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October 28, 2003 - 13,383 subscribers
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US Airways Challenges PBGC Over Pension Liability
Excerpt: "US Airways Group Inc. said on Monday that federal pension insurers have unfairly overestimated what the airline owes its pilots and asked a bankruptcy judge to intervene.... When US Airways terminated the pilots plan, the PBGC ... based their calculation over time on a discount interest rate commonly associated with conservative insurance annuities, which at the time was 5.1 percent. But the airline is asking ... for permission to use a higher rate -- 8 percent ..." (Reuters via Forbes.com)
US Airways, PBGC Disagree on Pension Needs
Excerpt: "As part of its Chapter 11 bankruptcy reorganization, the airline ended the pilots' plan earlier this year, handing a $1.2 billion fund and responsibility for its future obligations to the PBGC. Now the agency says the fund needs another $2.2 billion to pay retired pilots over the next several decades. The airline says the amount is $894 million." (The Charlotte Observer via NewsAlert.com)
PBGC Finalizes Rules on Filing Methods, Computation of Deadline Periods (PDF)
16 pages, 10/28/03. Excerpt: "[These final regulations] simplify and consolidate our rules on what methods you may use to send us a filing or provide an issuance to someone other than us, on how to determine the date we treat you as having made your filing or provided your issuance, and on how to compute various periods of time (including those for filings with us and for issuances to third parties)." (Pension Benefit Guaranty Corporation)
Overview: Senate Blocks IRS from Finalizing Cash Balance Regulations
Excerpt: "The Senate on October 23, 2003 approved an amendment to a Treasury appropriations bill (H.R. 2989) that would prohibit the Treasury from using funds to finalize cash balance regulations proposed in December 2002. The Senate vote supplements an amendment to the appropriations bill approved by the House of Representatives on September 9, 2003 ..." (CCH News & Information Library)
Some Bethlehem Steel Retirees Must Pay Back Part of Pensions to PBGC
Excerpt: "Hundreds of Baltimore-area retirees have been warned they can expect to face orders to repay thousands of dollars of their dwindling pension benefits to the Pension Benefit Guaranty Corp., or PBGC, the federal corporation that insures private pension funds and has been overseeing the Bethlehem Steel pension fund since April." (SunSpot.net)
Overview: DOL Says GM Plans' Exchange of GM Stock for Hughes Corp. Stock Meets P.T. Exception
10/27/03 - Excerpt: "[RIA editor's] observation: Over the past several years, a number of cash-strapped corporations have contributed subsidiary stock to their pension and welfare benefits plans in lieu of cash. As the stock market continues its recovery, and stock prices rise, reorganizations like the GM/Hughes Corp. split-off may start to become more commonplace, as corporations attempt to lock-in the higher stock valuations." (RIA Tax News)
DOL Urges Plan Trustees to Review Use of Mutual Funds Named in New York State Probe (PDF)
2 pages. Excerpt: "Retirement plan sponsors and fiduciaries must rethink the use of funds from firms named in Eliot Spitzer's complaint. So says the Department of Labor's Ann Combs, who oversees all defined contribution retirement plans in her role as the Employee Benefits Security Administration's assistant secretary." (Ignites.com via Gardner Carton & Douglas)
Chart of Section 415 and Other Limits Now Updated to Reflect 2004 Limits
The chart of maximum limits subject to inflation indexing at Carol V. Calhoun's employee benefits site has now been amended to include the newly announced 2004 limits. Among other things, the chart shows limits under sections 415, 403(b), 401(k), and 457, as well as the Social Security wage base and Social Security and Medicare tax rates, for 1996-2004. (Calhoun Law Group, P.C.)
Opinion: Culprit In Fund Scandals Is Active Management
Excerpt: "You can do better by choosing a passive investment model, which offers lower costs and higher returns through index and exchange-traded funds. First you have to understand why most active management is a losing proposition." (John F. Wasik of Bloomberg.com via Ventura County [Calif.] Star)
Links to Items on Executive Comp, Benefits in General
Opinion: HR Execs Are Part of the CEO Compensation Problem
Excerpt: "Human resources failures helped former WorldCom CEO Bernard Ebbers enrich himself at company expense. But the problem wasn't unique to WorldCom. Human resources executives should show some backbone, and just say no to overblown CEO compensation packages." (Douglas P. Shuit on Workforce.com; one-time registration required)
Newly Posted or Renewed Job Openings
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
Retirement Plan Education & Enrollment Specialist
for Southwest Investment Partners Inc
in AZ
Benefit Consultant (for TPA clients)
for Unified Trust Company, N. A.
in KY
Account Executive
for Transamerica-The Winning Organization
in IL
Pension Administration - Supervisor
for The Nolan Company
in KS
New Business Consultant
for Cigna
in CT
Vice President, Participant Services
for New York Life Investment Management LLC
in MA
Newly Posted Conferences
(Post Yours!)
Obesity Claims
in DC
January 29, 2004
American Conference Institute
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- Employee Benefits Library
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