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Retirement Plans
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November 20, 2002 - 12,959 subscribers
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Overview: GUST Amendment Period For Pre-Approved Plans Extended; Other Deadlines Affected
Excerpt: "The September 30, 2003, deadline does not apply to a plan that is ineligible for the Rev. Proc. 2000-20 deadline and had to amend for GUST by the 'normal' GUST amendment period.... For many of these plans, the GUST amendment deadline has already ended (e.g., a calendar year plan had to amend by February 28, 2002) and Rev. Proc. 2002-73 does not retroactively extend their deadline.... [But the procedure provides] an extension for amendment for CRA 2000 with respect to these plans." (TRI Pension Services)

Rev. Proc. 2002-73 in Hypertext Format
The revenue procedure extends the time for amending pre-approved plans to comply with GUST; amending plans to comply with Rev. Rul. 2001-62, 2001-2 C.B. 632 (regarding changes to the mortality tables under § 417(e)) and Rev. Rul. 2002-27, 2002-20 I.R.B. 925 (regarding the incorporation of deemed § 125 compensation in a plan's § 415(c)(3) definition of compensation); and amending plans to comply with § 314(e) of the Community Renewal Tax Relief Act of 2000 ('CRA') to at least September 30, 2003. (Internal Revenue Service (converted to Web page by Calhoun Law Group, P.C.))

IRS Private Letter Ruling Provides Solution for Non-Spouse Beneficiary of Deceased Keogh Plan Owner
Excerpt: "[T]he executor of the doctor's estate will use the money in the Keogh to buy the annuity. Payments from the annuity will be made to the trust, over time. The son and grandchildren will pay income tax on the money they receive from this arrangement. But the beauty is that the tax impact will be spread out over many years." (Neil Downing in The Providence Journal)

IRS to Refund FICA Taxes on Payments for Tenure Right Relinquishment, But Only in Eighth Circuit (PDF)
2 pages; July 28, 2002. Excerpt: "Service Centers should deny all refund claims of FICA taxes [withheld and paid by their employers] that cite the North Dakota State University [v. United States case at 255 F.3d 599 (8th Cir. 2001)] unless the taxpayer's claim concerns a case that arises within the jurisdiction of the Eighth Circuit and has the exact facts as the North Dakota State University case." (Internal Revenue Service, National Office Service Center Advice)

Deloitte & Touche 401(k) Survey Sheds New Light on 401(k) Reform Debate
Excerpt: "It is not clear whether either the Boehner or Bingaman proposals would make 401(k) plan sponsors more interested in offering investment advice to participants. The real barrier to more sponsors offering advice may be a lack of employee interest." (Deloitte & Touche Human Capital Advisory Services)

ERIC Provides Comment on DOL Interim Final Regs on Blackout Period Civil Penalties (PDF)
4 pages. Excerpt: "This regulation should be amplified by an example that makes it clear that the Department will not impose a penalty where an administrator, acting reasonably and in good faith, inadvertently fails to furnish a timely blackout period notice to a small percentage of those entitled to receive the notice." (ERISA Industry Committee)

The Case Against 401(k)s
Excerpt: "Make the largest possible contribution to your 401(k) plan: It is a cardinal rule of retirement saving. However, recent research by two prominent economists suggests that many 401(k) participants should not max out their accounts." (PLANSPONSOR magazine; free registration required)

Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
Is the Medicare program the same for Rail workers as it is for the general public? If it is, then am I responsible for any charges not paid by Medicare? (I have a $20 bill from a radiology lab for the portion of charges that were not paid by Medicare. It's now been turned over to a collection agency. I also have coverage from the railroad group policy. Do I have to pay this?) (BenefitsLink.com)

Links to Items on Executive Comp, Benefits in General

Benefits Communications: Using Visuals to Tell Your Story
2 pages. Excerpt: "When communicating information visually, the dilemma is in deciding what to show and how to convey your message so that it makes the desired impact. Well-designed graphs and charts enable the reader to draw reasonable conclusions; deciding how to set them up is the challenge. In this article, we present some guidelines to consider when illustrating information." (Aon Consulting)

Opinion: When Options Rise to Top, Guess Who Pays
Excerpt: "[A] new and comprehensive academic [gives] shareholders more reason to reject new pay packages skewed in favor of top managers or not adequately linked to short- and long-term performance." (New York Times; free registration required)

Employers Spent Nearly $1 Trillion On Benefits In 2001, According To EBRI
According to research recently conducted by the Employee Benefit Research Institute (EBRI), employers spent more than $5.9 trillion on total compensation in 2001. Of that total, wages and salaries accounted for $5 trillion (84.3%), while benefits accounted for $920.5 billion (15.7%). These findings are based on data collected by the Commerce Department's Bureau of Economic Analysis. (SpencerNet)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Benefits Manager (Service Delivery Manager)
for Towers Perrin
in VA

Independent Sales Associate
for Pre-Paid Legal Services Inc.

Senior Pension Administrator/Supervisor
for Snyder Cohn Collyer Hamilton & Associates, P.C.
in MD

Health Benefits Analyst
for Segal Company, employee benefits & human resources consulting
in IL

VP, National Sales
for Corporate Benefit Services of America, Inc. - Third Party Administrator

Newly Posted Conferences
(Post Yours!)

Defined Benefit Prototype Plan Document Review
in CT
December 9, 2002
McKay Hochman Co., Inc.

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