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October 3, 2003 - 13,400 subscribers
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Enron Pension Suit Against Northern Trust an Eye-Opener, Experts Say
Excerpt: "A lawsuit accusing Northern Trust of failing to protect money it held in retirement funds for Enron employees could have long-term ramifications for the pension fund industry, experts said on Thursday. The trial could force so-called directed trustees, or companies that act as custodians for employees' benefit plans but do not pick investments, to adhere to stricter discipline." (Reuters via New York Times; one-time registration required)
Text of Enron Memorandum and Order, Part I (PDF)
Pages 1 through 100; 4.51 MB; 9/30/2003. Excerpt: "The above referenced action is brought on behalf of Enron Corporation ... employees who were participants in three employee pension benefit plans governed by [ERISA], specifically the Enron Corporation Savings Plan ... the Enron Corporation Employee Stock Ownership Plan ... and the Enron Corporation Cash Balance Plan ... and also on behalf of Enron employees who received 'phantom stock' as compensation." (U.S. District Court for the Southern District of Texas)
Text of Enron Memorandum and Order, Part II (PDF)
Pages 101 through 200; 4.16 MB; 9/30/2003. Excerpt: "The above referenced action is brought on behalf of Enron Corporation ... employees who were participants in three employee pension benefit plans governed by [ERISA], specifically the Enron Corporation Savings Plan ... the Enron Corporation Employee Stock Ownership Plan ... and the Enron Corporation Cash Balance Plan ... and also on behalf of Enron employees who received 'phantom stock' as compensation." (U.S. District Court for the Southern District of Texas)
Text of Enron Memorandum and Order, Part III (PDF)
Pages 201 through 329 (end); 5.33 MB; 9/30/2003. Excerpt: "The above referenced action is brought on behalf of Enron Corporation ... employees who were participants in three employee pension benefit plans governed by [ERISA], specifically the Enron Corporation Savings Plan ... the Enron Corporation Employee Stock Ownership Plan ... and the Enron Corporation Cash Balance Plan ... and also on behalf of Enron employees who received 'phantom stock' as compensation." (U.S. District Court for the Southern District of Texas)
Analysis: Plan Amendments for Catch-Up Contributions
Excerpt: "Many plans updated for GUST continue to include a percentage limit on deferrals. Employers and practitioners have inquired as to whether their plans will need an amendment to comply with the new regulations." (SunGard Corbel)
Overview: GUST Extension Provides Another Chance to Switch Testing Methods
Excerpt: "Revenue Procedure 2003-72, which extended the deadline to January 31, 2004 for many plan sponsors to submit GUST amendments for determination letters, gives 401(k) plans another opportunity to change from current to prior year testing." (SunGard Corbel)
What Is the Deadline for Depositing Elective Deferrals to Our 401(k) Plan's Trust?
Excerpt: "Under our 401(k) plan, we deduct elective deferrals from our employees' paychecks each payroll period, which is weekly for some employees and monthly for others. For convenience, may we deposit all elective deferrals into the plan's trust once a month? ANSWER: Generally, no." (EBIA (Question of the Week))
Taking Control of the Seemingly Uncontrollable: Solving the Pension Financing Dilemma (PDF)
4 pages. Excerpt: "In addition to restating the strategic purpose of the plan in the current business context, as discussed above, decision-makers should take available steps to quantify the likely effects of any changes under consideration. Actuarial tools can assess the future impact of changes, which help identify which course of action is most consistent with strategy and objectives. These are described below: ..." (The Segal Company)
Kroger Considers DB Formula Changes
Excerpt: "The union representing about 5,000 grocery store workers in Indiana has squared off with the Kroger Co. over attempts to cut employee pension benefits.... [Proposed] changes included requiring employees to work an additional five years to become eligible for retirement and eliminating the disability benefit for employees under 50, even if they are disabled as a result of their employment ..." (IndyStar.com)
Big Pension Fund Trustees Object to Proposal on Proxy Rules
Excerpt: "Managers of the nation's largest pension funds raised strong objections Thursday to rules proposed by the Securities and Exchange Commission that are meant to make it easier for shareholders to elect company directors. They called the rules a meaningless plan cloaked as meaningful reform." (New York Times; one-time registration required)
Investors Have Until Oct. 15 to Decide to Bail Out of Roth IRA Conversion
Excerpt: "You have until Oct. 15 to undo any traditional individual retirement account that you converted into a Roth IRA in 2002. The IRS calls this switch back to a regular IRA a recharacterization. One reason for the move is that you failed to meet the income eligibility for a conversion." (Investors.com)
