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May 1, 2003 - 13,168 subscribers
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P&I Defined Contribution/401(k) Conference October 12-14, 2003 The Fairmont ~ San Francisco, CA Conference Overview: This program is designed to educate and help plan sponsors incorporate superior management and control practices into their existing DC programs. Audience Profile: Corporate investment executives, 401(k) plan executives, retirement plan administrators, employee benefit and HR executives, treasurers, CFOs, chief investment officers, consultants and leading providers of retirement plan services. To Register: visit www.ibfconferences.com and mention code BENL
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Treasury Official Makes Proposal on DB Plan Interest Rates
Excerpt: "Peter R. Fisher, the Treasury's under secretary for domestic finance, suggested a new approach that would more closely match the dates each company's employees would retire with the maturities of the assets in that company's pension portfolio.... The question of how best to calculate pension obligations is of tremendous importance to the companies that sponsor pension plans, as well as to their employees and investors." (New York Times; one-time registration required)
Written Statement of Treasury Undersecretary for Domestic Finance at Yesterday's Hearing on Funding of DB Plans
Excerpt: "My testimony, however, will focus just on the issue of measuring pension liabilities. In our view, overall pension reform that will lead to more secure pensions for American workers and retirees requires three steps: first, develop a more accurate, reliable, and timely measure of pension liabilities; second, fix the pension funding rules; and third, establish transition rules so as to avoid an abrupt change in firms' funding plans." (The Honorable Peter Fisher, Undersecretary for Domestic Finance, U.S. Department of the Treasury)
Written Statement of American Academy of Actuaries at Yesterday's Hearing on Funding of DB Plans (PDF)
17 pages. Excerpt: "My written statement covers five important issues for this hearing, namely: (1) Problems of the current funding rules and the need for a quick permanent fix, (2) Alternatives for discounting liabilities, (3) Concerns with current lump sum rules, (4) Pension Benefit Guaranty Corporation (PBGC) issues, and (5) Allowing greater contributions when employers are able to make them." (American Academy of Actuaries)
Written Statement of PBGC Executive Director at Yesterday's Hearing on Funding of DB Plans
Excerpt: "I am going to focus on the state of the PBGC and the defined benefit pension system, as well as funding issues that directly impact PBGC." (Pension Benefit Guaranty Corporation)
PBGC Deficit Widens
Excerpt: "The U.S. agency that bails out troubled corporate pension plans said on Wednesday that its deficit had grown to around $5.4 billion in the first six months of its fiscal year from $3.64 billion in 2002." (AP via Lycos News)
ERIC Sets July Deadline for Congress to Replace the 30-Year Treasury Bond Rate
Press release. Excerpt: "The ERISA Industry Committee today warned Congress that if legislation to replace the defunct 30-Year Treasury bond rate is not enacted by July, it could jeopardize many of the nation's largest pension plans." (ERISA Industry Committee)
After DOL Advisory Opinion, Employers Able to Offer More 401(k) Advice
Excerpt: "Previously, the department [of Labor] had to review third-party advice offered by firms providing 401(k) plans, such as SunAmerica. While the review was intended to ensure that the plan provider didn't benefit from the advice offered, it added time and expense to the process, says Wray. As a result, many employers decided not to offer advice. The Sun America letter made it easier for employers to offer employees investment advice." (Bankrate.com)
Full Text of 'Pension Section News' from the Society of Actuaries (PDF)
24 pages; February 2003. Includes several excellent charts of IRC limits, phaseouts, tax rates, more. (Society of Actuaries, Pension Section)
Post-Retirement Risks: Changing Needs and Resources
Excerpt: "To consider the wider range of needs and risks now facing Americans during retirement, some members of the Society of Actuaries (SOA) have formed a committee to work with other professionals from several disciplines. Their recent efforts have produced the Post-Retirement Risks: Changing Needs and Resources Chart (PRRC), as summarized below and presented in full in the SOA Web site." (Society of Actuaries)
Pacific Northwest Employers Face Huge Pension Deficits
Excerpt: "All of the Northwest's biggest private pension funds were in the red last year, probably for the first time ever, opening a gaping hole in company coffers and forcing firms to shovel in money to secure their employees' retirements. The 15 largest defined-benefit corporate pension funds covering workers in Washington, Oregon and Idaho racked up a shortfall of $9.5 billion between what is needed to pay future benefits and what is set aside, according to an analysis by The Seattle Times." (The Seattle Times via the International Foundation of Employee Benefit Plans)
IBM Shareholders Reject Pension Choice Proposal for Third Time
Excerpt: "It appears the third time wasn't a charm for IBM employees who wanted the company to let all workers choose between two types of pension plans. Only 14 percent of shareholders voted in favor of the proposal Tuesday at the company's annual meeting in Kansas City, Mo. None of the five proposed shareholder proposals were approved at the meeting." (The [Durham, N.C.] Herald-Sun)
City of Fort Worth Endorses Proposed Texas Constitutional Limit on Reducing Pensions
Excerpt: "City officials said Tuesday that they would support a proposed Texas constitutional amendment that would limit their ability to reduce pension benefits but said they remain concerned about the legislation's potential effects." (The Fort Worth [Tex.] Star-Telegram via NewsAlert.com)
Opinion: Why the Roth Rules
Excerpt: "Studies show that people don't save for retirement because they're confounded by all the types of accounts. There's the retirement plan at work, annuities, traditional individual retirement arrangements (IRAs), Roth IRAs, and plain old savings and brokerage accounts. So we'll make it easier for you by telling you what to do: Contribute to a Roth. The tax-free growth and withdrawal flexibility can't be beat." (The Motley Fool; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Opinion: Difficult Valuation Issues Don't Mean Stock Option Expensing Idea Should Be Discarded
Excerpt: "[A]ny person with any knowledge of accounting could let [Intel CEO] Craig Barrett in on what ought to be a poorly kept secret: There is no number in the income statement or the balance sheet that doesn't already use assumptions, estimates, and generalizations." (The Motley Fool via NewsAlert.com)
Newly Posted or Renewed Job Openings
Client Service Consultant - Pensions
for Diversified Investment Advisors
in NY
ERISA Attorney
for Myers & Bettle, P.A.
in FL
Newly Posted Webcasts
(Post Yours!)
Mergers, Terminations and the 204(h) Notice
on May 28, 2003
presented by SunGard Corbel Inc.
Newly Posted Conferences
(Post Yours!)
Meeting Your Workplace Needs in Today's Economy
in GA
May 15, 2003
WEB Atlanta Chapter
Designing and Implementing HRAs and Other Consumer-Directed Health Care Plans
in ALL STATES
May 20, 2003
Thompson Publishing Group
COBRA UPDATE
in MA
May 21, 2003
Worldwide Employee Benefits Network
The Great Controversy: Current Pension Actuarial Practice in Light of Financial Economics Symposium
in CANADA
June 24, 2003
Society of Actuaries, Retirement Practice Area and Pension Section; The Actuarial Foundation; the American Academy of Actuaries
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