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BenefitsLink
Retirement Plans
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July 29, 2003 - 13,277 subscribers
Today's sponsor: Thompson Publishing Group, Inc.

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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.

(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
Post a Help Wanted Ad

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™)


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