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September 23, 2002 - 11,860 subscribers
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2002 Plan Amendment Checklists, from Watson Wyatt
Includes links to two 24-page documents. THANK YOU, WATSON WYATT! Excerpt: "Watson Wyatt has developed checklists for defined benefit and defined contribution plans that list all EGTRRA changes (required and optional), their effective dates and plan amendment deadlines. The checklists also briefly describe cost and administrative implications and provide IRS sample plan language. Other 2002 amendments, such as the new minimum distributions rules, are also included." (Watson Wyatt)

Survey: 401(k) Participants Want More Investment Advice
Excerpt: "By an overwhelming margin, people who participate in 401(k) retirement plans want more investment advice from their employers, according to a recent poll. The survey, conducted in late July and early August on behalf of Cigna Retirement and Investing Services ..." (New York Times; free registration required)

Pension Funds: the Next Crisis?
Excerpt: "Pension plans are the next big shoe to drop in corporate accounting.... When the annual reports for 2002 come out next spring, many companies may report lower earnings because they'll have to feed new cash into their pension funds. But that's only half the story. David Hershey, a senior portfolio manager at Lotsoff Capital Management in Chicago, wants to change how pension funds are managed." (Scott Burns in The Dallas Morning News; free registration required)

Union Doesn't Want Florida Power Corp. to Move from Traditional DB Plan to Cash Balance Formula
Excerpt: "While the current plan provides a pension based on a worker's highest average salary and years of service, the cash-balance plan would credit an employee's account every year with a percentage of pay plus interest earnings. Upon retirement, the worker would receive a lump sum or an annuity based on the value of the accounts." (St. Petersburg Times)

The Nuts and Bolts of Plan Administration (PDF)
51 pages. Excerpt: "This article highlights ways to make the administration of plans that are qualified under Section 401(a) of the Internal Revenue Code easier, and ways to prevent problems in administration. Following are eleven 'pointers' that can help plan administrators achieve these goals." (Nancy K. Campbell, Esq. and Stephanie R. Derby, Esq. of Snell & Wilmer L.L.P.)

ASPA Provides Comments to IRS on Determination Letter Procedure Change Ideas Floated by IRS (PDF)
29 pages. Excerpt: "The EP determination letter program provides a valuable benefit to plan sponsors, plan participants, and plan service providers. The Service should retain the program.... [M]odel plans do not adequately address the needs of plan sponsors and are not a viable alternative to the determination letter program.... Replacing the determination letter program with a self-certification system would result in widespread non-compliance ..." (American Society of Pension Actuaries)

Time-Consuming Challenge of Fixing Retirement System Errors Frustrates Employees
Excerpt: "Two years after Congress approved legislation to provide remedies for federal employees placed in the wrong retirement system, only a handful of cases have been settled." (Washington Post)

Growing Calls for Creation of PBGC-Type Agency in Great Britain to Protect Pensioners
Excerpt: "Doctor Ros Altman, a pensions expert who advises the government, believes this lack of protection is scandalous. She would like to see the law changed and the introduction of an insurance scheme to protect workers paid for in part by a premium charged to the companies who subscribe.... Indeed such a scheme has existed in the U.S. for almost 30 years." (BBC)

Links to Items on Executive Comp, Benefits in General

Benefit Plans and Deals: Applying ERISA's Fiduciary Standards to Business Combinations (PDF)
25 pages; originally published July, 2001. Excerpt: "Once the negotiations are concluded and the decisions are being communicated to the participants and, in some limited instances, implements, the fiduciary standards take a major role. This article covers the application of ERISA's fiduciary standards to the negotiation process, the implementation issues and fiduciary rules in specific contexts as well as a general overview of these standards." (Thomas R. Hoecker, Esq. of Snell & Wilmer L.L.P.)

ERIC, Other Groups Urge Caution on Bill Regulating Use of Social Security Numbers (PDF)
3 pages. Excerpt: "The undersigned organizations urge you to carefully consider the unintended consequences of legislation being currently pending before the House Ways and Means, Energy and Commerce, and Financial Services committees. Without amendment, the Social Security Number Privacy and Identity Theft Prevention Act of 2001 (H.R.2036) could unintentionally hinder the delivery of benefits from, and the efficient administration of, public and private employee benefit plans." (ERISA Industry Committee)

Opinion: Talk About Overcompensating
Excerpt: "In July 1981, an unhappy employee at Conoco Inc. coined the phrase 'golden parachute' to describe the severance deal the company's chairman Ralph E. Bailey received to protect himself in case he lost out in a hostile takeover. The amount: about $5 million in salary plus stock options worth another $8.3 million after a takeover fight broke out. Compared to today's send-off packages, that golden parachute looks more like a canvas backpack." (Washington Post)

AARP Work and Career Study Shows Benefits Sought by Older Workers
Excerpt: "Overwhelmingly, 45+ workers say their ideal job would feature: a friendly work environment; respect from co-workers and their supervisors; and opportunities to use their skills and talents, do something worthwhile, learn something new, help others and pursue something they've always wanted to do. Not as high on their list of priorities, though important nevertheless, are so-called 'hard benefits'." (AARP Research)

What Makes a Company Great for Older Workers?
Excerpt: "Take a look inside nine of the companies on AARP's 'Best Companies for Workers over 50' list to see what sets them apart." (My Generation, published by AARP)

AARP Names Top Employers for Workers Over Age 50
Excerpt: "The AARP recognized the companies for recruiting, promoting and training older or former workers, as well as for offering high quality compensation and benefits packages." (CBS Marketwatch)

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

Technical Specialist - Retirement - QPA
for Edward Jones
in MO

District Marketing Manager
for Brandywine Benefits Corporation
in DE

Pension Administrator
for Howard Simon & Associates, Inc.
in IL

Retirement Resources Consultant
for RSM McGladrey, Inc.
in MN

Daily Valuation Pension Technician
for RSM McGladrey, Inc.
in IL

Retirement Plan Sales Consultant
for Invesmart
in WA

ERISA Compliance Specialist
for CitiStreet
in NJ

Senior Defined Benefit Plan Administrator
for MRPortland

Sr. Documentation/Compliance Analyst-LLY
for MRPortland

Plan Administrator
for Associated Pension Services, Inc.
in IL

Implementation Specialist
for Northern Trust Retirement Consulting, L.L.C.
in GA

Retirement Planning Consultant
for Retirement Capital Group, Inc.
in CA

Newly Posted Press Releases

SunGard Corbel Introduces New Document Services
(SunGard Corbel)

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