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April 11, 2003 - 13,053 subscribers
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"Primer on Defined Benefit Plans" audio conference April 23, 2003 * What are the key issues in administering defined benefit plans? * What are the different types of defined benefit plans and how can an organization benefit from the different types of plans? * What's all the fuss with cash balance plans? * Plus - you'll get answers to your tough questions at the end of the audio conference. Charles D. Lockwood, J.D. and LL.M. (Taxation) will bring you up-to-speed with the answers to these questions and more.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Portman and Cardin Introduce 'The Pension Preservation and Savings Expansion Act of 2003' (PDF)
2 pages. Excerpt: "With adoption of these new proposals, Congress will provide individuals and families with a number of important new savings tools, will further strengthen and expand the employer-sponsored retirement system, will offer important new protections to retirement plan participants and will assist retirees in managing and preserving retirement assets and income. The Pension Preservation and Savings Expansion Act contains important reforms in the following areas: ..." (Representatives Rob Portman and Ben Cardin via the American Benefits Council)
Senate Votes to Boost Charitable Donations, Including Penalty-Free IRA Rollovers
Excerpt: "The Senate overwhelmingly approved a bill yesterday to encourage contributions to charitable groups, two weeks after its sponsors shelved controversial proposals by President Bush that would have made it easier for religious charities to receive federal grants.... People could roll over their individual retirement accounts directly to charities without paying a tax penalty ..." (Washington Post)
Text of ASPA Testimony at Cash Balance Plan Hearing
Excerpt: "For better or worse, the last and best hope for promoting new defined benefit plan coverage is cash balance or similar hybrid plans. The good news is that there are thousands of businesses throughout the country who, in light of current developments in the stock market, might be interested in adopting a defined benefit plan like a cash balance plan for their workers." (American Society of Pension Actuaries)
Analysis: IRS Gives Cash Balance Plans Half a Loaf (PDF)
Excerpt: "The IRS's recent withdrawal of part, but not all, of its controversial cash balance plan regulations illustrates the old saying that half a loaf is better than none. This Management Alert describes the difficult position that continues for cash balance plans." (Seyfarth Shaw)
The (K)oncept Plan for 401(k) Plans, 2003 Model
Excerpt: "In a practical sense, most defined contribution plans aren't working the way many people envision. By three important measures, the majority of programs would not pass a reasonable inspection.... Participation ... Saving Rate ... Investment Management." (Stephen J. Lansing, published by 401kHelpCenter.com)
Cessna to Stop Nonunion 401(k) Matches
Excerpt: "Textron, Cessna's parent company, made the decision as a cost-cutting measure, spokeswoman Sue Bishop said. The suspension could affect just more than 23,000 Textron employees nationwide--the number of nonunion employees.... Textron had matched 50 cents of every $1 the employee contributed, up to 10 percent of an employee's wages.... The match was entirely in company stock." (The Wichita [Kan.] Eagle)
A Plan to Recalculate Pensions
Excerpt: "Corporations would find billions of dollars of pension shortfalls eliminated overnight under a proposal being prepared to address a longstanding issue in pension accounting. The proposed legislation, being drafted by a Democrat and a Republican who sponsored changes in retirement laws in 2001, would create a permanent replacement for the 30-year bond in certain pension calculations." (New York Times; one-time registration required)
Replacing a Money Purchase Plan: a Practical Guide (PDF)
7 pages. Excerpt: "In considering whether to substitute a profit-sharing plan for a money purchase plan, it is important to understand the limits that apply to plan contributions and other restrictions on plan operations." (Sutherland Asbill & Brennan LLP)
