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June 9, 2003 - 13,189 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)
IRS: Service While Plan is Frozen Cannot Be Ignored for Vesting Purposes if Formula Later Unfrozen
Rev. Rul. 2003-65. Excerpt: "The freezing of accruals under a qualified retirement plan, so that a partial termination of the plan occurs, does not constitute a plan termination for purposes of determining whether service for the plan sponsor after the plan was established may be disregarded toward vesting if accruals resume under the plan. [So] all years of service for the plan sponsor following the establishment of the previously frozen plan must be taken into account for purposes of vesting." (Internal Revenue Service)
Another Busy Year for 401(k) Guidance Planned at Treasury and DOL
Excerpt: " Last week, federal government agencies published their semiannual regulatory agendas. These agendas are the agencies' 'to do' lists and show the regulations that the agencies expect to review or develop. Following is a list of the items that the Treasury Department and DOL are working on that fall within the scope of [EBIA's] 401(k) Plans manual ..." (EBIA Weekly)
Special Report: IBM Pensions in the Balance
Excerpt: "When IBM abandoned its traditional pension plan, employees were outraged and launched a court battle. Now, the issue is about to be decided. This special report will help you find out what's at stake." (Binghamton [N.Y.] Press & Sun-Bulletin)
The Structure of the Financing of an ESOP Transaction Impacts Corporate Governance (PDF)
At pp. 1-7 of 16-page document. Excerpt: "Prior to Enron, companies, lenders, trustees of ESOPs, and most advisors did not focus their attention on corporate governance. Corporate governance is one of the most important (if not the most important) aspects of an ESOP transaction. After an ESOP transaction is completed, it is very difficult to make changes to the instruments that rule corporate governance." (Jenkens & Gilchrist)
Total Retirement Management: Time For An Integrated Approach (PDF)
Fidelity report describes the benefits of combining the administration of an employer's defined contribution and defined benefit plans under a single provider. Excerpt: "[I]t helps contain costs and improve efficiencies ... [I]t integrates the retirement education, planning, and transition processes around retirement ... [I]t supports a more comprehensive plan management approach by providing a single point of contact for plan administration and a single source of plan and participant data." (Fidelity Workplace Services)
IRS Updates and "Streamlines" EPCRS
Excerpt: "The changes to EPCRS generally are effective Oct. 1, 2003, but plan sponsors are permitted to apply the provisions of Rev. Proc. 2003-44 now. Unless the plan sponsor applies its provisions earlier, the Revenue Procedure applies to SCP corrections that are not complete before October 1, VCP submissions made on or after October 1, and Audit CAP for examinations begun on or after October 1. Below, we highlight some of the more significant changes announced in the Revenue Procedure." (EBIA Weekly)
Links to Items on Executive Comp, Benefits in General
New U.S. Tax Breaks May Add Allure to Use of Stock Options
Excerpt: "Even as executive stock options were cited as playing a role in some recent corporate scandals, tax changes in the new economic package may make those options even more attractive, experts say. The reason, they say, is that the gap between the top tax rate on ordinary wage and salary income -- 35 percent -- and the rate on capital gains and dividend income -- at 15 percent this year -- will be so large." (Reuters)
Backlash Grows Against SERPs
Excerpt: "[T]he disclosure that American's parent, AMR Corp., had arranged for special accounts to ensure funding of executive retirement benefits and protect them in the event of bankruptcy helped ignite a chain reaction at the troubled carrier, including the prompt resignation of Chief Executive Donald Carty. The fallout also has cast a new light on the programs, known as SERPs, across corporate America and, experts said, could have a substantial effect on their future." (Chicago Tribune via Hoover's Online)
Newly Posted or Renewed Job Openings
Defined Benefit Client Account Manager
for New York Life Investment Management, LLC
in MA
Quality Control Analyst
for CNA Trust
in CA
Sales Executive - Third Party Administrator (TPA)
for ADP
in NJ
401(k) Plan Administrator
for Pension Inc.
in IA, IL
Account Specialist/ Plan Administrator
for AMVESCAP Retirement, Inc.
in GA
Senior Manager
for Lawrence Johnson & Associates
in CA
Pension Administrator
for Lawrence Johnson & Associates
in CA
Newly Posted Webcasts
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on June 19, 2003
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