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October 15, 2003 - 13,400 subscribers
Today's sponsor: Thompson Publishing Group, Inc.
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“Complying With the Wage-Hour Requirements of the Service Contract Act” A 90-Minute Interactive Audio Conference – Thursday, October 23, 2003 * 2:00 p.m. Eastern Time During this 90-minute interactive presentation, employment law attorneys Dan Abrahams and Shlomo Katz will address the basic requirements of the SCA, to include: prevailing wages, fringe benefits, conformances, the Successor Contractor rule and price adjustments. They will also discuss how the SCA can/should affect contractors’ proposals to the government, and more. Register today!
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Deficits Soar at PBGC
Excerpt: "Finances at the government's pension insurance program deteriorated further this past summer with its deficit reaching a record $8.8 billion as of Aug. 31, the agency's executive director told Congress on Tuesday." (AP via Washington Post)
Text of PBGC Director's Written Testimony to Senate Committee
Excerpt: "I am Steven A. Kandarian, Executive Director of the Pension Benefit Guaranty Corporation (PBGC). I want to thank you for holding this hearing on the financial health of PBGC and the future of defined benefit pension plans, and for your continuing interest in the retirement security of America's workers." (Pension Benefit Guaranty Corporation)
Written Testimony of GAO at Senate Hearing on PBGC Deficit and DB Plans Generally
44 pages; 10/14/2003. Excerpt: "While there is not an immediate crisis, there is a serious problem threatening the retirement security of millions of American workers and retirees. Several reforms might reduce the risks to the program's long-term financial viability." (U.S. General Accounting Office)
Testimony of Scott Macy at Hearing on DB Plans, on Behalf of ERIC, American Benefits Council, Others
19 pages; 10/14/03, presented to the U.S. Senate Special Committee on Aging. Excerpt: "Today, I am serving as a spokesman for the American Benefits Council, the Business Roundtable, the ERISA Industry Committee, Financial Executives International, the National Association of Manufacturers, and the US Chamber of Commerce ... [who] come before you with a single voice to emphasize the need to preserve our nation's voluntary, employer sponsored defined benefit system." (Published by the ERISA Industry Committee)
America's Pensions: the Next Saving and Loan Crisis?
Written testimony provided to the U.S. Senate's Select Committee on Aging on 10/14/2003. Excerpt: "I appreciate the opportunity to appear before you today to discuss the economic future of America's pension plans.... [W]hile I am a Research Fellow in Social Security and Financial Institutions at the Heritage Foundation, the views that I express in this testimony are my own ..." (David C. John published by the Heritage Foundation)
Enron Case Moves Forward: Plan Fiduciaries Should Take Note (PDF)
3 pages. Excerpt: "Lesson One: Each plan sponsor should know exactly who serves as a plan fiduciary – whether formal or functional. Lesson Two: Each plan sponsor should provide fiduciary education to those employees of the sponsor who serve as formal or functional fiduciaries." (Gardner Carton & Douglas)
Ben Stein Puts His Money on Planning for Retirement
Excerpt: "Longer, healthier lives are certainly enviable, but they also strain public retirement and health-care systems, experts note. Longer lives also vastly increase the chances that individuals will run out of money before they die -- the predicament that is the focus of Retirement Planning Week, which begins Nov. 17." (Kathy M. Kristof via SunSpot.net)
As Millions Near Retirement, Europe Discovers It Can't Foot Pension Bill
Excerpt: "Giving new meaning to the term 'Old Europe,' countries from France to Germany, Italy to Austria and beyond are grappling with a gargantuan problem: Millions of post-World War II baby boomers are trooping toward retirement, and their governments can't foot the astronomic pension bill." (AP via the Pittsburgh Post-Gazette)
Local Officials in Mississippi Town Ante Up for Proposed ESOP to Keep Mill Running
Excerpt: "Aldermen voted Tuesday to issue, along with Adams County supervisors, up to $5 million in bonds to help fund the buyout of International Paper's Natchez mill by employees." (The Natchez [Miss.] Democrat)
Teachers Union Predicts Fight in Alabama if DROP Phased Out
Excerpt: "Gov. Bob Riley's proposal to end a pension bonus program for veteran teachers and state employees will spark a heated legislative battle, a legislator and the head of the state employees union predicted Tuesday.... The program gives teachers and state employees who are at least 55 years old and have at least 25 years experience a lump sum bonus if they agree to work an extra three to five years before retiring." (The Birmingham News via AL.com)
