| BenefitsLink Retirement Plans Newsletter |   |
November 25, 2003 - 13,525 subscribers
Today's sponsor: Thompson Publishing Group, Inc.
(Click on company name or banner to learn more.)
Payroll Tax Developments & Year-End Issues for Benefits Managers An Interactive Audio Conference, December 11, 2003, 2:00 – 3:30 p.m. ET The end of the year is approaching which means that soon it will be time to report on 2003! During this audio conference, attorneys Jerry Holmes, Janine Cook, and David Fuller of the international law firm of McDermott, Will & Emery will address the issues, new trends and end-of-year strategies payroll managers, controllers, and corporate financial department personnel should be aware of in the weeks to come.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of New Revenue Procedure on Plans Maintained by Professional Employer Organizations (PDF)
Excerpt: "This revenue procedure amplifies Rev. Proc. 2002-21 ... relating to relief provided to certain defined contribution plans maintained by professional employer organizations (PEOs) that benefit Worksite Employees who perform services for a client organization (CO).... The questions and answers contained in this revenue procedure provide guidance on certain transitional issues that were raised by practitioners after the publication of Rev. Proc. 2002-21." (Internal Revenue Service)
Derrin Watson's First Look at Rev. Proc. 2003-86 on PEO Retirement Plan Issues
Excerpt: "Rev. Proc. 2003-86 provides welcome amplification to Rev. Proc. 2002-21, particularly with regard to multiple employer retirement plans.... Rev. Proc. 2003-86 extends to converting plans some transition relief previously available only to terminating plans.... Any amendments required under the new Rev. Proc. are due with EGTRRA amendments, in 2005 or later." (BenefitsLink.com)
Overview: Fiduciary Responsibility In Light of U.S. Mutual Fund Industry Problems
Excerpt: "The fiduciary of a plan invested in a mutual fund that is under investigation must consider whether to replace the fund, pursue a claim on behalf of the plan participants and/or communicate the related issues to plan participants." (McDermott, Will & Emery)
AP: Security Trust Corp. to Face Charges
Excerpt: "State and federal regulators plan to file civil and criminal charges against Security Trust Co. on Tuesday for improper mutual fund trading, according to a source familiar with the investigation." (AP via Washington Post)
Commentary: Fund Probe May Lead to Attention to 12b-1 Fees
Excerpt: "Take, for example, the widespread imposition of so-called 12b-1 fees. These are expenses that come right out of your pocket: They are deducted annually from many funds' portfolios to pay marketing and distribution costs -- mostly to compensate the brokers and other financial advisors who hawk funds. A 12b-1 fee can reduce your fund return by as much as 1 percentage point a year." (Tony Petruno in the Los Angeles Times; one-time registration required)
ERISA Industry Committee Comments on Regulatory Guidance Needed Once 30-Year Rate Replaced (PDF)
Excerpt: "With the time for computing next year's contribution requirements already upon us, we will be pleased to work with you to achieve the goal of rapidly issuing guidance that plan sponsors will need immediately and that they can readily and effectively implement." (ERISA Industry Committee (ERIC))
Plan Distribution Was Protected Under State Bankruptcy Exemption During 60-Day Rollover Period
Wolff v. Gibson (D. Md. 2003). Excerpt: "A participant in a qualified retirement plan filed for bankruptcy several days after receiving a distribution of $29,000 from the plan. Although the distribution was eligible for rollover, the participant had not rolled over the funds when she filed her petition in bankruptcy. She sought to protect certain assets from the claims of her creditors, including $20,000 of the plan funds she had received." (EBIA)
Another Question is Answered in the Benefit Plans of Tax Exempt Organizations Q&A Column
Can a 501(c)(3) organization have both a 403(b) plan and a 401(k) plan for employees and, if so, what is the maximum amount of employee contributions pursuant to a salary reduction agreement that can be made to both plans? If not, can the employer set up a 457(b) plan and can individuals defer additional amounts to the 457 plan? (BenefitsLink.com)
QDRO Held Invalid Because Signed Order Not Delivered Before Participant's Retirement
Singleton v. Singleton (W.D. Ky. 2003). Excerpt: "EBIA Comment: The courts continue to struggle with whether a DRO must be approved as a QDRO before the death or retirement of a participant. While this case involved defined benefit plans, administrators of 401(k) plans may similarly be presented with a DRO after the death or retirement of a participant and asked to approve it as a QDRO. In this case, the court found that knowledge of a DRO before the triggering event was not enough." (EBIA)
Overview: Deemed IRAs
Excerpt: "Recently, the IRS released proposed regulations providing employers further guidance on the administration of deemed IRAs. The provision allowing for deemed IRAs is effective for plan years beginning on or after January 1, 2003. The proposed regulations are effective beginning on or after August 1, 2003." (Compliance Headquarters (Bankers Systems Inc.))
