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July 28, 2003 - 13,277 subscribers
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“New COBRA Notice Rules” Now available on Tape and CD! Are you familiar with the DOL’s new proposed COBRA notice requirements? On May 28, the U.S. Department of Labor (DOL) issued proposed regulations that clarify and expand group health plans’ obligations to provide notices of COBRA continuation coverage rights to qualified beneficiaries. Gain insight on the DOL’s proposal by purchasing a tape or CD of this important audio conference.
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New Rules Urged to Avert Looming Pension Crisis
Excerpt: "Top government officials have begun a calibrated campaign to bring attention to corporate pension plans, which they say may be on a road to collapse." (New York Times; one-time registration required)
Pension Funding Obligations Drive Carmakers to Lower Prices to Keep Cash Coming In
Excerpt: "GM's pension plan 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. That's why GM continues offering aggressive price discounts and cheap financing ..." (Washington Post via DelawareOnline.com)
Catch-Up Contributions Can Help Older Workers Build Up Retirement Savings, If Employer Allows Them
Excerpt: "Here's a look at catch-up contributions and why some companies still aren't allowing workers to take advantage of them." (Kathy M. Kristof in the Los Angeles Times; one-time registration required)
Overview: Proposed 401(k), 401(m) Regs Add New Twists to Testing, Safe Harbor, and Other Rules
Excerpt: "In this article, we highlight some of the most significant provisions of the proposed regulations that change existing guidance ..." (EBIA Weekly)
Overview: IRS Issues Proposed Rules On 401(k) Plans That Reflect Recent Statutory Changes
The Internal Revenue Service has issued a comprehensive set of proposed regulations that detail the requirements governing 401(k) cash or deferred arrangements and matching contributions and employee after-tax contributions under IRC Sec. 401(m). The proposed regulations, which are a complete restatement of the existing final rules, were published in the July 17 Federal Register. (Spencer Benefits Reports)
Trade Group Advocates Change in Terms Describing Variable Annuities
Excerpt: "The Variable Annuity Positioning Committee ... is jointly sponsored by DALBAR and NAVA (National Association for Variable Annuities). The purpose of the group is to redefine the positioning of variable annuities, starting with language that more clearly defines the functions and features of these products. The new language has now been defined and consumer tested." (DALBAR)
Predicted Budget Benefits from Upcoming Retirement Distributions Looked Good on Paper, Anyway
Excerpt: "About six months ago, Professor [Michael J.] Boskin ... released a paper suggesting that the federal government had a bounty of $12 trillion coming that no one had bothered to count. Baby boomers and others, who spent decades making tax-free contributions to their I.R.A.'s and 401(k) plans, would soon begin paying taxes on withdrawals from those accounts, Professor Boskin noted.... On July 17 ... he quietly notified his colleagues that his equations contained an error." (New York Times; one-time registration required)
Overview: DOL Rules Directed Trustees May Receive 12b-1 Fees From Proprietary Mutual Funds
DOL Advisory Opinion 2003-9A (June 24, 2003). Excerpt: "In this Advisory Opinion, the DOL found that a directed trustee providing bundled services to defined contribution plans may receive rule 12b-1 and subtransfer fees from 'proprietary' mutual funds (funds maintained by the trustee's affiliates) when the decision to invest in the proprietary funds is made by a plan fiduciary or participant independent of the trustee and its affiliates." (EBIA Weekly)
Worker Ownership Became UAL Nightmare
Excerpt: "A decade ago, United Airlines employees thought that by becoming owners of their company they would save their jobs and supplement their retirement. Instead, the 1,100 mechanics who lost their jobs this year when United ditched its Indianapolis repair base will get little back on their personal investment in the airline." (The Indianapolis Star)
Scandals Spur Fiduciary Liability Premiums
Excerpt: "A get-tough new law on corporate responsibility and a spate of investor lawsuits against publicly traded companies, including the disgraced Enron Corp., are contributing to skyrocketing premiums for directors and officers (D&O) insurance and fiduciary liability insurance." (BenefitNews.com)
Economist Urges 'Safety First' Investing Approach
Excerpt: "'This is a dangerous time, especially for retirees and near-retirees who need to think about safety first,' [Alan Blinder] told the AARP Bulletin in a recent interview. Blinder's views are worth hearing. A widely respected economist, he has been vice chairman of the Federal Reserve Board ..." (AARP)
Links to Items on Executive Comp, Benefits in General
Top Hat Plans Under Fire
Excerpt: "Special retirement plans for top executives are becoming a target for other stakeholders." (CFO.com)
Some Employers Cutting Back on Employee Benefits
Excerpt: "America has spun a full 180 degrees from the booming '90s, when employers dished up mouthwatering incentives to lure potential workers in a tight job market. It's a different world today -- one in which employers are pressured by meager or nonexistent profits, soaring health care costs and pension shortfalls caused primarily by declines in the stock market." (Minneapolis Star Tribune)
Newly Posted or Renewed Job Openings
Pension Administrators
for Associated Pension Consultants
in CA
401(k) / DC Compliance Analyst
for CNA Trust
in CA
Quality Control Analyst
for CNA Trust
in CA
401(k) Account Manager
for CNA
in CA
Health & Welfare Southeast Practice Leader
for PricewaterhouseCoopers
in GA, PA
Pension Sales Professional
for Preferred Pension Planning Corporation
in NJ
Senior Plan Administrator
for RPS Plan Administrators
in CO
Newly Posted Press Releases
(Post Yours!)
The Benefit Advisors Network Welcomes Relph Benefit Advisors
(The Benefit Advisors Network)
Plan Committee Members and Frank Russell Trust Company Settle Pension Investment Lawsuit With Past and Present Services Group of America Employees
(Ekman, Bohrer & Thulin, P.S.)
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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