| BenefitsLink Retirement Plans Newsletter |   |
August 15, 2003 - 13,314 subscribers
Today's sponsor: Thompson Publishing Group, Inc.
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“Cash-Balance Pension Plans – Opportunities and Challenges
for Employers and Plan Sponsors”
Audio Conference 8/20/03 * 2:00 p.m. ET Many employers are changing their pension plans to cash balance plans. These plans are attractive and can save the company money. But in some instances, the conversion has triggered disputes. . .and companies have found themselves in court! Don't let this happen to you! Register today for this interactive audio conference featuring employee benefits expert, Charles D. Lockwood, J.D. and LL.M. (Taxation).
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
DOL: Allocating Employer Stock from One Plan's Account to Another Plan's Account is 'Acquisition'
Advisory Opinion 2003-10A (Aug. 12, 2003). Excerpt: "[Y]ou ask whether the reallocation of employer securities from the account of one plan participating in a master trust to the accounts of other plans participating in the master trust in exchange for interests of those plans in other assets of the same value held in the master trust would constitute an acquisition of employer securities for purposes of section 407(a) of ERISA." (U.S. Department of Labor, Employee Benefits Security Administration)
False Advertising: the Truth About 12b-1 Fees
Excerpt: "People don't pay attention to obscure Securities and Exchange Commission bylaws. However, tell investors that the amount they paid in 12b-1 fees rose to $9.38 billion in 2002 from $1.23 billion in 1990, and they'll sit up and listen." (TheStreet.com)
Overview: Taxpayer's Depression Was Disability Qualifying for Retirement Plan Penalty Tax Exception
Excerpt: "The Tax Court has held that a former postal employee's depression qualified her for the disability exception to the 10% premature withdrawal penalty tax on qualified plans. Her psychologist's conclusion that there was a fair prospect of her eventual return to work in some capacity didn't mean that her condition was not indefinite." (RIA Tax News)
What You Need to Know about the Proposed 401(k) and 401(m) (PDF)
2 pages. Excerpt: "Qualified Nonelective Contributions ('QNECs') may not be counted twice for testing; The 'bottom-up' leveling method to pass the ADP test is restricted; An employer may not accelerate its income tax deduction by prefunding elective deferrals'; more. (Gardner Carton Douglas LLP)
New York City Pension Costs Expected to Rise 29% Annually Through 2007
Excerpt: "The city's pension costs are expected to surge 29 percent annually through 2007, growing to $4.3 billion -- or 12.4 percent of the budget ... The growing burden is the result of a combination of investment losses, negotiated salary increases and benefit enhancements, according to the report." (The [New York] Daily News)
Full Text of Profit Sharing Plan Participant's Brief in Bankruptcy Case Before Supreme Court (PDF)
17 pages. Excerpt: "The Sixth Circuit ... incorrectly held that the holding of Patterson did not apply because [plan participant Dr. Raymond B.] Yates was not an 'employee' as defined in ERISA [because he owned all of the stock of his professional corporation, which sponsored the plan] and therefore not a 'participant' in an ERISA-qualified pension plan. The Sixth Circuit's ruling is based on an erroneous interpretation of 29 C.F.R. § 2510.3-3. 29 U.S.C.§ 1001(b)." (Kennerly, Montgomery & Finley, P.C. of Knoxville, TN for the Plan Participant)
State Street Seeks Payment for Work on Enron's Pension Plans
Excerpt: "If Judge Arthur Gonzalez rules in favor of State Street's request, members of the plans will not be on the hook for its $1.5 million annual fee and multimillion-dollar liability policy.... Payment could come out of Enron's administrative funds, or the judge could order payment from funds in the retirement plans." (Houston Chronicle via NewsAlert.com)
Tyco Says It's Target of DOL Inquiry
Excerpt: "Tyco International said Thursday it is the target of a Department of Labor inquiry regarding its pension plans." (USA Today)
Newly Posted or Renewed Job Openings
Insurance Marketing and Research
for Multi-line Independent Insurance Agency
in GA
Retirement Plan Administrator
for Papalia Financial
in PA
401(k)/DC Account Manager
for CNA Trust
in IL
Sales Specialist
for Principal Financial Group
in NY
Pension Valuation Manager
for Principal Financial Group
in IA
Investment Services Supervisor
for BISYS
in PA
Benefits Finance Analyst
for Fortune 500 Manufacturing Company
in NJ
Newly Posted Conferences
(Post Yours!)
Everything You Need to Know About Section 125 Cafeteria Plans, Health Reimbursement Arrangements and the Use of Debit/Credit Cards for Health Plan Expense Reimbursements
in MA
September 18, 2003
Worldwide Employee Benefits Network
Cash-Balance Pension Plans - Opportunities and Challenges for Employers and Plan Sponsors
in ALL STATES
August 20, 2003
Thompson Publishing Group, Inc.
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