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September 11, 2002 - 11,893 subscribers
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Democrats Urge Cheney to Aid Ex-Employees
Excerpt: "Democrats on Capitol Hill called on Vice President Cheney yesterday to compensate hundreds of former Halliburton Co. employees who lost millions of dollars in pension payouts when Halliburton sold a subsidiary under Cheney's leadership. The employees of the former Halliburton subsidiary, Dresser-Rand, have received notices from Halliburton offering them payments that are on average $50,000 less than expected, according to an employee representative." (Washington Post)

Papers Presented at 2001 Cash Balance Plans Symposium
Excerpt: "The Cash Balance monograph consists of nine papers presented at the 2001 Dallas Spring Meeting. Topics of discussion include: a proposal to invest all plan assets in fixed income securities; issues related to the conversion from traditional plans to hybrid plans; the floor-offset arrangement using a cash balance plan and a money purchase plan; an overview of the problems with the current Social Security system; a utility function to compare three types of plans; and more." (American Academy of Actuaries)

Analysis: Pension Funding Relief Excludes Participant Notices
Excerpt: "Congress gave defined benefit plan sponsors a break earlier this year by changing the interest rate assumption for plan funding status, but failed to extend the relief to participant notices of funding status. Plans may use 100% of the 30-year Treasury bond rate to calculate liabilities, but must use the old 85% interest rate assumption when determining whether participant notices must be distributed." (

IRS Planning Significant New Guidance on 457 Issues, Other Retirement Plan Matters
Excerpt: "Cheryl Press, IRS senior counsel, told a gathering of more than 700 at the National Association of Government Defined Contribution Administrators (NAGDCA) that they can expect a significant amount of additional guidance before the end of 2002.... In addition to 457-specific guidance ... [she forecast the issuance of] final regulations on plan loans under Section 72(p); final guidance on minimum distributions under 401(a)(9); guidance on rollovers ..." (

Overview: SEC Implements Faster Reporting of Certain Employer Stock Transactions In Qualified Plans
Excerpt: "Under Section 16(a) of the Securities Exchange Act of 1934, officers, directors and principal security holders of Company stock are required to file with the SEC reports of changes of beneficial ownership, including changes that occur due to certain transactions involving stock held by qualified retirement plans. The Sarbanes-Oxley Act of 2002 amended Section 16(a) to impose faster filing deadlines ... The following is a chart of Section 16 compliance issues for a qualified plan." (Faegre & Benson LLP)

Increased Fiduciary Penalties and Participant Advocacy Up the Ante for Fiduciary Education
Excerpt: "Fiduciaries owe it to themselves, as well as their plan participants, to refresh their understanding of their roles and responsibilities, and to make sure that their actions and deliberations are fully documented. The cynic may say the most obvious incentive for increased fiduciary awareness is the Sarbanes-Oxley Act's significantly enhanced criminal penalties for ERISA violations, effective as of late July." (Thompson Publishing Group)

Links to Items on Executive Comp, Benefits in General

Many CEOs Are Retaining Extra Benefits in Retirement
Excerpt: "Some investors and corporate-governance experts have criticized the benefits, calling them another sign that company boards too often choose the welfare of executives over that of shareholders. Once executives retire, they should pay for their expenses with the millions of dollars they received in salary, bonus and stock, rather than using company money, the critics say." (New York Times; free registration required)

Stock Option Expense To Hit Small Companies Hardest
Excerpt: "Accounting for employee stock options as an expense is likely to hurt the bottom lines of small companies more than those of their larger counterparts, according to a top analyst of small-cap companies." (Reuters via

SEC Reviewing NYSE AND NASDAQ Proposals for Revised Corporate Governance Standards
Excerpt: "[T]he New York Stock Exchange (NYSE) and the Nasdaq Stock Market (Nasdaq) have each submitted proposals that overhaul their respective corporate governance listing standards to the U.S. Securities and Exchange Commission (SEC) for its review and required approval.... The proposed standards require listed companies (other than controlled companies) to have compensation committees comprised solely of independent directors." (McDermott, Will & Emery)

How to Tie Pay to Goals, Instead of the Stock Price
Excerpt: "Finding and retaining executives who are committed to helping a company grow over the long run might stop the cycle of skyrocketing pay and dwindling tenure. It might also help to curb the anything-goes ethics that led to the type of excesses seen at companies like Enron and WorldCom." (New York Times; free registration required)

Newly Posted or Renewed Job Openings - Post a Help Wanted Ad

Senior Pension Attorney
in OR
Standard Insurance Company, Portland, OR

Benefits Administrator
in VA
Hunton & Williams

Newly Posted Webcasts (Post Yours!)

Hearing: Reducing Medical Errors
on September 10, 2002

Newly Posted Conferences (Post Yours!)

Fiduciary Responsibility and Corporate Retirement Plans
in NC
October 2, 2002
CapTrust Financial Advisors

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