June 3, 2003 - 13,197 subscribers Today's sponsor: Actuarial Systems Corporation (Click on company name or banner to learn more.) ASC - QUALITY SOFTWARE FOR THE PENSION INDUSTRY FOR OVER 20 YEARS ASC provides complete automation for the pension office, including: DC/401(k) and DB administration and valuation systems, sophisticated Compliance Testing, DV Direct Daily Valuation, Advanced Information Manager Database (AIM), and Single-Step Processing. All ASC Technical Support Members were experienced Pension Administrators or Actuaries before joining ASC -- and most have been with ASC for over 10 years. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Valuing Defined Benefit Plan Benefits for Purposes of Marital Settlements Excerpt: "This month we are going to revisit a subject that we discussed before-- the implications of the methodology used to identify the marital portion of a defined benefit pension. This has a much greater bearing on whether the portion of the settlement involving retirement assets is equitable than any other factor." (Paul R. Commerford on DivorceNet.com) DOL Proposes Exemption for Acquisition and Sale of REIT Shares by Certain REIT Employers' Plans Excerpt: "The Applicant, NAREIT, is a Washington, D.C.-based trade association that supports the legislative, capital formation, and educational needs of the real estate investment trust (REIT) industry. REITs are entities that combine the capital of investors to acquire, or provide financing for, real estate investment.... NAREIT requests this exemption on behalf of publicly traded REITs that are structured under state law as business trusts ... (Trust REITs)." (U.S. Department of Labor, Employee Benefits Security Administration) Small Business Tax Credit for 401k Startup Costs Excerpt: "For costs paid or incurred in tax years beginning after December 31, 2001, for retirement plans that first become effective after that date, you may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan (including a 401k)." (401kHelpCenter.com) International Social Security, Phase 3 Collection of drafts of chapters to be contained in a forthcoming book. (National Bureau of Economic Research) The Future of French Pension Funds and Company Savings Plans (PDF) At pp. 8-10 of 12-page document. Excerpt: "Actions for discussion on pension reforms in France include: Postponing normal retirement age due to longer life expectancy; Amending early retirement provisions; Adjusting the length of affiliation to social security old age branch required for retirement benefits ..." (Milliman Global) More Chaos in France as Workers Strike Again Over Public Pension Reform Excerpt: "Teachers-- who have taken the lead in the last three weeks of public sector protests-- closed classes for the tenth time since the start of the school year, once again leaving many parents struggling to find child-care.... The [reform bill in dispute] is meant to ensure that the country's 'pay-as-you-go' pensions system survives demographic pressures in the years ahead as the baby-boom generation ages. Its main provision is to make people work longer to get a full pension." (AFP via Yahoo! News) Will Baby Boomers See Less of Their Social Security Retirement Benefits In Coming Years? Excerpt: "As the number of retirees grows and the number of workers supporting them declines, the economies of the United States and other industrial countries seem likely to be hit by slower rates of productivity growth-- making the size of the pie grow more slowly even as more retirees seek their slice ..." (The [Minneapolis] Star Tribune) Employees Were Not Entitled To Pension Benefits In Excess of IRC Sec. 401(a)(17) Limit Two physicians who participated in a medical group's defined benefit plan were not entitled to benefits in excess of the IRC Sec. 401(a)(17) annual compensation limit, as reduced by the Omnibus Budget Reconciliation Act of 1993. This was the ruling of the Seventh Circuit U.S. Court of Appeals in Helfrich and Nelson v. Carle Clinic Association, P.C. (Nos. 02-2765 and 02-3871). (Spencer Benefits Reports) ESOPs: a Split Personality Excerpt: "In the wake of the spectacular bankruptcies of Enron, United Airlines, and Polaroid, employee stock ownership plans have come under intense media scrutiny during the past year. The staggering losses of employees' retirement savings have prompted pundits to predict the demise of ESOPs, and politicians to call for regulatory overhaul. Pundits notwithstanding, ESOPs won't disappear anytime soon." (CFO.com) Overview: DOL Relaxes Rules for Allocating Expenses in DC Retirement Plans Excerpt: "The FAB approves a pro rata method (allocations are based on assets in the individual accounts) and per capita method (expenses charged equally to each account regardless of assets), but suggests that the per capita method may be inappropriate for expenses in which the fees or charges are based on account balances (e.g., investment management fees)." (Pepper Hamilton LLP) Newly Posted or Renewed Job Openings Senior Benefit Systems Analyst for Towers Perrin in NJ, PA Plan Administrator for weaver partners, inc. in ALL STATES New Fellow or Associate Actuary for Milliman USA in CO Health and Welfare Consultant / Underwriter for PricewaterhouseCoopers in MA Manager, Retirement Benefits Administration for Aerojet in CA Regional Director, ES-1801 for U.S. Department of Labor, Employee Benefits Security Administration in MO Senior Benefits Specialist (Retirement Plans focus) for recruitingmanager.com, Inc. for a $4+ Billion Fortune 500 Company in S. CA in CA Trust/EB Administrator for Glenview State Bank in IL Health and Welfare Benefits Consultant for TSA in CA, CT, DC, DE, GA, IL, IN, MA, MD, MI, MN, NJ, NY, OH, PA, TX, WI Sr. Manager Benefits/Health & Welfare for Ernst & Young in MA, MI Retirement Actuarial Associates - Atlanta for PricewaterhouseCoopers in GA 401(k) Plan Administrator for Pension Resources, Inc. in PA Newly Posted Conferences (Post Yours!) A Review of Consumer-Drive Health Plans in FL June 25, 2003 Orlando Chapter of ISCEBS Newly Posted Press Releases (Post Yours!) Federal Pension Insurer Protects Benefits of 8,000 at Consolidated Freightways (Pension Benefit Guaranty Corporation) PlanMember Services Corporation Partners with Colonial Trust Company (PlanMember Services Corporation) Peter Newkirk Receives “Impact Player of the Year” Lifetime Achievement Award (Newkirk) Handy Links:
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