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September 16, 2002 - 11,860 subscribers
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Pension Funding Hurt By Stocks' Fall
Excerpt: "Not so long ago, the pension fund at Delta Air Lines was fat with profits from a decade-long bull market. Things were so good, in fact, that the Atlanta-based carrier didn't have to make contributions to a pension plan that benefits thousands of Delta retirees. But the bear market changed all that." (The Atlanta Journal and Constitution)

Witness List and Prepared Statements: Hearing on Examining Pension Enforcement and Accountability
Sept. 10, 2002. Includes testimony of Stephen J. Cossu, Deputy Inspector General, U.S. Department of Labor; Kenneth Boehm, National Legal and Policy Center; and Karen Ferguson, Pension Rights Center. (U.S. Senate, Committee on Education and the Workforce, Subcommittee on Employer-Employee Relations)

401(k) Woes Spur Aggressive Thinking
Excerpt: "After suffering by association with corporate accounting scandals and stock market losses, defined contribution retirement plans are due for a serious overhaul. So say a growing number of financial advisers, some of whom are devising ways to 'fix' the 401(k). A few would even do away with the plans altogether." (BenefitNews.com)

What's Better-- Pension or a 401(k)?
Excerpt: "With stocks in the dumps, it could take years for battered 401(k)s to recover-- a rotten deal for those who've suffered heavy losses and are about to retire. Had they been in pension plans instead, in which their employer took on all the risk, they would have received their annual benefit no matter what's happening on Wall Street. Still, 401(k) investors with years to retire might have the last laugh." (CNNmoney.com)

Enron Awaits Judge's Decision on Retirement Plan Management Fees
Excerpt: "A bankruptcy judge said Thursday he would decide in days whether Enron can pay $4 million a year for management of company retirement plans or if current and former employees must foot the bill.... The issue has simmered for four months, initially pitting the Enron against the Labor Department but lately against its creditors." (Houston Chronicle via International Foundation of Employee Benefit Plans)

Papers from the 4th Annual Joint Conference of the Retirement Research Consortium
Originally presented May 30-31, 2002. Papers include 'Economic and Distributional Effects of the Proposals of President Bush's Social Security Commission'; 'Reforming Public Pensions: Lessons from Abroad; Early Retirement Windows'; 'Inefficient Choices in 401(k) Plans: Evidence from Individual Level Data'; and 'Choice and Other Determinants of Employee Contributions to Defined Contribution Plans." (Boston College, Center for Retirement Research)

The MRD Final Regulations, Annotated
A marvelous contribution to the online literature by attorney Noel Ice of Fort Worth, Texas. Excerpt: "Reproduced below are the final minimum required distribution (MRD) regulations ... The diacritical and emphasis marks are my own, as are (obviously) the copious footnotes." (Noel C. Ice, Esq. of Cantey & Hanger, L.L.P.)

Current Pension Legislative Outlook: September 13, 2002
Excerpt: "[T]he last major piece of domestic legislation still left for consideration is the company stock pension bill. The current focus ... is on what kind of company stock bill the Senate will produce. This article will discuss the key issues over which Democrat and Republican Senators are negotiating and the process and timing of consideration and prospects for passage of a company stock bill." (Plan Advisory Services)

Opinion: Pension Coverage is the Scandal Beyond Enron
Excerpt: "[T]he remedial legislation passed by the Republican House actually makes workers even more vulnerable. The bigger scandal is not the occasional loss of entire retirement savings in cases such as Enron's but the inadequate coverage and systematic erosion of worker retirement benefits generally. Real reform would not just safeguard retirement savings from Enron-style thefts but would broaden retirement savings, especially for ... less affluent workers ..." (The American Prospect)