Opinion: Pension Procrastination
Excerpt: "Maybe they could call it the Pension Reform Procrastination Act. Or maybe they could name the bill for House Majority Leader Tom DeLay, R-Sugar Land, because delay is what pension legislation that the House overwhelmingly passed on Oct. 9 is all about." ([Fort Worth, Tex.] Star-Telegram)
Opinion: It's Time to Rebalance Your 401(k) Investments
Excerpt: "You may be doing serious damage to your chances for a comfortable retirement by failing to adjust your mix of investments at least once a year (a concept known as 'rebalancing'), say retirement experts. Unfortunately, only a small fraction of people with retirement plans do this annual adjustment." (Amey Stone in Business Week)
Opinion: Social Security and Women-- Some Facts
Excerpt: "Social Security is the mainstay of retirement-income support for millions of older women. Some assert that women would fare better in a system based in part on individual accounts that could be invested in the equities market. What are the facts?" (AARP Research)
Links to Items on Executive Comp, Benefits in General
Analysis: FASB Proposes Significant New Disclosures for Pensions and Other Postretirement Benefits (PDF)
14 pages. Excerpt: "In this HRS Insight, we have summarized those changes that we believe will significantly impact most employers if the Exposure Draft is issued as currently drafted." (PricewaterhouseCoopers via Financial Executives Institute)
The Breeden Report: What Its Recommendations Mean for Other Companies' Executive Comp Programs
At pp. 4-5 of 10-page Executive Edition newsletter for 4th quarter 2003. Excerpt: "[I]n totality, the Breeden proposals would unnecessarily burden the corporate compensation process by lessening the ability of a company to tailor its compensation approach to its own particular circumstances; the process would have an unnecessary rigidity. We suggest that each company examine the Report and consider the extent to which any recommendations make sense for its specific business environment." (HayGroup; one-time registration required)
The Reemergence of Restricted Stock
At pp. 1-3 of 10-page Executive Edition newsletter for 4th quarter 2003. Excerpt: "Regardless of what the business press may proclaim, restricted stock is not a panacea that will cure corporate abuse and drive good governance. Nevertheless, it is an effective and powerful tool to drive ownership, performance, and retention." (HayGroup; one-time registration required)
Present-Law Federal Tax Treatment, Proposals, and Issues Relating to Company-Owned Life Insurance (PDF)
27 pages. Excerpt: "The Senate Committee on Finance has scheduled a public hearing for October 15, 2003, on Federal tax issues relating to company-owned life insurance." (U.S. Congress, Joint Committee on Taxation)
Newly Posted or Renewed Job Openings
New Business Installation Lead Project Manager
for Transamerica
in CA
Plan Administrator
for Alliance Pension Consultants
in IL
Director, Sales - Employee Benefit Channel
for ShareBuilder Corporation
in WA
Self-Funded Health Plan Consultant
for SunGard Corbel
in FL
International Pension Director
for Global Financial Service Firm
in NY
Newly Posted Webcasts
(Post Yours!)
Health FSAs and Over-the-Counter Drugs
on October 23, 2003
presented by Employee Benefits Institute of America, LLC (EBIA)
Health FSAs and Over-the-Counter Drugs
on October 24, 2003
presented by Employee Benefits Institute of America, LLC (EBIA)
Compensation Consternation - Making Sense of the Choices
on November 13, 2003
presented by SunGard Corbel Inc.
Newly Posted Conferences
(Post Yours!)
Exploring The Controversy Over Prescription Drug Imports From Canada
in DC
October 18, 2003
Galen Institute
Provider Network Management
in FL
November 10, 2003
Institute for International Research
Medicare Financing and Product Development Congress
in DC
December 8, 2003
Institute for International Research
Innovative Strategies for Predictive Modeling for Health Plans and Employers
in FL
January 28, 2004
Institute for International Research
Innovative Strategies for Managing Specialty Pharmaceuticals
in TX
October 27, 2003
Institute for International Research
Newly Posted Press Releases
(Post Yours!)
Strategic Advisor Acquires & Expands 401(k) Risk Management Platform
(The McHenry Group)
NAGDCA Elects 2003 - 2004 Executive Board
(National Association of Government Defined Contribution Administrators, Inc.)
The U.S. Administration On Aging Awards $3.6 Million To Support Consumer Protection And Assistance Projects For Older Americans
(Administration on Aging)
Vanguard Launches Lifetime Income Program; Income Annuity Helps Mitigate Risks of Outliving Retirement Assets
(Vanguard Group)
Financial Engines Introduces Personal Asset Manager for 401k Investors
(Financial Engines, Inc.)
Nevada Court Enters $7.3 Million Judgment Against Principals of Employers Mutual
(U. S. Department of Labor)
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