July 29, 2003 - 13,277 subscribers Today's sponsor: Thompson Publishing Group, Inc. (Click on company name or banner to learn more.) “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. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) House Committee Yet To Reschedule Controversial Pension Bill Markup Excerpt: "Speaker J. Dennis Hastert (R-Ill.) indicated he would not force a new markup. 'I'm Speaker of the House, but I don't tell committees what they should do every day,' he said." (The Hill via U.S. Newswire) Overview: House Committee Reports Comprehensive Pension Reform Bill with Uncertain Future Excerpt: "[T]he reported bill would temporarily replace the 30-year Treasury rate with a long-term corporate bond rate for purposes of determining minimum funding requirements and lump sum distribution amounts, among other things. The new rate would apply to plan years beginning after December 31, 2003, and before January 1, 2007, for pension funding purposes." (Deloitte & Touche Human Capital Advisory Services) General Accounting Office Urges Congress to Act on Social Security Excerpt: "If no changes are made, recipients would see benefit cuts of nearly a third by 2039, the report said. Social Security faces a $3.8 trillion deficit during the next 75 years. Younger Americans must confront a combination of tax increases, cuts in government programs and services and reduced retirement benefits needed to restore long-term financial health to Social Security, the report said." (AP via Washington Post) US Airways Pilots: Difference Between Defined Benefit and What PBGC Pays Feels Like Broken Promise Excerpt: "In today's workplace, the traditional 'pension' is becoming as much an anachronism as the lucrative blue-collar career, the 30-year Company Man and indemnity health insurance plans. The old-school pensions are called ``defined benefit'' plans. They are maintained by companies and promise workers a specific monthly benefit at retirement." (The Tampa Tribune) Overview: the New Proposed 401(k) Regulations Excerpt: "The proposed regulations ... restrict a sponsor's ability to use targeted matching contributions to pass the ACP test.... [Further], if a plan wishes to use the ACP safe harbor, then all eligible employees must receive ACP safe harbor matching contributions. This means the plan will not be able to impose last day or 1,000 hour requirements on additional ACP matching contributions." (SunGard Corbel) Roundtable Discussion: Public Employers Discuss Changes to Their Retirement Plans Excerpt: "[T]heir comments on how their plans are changing ... provide insights into the perceived merits of both DB and DC plans that will ring true for sponsors of private and public plans alike.... They also wrestle with the same issues of employee equity, risk and education. There are, however, a number of differences between public and private sector plans that affect the decisions public plans make." (Buck Consultants) Overview: IRS Sets Requirements For ESOPs Maintained By Subchapter S Corporations The Internal Revenue Service has issued temporary and proposed regulations that set forth requirements for employee stock ownership plans holding stock of Subchapter S corporations. Both sets of regulations, which apply to plan years ending after Oct. 20, 2003, appeared in the July 21 Federal Register. (Spencer Benefits Reports) How Does Social Security Predict Retirement Benefits if an Employee Wants to Retire Before Age 62? Excerpt: "If an employee age 56 is considering early retirement, how can they project how much Social Security they will have at age 62-- taking into consideration they stopped contributing to Social Security?" (Financial Finesse via Workindex.com) Another Question is Answered in the ERISA Benefit Claims Q&A Column I am the former spouse of a pension plan participant; a QDRO was entered by the court. Am I entitled to any benefits if my former spouse dies before retiring? (BenefitsLink.com) Another Question is Answered in the Davis-Bacon Act Q&A Column Which law has priority when a contractor is working in a state where the state prevailing wage law may be more onerous or restrictive (such as California), than the federal Law (the Davis-Bacon Act)? (BenefitsLink.com) Links to Items on Executive Comp, Benefits in General Overview: Employer Could Deduct Value of Compensatory Stock That Employee Didn't Include In Income Excerpt: "IRS has recently mounted a multi-pronged attack against employees who attempt to defer income recognition by transferring nonstatutory compensatory stock options to related parties for long-term notes.... [T]he promoters of these schemes say that tax can be deferred until the note is paid, even though the related party typically exercises the options shortly after the transfer." (RIA Tax News) Many Colorado Companies Reluctant to Expense Stock Options Excerpt: "Although they admit some reforms are needed, opponents of mandatory expensing say it goes too far and will confuse investors, stifle innovation and leave American corporations at a disadvantage." (The Denver Post via NewsAlert.com) Newly Posted or Renewed Job Openings Plan Administrator for weaver partners, inc. in ALL STATES 401K Client Service Rep for ADP in NJ Retirement Plan Administrator for InWest Pension Management, Inc. in TX Retirement Plan Specialist Team Leader for Diversified Investment Advisors in FL Retirement Plan Specialists for Diversified Investment Advisors in IN, MI Director - Product Planning for ADP in NJ 401(k) Plan Administrator for Sample & Bailey CPAs PC in CO Pension Plan Administrator for Tycor Benefit Administrators, Inc. in PA Pension Assistant for Tycor Benefit Administrators, Inc. in PA Employee Benefit Operations Manager for Employee Benefit Operations Manager in FL Manager - Disability for Verizon Wireless in NJ Newly Posted Webcasts (Post Yours!) New COBRA Regulations Overview on July 31, 2003 presented by International Foundation of Employee Benefit Plans U.S. Retirement Plan Governance on August 7, 2003 presented by Mercer Human Resource Consulting Newly Posted Conferences (Post Yours!) Cross-Testing (Gateway Rules for DB & DC Plans) in CA August 28, 2003 National Institute of Pension Administrators, San Francisco Chapter Newly Posted Press Releases (Post Yours!) SunGard Corbel Introduces New Hardcopy 5500 Reference Tool (SunGard Corbel) CIMS and eBenefitManager™ Sign Joint Marketing Agreement (eBenefitManager™) Handy Links:
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