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December 16, 2003 - 13,525 subscribers
Today's sponsor: PenChecks, Inc.

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

PENCHECKS, INC. MARKS 10,000th LOST PARTICIPANT IRA

PenChecks, Inc. has established over 10,000 IRA accounts for missing
participants.  The PenChecks IRA, established just 2 years ago, is
rapidly becoming the vehicle of choice to hold missing participant benefits.

Penchecks, Inc. provides complete distribution services to qualified
plans, including lump sum distributions, monthly annuity payments,
election forms, checks, ACH transfers, tax withholding in all states,
direct rollovers, and Forms 1099-R and 945.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of Final Regs on Disclosure of Values of Optional Forms of Benefit (PDF)
35 pages. Excerpt: "These final regulations are effective on December 17, 2003. Applicability Date: These final regulations are applicable to QJSA explanations with respect to distributions with annuity starting dates on or after October 1, 2004, and to QPSA explanations provided on or after July 1, 2004." (Internal Revenue Service)

A Progress Report on Scandal-Tainted Fund Shops
Excerpt: "So let's catch our breath and check in to see where fund shops tainted by the scandal stand. We'll start with those firms whose violations of fiduciary duty were serious enough for us to urge investors to consider selling. Then we'll consider those firms whose relatively less-egregious misdeeds prompted us to issue a 'don't send new money' warning." (Morningstar.com)

Mutual Fund Leaders Take 'Hard Stand' on Soft Dollars
Press release. Excerpt: "[Investment Company Institute] Chairman Paul G. Haaga, Jr. announced that the ICI would urge the Securities and Exchange Commission to dramatically curtail the use of soft dollars by all investment advisers, including mutual fund managers, and to ban mutual funds' use of 'directed brokerage.' Haaga said the ICI is seeking 'major structural reforms to change mutual funds' relationships with firms who execute their portfolio transactions and market and sell their funds.'" (Investment Company Institute)

SEC Cleanup of Mutual Funds Leaving Little Guys Out in the Cold?
Excerpt: "Consumer advocates and 401(k) retirement-plan sponsors fear that small investors will be denied the most up-to-date prices on funds, get hit with new fees -- and still won't be told what it costs them to own mutual funds. 'The SEC is punishing the innocent to prevent abuses by a few insiders,' fumes David L. Wray, president of the Profit Sharing/401(k) Council of America. The SEC needs to rethink its approach on three fronts: ..." (Business Week)

CalPERS Places AllianceBernstein On 'Watch List'
Excerpt: "The California Public Employees' Retirement System (CalPERS) today voted to continue investigating AllianceBernstein, stopping short of terminating its $1.4 billion contracts. The firm will be placed on the System's Watch List until the completion of various other investigations next year." (California Public Employees’ Retirement System (CalPERS))

Opinion: Spitzer's Fund-Fee Hounds Bark Up the Wrong Tree
Excerpt: "It isn't the business of either law enforcers or government regulators to determine what fees fund managers should charge. Never has been, never should be. Besides, it doesn't work." (Chet Currier on Bloomberg.com)

Mutual Fund Reform Bills: a Side-by-Side Comparison (PDF)
17 pages; revised 12/9/03. Excerpt: "All the bills would require mutual funds to make more extensive disclosure of the fees and charges that investors pay. Financial relationships among mutual funds, brokers, and investment advisers would also have to be disclosed. Under three of the bills, brokers selling mutual funds would have to disclose how their compensation was structured, including any incentives for selling particular funds." (Congressional Research Service via American Benefits Council)

Restrictions on "Market Timing" Trades Permitted Under Investment Contract and Plan Document
Borneman v. Principal Life Ins. Co. (S.D. Iowa 2003). Excerpt: "EBIA Comment: We find this case particularly interesting for its discussion of market timing, which is among the mutual fund issues recently in the news. In response to the market timing problem, the insurance company had considered and rejected two other alternatives: imposing a waiting period between transactions and charging high fees for transactions. This is not the first case to uphold restrictions on trading ..." (Employee Benefits Institute of America (EBIA))

New Edition of Book on 401(k) Plans and Company Stock
The NCEO presents excerpts from the new (fourth) edition of its book 'Section 401(k) Plans and Employee Ownership,' which covers company stock both in standalone 401(k) plans and in combination 401(k)-ESOP plans ('KSOPs'). The new edition covers not only technical matters but also broad trends and the post-Enron environment. (National Center for Employee Ownership)

Nation's Largest Pension Fund Sues NYSE
Excerpt: "The nation's largest pension fund announced Tuesday it is filing a class action lawsuit against the New York Stock Exchange, alleging that fraudulent practices cost it millions of dollars in recent years. The $154 billion California Public Employees Retirement System, representing an estimated 1.4 million members, will seek to recover pension fund investment money it lost ..." (AP via SignOnSanDiego.com)

Applicable Federal Rates for January 2004 (PDF)
Rev. Rul. 2004-2; 3 pages. (Internal Revenue Service)

Congress to Weigh Easing U.P.S. Multiemployer Pension Funding Requirements
Excerpt: "Congress is expected to consider a proposal early next year that would shift responsibility for billions of dollars in future pension promises to the federal government from United Parcel Service. U.P.S. is chafing at its legal requirement to cover retirees of other companies through its participation in multiemployer plans ..." (New York Times; one-time registration required)


Links to Items on Executive Comp, Benefits in General

New Jersey Assembly OKs Benefits for Same-Sex Couples
Excerpt: "The state Assembly narrowly approved a bill that gives g*y couples the opportunity for health and pension benefits, exemption from the inheritance tax, hospital visitation rights and the ability to make decisions for incapacitated partners. The bill passed 41-38, with one abstention." (PressofAtlanticCity.com)


Newly Posted Events

National Health Policy Conference 2004
in District of Columbia on January 28, 2004
presented by AcademyHealth and Health Affairs
Newly Posted Press Releases

Court Orders California Employer To Withhold Federal Taxes From Employees' Wages
(Internal Revenue Service (IRS))

Gilsbar, Inc. Named Administrator for Thibodaux Regional Medical Center's Employee Health Plan
(Gilsbar, Inc.)

New Product Announced by Market Clarity Firm – QuickQuestion™ from Metrics Partners
(Metrics Partners)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Customer Service Manager
for Benefit Equity, Inc.
in CA

Senior Analyst - Planning, Compliance, and Benefits
for Capital One
in VA

Sales Position
for Tax Sheltered Compensation, Inc.
in MN

Senior Compliance
for Financial Services Company
in MA

Project Manager
for Transamerica-The Winning Organization
in CA

Business Development Position
for Retirement Alliance Inc.
in CA

Plan Administrator (Client Service Manager)
for ADP Retirement Services
in NH

Operations Specialist for Daily-Valued Defined Contribution Plans
for The Heintzberger Company
in OR

Investor Services Associates
for ICMA Retirement Corporation
in DC

Employee Benefits Associate Attorney
for Full-service, international law firm (offices across the US and in Europe)
in DC


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