| The BenefitsLink Newsletter - Retirement Plans Edition |   |
May 2, 2002 - 11,626 subscribers
Today's sponsor: In Plain English
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(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)
PBGC Reporting Relief Relating to Use of 100% of 30-Year Treasury Yield
Technical Update 02-1, issued May 1, 2002. Excerpt: "This Technical Update allows plan administrators and employers to use 100% (rather than 85%) of the yield on 30-year Treasury securities (the 'Treasury yield') for purposes of reporting to the Pension Benefit Guaranty Corporation (PBGC) under sections 4010 and 4043 of the Employee Retirement Income Security Act (ERISA) for the following years ..." (Pension Benefit Guaranty Corporation)
Another Question is Answered in the Who's the Employer Q&A Column
What obstacles does a PEO (or any employee leasing or staffing firm) face in trying to convert to a multiple employer plan, as the IRS now suggests? Many clients have other pension plans for their employees. Can the client simply adopt another plan (the PEO plan) as an additional plan? What ongoing responsibilities exist for the client as one employer/member involved in a multiple employer plan? (BenefitsLink.com)
Consequences of a Multiple Employer Plan Involving a Professional Employer Organization
Excerpt: "Under Rev Proc 2002-21, a PEO can choose to set up a multiple employer plan. This page has a series of Q&As explaining the workings, advantages, and disadvantages of a PEO multiple employer plan. Click on a question to view the answer.' (You'll need to have Javascript enabled on your web browser in order for the questions to be clickable.) (S. Derrin Watson, Esq.)
Middle Americans' Retirement Wealth Fell as Stock Market Soared, New Study Reveals
Press release, with link to full 53-page PDF report. Excerpt: "A groundbreaking new study holds troubling news for millions of Americans now nearing retirement age. 'Retirement Insecurity: The Income Shortfalls Awaiting the Soon-to-Retire' shows that despite the recent unprecedented stock market boom and rapid proliferation of 401(k) retirement plans, typical Americans now facing retirement will have to tighten their belts harder than previous retirees." (Economic Policy Institute)
New Study Says Retirees Need About 76 Percent of Pre-Retirement Income
Excerpt: "We need to plan on having a retirement income that is at least 85 percent of our pre-retirement earnings. That's what the Retirement Industry tells us. Should we believe them?" (Scott Burns of The Dallas Morning News)
Asset Allocation for a New Decade: a New Approach (PDF)
Excerpt: "Just as there is no perfect asset allocation, there is no perfect asset allocation method. Each has its strengths and weaknesses. Let's look at the most common asset allocation methods and then consider a new approach-- one that takes the best characteristics of existing methods and infuses a healthy dose of realism into the process." (Still River Retirement Planning Software, Inc.)
IRS Warns of Scheme To Steal Identity and Financial Data (PDF)
IRS News Release IR-2002-55 warns of a fraudulent scheme currently circulating that uses fictitious bank correspondence and IRS forms in an attempt to trick taxpayers into disclosing their personal and banking data, which is then used to steal the taxpayer's identity and bank account deposits. (Internal Revenue Service)
Seasonal Benefits Cost Increases Outstrip Wage Hikes, BLS Reports
The most recent Employment Cost Index released by the Department of Labor's Bureau of Labor Statistics (BLS) reveals that benefits costs in private industry continue to rise faster than salaries. According to the BLS's Employment Cost Index-March 2002, benefits costs for private industry workers increased 4.8% for the year ended March 30, 2002, a decrease from 5.0% as of March 30, 2002. (Spencernet)
Newly Posted or Renewed Job Openings -
| Business Retirement Specialist | for Franklin Templeton Investments in CA |
| Vice President Retirement Plans and Financial Controls | for Black Mountain Management, Inc. in NY |
| Benefit Administrator | for The National Academies in DC |
| Pension Administrator | for Florida Pension Consultants in FL |
| Project Manager/Consultant | for Pyramid Digital Solutions in AL |
| Defined Contribution Administrator | for Oak Brook Pension and 401(k) Consulting firm in IL |
Newly Posted Conferences (Post Yours!)
| Retreat on Pension Reform: New Structures for the New Century | in PA on June 30, 2002 presented by The Wharton School and the World Bank |
Newly Posted Press Releases
| Still River Retirement Planning Software, Inc. Announces the Release of its New EMC Asset Allocation Model (Still River Retirement Planning Software, Inc.) |
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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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