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January 29, 2004 - 13,655 subscribers
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Text of Rev. Rul. 2004-13: Application of Top-Heavy Rules to 401(k) Plans (PDF)
3 pages. Excerpt: "In the situations described below, which plans meet the requirements of § 416(g)(4)(H) of the Internal Revenue Code for the 2004 plan year so that they are not subject to the top-heavy rules in § 416?" (Internal Revenue Service)
Text of Rev. Rul. 2004-12: Distributions from Separate Rollover Accounts (PDF)
4 pages. Excerpt: "If an eligible retirement plan separately accounts for amounts attributable to rollover contributions to the plan, are distributions of those amounts subject to the restrictions on permissible timing that apply, under the applicable requirements of the Internal Revenue Code, to distributions of other amounts from the plan?" (Internal Revenue Service)
Text of Rev. Rul. 2004-11: Minimum Participation Rule During Certain Acquisitions or Dispositions (PDF)
10 pages. Excerpt: "Does a significant change in a plan's coverage during the transition period under § 410(b)(6)(C)(ii) make a plan ineligible for the special rule in § 410(b)(6)(C), or merely curtail the transition period during which the special rule may be applied to the plan?" (Internal Revenue Service)
Text of Rev. Proc. 2004-15: Process for Requesting Waivers from Minimum Funding Standard (PDF)
18 pages. Excerpt: "The purpose of this revenue procedure is to outline the procedures of the Internal Revenue Service with respect to applications for waivers of the minimum funding standard under either § 412(d) of the Internal Revenue Code or section 303 of the Employee Retirement Income Security Act of 1974 (ERISA), Pub. L. 93-406, 1974-3 C.B. 1, 41." (Internal Revenue Service)
Text of Rev. Rul. 2004-10: Allocating DC Plan Expenses to Former Employees But Not Current Employees (PDF)
3 pages. Excerpt: "[A] method that is not reasonable could result in a significant detriment ... [and] the allocation of plan expenses must comply with the nondiscrimination rules of § 401(a)(4)...[but] Plan A does not fail to satisfy the requirements of § 411(a)(11) merely because it charges reasonable plan administrative expenses to the accounts of former employees and their beneficiaries on a pro rata basis, but does not charge the accounts of current employees." (Internal Revenue Service)
Senate Passes Pension Funding Bill
Excerpt: "The Senate overwhelmingly passed legislation yesterday that would save companies an estimated $80 billion on their pension contributions over the next two years, but it was unclear whether the Bush administration would support the measure." (New York Times; one-time registration required)
PLANSPONSOR Coverage: Senate Passes Pension Funding Bill
Excerpt: "With the Senate's passage of the bill ... the two versions will now proceed to a joint House-Senate committee to be reconciled. Time is of the essence though and Congress must move before April, when companies will again have to determine payments based on the 30-year Treasury bond rate." (PLANSPONSOR.com; one-time registration required)
Text of Bill and Associated Documents: the Pension Stability Act
Excerpt: "H.R. 3108 - Title: To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to temporarily replace the 30-year Treasury rate with a rate based on long-term corporate bonds for certain pension plan funding requirements and other provisions, and for other purposes." (U.S. Library of Congress)
Companies Face Pension Uncertainty Despite Bill Passage
Excerpt: "Without a clear sense of whether the House will agree on a version of the bill - or if the White House will veto it - companies are still in the dark about how much money they must add to their plans." (Dow Jones via Quicken.com)
Opinion: Don't Let Them Steal Our Future by Passing Pension Funding Bill
Excerpt: "Call it the Pension Ripoff Act of 2004. If a bill that's expected to pass the U.S. Senate becomes law, airlines and steel companies would be able to cut payments that they owe to the federal government's Pension Benefits Guaranty Corporation (PBGC) by $16 billion over the next two years." (The Socialist Worker)
ERIC Praises Passage of Pension Stability Act by Senate
Press release. Excerpt: "The ERISA Industry Committee (ERIC) today commended the Senate for passing pension funding legislation (H.R.3108) that would replace the defunct 30-year Treasury bond interest rate used for pension calculations with a long-term, high quality corporate bond rate. The bill was approved with bipartisan support by a vote of 86-9." (ERISA Industry Committee)
Boehner: Congress Should Complete Pension Work on Behalf of Workers and Employers
1/28/04. Excerpt: "The interest rate change, which passed the Senate today, was first passed by the House on October 8th, 2003 by a vote of 397-2 (Pension Funding Equity Act; H.R. 3108). The measure would provide a short-term, two-year pension funding fix to replace the current 30-year Treasury bond interest rate while Congress works to implement long-term solutions to reform and preserve the defined benefit system. Boehner issued the following statement today:" (U.S. House of Representatives Committee on Education and the Workforce)
Federal Pension Insurer Moves to Assume JA Jones Inc. Pension Plan in Charlotte, N.C.
