| BenefitsLink Retirement Plans Newsletter |   |
January 21, 2004 - 13,655 subscribers
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
(Click on company name or banner to learn more.)
Pension Reporter System – 5500 Software Special Offer Switch Now and Save-- 1. Pay the lesser of 10% off our regular price or 10% off your current EFAST-approved vendor’s invoice 2. Free support & updates for 6 months with 2 year contract CHOOSE: * 5500 series including SARs & PBGC forms * 5300 series with 5310 * 1099-Rs including Electronic Transfer DATAIR also provides valuation, administration, proposal & document software for: * Defined Benefit Plans * Profit Sharing/401(k) Plans * Flex/Cafeteria Plans
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of DOL Amicus Brief in WorldCom Litigation
Excerpt: "The participants and beneficiaries of the WorldCom Salary Savings 401(k) Plan (the 'Plan') lost millions of dollars saved for their retirement when the value of WorldCom, Inc. stock held in the Plan collapsed following revelations of accounting irregularities at WorldCom. Plaintiffs, who are Plan participants, have sought to hold the Plan's fiduciaries liable under [ERISA] for failing to protect them and the Plan." (U.S. Department of Labor, Employee Benefits Security Administration)
Senate Working on Airline Pension Help, Grassley Says
Excerpt: "U.S. senators hope to vote soon on a plan giving a special two-year break to airlines and other companies with large pension burdens, the chairman of the Senate Finance Committee said on Tuesday." (Reuters via Forbes.com)
Bush Promotes Earlier Proposals for Tax-Advantaged Savings
Excerpt: "President Bush hinted at big plans on Tuesday about overhauling Social Security and restated demands to make the last rounds of tax cuts permanent, but he made only fleeting references to new initiatives." (New York Times; one-time registration required)
Opinion: Lifetime Savings Accounts, Retirement Savings Accounts Would Increase Deficits
Excerpt: "In his upcoming federal budget plan, the President is likely to promote a proposal contained in last year's budget to establish new savings tax breaks. This proposal -- to establish tax-favored 'Lifetime Savings Accounts' and to replace existing Individual Retirement Accounts with 'Retirement Savings Accounts' -- is ill-advised for at least five reasons." (Center on Budget and Policy Priorities)
Federal Employees to Face New Loan Rules Under Thrift Savings Plan
Excerpt: "The Thrift Savings Plan is changing its loan program in an effort to discourage government employees and retirees from using it as a line of credit. Starting July 1, the TSP will charge a $50 fee to cover the costs of processing and administering each new loan. Currently, about 500,000 participants have loans, but the overhead costs of the program are absorbed by TSP's 3.2 million participants." (Washington Post)
In New York State, New Treatment for IRC Section 457 Plan Distributions
Excerpt: "Recent amendments to IRC sections 457 and 3401 changed the characteristic of distributions from a government section 457 deferred compensation plan, from payment as wages to payment as a pension or annuity. This change affects only government section 457 plans ..." (The CPA Journal)
PLRs 200401020, 200401023, 200401024 and 200401025--Hardship Exception to 60-Day Rollover Rule
Excerpt: "PLRs 200401020, 200401023, 200401024 and 200401025 highlight the varying grounds that can be used to obtain relief for failing to complete an IRA rollover within the 60 day time limit." (BNA Tax Management)
Overview: Small Plan Audits
Excerpt: "The Department of Labor (DOL) recently has issued frequently asked questions (FAQs) on small pension plan audit waiver regulations. The FAQs provided clarifications and answers to the following questions:" (SunGard Corbel)
CFO Survey: Half of Companies Might Change 401(k) Investment Options
Excerpt: "Forty-seven percent of corporate Chief Financial Officers recently surveyed say that the 401(k) plan at their company includes funds that have been tainted by the recent mutual fund scandal." (Financial Executives Institute)
American Benefits Council: Mutual Fund Rule Would Disadvantage Retirement Plan Participants
Excerpt: "Action Requested: Contact Congress and the SEC to seek an exception from harsh trade deadline for retirement plan participants." (American Benefits Council)
12b-1 Fund Fees Vital but Need Review, Lipper Says
Excerpt: "The mutual fund marketing fee that is currently under fire from critics as deceptive and unfair is so crucial to the $7.2 trillion industry that it cannot be eliminated, according to a new study by the mutual fund data research firm Lipper Inc." (Washington Post)
Links to Items on Executive Comp, Benefits in General
Text of IRS Notice 2004-10 on Electronic Delivery of Form 1099 and Form 5498 Payee Statements (PDF)