Links to Items on Executive Comp, Benefits in General
Overview: IRS Announces Executive Compensation Compliance Initiative (PDF)
4 pages. Excerpt: "The IRS Large and Mid-Size Business Division is leading this initiative, and will focus on such items as nonqualified deferred compensation arrangements, split-dollar life insurance, corporate loans to executives and other valuable executive perks (e.g., corporate housing and air travel)." (Dechert LLP)
December 31st Deadline Approaching for Old Split-Dollar Life Insurance Arrangements
Excerpt: "This is a reminder that December 31, 2003 is a deadline for two safe-harbor grandfather options under IRS Notice 2002-8 for split-dollar arrangements entered into before January 28, 2002." (Faegre & Benson LLP)
Expensing Stock Options in 2005: the FASB's Project Takes Shape
6 pages. Excerpt: "The fair value of stock options will be expensed in companies' 2005 financial statements, according to tentative FASB decisions that also suggest how equity-based awards will be valued, expensed, and classified. The decisions may affect whether companies voluntarily adopt the fair value method recognition provisions of Statement 123 prior to being required to do so in 2005." (KPMG via Financial Executives International)
Newly Posted or Renewed Job Openings
401(k) Account Manager
for CNA
in CA
401(k) Enroller/Contractor
for Transamerica
in ALL STATES
401(k) Enroller/Contractor-Bilingual
for Transamerica
in ALL STATES
Regional Sales Consultant - Retirement Plans
for Thrivent Financial for Lutherans
in MN
Pension Administrators
for Associated Pension Consultants
in CA
Retirement Plan Consultant
for Invesmart, Inc.
in TX
Extraordinary & Fun Retirement Plan Job Opportunities in So. Calif.
for Kravitz
in CA
Institutional Client Service Officer
for Fleet Boston Financial / Columbia Management Group
in NJ, NY
Newly Posted Events
ERISA's Fiduciary Requirements in Today's Investment Turmoil: The Enron Decision and Mutual Fund Misconduct
Nationwide on December 12, 2003
presented by Thompson Publishing Group, Inc.
Health Savings Accounts: What Employers Need to Know
Nationwide on December 11, 2003
presented by Employee Benefits Institute of America LLC (EBIA)
National Medicare Prescription Drug Congress
in District of Columbia on February 25, 2004
presented by Medicare Congress
Newly Posted Press Releases
Labor Department Obtains Settlement with Ford Motor Company for Federal Benefit Plan Reporting Violations
(U.S. Department of Labor)
Medicare Bill Eliminates 1099 Reporting for Debit Cards; Removal of Barriers Will Speed Card Adoption, Evolution Benefits Predicts
(Evolution Benefits)
Hayworth-Sponsored Legislation Will Help Tribal Government Employee Achieve Retirement Security
(Profit Sharing/401(k) Council of America)
Federal and State Agencies Announce Actions Against Security Trust Company; Phoenix Bank will Undergo Orderly Dissolution and Close by March 31, 2004
(U.S. Department of Labor)
National Medicare Prescription Drug Congress Features Nation's Leading Regulators and Experts on the New Legislation
(Medicare Congress)
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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: