Plans Edition |   |
December 10, 2001 - 12,718 subscribers
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Pension Funds Have Lost Billions
Excerpt: "The 50 largest U.S. corporate pension funds lost 25 percent of their funding 'cushions' in 2000, thanks to a collective $38.2 billion decline in assets, according to a recent survey by Milliman USA, an actuarial consulting firm. Nonetheless, these same 50 funds were able to report total profits of $8.7 billion through accounting techniques designed to 'smooth' returns over a multiyear period, Milliman found." (The Detroit News)
Stimulus Bill May Mean Tax Breaks
Excerpt: "The U.S. Chamber of Commerce, National Association of Manufacturers, American Benefits Council, the ERISA Industry Committee and other lobbying groups are trying to get negotiators to include an item involving pension contributions made by companies.... The groups want Congress to remove the link between the contributions and the 30-year Treasury bond and either set a permanent 7 percent interest rate level or tie it to a corporate bond rate by Moody's ratings agency." (Associated Press via Yahoo! News)
Employee Ownership: a Good Benefit, an Inadequate Retirement Plan
In the wake of the Enron bankruptcy, NCEO executive director Corey Rosen discusses why employee ownership makes a good employee benefit but, in and of itself, an inadequate retirement plan. (The National Center for Employee Ownership)
Companies Cut 401(k) Matches To Save Money
Excerpt: "Employers, battling recession, are saving millions of dollars by slashing employee benefits such as life insurance and retirement plans. For example ..." (USA Today)
Enron Worker Pension Losses To Spur Reforms
Excerpt: "Concrete proposals are already emerging for reforms, including: barring companies from limiting employees from selling their stock based on their age, or for administrative reasons; educating consumers about the risks of holding too much of a single stock; requiring the same or similar rules for rank-and-file employees and top executives." (Reuters Health via Excite News)
Plan for Cutting Tax Bite in Roth IRA Conversion Could Cost Retirees
Excerpt: "A Walnut Creek, Calif., insurance agency is pitching an investment product with the promise that it could provide big tax savings for senior citizens. But if they bite, consumers might lose significantly more than they save.... It is advertised as a way for retirees older than 59 to convert a traditional IRA into a Roth IRA with 'no upfront tax cost.'" (Los Angeles Times)
Those New U.S. Tax Breaks Not Law Here in California
Excerpt: "Even though the federal government says you can contribute more to your retirement kitty, California law doesn't yet allow it. Taxpayers who try to claim the higher contributions on their 2001 state tax returns could be penalized, or even blocked. That's because California does not automatically adjust its tax codes to mirror federal laws, allowing the state Legislature and its analysts to decide what the effect would be on the state budget before adopting the changes." (Orange County [Calif.] Register)
Opinion: Reinventing 401(k) Plans
Excerpt: "Eighty percent of all Americans don't save enough. Nor do they get a high enough return on their savings. Result? A low-income retirement.... One set of answers is in a new study from the National Center for Policy Analysis in Dallas. Titled 'Reinventing Retirement Income in America,' the study suggests how we can turn 401(k) plans into true savings tools that will help working Americans retire with dignity." (Scott Burns of The Dallas Morning News)
Life In Retirement Isn't As Cheap As Believed
Excerpt: "Financial planners often use the rule of thumb that retirees need between two-thirds and three-quarters of their pre-retirement income to maintain their pre-retirement standard of living.... A new study, which looked at the actual expenses of thousands of workers and retirees, concludes that for most people, three-quarters of pre-retirement income is about right, but not for the assumed reason." (Washington Post)
Opinion: Can Payroll Taxes Be Turned Into Wealth?
Excerpt: "The open secret is that the president's Commission on Social Security Reform will shortly recommend some form of privatization -- primarily because the president avoided naming to the panel anyone who doubts the wisdom of privatization. That, and the fact that the approach is loved by political conservatives, doesn't necessarily make privatization a bad idea, of course." (Washington Post)
Pay and Benefit Cutbacks Spread to More Companies
Excerpt: "Until recently, broad retreats from generous salaries and benefits were largely confined to the high-tech industry. But now they are happening in other hard-hit sectors, including auto makers, airlines, media, hotels and certain financial services." (CareerJournal.com)
FAS 87 and FAS 106 Summary of Statistics: 2001 Survey
Excerpt: "The [Andersen] Human Capital practice has prepared a summary of the key assumptions for the disclosure of pension and other postretirement benefits by the top 50 corporations, as ranked by Fortune magazine, that sponsor defined benefit pension plans with a measurement date of December 31, 2000." (Andersen)
The Employee's Guide to Stock Options
The NCEO has placed excerpts from this new book on its Web site. (National Center for Employee Ownership)
Newly Posted or Renewed Job Openings (Post Yours!)
| Implementation Project Manager | for Northern Trust Retirement Consulting, L.L.C. in GA |
| Pension Administrator | for PFS in GA |
| Consulting Pension Actuary | for Hooker & Holcombe, Inc. in CT |
| Human Resources Representative | for Kaiser Permanente IT in CA |
| Pension Actuary - Students/ASA's/FSA's/EA's | for D.W. Simpson & Company Actuarial & Benefits Recruiters in ALL STATES |
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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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