Excerpt: "This notice provides guidance to sponsors or administrators of retirement plans or qualified tuition programs (QTPs), or trustees, custodians, or issuers of traditional [IRAs], Roth IRAs, Coverdell education savings accounts (CESAs), or [Archer MSAs] regarding the electronic delivery of payee statements to recipients. Specifically, this notice provides that a furnisher of a Form 1099 or a Form 5498 ... may provide the payee statements electronically beginning after December 31, 2003." (Internal Revenue Service)
Consider Using Professional Employer Organization to Get Better Deal on Employee Benefits
Excerpt: "PEOs are increasingly popular because they manage all the HR paperwork while offering entrepreneurs access to better employee benefits through economies of scale, says Milan Yager, executive vice president of NAPEO." (Entrepreneur Magazine)
New Drive in California to Permit G*y Marriages
Excerpt: "[Assemblyman Mark] Leno said he is encouraged by a recent decision of the Massachusetts state Supreme Court that found g*y couples have the right to marry under that state's constitution.... California was thrust into the forefront of efforts nationwide to give marriage-like rights to g*y couples through passage last year of AB 205, which expanded the state's domestic partners program." (Sacramento Bee)
Overview: New Jersey Formalizes Domestic Partnerships (PDF)
Excerpt: "The Act [requires] that a same-gender domestic partner generally be treated as a 'dependent' (or, where relevant, as a 'spouse,' [or] 'surviving spouse,' ...) for purposes of certain retirement and health benefits. Provisions cover both public sector retirement and health benefits, as well as health benefits available in the private sector. Note, however, that only same-gender domestic partners qualify by law for retirement and health benefits on the same basis as spouses." (The Segal Company)
Ohio Working on G*y Marriage Ban
Excerpt: "After seven years of debate in the Statehouse, lawmakers are close to passing a law that would keep Ohio from recognizing same-sex marriages and keep some state employees from getting benefits for their domestic partners." (FOXNews.com)
Overview: Executive Compensation and Federal Tax Compliance
Excerpt: "The IRS has announced that it has undertaken a comprehensive audit initiative aimed at the compensation arrangements of senior corporate executives and directors. 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)." (BNA Tax Management)
Pensions, Health Insurance, and Tax Incentives
Excerpt: "[EGTRRA] made sweeping changes to the rules governing pensions and [IRAs]. As these provisions were being debated, critics pointed out that the higher IRA limits-- which will reach as much as $6,000 for some taxpayers, up from $2,000 under previous law-- could crowd out private pensions ... [N]o evidence exists about how IRAs have affected employees' demand for pension plans. This study attempts to shed some light on the empirical magnitude of the crowd-out effect." (The Urban Institute)
Employee Benefits Regulations
Online versions of both ERISA and tax regulations, organized by the Internal Revenue Code or ERISA section they implement, are again available at Carol Calhoun's employee benefits site. You can also do a combined search for keywords in both ERISA and tax regulations. The links lead to the relevant regulations on e-CFR, which is updated daily. (Calhoun Law Group, P.C.)
New Edition of Beyond Stock Options
The NCEO presents excerpts from the new edition of its book Beyond Stock Options: Phantom Stock, Restricted Stock, Stock Appreciation Rights, and Other Equity Alternatives. The book, which includes not only 8 chapters on such plans but also a CD with model plans, now has a chapter on combining multiple plans, as well as an index. (National Center for Employee Ownership)
Newly Posted Events
Who is the Employer? (Including a discussion of controlled groups & affiliated service group issues)
in New York on February 11, 2004
presented by ASPA Benefits Council of New York
Newly Posted Press Releases
The Mutual Fund Scandal: Steps for the Prudent Fiduciary
(Bruce Ruud & Associates, LLC)
Former Executive of Tennessee Company Pleads Guilty to Criminal Charges Involving Pension Plan
(U.S. Department of Labor, Office of Public Affairs, Atlanta)
International Pension Readiness Report Finds Most Major International Industrial Countries Unprepared For Coming Crisis
(Watson Wyatt and the World Economic Forum)
Newly Posted or Renewed Job Openings
Health & Welfare Associate
for Towers Perrin
in CA, MA, TX
Actuarial Associate-Retirement
for Towers Perrin
in GA, MA, NY
Manager, Health and Insurance Benefit Plans
for Confidential search conducted by recruitingmanager.com, Inc.
in CA
Defined Contribution Sales Position
for Saunders Advisory Group, Inc.
in FL
Jr. Plan Administrator
for The Allocation Company, Inc.
in TX
Sales Consultant
for Havensure, LLC
in CT, MA, NY, RI
Accountant
for Fluor Federal Services
in WA
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
Copyright 2004 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: