September 3, 2003 - 13,314 subscribers Today's sponsor: ASPA (Click on company name or banner to learn more.) ASPA Annual Conference, October 26-29, Washington, DC With over 50 interactive workshops, ASPA’s 2003 Annual Conference is designed with all retirement plan professionals in mind! Plan to be one of the over 1,500 professionals who will take advantage of the opportunity to exchange information on the newest trends and developments in the pension industry, while earning valuable continuing education credit. This is also a great opportunity to learn more about ASPA’s QKA training program -- the industry's only certification program devoted exclusively to 401(k) plans. Visit http://www.asppa.org for more information. (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) Text of Proposed Amendment to Qualified Professional Asset Manager Class Exemption (PDF) 9 pages; proposed amendment to PTE 84-14. Excerpt: "Additional exemptive relief is provided for employers to furnish limited amounts of goods and services to a managed fund in the ordinary course of business. Limited relief is also provided for leases of office or commercial space between managed funds and QPAMs or contributing employers. Finally, relief is provided for transactions involving places of public accommodation owned by a managed fund." (U.S. Department of Labor, Employee Benefits Security Administration) Don't Give Up on 401(k)s Excerpt: "[A] study released [September 2, 2003] by The Principal Financial Group shows that the 401(k) system isn't ailing as much as it might seem. In fact, it could be on the mend." (Kiplinger.com) Opinion: Congress Needs to Clarify Treatment of Tribal Government Plans as "Governmental Plans" (PDF) 3 pages. Excerpt: "While there has been no published guidance from the IRS or DOL expressly confirming that tribal governments may avail themselves of Code Section 414(d), neither has the IRS or DOL issued any negative guidance on this topic. There is what appears to be a conscious decision not to provide any guidance with regard to the treatment of tribal governments as governmental plans." (Profit Sharing/401(k) Council of America) Contribution and Asset Allocations During the Recent Bull and Bear Market: Evidence from TIAA-CREF Excerpt: "This report describes how individuals with 403(b) DC retirement plans have managed their portfolios during the recent volatile market using data from TIAA-CREF." (TIAA-CREF Institute) Annuities and Individual Welfare (PDF) 37 pages; working paper. Excerpt: "This paper advances the theory of annuity demand." (Thomas Davidoff, Jeffrey Brown; made available by the Center for Retirement Research at Boston College) The Outlook for Pension Contributions and Profits in the U.S. (PDF) 30 pages; working paper. Executive summary at http://www.bc.edu/centers/crr/papers/summary/wp_2003-13.pdf (Alicia H. Munnell and Mauricio Soto; made available by the Center for Retirement Research at Boston College) Employment, Social Security, and Future Retirement Outcomes for Working Mothers (PDF) 40 pages; working paper. Executive summary at http://www.bc.edu/centers/crr/papers/summary/wp_2003-14.pdf (Richard W. Johnson, Melissa M. Favreault and Joshua H. Goldwyn; made available by the Center for Retirement Research at Boston College) Promise To Provide Pensions To Public Servants Not So Easy To Break Excerpt: "Hundreds of thousands of public employees and teachers across Kansas depend on a healthy retirement system to guarantee their golden years don't turn to rust. That promise and obligation make the solutions for the funding shortfalls for the Kansas Public Employees Retirement System that much harder to solve." (AP via Dodge City [Kan.] Daily Globe) Pension Funds Pinched, Stirring Calls for Reform Excerpt: "Millions of Americans, retired or getting close to it, now face questions about the health of their pension plans. Large companies from IBM to General Motors Corp. are struggling to meet their obligations to retirees." (Christian Science Monitor) Opinion: Let's Unite to Repair Defined Benefit Pensions Excerpt: "[A]s we celebrate Labor Day, it is not surprising that business and organized labor have come together to express their common concern for the future of the pension system -- specifically, defined benefit pensions funded by employers that pay a prescribed and guaranteed lifetime benefit.... There cannot be a more important economic and civic need than ensuring the future of the defined benefit system to support workers in their retirement years." (James Klein in the Washington Times) Asset/Liability Modeling: Putting Plan Sponsors in the Driver's Seat Excerpt: "This article explains why asset/liability modeling can be useful to plan sponsors, discusses the two basic types of modeling, and provides examples of the ways modeling can be used to achieve an organizations goals." (Aon Consulting) Another Question is Answered in the Davis-Bacon Act Q&A Column Under what circumstances can the Davis-Bacon portion of a 401(k) profit sharing plan contribution be withdrawn by a participating employee? (BenefitsLink.com) House to Vote on Church Pensions Bill Excerpt: "Attorney Danny Miller, who regularly works with church benefit plans, said the proposed changes would be good news for all church employees. 'They would permit a number of different pension plans to pool their assets in one big fund,' he said." (Family News in Focus) Overview: IRS Extends GUST Filing Deadline Excerpt: "The new rules apply to ... plans which have a GUST remedial amendment period ('RAP') deadline which expires between September 30, 2003 and December 31, 2003.... The Rev. Proc. has no effect on a plan which had a GUST RAP expiring prior to September 30, 2003, such as an individually designed plan where the plan sponsor did not timely certify an intention to adopt a pre-approved plan." (SunGard Corbel) Opinion: Pension Policy Needs More Math and Less Politics Excerpt: "Americans aren't savers because we've bought into the myth that spending like there's no tomorrow boosts our affluence and gooses up the economy.... The only way to turn Americans into savers is the way millions of them were convinced to kick the cigarette habit-- by warning them that NOT saving is ultimately hazardous to their retirement wealth." (Jane White on 401kHelpCenter.com) Golden Years, on $678 a Month Excerpt: "Anna Berroa is 68, and she is poor. This is a doleful life that Anna Berroa never anticipated. It seemed to catch her unawares. One moment she was middle class, envisioning a placid old age, and then a series of untoward events ambushed her." (New York Times; one-time registration required) Links to Items on Executive Comp, Benefits in General Becoming Oldest-Old: Evidence from Historical U.S. Data (PDF) 44 pages; working paper. Excerpt: "We find that up to one-fifth of the increase between 1900 and 1999 in the probability of a 65 year old surviving to age 85 may be attributable to early life conditions." (Dora L. Costa and Joanna Lahey; made available by the Center for Retirement Research at Boston College) Social Security Reform and the Exchange of Bequests for Elder Care (PDF) 37 pages; working paper. Executive summary at http://www.bc.edu/centers/crr/papers/summary/wp_2003-12.pdf (Meta Brown; made available by the Center for Retirement Research at Boston College) CEO Pay Far from Being Scaled Back Excerpt: "MCI is putting a cap on what its executives can earn without approval of shareholders and Schering-Plough Corp. is suspending bonuses and perks as it slashes costs. But that doesn't mean the rest of Corporate America is reining in compensation at the top." (Reuters via Washington Post) Newly Posted or Renewed Job Openings 401(k) Client Relationship Manager for Great West Life & Annuity in CA, TN, TX Sr. Benefit Consultant - NY Metro Region for Buck Consultants a Mellon Financial Company in NY Sr. Health & Welfare Consultant/Claims Administration for Buck Consultants a Mellon Financial Company in NY Health and Welfare Benefits Analyst for a leading mid-atlantic employee benefits consulting firm in MD Pension Administrator for Thomas, Doll & Company, CPAs in CA Benefits Manager for CP Ships - Tampa, FL in FL Accounting Manager - Benefits for Union Bank of California in CA Benefits Analyst for Sun Healthcare Group in CA Handy Links:
Copyright 2003 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission. Published by: BenefitsLink.com, Inc. https://benefitslink.com/about.html 1298 Minnesota Avenue, Suite H Winter Park FL 32789 (407) 644-4146 Fax: (407) 644-2151 Editor and Publisher: David Rhett Baker, J.D. Housekeeping: |