Excerpt: "The Pension Benefit Guaranty Corporation today announced it is moving to assume responsibility for the underfunded pension plan of more than 6,300 workers and retirees of the Charlotte, N.C.-based JA Jones Inc., a construction and engineering firm that is liquidating in bankruptcy." (Pension Benefit Guaranty Corporation)
Federal Pension Insurer Moves to Assume Cone Mills Pension Plan in Greensboro, N.C.
Excerpt: "The Pension Benefit Guaranty Corporation today announced that it is moving to assume responsibility for the pensions of more than 6,100 workers and retirees of Cone Mills Corp., a manufacturer of denim and home-furnishing fabrics based in Greensboro, N.C." (Pension Benefit Guaranty Corporation)
Massachusetts Governor Proposes State Pension Reforms
Excerpt: "Gov. Mitt Romney's proposal to overhaul the state pension system appears to be a direct rebuke of actions taken by prominent Democrats in the past year to dramatically increase their retirement payments." (AP via Cape Cod Times)
Mutual Funds Still Offer Advantages to Investors
Excerpt: "[I]n the end, funds are still your best bet. The fact is, none of the alternatives gives you the three great advantages that mutual funds offer -- low cost, low risk and a low investment minimum." (Wall Street Journal via SFGate.com)
Mutual Funds Association: Spitzer is 'Misinterpreting the Data'
Excerpt: "Matthew P. Fink, president of the Investment Company Institute, said today that New York Attorney General Eliot Spitzer's assertion that mutual funds charge more for portfolio advisory fees than pension funds is 'a misinterpretation of the data.' Spitzer made the comment during a hearing of the Senate Governmental Affairs subcommittee on Financial Management." (Investment Company Institute)
Help Coming for 401(k) Investors
Excerpt: "A recent study by the human resources consulting firm Hewitt Associates found that nearly 45 percent of workers feel they don't have enough information to make the right investment choices, and more than half want help in making investment decisions. Such findings have spurred 401(k) providers to begin offering individual advice for workers and, in some cases, actually taking over management of workers' retirement accounts for an annual fee." (AP via New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Insurers Pleased with Grassley COLI Bill
Press release. Excerpt: "The American Council of Life Insurers (ACLI), the Association for Advanced Life Underwriting (AALU) and the National Association of Insurance and Financial Advisors (NAIFA) support a discussion draft on corporate-owned life insurance recently released by the office of Sen. Charles Grassley, (R-Iowa), chairman of the Senate Finance Committee." (American Council of Life Insurers)
AFL-CIO: American Workers are Struggling More Than Ever
Excerpt: "American workers are struggling more than ever, he said, often being squeezed by employers for wage and benefit concessions. The solution? You guessed it. Unions." (The Wharton School of the University of Pennsylvania)
A High-Stakes Union Fight: Who Will Fold First?
Excerpt: "As businesspeople, unionists and politicians watch closely, Cintas, a proud company with a long history, and UNITE, heading up a resurgent union coalition, are locked in a ferocious battle. Many of their principles and tactics are old-fashioned. Others are as up-to-date as a smart bomb." (Workforce.com)
Welcome to new BenefitsLink advertiser S.C. International, Ltd.
Excerpt: "S.C. International, Ltd. is a national and international executive search firm specializing in and around the employee benefits marketplace. Our client firms are employee benefits consulting firms and corporations. Staffing needs range anywhere from entry level through midrange to top consulting and management. Disciplines include Actuarial, Defined Benefits, and Defined Contribution consulting, and administration and internal communications."
Newly Posted Events
Employers’ Conference on Controlling Health Care Costs
in California on February 1, 2004
presented by International Business Forum
401(k) Plan Scandals: Limit Sponsor Liability
Nationwide on February 24, 2004
presented by IOMA
Newly Posted Press Releases
Nearly Eight in Ten U.S. Employees Register for Benefits Online
(Hewitt Associates LLC)
Newly Posted or Renewed Job Openings
Consulting Sales Professional - Retirement Consulting Services
for PFE Consultants, Inc. d/b/a The PFE Group
in MA
FSA/COBRA Manager
for Benergy Outsourcing Strategies
in NY
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