| The BenefitsLink Newsletter - Retirement Plans Edition |   |
April 19, 2002 - 11,721 subscribers
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House Passes Bill to Make EGTRRA Changes Permanent; Senate Unlikely to Take Up Measure
Excerpt: "The House on April 18 approved a measure that would make permanent the tax-cut provisions contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (P.L. 107-16) by a vote of 229 to 198. The bill's fate in the Senate is uncertain, since Senate Majority Leader Thomas A. Daschle, D-S.D. refuses to bring it up for a vote." (taxCCHGROUP.com)
Some Polaroid Retirees Stand to Lose if Buyer Won't Take Over Pension Plan
Excerpt: "Polaroid's chief executive ... yesterday painted One Equity Partners' $265 million bid for Polaroid as a good thing for the company. But employees and retirees said the announcement spelled more bad news.... When the [PBGC] takes over a pension plan, payments are capped at about $43,000 a year.... In addition, workers that retired before age 65, or left under one of Polaroid's many early retirement programs, may face lower annual pension caps." (Boston Globe)
Labor Department Questions Enron's Truthfulness in Deal to Turn Over Plans to Independent Fiduciary
Excerpt: "The Labor Department is suggesting that Enron deceived the government by reaching an agreement it never intended to keep to turn over control of its employee pension plans to an independent firm whose fees it would pay." (New York Times; free registration required)
Higher Deferral Limits in Plans May Mean More Complexity in Handling Matching Contributions
Excerpt: "Pension reform offers dramatic new savings opportunities for participants, but be ready for the possibility of some administrative complexity in calculating plan matches this year." (The Vanguard Group)
Overview: IRS Issues Final Regulations under Section 401(a)(9)
Excerpt: "For most people, the final regs will result in the lowest minimum required distribution [rather than using the 2001 proposed regulations or the 1987 proposed regulations]." (Barry C. Picker, CPA/FPS, CFP)
New Compensation Definition Helps Lower-Compensated 457 Participants
Excerpt: " Congress recently passed 'technical corrections' to fix the situation and enable some 457 plan participants to contribute more to their plans than would otherwise have been possible. One correction increases to 100 percent the percentage of compensation that can be used as a basis for a 457 contribution." (mPower Cafe)
Witness List and Written Testimony to Finance Committee on Corporate Governance and Executive Comp
Includes statements from Dr. Carolyn Brancato, The Conference Board; Sarah Teslik, Council of International Investors; Robert Pozen, Harvard University; Ira T. Kay, PhD., Watson Worldwide; Kathryn J. Kennedy, John Marshall Law School; and John H. Biggs, TIAA-CREF; Mark Heesen, National Venture Capital Association. (U.S. Senate, Committee on Finance)
Opinion: Rebutting Stock Option Defenders
Excerpt: "I had intended to stop writing about stock options after critiquing them in my last two columns, but I feel compelled to rebut the self-serving, nonsensical arguments put forward by defenders of the status quo." (Whitney Tilson in The Motley Fool)
Opinion: Just What We Need-- Another Accounting Loophole for Stock Options
Excerpt: "So the question for investors is simply this: Would expensing stock options clarify the understanding of a company's numbers, or muck it up? ... Would some financial managers try to game the system to manage earnings [if stock options were forced to be expensed]? You bet they would." (SmartMoney.com on Yahoo! News)
Stock Options Accounting Change Could Hurt Start-ups
Excerpt: "Entrepreneurial companies would suffer under proposed rule changes regarding the accounting of stock options, a tool used by start-ups and their venture backers for recruiting and rewarding the best employees, a Senate committee was told [Thursday, April 18, 2002]." (Washington Post)
Managing Fiduciary Responsibility: Establishment and Operation of a Benefits Committee
4 pages. Excerpt: "In this article, we will discuss how to establish and operate a benefits committee, the fiduciary nature of the committee's functions, and provide a disciplined approach to meeting a benefit program's business objectives." (Aon)
Newly Posted or Renewed Job Openings -
| Financial Services Support Representative | for Nationwide Insurance in OH |
| Product Manager - Product Development | for CIGNA Corporation in CT |
| Financial Services Analyst | for Nationwide Insurance in OH |
| Employee Benefits Attorneys | for The Nation's Most Preeminent Employee Benefits Practice in CA, DC |
| Pension Analyst | for Mutual of Omaha Insurance Company in NE |
Newly Posted Webcasts (Post Yours!)
| The Health Care Crisis: The President's Plan for High-Quality, Affordable Care | on April 17, 2002 presented by President's Council of Economic Advisors, Washington, D.C. |
| Senate HELP Committee Hearing: Medical Privacy Issues | on April 16, 2002 presented by U.S. Senate's Health, Education, Labor and Pension Committee |
| Making the Drug Industry Play Fair | on April 15, 2002 presented by Families USA, Blue Cross/Blue Shield, Washington, D.C. |
Newly Posted Press Releases
| San Diego Retirees Get CareCounsel's Healthcare Advocacy Program (CareCounsel) |
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Copyright 2002 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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