August 25, 2003 - 13,314 subscribers Today's sponsor: BeneCom Associates, LLC (Click on company name or banner to learn more.) BeneCom Associates, LLC, for one-stop benefit communications Since 1992, BeneCom has produced benefit communications, including enrollment materials, SPDs, benefit statements, newsletters and more, for companies large and small, nationwide. So if you've been looking for an independent benefit communications specialist, look no further. Click above for more information, or give us a call at (860) 674-2626, Ext. 11, or (770) 461-5559. We're here to help. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) PBGC Extends Deadlines for Certain Persons Affected by Power Blackout Excerpt: "Those persons affected by the power blackout that occurred on August 14-16, 2003, who need relief from the PBGC that is not covered by this Technical Update should contact the PBGC as soon as reasonably possible. The PBGC will work with them in ensuring that they receive appropriate relief." (Pension Benefit Guaranty Corporation) The Role of Actuarial Audits in Performing Due Diligence (PDF) Excerpt: "Plan trustees work with retained advisors to manage risks. The primary risk is that the assets of the system will not support the liabilities without a large increase in the employer or employee contribution rate. Public pension (and retiree health) plans commonly use a number of tools to monitor and manage this risk, including: ... Actuarial audits ..." (Gabriel, Roeder, Smith & Company) GAO Criticizes Decision to Delay Allocation of Costs of TSP's Failed Daily Valuation System 12 pages. Excerpt: "Given uncertainties inherent in any court action and the fact that significant numbers of account holders enroll and depart annually, in our view, allocating the $41 million to account balances when the loss occurred would have been more prudent, as well as being acceptable treatment under GAAP. In particular, allocation at the time the loss occurred would have met two underlying concepts of accounting--consistency and conservatism." (U.S. General Accounting Office) ERIC Talking Points on IBM Cash Balance Court Ruling by District Court Judge Excerpt: "More than 400 major companies have adopted cash balance plans and other hybrid pension plans. These plans cover millions of employees and hold 40% of all defined benefit plan assets invested in the U.S. economy." (ERISA Industry Committee) Opinion: Why Variable Annuities No Longer Make Sense Excerpt: "The most pungent investment these days -- much to the chagrin of the insurance industry -- is the variable annuity. This vehicle combines an insurance product that pays a death benefit like a life insurance policy and allows investment in an array of mutual funds. The new tax law has made this largely an unnecessary instrument to own." (John Wasik in the Bloomberg News) Creative Ways to Save (Kiplinger's Personal Finance via ICMA Retirement Corporation) Big Three Automakers Understating Pension Obligations, Analyst Says Excerpt: "An influential Wall Street analyst said on Friday that Detroit's Big Three automakers may have understated their U.S. pension obligations by billions of dollars because they assume no future increases in pension benefits." (MSNBC.com) Links to Items on Executive Comp, Benefits in General New Technique for Handling Underwater Stock Options (PDF) 5 pages. Excerpt: "The new program involves a more timely buyout of the underwater options, either for cash or vested shares. Not only is employee morale improved as a result of the buyout, but the substantial dilution attributable to these significantly out-of-the-money options is eliminated. Unlike the 6-month-and-1-day program, the new program does trigger a compensation expense ..." (Morgan Lewis) Newly Posted or Renewed Job Openings Fun & Challenging DC Compliance Position for Louis Kravitz & Associates, Inc. in CA Trust Administrator for CNA Trust in CA Retirement Plan Analyst - Compliance for Invesmart in MA Sr. Retirement Programs Manager for Providence Health System in WA DC / 401(k) Administrator for BMI in MO Pension Administrator for Third Party Administration Firm in MD Director – Defined Contribution for Actuarial Designs & Solutions, Inc. (ADS) in ME Group Renewal Analyst for Group Benefits Agency Serving Middle Market Employers in NY Senior Account Manager for Group Benefits Brokerage Agency in NY Pension Assistant for Hogan & Hartson L.L.P. in DC Pension Account Representative for Minnesota Life Insurance Company in PA Pension Specialist for Hogan & Hartson L.L.P. in DC Newly Posted Conferences (Post Yours!) Employer Healthcare Choices: Latest Data Findings and Making the Best Choice for Your Company in ALL STATES September 17, 2003 Thompson Publishing Group, Inc. More 12b-1 Fees Come to Market: New Revenue-Sharing Opportunities for 401(k) Plans in ALL STATES September 18, 2003 Thompson Publishing Group, Inc. Newly Posted Press Releases (Post Yours!) Treasury and IRS Issue Final Regulations On The Treatment of Stock-Based Compensation In Qualified Cost Sharing Arrangements (Internal Revenue Service) Handy Links:
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