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December 10, 2003 - 13,525 subscribers
Today's sponsor: ASPA

(Click on company name or banner to learn more.)

ASPA Restructures Education Program

As a result of exam candidate feedback and more than two years of
research, analysis, and planning, ASPA has restructured its education
program. Effective January 2004, study material will be presented
in smaller segments, in a more logical, easier-to-understand way.
While the program is changing, ASPA assures professionals that the
same high educational standards for which ASPA is known will not
change. New texts and exams for 2004 will be available soon!

Click on the banner above or visit
http://www.asppa.org/edu/restructure.htm for more information.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Senate Puts Off Pension Interest Rate, Funding Relief
Excerpt: "The Senate adjourned Tuesday without taking action on a House-approved bill that includes billions of dollars of pension relief for airlines and other companies." (AP via the New York Times; one-time registration required)

Reuters Coverage: Congress Heads Home Without Passing Pension Relief
Excerpt: "Senate leaders said they hoped to address the underfunding problems with 'defined benefit' pensions when lawmakers return to work in January. Nationwide these pensions are underfunded by about $350 billion, the government estimates. Disappointed business groups said failure to provide relief now would cost companies billions of dollars that could have gone into things such as new jobs or investment ..." (Reuters via the New York Times; one-time registration required)

Congressional Budget Office Estimates Cost of Pension Interest Rate Relief
Excerpt: "[T]he bill would make changes to the way pension liabilities are calculated for certain pension plans, which would affect both pension contributions and premiums paid to the Pension Benefit Guaranty Corporation (PBGC).... [T]he net effect of those provisions would be to reduce the direct cost of the mandates imposed by ERISA on plan sponsors." (Congressional Budget Office)

Congress Moves to Close 'Loophole' for Teachers
Excerpt: "Federal lawmakers struck a deal Tuesday to close a loophole in federal law affecting Texas teachers' retirement benefits, but not until July. The measure, which the Senate approved without objection late Tuesday, will make it more difficult for teachers to keep their own state pensions and the full Social Security benefits of deceased spouses." (Houston Chronicle)

Online Now: Enrolled Actuaries Report, Winter 2003 Issue (PDF)
Includes 'The Future of Human Longevity: How Important Are Markets and Innovation?" (American Academy of Actuaries)

Opinion: Why America's Elderly Are So Spoiled
Excerpt: "For the lucky ones who lived long enough to collect, the new pension system, founded in 1935, was meant as a modest support in the brief span before they passed on to glory. No more. Since then, life expectancy at birth in America has increased to more than 77 years." (Steve Chapman on Slate.com)

Opinion: Pension Increase for San Jose Police, Firefighters Would Bust the Budget
Excerpt: "What if you could retire at age 50 with 90 percent of your salary? You could relax, travel, volunteer. Or you could bank that regular check and go get another job. Across California, thousands of police officers, firefighters and prison guards who have 30 years of service at age 50 have this benefit, which is virtually unheard of in the private sector. Now San Jose police and firefighters want it too ..." (The [San Jose] Mercury News)

Bookmark Candidate: Watson Wyatt's Pension News Filter for Europe
Published monthly; online archive goes back to October, 1997. (Watson Wyatt Worldwide)


Links to Items on Executive Comp, Benefits in General

2004 Reporting and Disclosure Calendar for Multiemployer Plans Online from the Segal Company
Excerpt: "The Segal Company's 2004 Reporting & Disclosure Calendar for Multiemployer Plans summarizes compliance requirements for qualified, single employer benefit plans. To see a brief description of each requirement and information about such details as the plan(s) affected, filing requirements and due dates, click on any underlined item below." (The Segal Company)

2004 Reporting and Disclosure Calendar for Single Employer Plans Online from the Segal Company
Excerpt: "The Segal Company's 2004 Reporting & Disclosure Calendar for Benefit Plans summarizes compliance requirements for qualified, single employer benefit plans. To see a brief description of each requirement and information about such details as the plan(s) affected, filing requirements and due dates, click on any underlined item below." (The Segal Company)

What Employers Need to Know About the California Domestic Partner Rights and Responsibilities Act
Excerpt: "In general, the statute provides various legal rights and obligations for individuals registered as domestic partners under state law on or after January 1, 2005. 1 These rights and obligations are intended to mirror those of married individuals under California law. Employers are also affected by this legislation as discussed below and have until January 1, 2005 to prepare.... AB 205 will have several important effects on employee benefits provided by employers...." (Hanson Bridgett Marcus Vlahos & Rudy, LLP)

Last Chance to Terminate or Convert Split Dollar Arrangements Before Expiration of Safe Harbor
Excerpt: "All pre-January 28, 2002 split dollar insurance agreements must be reviewed immediately and the income tax, gift tax and employment tax implications of those agreements ascertained in light of a safe harbor for terminating such agreements or converting to a loan by December 31, 2003." (Reish Luftman Reicher & Cohen)

Overview: December 31 Deadline Approaching for Split-Dollar Arrangements
Excerpt: "In determining the appropriate course of action for these arrangements, many factors need to be considered, such as the age of the insured, the amount of any equity build-up under the policy, and the specific terms of the arrangement regarding roll-out. The tax rules applicable to split-dollar arrangements are complex and appropriate decisions regarding them can vary greatly depending on the particular arrangements." (Hodgson Russ LLP)

Overview: Roundtable Issues New Guiding Principles For Executive Compensation (PDF)
1 page. Excerpt: "On November 17, 2003, the Business Roundtable issued new principles on executive compensation that would more closely link pay with performance and promote a greater role for independent compensation committees. The principles are meant to serve as best practices ..." (Frederic W. Cook & Co., Inc.)

Higher Executive Pay Doesn't Mean Fewer Jobs
Excerpt: "Research I have done doesn't support the notion that CEOs make their millions from stock options and free share awards on the backs of their workers. The research also shows that the longer a CEO has to wait for his compensation rewards, the more he'll concentrate on long- term performance -- as opposed to short-term fixes -- and that helps create more jobs." (Graef Crystal on Bloomberg.com)

Top Risk Issues for Modern Deferred Compensation Plans (PDF)
4 pages. Excerpt: "The IRS examiners seem to be focusing their review of nonqualified deferred compensation plans to the operational areas pertaining to tax withholding and deductions, the timing of deferral elections and distributions, security devices that may avoid substantial risks of forfeiture, and general principles of constructive receipt and the economic benefits doctrine. In light of this focus, here are the top audit issue areas employers should consider: ..." (The Law Office of Thomas C. Walker)

International Stock Ownership as a Benefits Strategy
Excerpt: "This overview discusses several issues arising in international stock ownership arrangements from the standpoint of a domestic U.S. employer." (Faegre & Benson LLP)


Newly Posted Events

The Ethics Evolution in Business -- Are You Ready?
Nationwide on December 8, 2003
presented by Thompson Publishing Group

The Ethics Evolution in Business -- Are You Ready?
Nationwide on January 8, 2004
presented by Thompson Publishing Group
Newly Posted Press Releases

Thomas Announces Request for Written Comments on H.R. 3654, the Technical Corrections Act of 2003
(U.S. House Ways and Means Committee)

Pension Funding Correction Delayed
(ERIC (ERISA Industry Committee))

Five Leading Investment Technology Companies Select Metrics Partners for Public Relations
(Metrics Partners)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Retirement Plan Administrator
for R.J.L. Pension Services, Inc.
in FL

Defined Benefits Administrator
for PennMont Benefit Services, Inc.
in PA


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