| BenefitsLink Retirement Plans Newsletter |   |
August 19, 2003 - 13,314 subscribers
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“HIPAA: Electronic Standards – What Employers Need to Know” 8/28/03 * 2:00 p.m. ET The compliance date for electronic transactions and code sets is approaching! Many employers like you, still are uncertain what their group health plans have to do to meet the standards – how much you can rely on insurers, plan administrators and technology vendors, and how to maximize efficiency using the required technologies. Join us for this important audio conference, featuring two specialists in the field who will help you figure out what you need to do NOW to meet the October 16th deadline.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Northwest Airlines to Fund Pension Plan With Stock of Subsidiary
Excerpt: "Northwest Airlines won government permission Monday to fund its pension plans with a subsidiary's stock instead of cash, a strategy used only twice before by struggling companies." (AP via Washington Post)
Local Coverage: Northwest Allowed To Contribute Pinnacle Stock To Pension Plans
Excerpt: "The U.S. Department of Labor on Monday announced that it had granted an exemption to pension rules and allowed Eagan-based Northwest Airlines Corp. to contribute stock of Pinnacle Airlines Corp., based in Memphis, to its defined pension plans instead of cash." (The [Minneapolis St. Paul] Business Journal via bizjournals.com; one-time registration required)
More Local Coverage: NWA Can Use Stock To Fund Pension
Excerpt: "Northwest Airlines has the green light to fund its pension plans with the stock of subsidiary Pinnacle Airlines, instead of cash -- even though Pinnacle stock is not yet publicly traded." ([St. Paul] Pioneer Press)
Full Text of Prohibited Transaction Exemption Granted to Northwest Airlines for Stock Contribution (PDF)
17 pages. Press release at https://benefitslink.com/cgi-bin/pr.cgi?database_id=36422 (U.S. Department of Labor, Employee Benefits Security Administration)
U.S.'s Largest Pension Fund Has New Rules
Excerpt: "The nation's largest pension fund imposed new investment standards Monday on the 90 investment banks and broker-dealers with which it does business." (AP via Washington Post)
'Orphan' Retirement Plans Pose Logistical Woes for Participants
Excerpt: "Imagine what it would be like if you couldn't access your 401(k), couldn't get any information about it, change your investments or receive a distribution. Imagine being totally cut off from your retirement lifeline. It has happened at hundreds of companies involving thousands of employees and millions of dollars. A company goes bankrupt and its 401(k) plan becomes orphaned." (Bankrate.com via CBS Marketwatch)
Overview: Ninth Circuit Allows Tax Deduction for ESOP Distributions (PDF)
At pp. 7-8 of 16-page publication. (Jenkens & Gilchrist)
Overview: IRS Allows Grace Period on Election to Defer Tax (PDF)
At pp. 13-14 of 16-page publication. Excerpt: "Under section 1042 ... a taxpayer may defer the gain on a sale of company stock to an ESOP if certain requirements are met. One of these requirements is that the seller must attach a 'statement of election' and a 'statement of purchase' to his or her income tax return for the tax year in which the sale occurs." (Jenkens & Gilchrist)
Overview: FAS 150: Certain Obligations Are Now Classified As Liabilities (PDF)
At pp. 11-13 of 16-page publication. Excerpt: "This new accounting standard may cause certain financial instruments to be reported as a liability instead of equity. In structuring an ESOP transaction, the company, the fiduciary, and the lender will need to fully understand the impact of the structure on the financial statements of the company." (Jenkens & Gilchrist)
Overview: IRS Issues New Regulations Interpreting the S Corporations ESOP Anti-Abuse Rules (PDF)
At pp. 1-6 of 16-page publication. (Jenkens & Gilchrist)
Newly Posted or Renewed Job Openings
Retirement Plan Consultant
for Independent Benefit Services
in MD
Benefits Specialist - Santa Ana, CA
for recruitingmanager.com, Inc. (Recruiter)
in CA
Pension Plan Designer/Sales Consultant
for Streelman Richards & Company - Search and Recruiting
in TX
Retirement Plan Specialist Team Leader
for Diversified Investment Advisors
in MI
ERISA Attorney
for DeMark, Kolbe & Brodek, S.C.
in WI
Retirement Plan Specialist
for Diversified Investment Advisors
in CA
Newly Posted Webcasts
(Post Yours!)
HIPAA Privacy and Client Contact
on October 9, 2003
presented by SunGard Corbel
HIPAA Privacy Training
on October 21, 2003
presented by SunGard Corbel
HIPAA Privacy Recordkeeping
on November 6, 2003
presented by SunGard Corbel
HIPAA Privacy Policies and Procedures
on November 20, 2003
presented by SunGard Corbel
Newly Posted Press Releases
(Post Yours!)
DOL Grants Prohibited Transaction Exemption for Northwest Airlines Pension Contribution of Subsidiary's Stock
(U.S. Department of Labor, Employee Benefits Security Administration)
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