| BenefitsLink Retirement Plans Newsletter |   |
June 25, 2003 - 13,243 subscribers
Today's sponsor: Thompson Publishing Group, Inc.
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“USERRA: HR Implications of Military Leave” audio conference 7/2/03 * 2:00 p.m. ET Avoid lawsuits! As an employer, do you know all that is entailed in the Uniformed Services Employment and Reemployment Rights Act (USERRA)? Make sure you understand the basics of all of the legal requirements, and the similarities and differences between the federal and state laws by joining us for this 90-minute interactive audio conference!
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Pension Needs Fueling GM's Sales Push
Excerpt: "GM's pension is about $19 billion underfunded, and the nation's biggest carmaker has to sell vehicles as fast as possible to keep cash coming in to service the pension." (Washington Post)
Another Question is Answered in the Who's the Employer Q&A Column
I am the owner and sole employee of a corporation. I also have a sole proprietorship with no employees. Because these businesses are under common control, I must file a full Form 5500. Am I subject to the small plan audit requirements? (BenefitsLink.com)
Ninth Circuit Case Creates Deduction Opportunity for Companies with ESOPs
Excerpt: "The U.S. Court of Appeals for the Ninth Circuit recently held that payments made by a corporation to redeem shares of its stock held in an [ESOP] and distributed by the ESOP to participants were deductible under section 404(k) of the Internal Revenue Code (Code).... Some companies may be able to claim deductions that they did not realize existed. However, securing these deductions is not a sure thing. Before claiming such a deduction, an employer should consider the following: ..." (McDermott, Will & Emery)
Analysis: Fifth Circuit Holds That Retiree Grocery Voucher Program Was ERISA Pension Plan
Excerpt: "While some in-kind benefits do not constitute ERISA plans, such as sales by an employer to an employee of products that the employer offers for sale in the regular course of business that are excluded from ERISA coverage, it may be risky to assume that giving an employee or retiree something that the employer produces or sells simply constitutes a nice perk, rather than an ERISA plan." (EBIA Weekly)
Court Allows Plan to Recover Overpayment
Neal v. General Motors Corp., No. 3: O1CV662MU (W.D.N.C. 6/11/03). Excerpt: "In this case, the court permitted an ERISA pension plan to recover benefits erroneously paid to a participant's former spouse.... The court reasoned that the plan could recover the overpayment to the former spouse based on federal common law that provides a remedy for unjust enrichment if at least one of three requirements is met: ..." (EBIA Weekly)
Miami-Dade School District Decides Not to Allow Extension of DROP Program Despite State OK
Excerpt: "[K]eeping veteran teachers is pricey -- some make double the salary of a new teacher -- and most districts were counting on reducing payroll with their retirements. To avoid the ire of local school boards, legislators let each county's superintendent decide whether to grant the extensions. After meeting with dozens of principals and receiving unanimous recommendations from his senior staff, Miami-Dade Superintendent Merrett Stierheim issued a blanket policy: no extensions." (The Miami Herald via NewsAlert.com)
Working Paper: Reality Check for Pension Reform
Excerpt: "[T]here are two diametrically opposed proposals for change before Congress. The first is the Pension Preservation and Savings Expansion Act of 2003 ... The second is the Administration's attempt at radical change and simplification.... This paper evaluates these two approaches-- one evolutionary, the other revolutionary-- and then considers an alternative." (Pamela Perun and C. Eugene Steuerle of the Urban Institute)
Welcome to new BenefitsLink advertiser G. Russell Knobel & Associates, Inc.
Excerpt: "G. Russell Knobel & Associates, Inc. -- Quality and Integrity Retirement Plan Administration since 1976, ASPA Member since 1982, access to 10,000 mutual funds, no 12b-1's, all subsidies to plan sponsor, daily valuation, plan sponsor and participant web access"
Newly Posted or Renewed Job Openings
Defined Benefit Data Consultant
for The Paragon Consulting Group, Inc.
in MA
Manager, Integrated Disability Benefits
for Global professional services firm
in CA
401(k) Product Developer
for Transamerica-The Winning Organization
in CA
Newly Posted Press Releases
(Post Yours!)
Metlife’s Retirement Income IQ Test Reveals Widespread Misconceptions About Longevity, Income Needs and Long-Term Care
(MetLife Mature Market Institute and American Savings Education Council)
Handy Links:
- View Today's Active Message Threads
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- Using the Web for Employee Benefits Research
- Employee Benefits Library
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Editor and Publisher: David Rhett Baker, J.D.
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