February 26, 2003 - 13,051 subscribers Today's sponsor: Thompson Publishing Group, Inc. (Click on company name or banner to learn more.) 2003 Update on Pension Activity Audio Conference Feb. 27, 2003 * President Bush's proposal * Bills introduced on the Hill * Shrinking 401(k) balances * PBGC * Real world application of future pension action Martha Priddy Patterson, director of benefits policy analysis for Deloitte & Touche, and Robert Davis, manager with Deloitte & Touche, will bring you up to date on these points and more. Plus-- you'll get answers to your tough questions on this revolving issue at the end of the audio conference. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Bush's Pension Proposal Now Being Given Low Priority Excerpt: "Less than a month after President Bush proposed a radical overhaul and expansion of individual retirement and savings accounts, the White House has abandoned the idea as a legislative priority.... Administration officials, speaking on condition of anonymity, say they will not even begin to push for their pension proposals until this fall, and some say the plan could easily be dropped in the heat of negotiations about other issues." (New York Times; one-time registration required) Some Wisconsin State Retirees to See Drop in Pension Payments Excerpt: "The workers got confirmation Tuesday that most of the nearly 116,000 retirees in the Wisconsin Retirement System will get no increase and more than 28,000 of them will see a decrease." (StarTribune.com) Overview: DOL Finds Bank Overdraft Protection Services Generally Exempt from PT Rules DOL Advisory Opinion 2003-02A (Feb. 18, 2003). Excerpt: "This DOL Advisory Opinion responds to a request from banks that provide custodial or trust services to ERISA plans and that may also serve as investment managers for such plans, or as trustees or investment managers of collective funds in which ERISA plans invest. Banks in these roles routinely provide overdraft protection services when settling securities or other financial market transactions." (EBIA Weekly) Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column In September 2003, I will acquire my 360th month of railroad service and be vested for 60/30 benefits. I will only be 52, but I want to quit the railroad to pursue other employment opportunities until I reach 60. Can I leave the railroad industry and still be eligible for 60/30? How will this affect the amount of my benefits? I'm very confused about the "Current Connection" rule and what I need to avoid in order to protect my benefits. (BenefitsLink.com) Links to Items on Executive Comp, Benefits in General Overview: DOL Proposes Prohibited Transaction Relief for Corporate Fraud Settlements Excerpt: "EBIA Comment: The DOL has previously granted class exemptions for certain remedial prohibited transactions engaged in to settle litigation, but those exemptions are limited to settlements to which the DOL or the IRS is a party. If issued, this new exemption would provide welcome general relief to plans wishing to settle disputes with parties-in-interest ..." (EBIA Weekly) Prior to Bankruptcy, US Airways Gave $35 Million in Lump Sum Pension Payments to 3 Execs Excerpt: "The three men were entitled to receive the retirement benefits as part of the employment contracts they negotiated with US Airways' board of directors. But the payouts drew immediate fire from airline employees suffering from lost jobs, benefits and pay cuts and from some outside analysts." (The [Pittsburgh] Post-Gazette) Opinion: Expensing Stock Options Is Not Inevitable Excerpt: "An option does not 'expense' any asset of a company: it dilutes the ownership of existing investors, but does not take cash out of the company. So the common sense and proper accounting for options should be to show the dilution in the company's equity tables." (AlwaysOn.com) Newly Posted or Renewed Job Openings Senior Product Specialist - Retirement Plan Marketing for Edward Jones in MO Institutional Retirement Plans Business Development Officer for Union Bank of California in OR Director of Retirement Plan Services for The Savant Group in CA Defined Contribution/401(k) Administrator for Professional Capital Services, LLC in PA National Marketing Development Director for Edward Jones in MO Director/Vice President, Benefits Management for Multi-national, Multi-billion Dollar Consumer Products Company in TX Defined Benefit Conversion Specialist for New York Life Investment Management, LLC in MA Newly Posted Conferences (Post Yours!) How the New HIPAA Privacy Rule Regulations Will Affect Your Organization in NY March 19, 2003 The New York Metropolitan Area Chapter - ISCEBS Newly Posted Press Releases (Post Yours!) Still River Introduces Needs-Based Retirement Income Software (Still River Retirement Planning Software, Inc.) Handy Links:
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