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January 31, 2003 - 12,861 subscribers
Today's sponsor: NCEO
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Our Bookstore now carries books published by the NCEO! The National Center for Employee Ownership (NCEO), a nonprofit membership and research organization that provides information on broad-based employee stock plans, now has over a dozen of its most popular publications available for purchase in the BenefitsLink bookstore. Topics range from employee stock ownership plans (ESOPs) to stock options to employee stock purchase plans (ESPPs).
(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)
Bush Administration to Seek Expansion of IRA-Like Investment Programs
Excerpt: "The Bush administration is working on a major shift in retirement savings plans that would allow most Americans to increase greatly the amount of money they could put away in tax-free accounts ... The proposal, which is expected to be included in the new budget that President Bush is to unveil on Monday, would allow people to keep existing individual retirement accounts. But it calls for phasing out future contributions of up to $3,000 a year to traditional I.R.A.'s ..." (New York Times; one-time registration required)
IRS Publishes Instructions for 2002 Form 5500-EZ (PDF)
9 pages. Excerpt: "To reduce the possibility of correspondence and penalties, we remind filers that ... [p]aper forms must be obtained from the IRS or printed using software from an EFAST approved software developer." (Internal Revenue Service)
Sample Investment Policy Statement for a 401k Plan
Excerpt: "Only about half of all defined contribution plan sponsors have a written investment policy statement, according to studies by PSCA, Hewitt Associates and BARRA Rogers Casey. How can a plan sponsor select and monitor investment options or ensure Procedural Prudence without having an investment policy? In our opinion, they can't." (401kHelpCenter.com)
Capturing the Value of Your 401(k) Plan
Excerpt: "Watson Wyatt's 401(k) Value Index is a benchmarking tool that allows plan sponsors to measure how effectively their 401(k) plan is meeting specific goals and providing value to participants. By understanding exactly where the plan is falling short, the sponsor can identify actions necessary to improve performance and provide a more stable benefit." (Watson Wyatt)
Overview: DOL Issues Final Blackout Notice Regs
Excerpt: "The final rules generally track the interim rules, which were issued on October 21, 2002 ... However, the DOL also has provided some important clarifications and changes to the interim rules." (Kilpatrick Stockton LLP)
Steel Industry Plans Drains PBGC Funds
Excerpt: "In the last fiscal year, the agency assumed responsibility for 144 underfunded pension programs, including LTV Corp. plans covering 82,800 workers and retirees that were underfunded by a record $1.85 billion. The LTV record didn't stand for long. It was eclipsed this fiscal year when the PBGC moved to assume responsibility for the troubled pension programs of Bethlehem Steel ..." (The [Pittsburgh] Post-Gazette)
US Airways Asks for Permission to Terminate Underfunded DB Plan for Pilots
Excerpt: "Termination of the pension plan would affect about 8,000 working, retired and furloughed pilots. US Airways Chief Executive Officer David Siegel said the airline acted only after it appeared that Congress would not approve legislation allowing the company to stretch out its pension payments over 30 years." (The [Pittsburgh] Post-Gazette)
John Snow Wins Senate Confirmation as Treasury Secretary, Agrees to Review Cash Balance Regs
Excerpt: "The vote on the nomination was delayed until after Snow could hold a late afternoon meeting with Sens. Tom Harkin and Dick Durbin over the issue of a Treasury rule governing so-called 'cash benefit' pensions, which many companies are moving to adopt as a cost-saving measure in place of defined-benefit pension plans.... Treasury Department spokesman Robert Nichols, who participated in the meeting in Harkin's office, said Snow had pledged to 'give the issue his full attention.'" (AP via Yahoo! News)
ERIC Says Proposed IRS Cash Balance Regs Threaten All DB Plans (PDF)
Excerpt: "[T]he proposed regulations are fundamentally flawed-- with respect to both cash balance plans and defined benefit plans in general. [They] would create a field day for regulators and lawyers, but a mine field for defined benefit plans. The proposed regulations would ... outlaw many commonplace pension plans[,] subject plans and employers to the risk of years of costly litigation, impose enormous economic costs on the employers ... and threaten the future of all defined benefit plans." (ERISA Industry Committee)
American Benefits Council Urges Representatives Not to Stop IRS from Issuing Cash Balance Regs (PDF)
Excerpt: "There has been a great deal of Congressional interest in the proposed IRS rules, and in this letter the Council provides some background on cash balance plans generally, conversions from traditional defined benefit pensions to cash balance designs and the proposed IRS regulations." (American Benefits Council)
PBGC Releases FY 2002 Financial Results; $11 Billion Net Loss
Includes link to full text of annual report. Excerpt: "The Pension Benefit Guaranty Corporation's insurance program for pension plans sponsored by a single employer swung from a $7.73 billion surplus at the end of fiscal year 2001 to a $3.64 billion deficit at the end of fiscal year 2002, according to the agency's Annual Report released today." (Pension Benefit Guaranty Corporation)
The Moving Pieces of Social Security Reform
Excerpt: "Numerous collisions, advisory groups, and individual policy analysts have concluded that Social Security reform is essential, but many politicians do not want it to happen on their watch. Meanwhile, the public remains confused.... Agreement about what is wrong is widespread.... Analysts also widely agree on how to approach the problem. Whether leaning left or right, most say we should rely less on the pay-as-you-go approach and try to fund a portion of benefits ..." (Rudolph G. Penner, published by the Urban Institute, Tax Policy Center)
Links to Items on Executive Comp, Benefits in General
Getting a Grip on Executive Compensation
Excerpt: "This presents human resources leaders with a unique opportunity to step between compensation committees and top management to negotiate executive compensation packages that address concerns about excessive pay while sufficiently rewarding CEOs for performance." (Workforce.com)
GAO Report: PWBA Might Need More Staff (PDF)
Excerpt: "Labor agencies responsible for protecting pensions have not adequately addressed their human capital issues, which could constrain their efforts to protect pensions as these agencies face an expected surge in retirements within their workforces. It is critical that these weaknesses be addressed because of Labor's wide area of responsibilities." (U.S. General Accounting Office)
Newly Posted or Renewed Job Openings
Qualified Retirement Plan Sales Person
for Tycor Benefit Administrators, Inc.
in DE, NJ, PA
Newly Posted Conferences
(Post Yours!)
NCPERS 2003 Annual Conference and Exhibition
in CO
May 18, 2003
National Conference on Public Employee Retirement Systems
NCPERS 2003 Trustee Education Seminar
in CO
May 16, 2003
National Conference on Public Employee Retirement Systems
Form 5500 Update Program (half-day workshop)
in MN
May 14, 2003
SunGard Corbel
Plan Disqualification and Correction Program (half-day workshop)
in MN
May 14, 2003
SunGard Corbel
401(k) Update Program (8:30 am - 4 p.m.)
in MN
May 15, 2003
SunGard Corbel
Sal Tripodi Talks About Current Events in Employee Benefits
in FL
April 23, 2003
GrayHarris
CONSUMER DRIVEN HEALTH CARE PLANS
in GA
February 20, 2003
WEB Atlanta Chapter
Newly Posted Press Releases
(Post Yours!)
BusinessPlans, Inc. - myCafeteriaPlan.com Hires New Cafeteria Plan Administrator
(BusinessPlans, Inc. - myCafeteriaPlan.com)
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