Survey: Confidence in Retirement Savings Declines
Excerpt: "Battered by three years of stock market declines and the weak economy, Americans have become less optimistic about their ability to accumulate enough money to retire comfortably." (AP via New York Times; one-time registration required)
Working Paper: Fiscal Effects of Social Security Reform in the United States (PDF)
45 pages. Excerpt: "If reform alters retirement patterns, this will in turn impact benefit payments and tax collections both inside and outside of the Social Security system. For example, if raising the early entitlement age for Social Security leads to later retirement, this may significantly improve the government's fiscal position above and beyond the savings from starting payments later in life." (Boston College, Center for Retirement Research)
New Feature: The Davis-Bacon Act Q&A Column
Er, um, what's the Davis-Bacon Act, and why do I need to know about it as a plan administration consultant/TPA? (BenefitsLink.com)
Another Question is Answered in the Davis-Bacon Act Q&A Column
Does a Davis-Bacon Plan need an independent trustee? (BenefitsLink.com)
Another Question is Answered in the Davis-Bacon Act Q&A Column
Why is there so little research material available on Davis-Bacon retirement plans? (BenefitsLink.com)
Another Question is Answered in the Davis-Bacon Act Q&A Column
What is annualization? (BenefitsLink.com)
Links to Items on Executive Comp, Benefits in General
Link to Written Statements at Senate Finance Committee Hearing on Enron Executive Comp Issues
April 8, 2003. Witnesses included Mary M. Schmitt, Joint Committee on Taxation; Pamela Olson, Department of the Treasury; Charles E. Essick, Towers Perrin; Kathryn J. Kennedy, the John Marshall Law School; and Bruce J. McNeil, Dorsey & Whitney. (U.S. Senate, Committee on Finance)
Eighth Circuit Upholds Award of $7.2 Million To Employees Denied Benefits Under Phantom Stock Plan
The Eighth Circuit U.S. Court of Appeals has upheld a jury award of nearly $7.2 million to two employees who were terminated and denied compensation under the employer's phantom stock plan. The case is Emmenegger, et al. v. Bull Moose Tube Company, et al. (Nos. 02-2088 and 02-2089). (SpencerNet)
BenefitsLink Search Engine Improved
We've tweaked some settings on the new search engine ... if you have tried the new search engine and you've been disappointed, please give it another try. The old search engine worked better in some ways, but we can't continue using the old search engine due to an operating system upgrade (progress, doncha know?) ... if the new search engine still is unacceptable to a significant number of our readers, we'll work to find and install an even better one. Thanks! (BenefitsLink)
Newly Posted or Renewed Job Openings
Director - Defined Contribution Compliance
for AIG VALIC
in TX
Benefits Administrator
for ALLTEL - Little Rock, Arkansas
in AR
Vice President, Retirement Plans Sales & Marketing
for Standard Insurance Company
in OR
Newly Posted Webcasts
(Post Yours!)
DC Plan Administrators Advocate Duo 403(b), 457 Offerings in May 8 Webcast
on May 8, 2003
presented by National Association of Government Defined Contribution Administrators, Inc.
Newly Posted Press Releases
(Post Yours!)
Rob DiMase Promoted to VP, Finance, and Treasurer of Sentinel Benefits
(Sentinel Benefits)
Sentinel Benefits Brings on Seasoned Consultants to Round out Sales Team
(Sentinel Benefits)
DC Plan Administrators Advocate Duo 403(b), 457 Offerings in May 8 Webcast
(National Association of Government Defined Contribution Administrators, Inc.)
Leading Manufacturer Hydromat Counts on Ceridian Integrated, Web-based Solutions to Ease Administrative Burdens
(Ceridian)
Cypress Capital Addresses Medical Coverage Needs of Louisiana Employers
(Cypress Capital Management, LLC)
Minnesota Representative Drops Attempt To Repeal MN Data Collection Law
(Citizens' Council on Health Care)
Council applauds introduction of Portman and Cardin's Pension Preservation and Savings Expansion Act of 2003
(American Benefits Council)
DOL Announces Extension of Mental Health Parity Act Rules
(U.S. Department of Labor, Employee Benefits Security Administration)
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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