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January 27, 2004 - 13,655 subscribers
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Congress Finalizes Appropriations Act Barring Implementation of Proposed Cash Balance Regulations
Excerpt: "The Senate on January 22, 2004 approved an $820 billion omnibus appropriations bill (H.R. 2673) for fiscal year 2004 that would effectively prohibit the Treasury from implementing proposed regulations authorizing the conversion of defined benefit pension plans to cash balance plans." (CCH News & Information Library)
DOL Ratchets Up Pressure on Late Deposits of 401(k) Elective Deferrals
Excerpt: "The Department of Labor (DOL) has added language to the 2003 Form 5500 instructions to require plan auditors to review deposits of participant contributions (e.g., 401(k) plan elective deferrals) and to confirm that the employer has deposited the contributions timely." (SunGard Corbel)
Text of U.S. Chamber of Commerce Letter to Senators Urging Pension Interest Rate Reform (PDF)
1 page. Excerpt: "[W]e urge you to pass H.R. 3108, which replaces the defunct 30-year Treasury rate used for calculating pension liabilities with a corporate bond rate, as quickly as possible." (U.S. Chamber of Commerce)
Update on Rate Reform (Not Including Possible Senate Action This Week)
Excerpt: "Congress did not enact pension interest rate reform before wrapping up its 2003 legislative session. As a result, the temporary relief enacted in 2002 by the Job Creation and Worker Assistance Act will expire at the end of employers' 2003 plan year. The expiration of the temporary relief affects current liability calculations, variable rate premiums, quarterly contribution requirements and several other aspects of plan operations." (Watson Wyatt)
Cash Balance Debate Continues in Congress and the Courts
Excerpt: "The first appellate court to consider whether the plan design violates federal age discrimination laws has ruled in favor of the plans." (Watson Wyatt)
Opinion: Was the Ninth Circuit Cash Balance Decision Really So Favorable to the Plan?
Excerpt: "Here is what the unpublished opinion in Godinez et al. v. CBS Corporation et al., 81 Fed.Appx. 949, 2003 WL 22803700 (9th Cir. 2003), actually said:" (Attorney B. Janell Grenier on BenefitsBlog)
Overview: Final Regulations Require Revisions to QJSA and QPSA Explanations
Excerpt: "The IRS' final regulations on disclosing optional forms of benefit govern the content of Qualified Joint and Survivor Annuity (QJSA) and Qualified Preretirement Survivor Annuity (QPSA) notices, and specify requirements for disclosing the relative values of optional forms of benefit. The final rules should make it easier for plan participants to understand the relative values of the optional forms of payment ... Plan sponsors may rely on the final rules immediately." (Watson Wyatt)
The 'Stretch IRA': Some Basic Rules
Excerpt: "The term 'stretch' here refers to a method for extending the duration of traditional and Roth IRA beneficiary distributions to certain successor beneficiaries, beyond the death of an original designated beneficiary-- a method especially valuable to a nonspouse beneficiary." (Compliance Headquarters)
Bush Retirement Savings Plan Proposal Will Resurface In February Budget
Excerpt: "President Bush left his plans to boost savings through new tax-free accounts out of the State of the Union address, but that doesn't mean they are dead, administration officials say. The plans will be unveiled in the president's Feb. 2 budget, Treasury Department spokeswoman Tara Bradshaw said." (CBS MarketWatch via Seattle Times)
Text of Proposed SEC Reg Requiring Investment Advisers to Adopt a Code of Ethics (PDF)
18 pages. Excerpt: "The Commission is proposing for comment a new rule and related rule amendments under the Investment Advisers Act of 1940 that would require registered advisers to adopt codes of ethics. The codes of ethics would set forth standards of conduct expected of advisory personnel, safeguard material nonpublic information about client transactions, and address conflicts that arise from personal trading by advisory personnel." (U.S. Securities and Exchange Commission)
Links to Items on Executive Comp, Benefits in General
Online Year 2004 ERISA Reporting Calendars
Excerpt: "The 2004 ERISA Reporting Calendars are now available online. Plan administrators of single and multiemployer pension and welfare benefit plans can click ... to access concise information on where, when and how to file annual and special reports with the DOL, IRS and PBGC, with links to relevant forms and information at the agency sites." (Watson Wyatt)
Text of IRS Notice 2004-10 on Use of Electronic Distribution of Forms 1099, 5498 (PDF)
Excerpt: "[A] furnisher of a Form 1099 or a Form 5498 relating to the reporting of contributions and distributions of pensions, SEPs, traditional IRAs, Roth IRAs, QTPs, CESAs, and Archer MSAs may deliver electronically the payee statements required to be furnished to recipients for 2003 and subsequent years." (Internal Revenue Service)
New Web Page from IRS Employee Plans: Employee Plans Abusive Tax Transactions
Excerpt: "The IRS is engaged in extensive efforts to curb abusive tax shelter schemes and transactions. The Tax Exempt and Governmental Entities Division of the IRS, including the office of Employee Plans, participates in this IRS-wide effort by devoting substantial resources to the identification, analysis, and examination of abusive tax shelter schemes and promotions." (Internal Revenue Service)
2004: Last Call for Preferable Stock Option Accounting
Excerpt: "Absent any last-minutes surprises, 2004 will be the final year of no accounting expense for stock options. The Financial Accounting Standards Board's (FASB's) tentative decision is for the new standard to become effective for fiscal years beginning after December 15, 2004. This makes the considerations for 2004 grants a little more complicated, as companies must consider how the grants will be accounted for both before and after the new rules go into effect." (Watson Wyatt)
Newly Posted Events
New Visions in Employee Ownership
in Illinois on April 28, 2004
presented by Beyster Institute
February Dinner Meeting
in Florida on February 24, 2004
presented by Florida West Coast Employee Benefits Council
Made in America 2004: The Inaugural Taft-Hartley Benefits Summit
in Nevada on February 18, 2004
presented by Financial Research Associates, LLC
Newly Posted Press Releases
PSCA Urges SEC To Preserve Level Playing Field For All Investors
(Profit Sharing/401(k) Council of America (PSCA))
Newly Posted or Renewed Job Openings
401(k) Account Manager
for CNA
in CA
Defined Benefits Administrator
for PennMont Benefit Services, Inc.
in PA
Senior Human Resources Analyst
for County of Riverside
in CA
Marketing Consultant
for Polycomp Administrative Services, Inc.
in CA
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