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The BenefitsLink Newsletter -
Retirement Plans Edition
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June 12, 2002 - 11,385 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)

IRS Rules N.Y. Police, Firefighters' Survivor Annuities Are Not Includible in Federal Estate (PDF)
Excerpt: "The accidental death benefits payable pursuant to New York City and New York State laws to specified beneficiaries of a deceased New York City firefighter or police officer who died in the line of duty are not includible in the decedent's gross estate, except to the extent the benefits represent a return of the decedent's contributions to the pension fund." (Internal Revenue Service)

Another Question is Answered in the Who's the Employer Q&A Column
A PEO has operated a 401(k) plan as a single employer but intends to convert to a multiple employer plan. It will be a 401(k) with a safe harbor match. The COs will have the option of making a non-elective contribution, allocated in proportion to compensation. Is this a uniform allocation formula, or will general nondiscrimination testing need to be performed? Rev. Proc. 2002-21 does not clearly resolve the issue of who is the employer, so how can any such testing be done with confidence? (BenefitsLink.com)

Nominations Deadline for PSCA Signature Awards Is July 19
Excerpt: "PSCA's annual Signature Awards is a competition designed to honor excellence in plan communication and investment education. By sponsoring the Signature Awards competition, PSCA encourages the sharing of communication ideas and rewards excellence in profit sharing and 401(k) plan communication and investment-education. The competition also provides plan sponsors with outside, objective recognition of the efforts of their company and their staff." (Profit Sharing/401(k) Council of America)

Alliance Capital Management Answers Lawsuit by State of Florida
Excerpt: "An investment firm that put Florida pension money into failing Enron stock said in court papers Tuesday that stock picks are speculative and it can't be blamed for Enron's accounting mess. New York-based Alliance Capital Management is being sued by the Florida State Board of Administration for the disastrous investment late last year, which cost the pension fund about $300 million." (AP via Yahoo! News)

Creating Value Through DB Outsourcing
Excerpt: "Outsourcing-- using either a fully bundled or semibundled approach-- is a growing trend among all sizes of DB plans. In fact, the 2001 Chatham Study of plan sponsors and providers predicted a 15% annualized growth rate in outsourcing." (The Vanguard Group)

Links to Items on Executive Comp, Benefits in General
(These items appear in both editions of the BenefitsLink Newsletter)

Analysis: IRS Approves Electronic SPDs, Objects To Kiosk Distribution
Excerpt: "[I]n a move that could make things difficult for employers such as manufacturers whose line employees do not have access to computers, the DOL has outlawed the use of kiosks as a method of distributing benefits information. Simply making it available on communal computers, officials decided, does not satisfy minimum distribution requirements." (BenefitNews.com)

PEO Administaff's Stock Tumbles After IRS Ruling, Sluggish First Quarter
Excerpt: "The latest Wall Street whammy on the Kingwood [Texas]-based human resources company came last week when Administaff said it had resolved a long-running dispute with the IRS. The IRS ended an audit of Administaff's 401(k) program, while ruling that the company must make changes to the plan." (Houston Business Journal via bizjournals.com; free registration required)

Some Say It's Time To Account For Stock Options Differently
Excerpt: "When is an expense not an expense? When it's a stock option, of course. Over the past several years, countless companies have taken advantage of what many see as a crucial flaw in the corporate accounting system -- the freedom of companies to issue stock options without ever seeing the expense hit their bottom line." (Washington Business Journal via bizjournals.com; free registration required)

Newly Posted or Renewed Job Openings - Post a Help Wanted Ad
Regional Account Manager for Market Leading Provider of Retirement Plans and Work Site Products
in TX
Senior Quality Assurance Specialist for Invesmart, Inc.
in PA
Processing Analysts for Invesmart, Inc.
in KY, OH, PA
Sr. 401(k) Communications Analyst for Tenet HealthSystem
in TX
Reporting and Disclosure Team Leader for Strong Financial Corporation
in WI
Benefits Administrator for Sony Corporation
in NY

Newly Posted Webcasts (Post Yours!)
Controlling Health Spending in the Private Sector on June 8, 2002
presented by KaiserNetwork.org
Wall Street Comes to Washington on June 11, 2002
presented by KaiserNetwork.org
FORM 5500: WHAT PLAN MUST FILE WHAT? on May 30, 2002
presented by Employee Benefit Institute of America (EBIA)

Newly Posted Conferences (Post Yours!)
2002 CCA Annual Meetingin FL on November 3, 2002
presented by Conference of Consulting Actuaries

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Feel free to send this email to friends, colleagues or clients, if you copy or forward this email in its entirety (including this boilerplate part). Copyright 2002 BenefitsLink.com, Inc.

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Editor and Publisher: David Rhett Baker, J.D.