John Bogle: It's "Time for Bluntness"
Excerpt: "A titan of American capitalism delivered a stinging critique of American capitalism in Madison [Wis.] on Wednesday. But John Bogle, founder of The Vanguard Group and father of the index mutual fund, also offered a plan to fix it as he spoke at the Directors' Summit conference on corporate governance at UW-Madison." (Madison.com)
Links to Items on Executive Comp, Benefits in General
The Multiemployer Fund Office of the 21st Century: Are You Ready? (PDF)
Excerpt: "Multiemployer funds that are reluctant to make full use of a Web site for communications because participants do not have access to computers at work should recognize that this situation is no longer likely to be the obstacle it was even a few years ago.... Technology can improve participant services as well as communications. Two examples are discussed below ..." (The Segal Company)
GAO: Common Standards and Improved Coordination Needed for Insurance Regulation
53 pages. Excerpt: "Market conduct regulation--oversight of insurance company practices such as selling and underwriting policies--is the responsibility of the same state agencies that oversee insurance companies' financial solvency. Unlike financial regulation, however, with its nationwide standards that allow for coordination among state regulators, no generally accepted standards exist for market conduct regulation.' Summary at http://www.gao.gov/highlights/d03433high.pdf (U.S. General Accounting Office)
Overview: 5500 Filing Deadlines Postponed for Plans Directly Affected by Hurricane Isabel
Excerpt: "The Department of Labor, the Internal Revenue Service and the Pension Benefit Guaranty Corporation have postponed the deadline for Form 5500 (and 5500EZ) filings that would otherwise have been due on or between September 18 and November 18, 2003, for employers and plan administrators directly affected by Hurricane Isabel." (The Segal Company)
No Assurance on Life Insurance
Excerpt: "The life insurance industry continues to take it on the chin in the nation's capital. Life insurers have suffered a series of defeats this year that affect how individual investors, corporate executives and companies use life-insurance products, such as annuities and split-dollar insurance arrangements." (The Wall Street Journal via SFGate.com)
COLI Amendment to Pension Bill Leads to Another Senate Finance Committee Markup
Excerpt: "A controversial amendment addressing corporate-owned life insurance policies (COLI) in a pension reform bill approved by the Senate Finance Committee (SFC) has led SFC Chairman Charles E. Grassley, R-Iowa, to call for a special markup of the provision." (CCH Tax Newsletter)
Rising Stock Market Resurrects Stock Option Profits
Excerpt: "After several years of tough luck, employee stock options are yielding jackpots again as some high-tech workers cash in on greater investor optimism about the Web's moneymaking potential." (AP via Bradenton.com)
Newly Posted or Renewed Job Openings
Operations Manager
for Polycomp Administrative Services, Inc.
in CA
Account Executive
for Principal Financial Group
in GA
Marketing Consultant
for Polycomp Administrative Services, Inc.
in CA
Pension Administration Manager
for Polycomp Administrative Services, Inc.
in CA
DC/401K Client Relationship Managers and Compliance Test Specialists
for Management Recruiters of Wildwood
in MO
Benefits Representative
for Nationwide Credit, Inc.
in GA
Investment Management Consultant
for Management Recruiters of Wildwood
in PA
Actuarial Consultant/Relationship Manager
for Management Recruiters of Wildwood
in CA, CT, DC, GA, IL, MA, MI, NC, NY, PA, TX, WI
Pension/401 (k) Administrator
for Polycomp Administrative Services, Inc.
in CA
Benefits Analyst
for NFP Benefits
in TX
Intermediate Compliance Analyst (03-0015565)
for Wachovia Corporation
in MN
Newly Posted Conferences
(Post Yours!)
ERISA Fiduciary Responsibilities and New IRS Regulations for 401(k) Plans
in MA
October 30, 2003
MA Chapter-National Institute of Pension Administrators
12th Annual National Employee Health Benefits Conference in Tampa
in FL
January 22, 2004
Employers Health Conferences
HIPAA Compliance for Employers: Covered Entity Status and the Requirements for Plan Amendment and Certification
in ALL STATES
October 28, 2003
WEDI SNIP (Workgroup for Electronic Data Interchange-Strategic National Implementation Process)
HIPAA Compliance for Employers: Plan Administration
in ALL STATES
December 9, 2003
WEDI SNIP (Workgroup for Electronic Data Interchange-Strategic National Implementation Process)
Annual Fall Employee Benefits Law and Practice Update
in ALL STATES
November 6, 2003
ALI-ABA (American Law Institute-American Bar Association)
Newly Posted Press Releases
(Post Yours!)
Marshall & Ilsley Trust Company N.A. Selected As Preferred Provider By NFP Securities Inc. For 401(k) Open Architecture Program
(Marshall & Ilsley Trust Company N.A.)
Health Insurance Markets Dominated by Fewer, Larger Insurers
(AcademyHealth)
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