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August 11, 2003 - 13,309 subscribers
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“Coordination of Leave Strategies” 8/18/03 * 2:00 p.m. ET Do you have difficulty appropriately responding to leave requests? You are not alone! Many employers find recalling all the requirements of the seemingly overlapping leave laws to be both taxing and complicated. Luckily, we can help! Register for this exclusive audio conference and in just 90 minutes, and without leaving your desk, you can learn strategies to identify and avoid potential problems in handling employee leave requests.
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Plaintiff in IBM Cash Balance Case Asks Both Sides to Calm Down
Excerpt: "Both sides are exaggerating the impact of the recent federal court decision that overturned two pension plan changes IBM made in the 1990s, says the employee who served as lead plaintiff. 'This wild speculation, whether it's on the defendants' part or the class's part, should stop,' said Kathi Cooper, the 52-year-old Illinois woman whose pension benefits were dissected by lawyers during the court case." (Gannett News Service via the Cincinnati Enquirer)
Pension Issues: Cash Balance Plans (PDF)
27 pages; updated 8/7/2003. Excerpt: "As more employers have converted their traditional pensions to cash-balance plans, two issues of particular concern to many pension plan participants have been (1) employer practices in disclosing the impact of the pension conversions and (2) the effect of conversions on older and long-service employees." (Congressional Research Service of the U.S. Library of Congress)
Maryland State Pension Plan to Require Direct Deposit for Most Retirees
Excerpt: "After years of gentle persuasion, the Maryland state employee pension system is getting tough with retirees who have not signed up for direct deposit of benefits. Next month, no checks will be sent out - unless the retiree has a compelling reason not to use electronic funds transfer." (The Baltimore Sun)
Available for Immediate Purchase Downloading: Sal Tripodi's Commentary on Proposed 401(k) Regs
Use our new instant, secure download facility to nab Sal Tripodi's extensive commentary on the newly proposed 401(k) and 401(m) regulations: the 32-page Summer 2003 edition of ERISA Views. Written in an easy-to-understand format with many illustrative examples. Excerpt: "Our intention ... is to help you focus on the way existing administrative practices or plan designs might change if these regulations are adopted in their present form." (TRI Pension Services via BenefitsLink.com)
Sample of Sal Tripodi's Commentary on Proposed 401(k) Regs
This link takes you to our new secure instant download facility; by registering, you'll be able to click the 'Buy Now' button and obtain a 2-page sample of Sal Tripodi's newest commentary at no charge. Registering for the sample means you'll be able to easily purchase future documents or software, just by entering your password (without having to fill in credit card numbers or other online forms). (TRI Pension Services via BenefitsLink.com)
Understanding the Impact of Employer Matching on 401(k) Savings (PDF)
At pp. 13-15 of 28-page document. Excerpt: "[A] doubling of the match rate raises employee contributions by 50%. For example, if the match rate were 25¢ per dollar and the typical employee contributed $2,000, an increase in the match rate to 50¢ per dollar would raise the typical contribution to $3,000. These estimates are significantly larger than those from previous research and suggest employee contributions are quite responsive to employer matching." (TIAA-CREF Quarterly)
Identifying the Marital Portion of a Defined Contribution Plan
Excerpt: "The difficulty in identifying the marital portion of a defined contribution account arises when the participant is already in the plan when he or she marries. Most states treat the funds in the account on the date of marriage, plus all passive earnings on that portion of the account, as the separate property of the participant." (Paul R. Commerford on DivorceNet.com)
Opinion: Cozy Pension Deal for California State Employees Will Cost Us Billions
Excerpt: "Without a word of debate, and not one question, the Senate quickly approved the bill, SB 400. The vote was 39-0. One member was absent. The measure approved that day will cost taxpayers at least $10 billion over 20 years, plus uncounted billions for similar increases granted later at the local level. The legislation began a wave of public employee pension increases ..." (The Sacramento Bee)
