| The BenefitsLink Newsletter - Retirement Plans Edition |   |
January 25, 2002 - 12,921 subscribers
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In Notice 2002-7, IRS Extends Deadlines for Minimum Funding
All plans whose Code section 412(c)(10) deadline was between September 11 and September 23, 2001 have until September 24, 2001 to have made the contribution; plans directly affected by the terrorist attacks (defined in the notice) whose deadline is between September 11, 2001 and February 11, 2002 have until February 12, 2002. (Internal Revenue Service)
Pension Funds Seek Key Role in Enron Actions
Excerpt: "Public retirement funds, burned by huge losses on Enron Corp. , are pressing to play a lead role in the shareholder lawsuits against the company -- and are hoping the fallout over Enron's downfall will help spur corporate governance reforms at other U.S. companies." (Reuters via Yahoo! Finance)
Court Upholds Conviction of Pension Plan Trustees For Embezzling $1.6 Million
The Ninth Circuit U.S. Court of Appeals has upheld the conviction of two pension plan trustees on charges of embezzling $1.6 million in plan assets and filing false annual reports. The cases are U.S. v. Wiseman (No. 00-10325) and U.S. v. Mett (No. 00-10341). (Spencernet)
Financial Executives Responsible for Employee Benefits Invited to Participate in Online Plans Survey
The survey was developed by the FEI (Financial Executives International) Research Foundation and the FEI Committee on Benefits Finance and co-sponsored by the Employee Benefit Research Institute (EBRI). (Financial Executives Online)
Enron's Fall Piques Congress' Interest In 401(k) Rules
Excerpt: "Some lawmakers and pension specialists are wondering if the Enron case will be for the 401(k) plan what the Studebaker case of nearly 40 years ago was to more traditional company pension plans. In the Studebaker case, workers were shocked to find their pension benefits were not guaranteed when the company terminated the plan in 1963. That case prompted Congress to eventually pass the Employee Retirement Income Security Act of 1974 ..." (Chicago Tribune)
Kmart Dive Reveals Risks of Betting On Company Stock
Excerpt: "Employees at Kmart Corp. have about 14 percent of their 401(k) pension money in the company's stock, a smaller chunk than workers at the average company. But the retailer's bankruptcy has cost its 240,000 employees millions of dollars, and may even force some of them to postpone retirement." (Reuters via Yahoo! Finance)
Beware the 401(k) Gamble
Excerpt: "Working people have turned the stock market into their retirement system, and themselves, rather than their corporate employers, into retirement money managers. Individuals are now responsible for making the basic investment decisions for half the nation's non-Social Security retirement savings ..." (Los Angeles Times via Sunspot.net)
Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
I retired at 62 on a reduced 60/30 benefit. My wife started to receive a spouse benefit at 60. She is now over 62. What percentage of her spouse Tier 1 benefit is considered to be above the Social Security benefit? (BenefitsLink.com)
New Options in Nonqualified Retirement Plans
Excerpt: "What limits do executives and middle managers face when saving through their qualified retirement plans? For 2002 covered compensation is capped at $200,000, 401(k) elective deferrals at $11,000, and annual additions from all sources at $40,000. In addition, qualified retirement plans may impose their own restrictions ..." (The Vanguard Group, Inc.)
Enron Executives' Benefits Kept Flowing
Excerpt: "According to company filings, Enron will pay Lay a pension estimated at $475,042 a year for life. In addition, as part of an agreement Lay signed with the company in 1996, it agreed to pay a total of $1.25 million in insurance premiums through 2001 on a $12 million life insurance policy. Other executives have similar pension or insurance agreements with Enron." (Wall Street Journal via MSNBC.com)
Newly Posted or Renewed Job Openings -
| Pension Attorney | for Sheridan and Associates, Inc. in IN |
| Pension Administrator | for Danziger & Markhoff LLP in NY |
| Sr. Benefits Analyst | for Lyondell Chemical Company in TX |
| Account Manager | for Vinings Management Corporation in GA |
| Compliance Specialist | for The Segal Company in IL |
Newly Posted Conferences (Post Yours!)
| 2002 Mid-Atlantic Benefits Conference | in PA on May 16, 2002 presented by IRS and ASPA |
| 2002 Northeast Key Benefits Conference | in MA on June 13, 2002 presented by IRS and ASPA |
| 2002 Northeast Key Benefits Conference | in NY on June 14, 2002 presented by IRS and ASPA |
| Communicating Employee Benefits: Fundamentals, Opportunities and Tools | in MD on February 21, 2002 presented by The Baltimore Chapter of ISCEBS |
| 2002 Business Leadership Conference | in NV on May 4, 2002 presented by ASPA |
| FMLA, COBRA (including HIPAA portability), Section 125, and HIPAA Privacy - Richmond | in VA on April 2, 2002 presented by A.E. Roberts Company |
| FMLA, COBRA (including HIPAA portability), Section 125, and HIPAA Privacy - Cincinnati | in OH on April 2, 2002 presented by A.E. Roberts Company |
| 2003 Los Angeles Benefits Conference | in CA on January 30, 2003 presented by IRS and ASPA |
| U.S. Defined Contribution Plans Overview Course | in FL on March 4, 2002 presented by Society of Professional Administrators and Recordkeepers (SPARK) |
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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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