May 12, 2003 - 13,156 subscribers Today's sponsor: Reish Luftman McDaniel & Reicher (Click on company name or banner to learn more.) Suppose you had questions about... 401(k) investments? Fiduciary issues? Get the answers in the Participant Directed Investment Answer Book by Fred Reish and Bruce Ashton of Reish Luftman McDaniel & Reicher. You'll find an in-depth look at issues unique to participant directed plans, including: 404(c) compliance, 401(k) fiduciary responsibility for plan sponsors, investment issues arising out of Enron, revenue sharing and fiduciary issues for investment providers, brokers, TPAs and others. To purchase, click above or call (800) 638-8437. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) DOL Bulletin: Application of Participant Contribution Requirements to Multiemployer DC Plans Field Assistance Bulletin 2003-2 (May 7, 2003). Excerpt: "Issue: In the context of a multiemployer defined contribution pension plan, to what extent may collective bargaining, employer participation and similar agreements be taken into account in determining when participant contributions can reasonably be segregated from the general assets of participating employers?" (U.S. Department of Labor, Employee Benefits Security Administration) New Saver's Credit Exceeding Expectations Excerpt: "J. Mark Iwry, former Treasury Department benefits tax counsel now at Brookings, said it appears from Internal Revenue Service data that 3-1/2 million to 4 million taxpayers took the credit this past filing season. Also, 71 percent of employers in one survey said they found the credit increased participation by workers -- and 18 percent of those employers said the increase was significant." (Washington Post) First Circuit: DB Plan Doesn't Owe Interest to Participant Where Payments Voluntarily Delayed Excerpt: "Twomey v. Delta Airlines Pilots Pension Plan (05/07/03 - No. 02-1968, 02-2271). A beneficiary of a pension plan can not intentionally evade receipt of his benefits and then force the pension plan to pay him interest on the forgone benefits, because there is no obligation to pay interest in such a situation." (FindLaw.com) Russell B. Long, Former Senator Who Championed ESOPs, Dies Excerpt: "Russell B. Long, who carried the legacy of his powerful Louisiana family through four decades as a United States senator, died in Washington on Friday. He was 84.... Mr. Long was a pioneer in establishing employee stock option [sic; should be 'ownership'] plans, and he sometimes said that making them commonplace was one of his most important accomplishments." (New York Times; one-time registration required) IRS: Gov't Employees Exempt from Medicare Portion of FICA Only if Participating in Retirement System Excerpt: "This ruling provides that for the continuing employment exception to the Medicare portion of the Federal Insurance Contributions Act tax to apply to service performed by an employee of a state, political subdivision, or instrumentality thereof, such employee must be a member of a retirement system pursuant to section 3121(b)(7)(F) of the Code. Rev. Ruls. 86-88 and 88-36 supplemented." (Internal Revenue Service) Links to Items on Executive Comp, Benefits in General 401(k) Disability Feature Gains Broker Interest Excerpt: "If an employee becomes disabled, the insurer replaces his 401(k) contribution for the duration of the disability, on top of any income. The concept appears to be generating some excitement among the broker community, with some reacting enthusiastically to the idea." (BenefitNews.com) Newly Posted or Renewed Job Openings Operations Compliance Consultant for Gallagher Benefit Services, Inc. in IL, MI Retirement Services Implementation Specialist for ADP in MO Actuary -- Senior Pension Actuary for Pacific Coast Actuaries, Inc. in ALL STATES Manager, Retirement Plan Services for Diversified Investment Advisors in MO Newly Posted Webcasts (Post Yours!) Where Do Plan Sponsors Go Wrong? The Cure: The 401(k) Solution(tm) on May 14, 2003 presented by Internet Investment Education, LLC Newly Posted Conferences (Post Yours!) Half-Day Seminar on The Internal Revenue (IRS Form 5500 Series) in FL May 22, 2003 The Orlando Chapter of the International CEBS Society Newly Posted Press Releases (Post Yours!) Dependent Care Flexible Spending Accounts Made Easy (Blasingame and Associates, LTD) Employee Benefits Security Administration Releases Field Assistance Bulletin on Multiemployer 401(k) Plans (U.S. Department of Labor, Employee Benefits Security Administration) Handy Links:
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