October 15, 2002 - 12,057 subscribers
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Companies Find Workers Want 401(k) Advice; Managed Investments Option Appeals to Some
Excerpt: "Dawna Menke, 36, was one of the first to take advantage of the service, which costs about $35 a year for each $10,000 invested. All of the decisions that burden other 401(k) investors-- which mutual funds to choose, how much money to put in stocks versus bonds-- are now made for her.... An advisory opinion issued last December by the Department of Labor seemed to clear the way for these services, as long as an independent firm dispenses the advice and chooses the investments ..." (USNews.com)
Letter Ruling: Restorative Payments to 401(k) Plan by Employer Are Deductible as Business Expenses (PDF)
PLR 200241046 (July 15, 2002). Excerpt: "The plaintiffs ... allege that the class of plaintiffs purchased Employer A Stock [in Employer A's self-directed 401(k) plan] at artificially inflated prices as a result of Employer A's materially false and misleading statements and omissions." (Internal Revenue Service)
Opinion: Time Has Come for School Districts to Adopt a Single 403(b) Vendor Approach
Excerpt: "For a variety of reasons the typical 403(b) vendor list at the K-12 level is long and unwieldy. The largest school district in the country, Los Angeles Unified School District, is the poster child for this mess." (403bWise.com)
GM's Slow Leak
Excerpt: "[L]et's put GM's cost problem in perspective.... Start with the massive pension and health-care bills related to its 460,000-strong base of U.S. retirees (for the record, that roughly equals the size of the U.S. Army).... GM's legacy costs soak up almost $900 for every vehicle it will sell this year, according to a recent Lehman Brothers report--a figure that could rise to $1,300 by 2005." (Fortune.com)
Analysis: Changes to 72(t) Payouts Allowed
Oct. 14, 2002 article. Excerpt: "Advisors will be disappointed to find that the guidance ignores some very helpful features that have been permitted in earlier private letter rulings. One variation on the amortization method that was approved in a 2001 private ruling involved a taxpayer redetermining his distribution each year based on his account balance. In other rulings, the Service has permitted cost of living adjustments, provided they were set up at the time the payout began." (The National Underwriter Company)
Links to Items on Executive Comp, Benefits in General
Plan Administrator Could Not Interpret 'Participant' Two Ways Under Single Plan Document (PDF)
12 pages; Reich v. Ladish Company Incorporated, No. 01-3790 (7th Cir. 10/7/2002). Excerpt: "The [lower] court found no conflict between the definition of the word 'Participant' in the deferred vested retirement part of the Plan and the use of that same word in the disability benefits part of the Plan." (U.S. Court of Appeals for the Seventh Circuit, via FindLaw.com)
Overview: Conference Board Issues Executive Compensation Best Practice Suggestions (PDF)
6 pages. Excerpt: "On September 17, the Conference Board, arguably the world's leading business network, joined the New York Stock Exchange, the NASDAQ, and other regulatory and business organizations in proposing a wide-ranging series of reforms to strengthen corporate compensation practices so as to restore trust in America's corporations and financial markets." (Frederic W. Cook & Co., Inc.)
Newly Posted or Renewed Job Openings -
Employee Benefit Services Relationship Manager
for UMB Financial Corporation
Fun & Challenging DC Compliance Position
for Louis Kravitz & Associates, Inc.
ERISA/Employee Benefits Associate Attorney
for Ruder, Ware & Michler, L.L.S.C.
Manager FSA/HRA Administration
for Baltimore Employee Benefits Firm
in DC, DE, MD, NJ, PA
Newly Posted Press Releases (Post Yours!)
CNA Trust Hires Costantini As Regional Sales Director For Northwest
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