| BenefitsLink Retirement Plans Newsletter |   |
April 16, 2003 - 13,053 subscribers
Today's sponsor: ASPA
(Click on company name or banner to learn more.)
Career Opportunity Knocks Advance your career with the retirement industry's only certification program devoted exclusively to 401(k) plans. QKA is available only from ASPA-- the education leader for qualified plan issues. You can add the prestigious QKA designation to your name by passing five invaluable courses. QKA training is essential for completing day-to-day work, and for realizing a promising future. Start earning your QKA designation today-- and watch your career soar tomorrow. Click above or visit http://www.asppa.org/qka/ for more information.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
DOL Provides Guidance on Sarbanes-Oxley Act Application to Participant Loans from Retirement Plans
Press release, with link to source document (Field Assistance Bulletin 2003-1, April 15, 2003). Excerpt: "Issue: May a plan administrator deny participant loans to directors and executive officers of the sponsoring employer of the plan on the basis that such loans may violate Section 13(k) of the Securities Exchange Act of 1934 without contravening the requirement of section 408(b)(1) of ERISA that loans be made available to all participants on a reasonably equivalent basis?" (U.S. Department of Labor, Employee Benefits Security Administration)
Are You Working as Your Clients' Investment Cost Manager?
Excerpt: "In this article, I'd like to explain why it is in your best interests, as well as your clients', to become their investment cost manager. Two mighty trends are occurring in your business. First, the world of professional financial advice is gradually shifting from a transaction/commission model to a fee-based model. Secondly, as a result of a deep bear market, a dramatic compression has affected investors' return expectations and risk appetites." (Rich White on FreeERISA.com)
Texas Teachers' Pension Fund Borders on Being Underfunded
Excerpt: "[U]nless the market stages a dramatic comeback, lawmakers will have to consider some unappealing options: The state could ante up more money; benefits could be frozen or reduced; or employees could be required to pay more into the system." (The Austin {Tex.] American-Statesman via NewsAlert.com)
States, In Dire Financial Shape, Turn to Pension Refinancing Plans
Excerpt: "The cornerstone of [Illinois] Gov. Rod Blagojevich's $52.4 billion budget proposal-- a plan to use borrowed money to pay for government workers' pensions-- has little precedent in other states. California, West Virginia and Wisconsin are considering the idea now because they are in dire financial shape, analysts say." (AP via StarTribune.com)
Court Supports Plan Committee Actions Limiting "Excessive" Participant Trades
Straus v. Prudential Employee Savings Plan (E.D.N.Y.2003). Excerpt: "The Prudential Employee Savings Plan allowed plan participants to transfer money among its investment funds each business day, but stated in its SPD that 'in certain situations (for example, excessive trading, etc.), there may be limitations regarding transfers.' ... The participants sued, seeking a preliminary injunction to stop the plan and its fiduciaries from enforcing the policies restricting frequent trading ..." (EBIA Weekly)
Plan Sponsor That Mistakenly Overpaid Participant May Seek Repayment If Benefits Are Traceable
Lumenite Control Technology, Inc. v. Jarvis (N.D. Ill. 2003). Excerpt: "The sponsor of the profit-sharing plan in this case mistakenly overpaid a terminated participant by nearly $14,000 when it rolled over the participant's distribution to an IRA in two separate distributions. Soon thereafter, the participant cashed out the IRA and used the proceeds, including the overpayment amount, to make a down payment on a house and pay the taxes due on the cashout." (EBIA Weekly)
Opinion: Police in California Reaching for Even Higher Pension Benefits
Excerpt: "Sometimes in the state Capitol, it is difficult to tell the cops from the robbers. Perhaps that's too harsh. But there is no denying that California's law enforcement unions hold the Legislature in a death grip and are using their leverage to extract more and more generous pay and benefits from the taxpayers who employ them." (The Sacramento Bee)
Newly Posted or Renewed Job Openings
Retirement Plan Analyst PD-14123
for Southern California Edison
in CA
Retirement Plan Coordinator
for American Funds
in TX
Retirement Sales Specialist
for Actuarial Planning Group, Inc.
in ALL STATES
Newly Posted Webcasts
(Post Yours!)
Reality Check on Consumer-Driven Healthcare
on April 24, 2003
presented by International Foundation of Employee Benefit Plans
Newly Posted Conferences
(Post Yours!)
2003 Spring Conference
in AZ
May 13, 2003
Western Pension & Benefits Conference Phoenix Chapter
Sal Tripodi Talks About Current Events in Employee Benefits
in FL
April 23, 2003
GrayHarris
Newly Posted Press Releases
(Post Yours!)
William L. MacDonald Named To Additional Positions of President and Chief Executive Officer of Retirement Capital Group
(Retirement Capital Group)
Employee Benefits Security Administration Releases Field Assistance Bulletin on 'Participant Loan' Rules
(U.S. Department of Labor, Employee Benefits Security Administration)
ESOP Association Praises Rep. Ballenger's (R-NC) Introduction of Employee Ownership for the 21st Century Act (HR 1778)
(ESOP Association)
PSCA Applauds Representatives Portman And Cardin On Aptly Named Pension Preservation and Savings Expansion Act of 2003
(Profit Sharing/401(k) Council of America (PSCA))
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Steven Spurling (Stanton Trust Company)
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
Copyright 2003 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission.
Published by:
BenefitsLink.com, Inc.
https://benefitslink.com/about.html
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
Editor and Publisher: David Rhett Baker, J.D.
Housekeeping: