December 20, 2001 - 12,792 subscribers Today's sponsor: Actuarial Systems Corporation (Click on company name or banner to learn more.) For the past 20 years ASC has provided complete automation for the pension office, including state of the art DC/401(k) and DB administration and valuation systems, as well as sophisticated compliance testing and DV Direct, a revolutionary solution for daily valuation functions. For a free demo disk and more information click here: http://www.asc-net.com/contact.html (Help BenefitsLink to provide this newsletter at no charge to you -- our sponsors pay our way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor) DOL Advisory Opinion 2001-09A: How Financial Services Firms Can Provide Asset Allocation Advice Excerpt: "On the basis of the facts and representations contained in your submission, it is the view of the Department that, for the reasons discussed below, the transactions with respect to which you have requested exemptive relief would not, to the extent execute din a manner consistent with such facts and representations, violate the provisions of section 406(b) of ERISA." (U.S. Department of Labor, Pension and Welfare Benefits Administration) PWBA Statement on Issuance of Advisory Opinion Illustrating Permitted Asset Allocation Advice Excerpt: "The Advisory Opinion explains how financial service providers can provide independent investment advice without running afoul of the ERISA prohibited transaction rules.... While this opinion is an important precedent and will facilitate the provision of investment advice, the Department looks forward to the Senate passing the Retirement Security Advice Act ..." (U.S. Department of Labor, Pension and Welfare Benefits Administration) Analysis: New Mortality Tables for Distributions and Limits (PDF) Excerpt: "Prior to 2002, the prescribed mortality table has been the 1983 Group Annuity Mortality (83GAM) table, which is based on a fixed blend of 50% of the male mortality rates and 50% of the female mortality rates. The new prescribed mortality table is the 1994 Group Annuity Reserving (94GAR) table, projected to 2002, based on a fixed blend of 50% of the unloaded male mortality rates and 50% of the unloaded female mortality rates." (Milliman USA) Who Directs Investments During Divorce Proceedings? Excerpt: "After the segregation of participant account balances based on a DRO [a court's 'Domestic Relations Order'] (in a participant-directed plan), who should direct the investment of the segregated balance while the DRO is being reviewed to determine qualification?" (Reish Luftman McDaniel & Reicher) Profit Sharing Council Encourages California Legislators to Conform State Tax Code to EGTRRA (PDF) Excerpt: "Nonconformity with the California code raises a myriad of issues for employers who sponsor retirement plans for their California workers. There is great uncertainty as to how California will treat these plans." (Profit Sharing/401(k) Council of America) Another Question is Answered in the Who's the Employer Q&A Column John owns 60% of JLK partnership. JLK partnership owns 40% of XYZ partnership. Under the Section 318 attribution rules, that means John owns 24% of XYZ. Does that mean that XYZ is deemed to own John's 60% of JLK, pursuant to IRC section 318(a)(3)(A)? This is important because XYZ would be a A-Org to JLK if XYZ is deemed to be a partner in JLK. (BenefitsLink.com) PBGC Protects Benefits of 2,100 Participants in Plan of Bankrupt North Carolina Firm Excerpt: "PBGC is acting because the company is in bankruptcy liquidation and can no longer sponsor the pension plans, said Steven A. Kandarian, Executive Director of PBGC." (Pension Benefit Guaranty Corporation) After Enron, Calls Grow For Pension Law Fixes Excerpt: "While the plans are arguably well-intentioned, critics say they violate a key rule of responsible investing: Diversify." (Christian Science Monitor) Opinion: How to Protect 401(k) Holders Excerpt: "[A]ll plans should be required to offer 'self-directed brokerage' options that would allow employees to invest in any stock, bond or fund they choose, just as one does with an IRA."(The [Philadelphia] Inquirer) Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column I retired in 2001 and have received a reduced 60/30 benefit since April 2001. According to Q&A 145, I have the option of canceling my original application, repaying the benefits I received for 2001, and applying for an unreduced benefit effective January 1, 2002. My question is, how do I repay my benefits for 2001? Do I have to pay it back in a single payment or can I work out other arrangements? (BenefitsLink.com) Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column If and when President Bush signs the new railroad retirement legislation, how can I find detailed information online about the changes? (BenefitsLink.com) What Employers Need To Know when Employees Are Called to Active Duty Excerpt: "Almost all civilian employees are within USERRA's protection. The law covers all private employers regardless of size, all state governments, and the three branches of the federal government. Furthermore, unlike many anti-discrimination statutes, USERRA does not exempt small businesses." (Nixon Peabody LLP) SEC Widens Rule Covering Stock Options Excerpt: "To the surprise of shareholder advocates, the Securities and Exchange Commission voted unanimously yesterday for far greater disclosure of corporate stock option plans." (New York Times; free registration required) Newly Posted Press Releases ( Post Yours!)
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.
|