Analysis: There's Too Much Money, and Pension Funds Are Partly the Cause
Excerpt: "The crash that began in early 2000 has destroyed trillions of dollars in wealth, but left many trillions more homeless, desperately searching for a return to good times.... The world has now endured three false recoveries in as many years, despite what Robert Hormats of Goldman Sachs calls the biggest flood of liquidity since the time of Noah." (Newsweek)
Time to Revisit, Remodel 401(k) Plan Investments
Excerpt: "Taking back control of your 401(k) or any defined-contribution retirement plan involves asking your company if it has recently reviewed your plan to select better-performing funds that charge lower operating expenses. If it has not, you can ask it to improve the plan, because it is legally obligated as a fiduciary to do so." (Bloomberg News via the Seattle Times)
Mutual Fund Market Timers Still Out of Step
Excerpt: "Mutual fund investors tend to greatly under-perform the financial markets, largely because the investors keep trying to out-guess market fluctuations, according to a study released last month by Boston research firm Dalbar Inc." (Washington Post)
Blacks, Hispanics Less Prepared for Retirement
Excerpt: "Americans in general are poor savers and retirement planners. But many African-Americans ... are even less prepared for their post-work years, according to the 2003 Minority Retirement Confidence Survey ... conducted by the Employee Benefit Research Institute, the American Savings Education Council and Mathew Greenwald & Associates." (Newsday)
Links to Items on Executive Comp, Benefits in General
Opinion: Tax Shelters Not So Protected Any More
Excerpt: "Of course, the line between abusive and responsible tax planning can be indistinct. But like the now much-quoted Supreme Court pragmatic definition of obscenity (and there is more than a little obscenity in some of the shelters promoted by some of the biggest names in the tax business), one can usually know abuse when one sees it." (Alvin D. Lurie)
Overview: IRS Issues Final Golden Parachute Regulations (PDF)
5 pages. Excerpt: "These regulations, which are generally effective with respect to payments made in connection with changes of control that occur on or after January 1, 2004, generally implement the rules set forth in the proposed regulations issued last year. The final regulations do, however, contain some clarifications and changes, most of which make the rules more flexible." (Sutherland Asbill & Brennan)
The Changing Face of Global Stock Plans (PDF)
21 pages. Excerpt: "[T]o assist you in this changing environment and to provide you with a framework for quickly assessing the potential impact of the use of restricted stock in various countries, we have created this newsletter as a means (1) of highlighting certain tax consequences associated with offering stock awards in 20 countries, and (2) to demonstrate the World Law Group's commitment to the global stock area and our ability to rapidly respond to any questions that you may have." (Gardner Carton Douglas LLP)
Valuation of Employee Stock Options: Summary of Views from FASB's Option Valuation Group (PDF)
3 pages. Excerpt: "This letter summarizes the majority views of [FASB's Option Valuation Group (OVG)] in terms of estimating the model assumptions that are key in reflecting the differences between employee stock options and exchange-traded options." (Frederic W. Cook & Co., Inc.)
Newly Posted or Renewed Job Openings
Project Manager - New Business Installation
for Transamerica
in CA
Vice President, Product Management, Benefits and Lifeworks Services
for Ceridian
in FL
Senior Actuarial Analyst
for Invesmart, Inc.
in MA
Litigation Associate
for Trucker Huss, A Professional Corporation
in CA
DC/401(k) Administrator
for Retirement Plan Services, L.L.C.
in MO
Team Leader
for AMVESCAP Retirement, Inc.
in GA, RI
Daily Processor
for McCready and Keene, Inc.
in IN
Retirement Plan Specialist
for Diversified Investment Advisors
in MN
Qualified Plan Administrator
for Pension Advisory Group, Ltd.
in IL
DC\401K Administrator
for North Suburban Chicago Firm
in IL
Newly Posted Webcasts
(Post Yours!)
IRS Update: Newly Released 457 Regulations
on October 7, 2003
presented by National Association of Government Defined Contribution Administrators, Inc. (NAGDCA)
Newly Posted Press Releases
(Post Yours!)
CNA Trust Makes Strong Showing in Full-Service Outsourcing Survey
(CNA Trust)
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