Text of Boehner Report: Why the Senate Democratic Pension Bill is Too Weak to Protect Workers (PDF)
12 pages. Excerpt: "The proposed Senate Democrat bill would gut a provision, passed twice by the House with significant bipartisan support and supported by President Bush, that would enable millions of rank-and-file workers to gain access to professional investment advice that could have helped workers at Enron and WorldCom protect their 401(k) accounts." (Rep. John Boehner (R-OH))

Boehner Pushes His Version of Reform Bill, Containing PT Exemption for Investment Advice
Excerpt: "House Education & the Workforce Committee Chairman John Boehner (R-OH) released a new report ... highlighting how Senate Democrats have seriously weakened prospects for enacting real pension protections by stripping a bipartisan investment advice provision out of their pension reform bill. The House-passed Pension Security Act, in contrast, would fix outdated federal pension law and allow employers to provide their workers with high-quality, professional investment advice." (Rep. John Boehner (R-OH))

British Steelworkers Strike, Win Back DB Pension Plan
Excerpt: "The 340 [union employees at Caparo steelworks] were the first in the UK to take strike action to protect their pension rights.... The [union] had claimed its members would be 25% worse off when they retired under the management proposals [to replace the DB plan with a money purchase plan]. Caparo was just one of many companies to announce the closure of its employee final salary pension [plan]." (BBC)


Links to Items on Executive Comp, Benefits in General

Former GE CEO Gives Up Perks, But SEC Is Investigating
Excerpt: "General Electric said Monday it has received an informal inquiry from the Securities and Exchange Commission into the compensation of former Chairman and CEO Jack Welch. The news came hours after Welch said he had given up free use of company planes, a company apartment and other generous benefits in his retirement agreement after facing withering criticism since the perks were revealed." (USA Today)

Opinion: Time To End Excuses For Executive Excesses
Excerpt: "Cutting executive pay is possible. Last month, travel and real estate giant Cendant Corp. renegotiated CEO Henry Silverman's contract by terminating his right to annual stock option grants. Cendant instead offered an incentive bonus tied to the company's pretax earnings. The result? Silverman will refocus on improving earnings and stop trying to prop up the company's stock price." (St. Petersburg Times)

Opinion: No More Stock Options? Try Union Dues
Excerpt: "Union membership has declined over the last two decades, but that might be changing as more young professionals accept unions.... Perhaps no one could benefit from unionization more than so-called free agents, the 8.6 million independent contractors and 1.2 million temporary workers who have become a pivotal part of the working world." (New York Times; free registration required)



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

Retirement Services Internal Wholesaler
for Transamerica
in CA

Senior Conversion Specialist
for First Trust Corporation
in CO

Retirement Software Sales Manager
for Schwab Retirement Technology
in NC

ESOP-- Administrative Services Manager
for RSM McGladrey, Inc.
in IA

Financial Control Specialist
for CNA Trust
in CA

Executive Benefits
for Clark Bardes Consulting-CRG
in ALL STATES

Account Executive Director
for Principal Financial Group
in WA

Benefits Specialist
for Howard University Hospital
in DC

Attorneys-- Employment Benefits and Compensation - Philadelphia
for PricewaterhouseCoopers
in PA

Health and Welfare Consultant - Boston
for PricewaterhouseCoopers
in MA

Benefits Financial Manager
for Zurich North America
in IL

Newly Posted Conferences (Post Yours!)

INTRODUCTION TO 401(k) PLANS (2-day seminar) 11 locations; November-December
in CA, CO, GA, IL, IN, MN, MO, NC, OH, PA, TX
November 7, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in CO
November 7, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in CA
November 7, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in OH
November 14, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in MO
November 14, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in NC
November 21, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in IL
November 21, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in MN
November 21, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in GA
December 5, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in PA
December 5, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in TX
December 12, 2002
SunGard Corbel

INTRODUCTION TO 401(k) PLANS (2-day seminar)
in IN
December 12, 2002
SunGard Corbel

A DOL Presentation with the Latest on Audits, Correction and Compliance Programs
in OH
September 25, 2002
The Central Ohio Chapter, ISCEBS

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