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October 3, 2002 - 11,860 subscribers
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(Help BenefitsLink to provide this newsletter at no charge to you -- our sponsors pay your way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor)

IRS Helps Taxpayers Preserve Retirement Savings By Allowing a Change to Pension Distribution Amounts
Press release. Excerpt: "The Treasury Department and the Internal Revenue Service have released Revenue Ruling 2002-62 that will help taxpayers preserve their retirement savings when there is an unexpected drop in the value of their retirement savings. Some taxpayers began receiving fixed payments from their IRA or retirement plan based on the value of their account at the time they started receiving payments. Those taxpayers may now switch-- without penalty-- to a method of determining the amount of their payments based on the value of their account as it changes from year to year." (Internal Revenue Service)

Full Text of Rev. Rul. 2002-62 Allowing One-Time Switch in Minimum Distribution Methods (PDF)
11 pages. Excerpt: "An individual who begins distributions in a year using either the fixed amortization method or the fixed annuitization method may in any subsequent year switch to the required minimum distribution method to determine the payment for the year of the switch and all subsequent years and the change in method will not be treated as a modification within the meaning of section 72(t)(4).... [Thereafter, the] required minimum distribution method must be followed in all subsequent years." (Internal Revenue Service)

PricewaterhouseCoopers Agrees to Make Large Pension Contribution as Consequence of IBM Deal
Press release. Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) today announced that PricewaterhouseCoopers (PwC) will contribute $264 million to the pension plan it sponsors for nearly 47,000 workers and retirees. The PBGC entered into talks with PwC on learning of the proposed sale of PwC's consulting business to IBM, a $3.5 billion deal that closed Oct. 2.... This agreement, which will be in effect for a minimum of five years, is a product of PBGC's Early Warning Program ..." (Pension Benefit Guaranty Corporation)

Pension Managers Targeting Executive Pay in Companies in Which They Invest
Excerpt: "Two of the most powerful US pension funds are preparing to target big companies over directors' pay in a move that could make the annual shareholder voting season the most confrontational on record. TIAA-CREF ... is drawing up a list of 50 companies which run over-generous executive pay schemes. CalPERS ... also plans a new campaign on pay ..." (Financial Times via Yahoo! Finance)

Opinion: Peculiar Pensions in Pittsburgh
Excerpt: "40 county police who are eligible to retire with full benefits will make $807,000 on overtime for this year, 52 percent more than in 2001. All that, of course, will become part of pension calculations that are based on an employee's two highest income years of the last four.... [T]here comes a point when overtime is overused. In jobs meant to keep county facilities secure and the public safe, that time may be now." (The [Pittsburgh] Post-Gazette)

IRS Reorganizes Retirement Plans Website
Excerpt: "Did you notice? The Retirement Plans page is sporting a new look and feel! It is now easier to find retirement plans information. No longer do you have to scroll pages and pages to find the information you need." (Internal Revenue Service)

Ad Campaign Support Individual Accounts for Social Security
Excerpt: "Images of women, Hispanics, babies and three generations of black men dominate two new Social Security television ads being aired this week in 19 congressional districts by a business-backed group that supports personal investment accounts." (AP via New York Times; free registration required)

Another Question is Answered in the Who's the Employer Q&A Column
What do you think of the September 30 Wall Street Journal article on solo 401(k) plans? (

Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
I'm on medical disability and I have a 16 year old child in high school. How much will she get from Railroad Retirement? (

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

Retirement Service Specialists
for Constantin Control Associates
in NJ, NY

Employee Benefits Specialist
for QCI Asset Management, Inc.
in NY

Administrative Assistant
for Long Island Employee Benefits Group Ltd.
in NY

Director, Client Servicing, Relationship Management
for New York Life Benefit Services, LLC
in MA

IRA Manager
for A privately held, national real estate investment / management company
in GA

Balance Forward Account Administrator
for Houston TPA Firm
in TX

Daily Valuation Plan Manager
for Mid-Size Recordkeeping Firm
in SC

Vested Interest Account Manager
for PNC Advisors
in PA

Benefit Analysts
for Pension Resource Group
in GA

Newly Posted Conferences (Post Yours!)

Advanced Pension Conference
in FL
February 12, 2003
SunGard Corbel

Advanced Pension Conference
in IL
September 10, 2003
SunGard Corbel

SunGard Corbel Client Conference
in FL
June 9, 2003
SunGard Corbel

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