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February 2, 2004 - 13,655 subscribers
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Text of Treasury Press Release Explaining President's 2004 Proposal for Retirement Reform
Excerpt: "Today the Treasury Department announced that the President's FY 2005 Budget includes the following savings initiatives: Retirement Savings Accounts, Lifetime Savings Accounts, Employer Retirement Savings Accounts, and Individual Development Accounts." (Internal Revenue Service)
Full Text of Senate-Approved Pension Funding Bill
Excerpt: "The Senate bill would also allow 80 percent of deficit reduction contributions in 2004 and 60 percent in 2005 for companies not subject to the contributions in 2000. Companies with plans that are less than 75 percent funded would be prohibited from increasing benefits during that time unless the increase is pursuant to a collective bargaining agreement. In addition, the legislation contains some multiemployer relief provisions." (ERISA Industry Committee)
30-Year Treasury Rate v. ERIC Composite Corporate Rate
Excerpt: "H.R. 3108 (The Pension Funding Equity Act), currently before Congress, includes a composite corporate bond rate to replace the defunct 30 year Treasury rate for purposes of calculating pension liabilities. The composite rate before Congress is based on the arithmetic average of four conservative bond indexes ... The following chart compares the current rate of the 30-year Treasury rate with a composite corporate rate consisting of the aforementioned bonds." (ERISA Industry Committee)
Short-Term Pension Relief Might Mean Long-Term Troubles for Affected Airlines
Excerpt: "Allowing airlines to push back pension fund contributions may put Northwest Airlines and other struggling carriers in even deeper financial holes down the road. That's the warning from Fitch Ratings analyst William Warlick about a congressional bill that would allow some of the nation's biggest airlines to greatly reduce pension plan contributions this year and next." ([St. Paul] Pioneer Press)
Opinion: If You Depend on a 401(k), Now Is Time to Start Worrying About Retirement
Excerpt: "The study found that a basic lack of money, as well as a lack of financial expertise and/or advice, were the key barriers to better participation by workers, and Hewitt is suggesting that employers revamp offerings to make their 401(k) plans more affordable and less intimidating to employees." (Albert Crenshaw in the Washington Post)
World's Pension Problems Continue to Grow
Excerpt: "Japan's pension problems of the last 10 years are a good indicator of what other aging countries will be facing in the near future." (United Press International)
Employee Ownership Update for January 30
NCEO Executive Director Corey Rosen discusses the IRS's further crackdown on tax-shelter S corporation ESOPs in Revenue Ruling 2004-4; a new study on productivity in companies with broad-based stock options; and an NCEO issue brief on the future of broad-based stock options. (National Center for Employee Ownership)
Benefits Deadline Looms for Oregon State Employees
Excerpt: "Workers who leave on March 1 will be the last to get a guaranteed annual growth rate of at least 8 percent in their PERS accounts for 2003, plus 1.3 percent growth for January and February of this year.... For people who are eligible to leave, that can be hard to pass up." (BendBulletin.com)
Overview: IRS Explains Safe Harbor 401(k) Plan Top-Heavy Exemption
Excerpt: "The ruling does not address the use of forfeitures as safe harbor contributions. However, if the plan uses forfeitures either to offset the employer's safe harbor nonelective contribution obligation or to offset the employer's safe harbor matching contribution obligation (or as a discretionary matching contribution that satisfies the ACP test safe harbor limitations), the plan still should qualify for the top-heavy exemption with respect to forfeitures." (SunGard Corbel)
Overview: IRS Issues Guidance on Plan Expenses
Excerpt: "[I]f a plan allocates the plan expenses uniformly to all former-employee participants, the plan will comply with the nondiscrimination requirements. Many employers will want to take advantage of this ruling immediately. The ruling allows the employer to reduce its costs without taking anything away from current employees." (SunGard Corbel)
Regulators Prepare Complaint Against Insurer
Excerpt: "In the first action against an insurance company in a sweeping investigation of variable annuities trading, federal and state regulators have prepared a case against Conseco, asserting that the insurer provided advantages to big investors that could increase profits but hurt small investors, the company acknowledged [on Friday, January 30]." (New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Description of Finance Committee Chairman's Bill Scheduled for Markup Today (PDF)
5 pages; includes Sen. Grassley's new provisions on corporate-owned life insurance (COLI). (U.S. Congress Joint Committee on Taxation)
New Book: Selected Issues in Stock Options
The NCEO presents excerpts from Selected Issues in Stock Options, a retitled and updated version of the book previously known as Stock Options: Beyond the Basics. Topics covered include administration, securities issues, divorce, death, underwater options, and more. A glossary and an index are included. (National Center for Employee Ownership)
Text of Fifth Circuit Case Finding Wal-Mart Had No 'Insurable Interest' in COLI Policies (PDF)
23 pages. Excerpt: "We hold that: 1) Texas law, which requires an 'insurable interest' for valid life insurance policies, governs the dispute; 2) an employer has no insurable interest in an ordinary employee under Texas law; ... Wal-Mart acted in pursuit of tax benefits related to the deductibility of premium payments ... After Congress and the IRS eliminated the tax advantages of Wal-Mart's COLI program, Wal-Mart unwound the otherwise unprofitable program ..." (U.S. Court of Appeals for the Fifth Circuit, via FindLaw.com)
Failure to Properly Report Compensation Can Result in 'Automatic' Excess Benefit Transaction
Excerpt: "A recent article written by the IRS for internal training purposes serves as a timely reminder that failure to properly report compensation to the IRS may result in intermediate sanctions penalties being imposed on senior executives under §4958 of the Internal Revenue Code of 1986. Organizations generally are required to report compensation on Forms W-2 and Forms 1099 by January 31." (BNA Tax Management)
Newly Posted Events
HIPAA After the Hoopla: Share the Pain
in Ohio on February 19, 2004
presented by Worldwide Employee Benefits Network (WEB) - Cleveland Chapter
LOOKING FOR A ONE-STOP IRS BENEFITS UPDATE?
in California on February 1, 2004
presented by Western Pension & Benefits Conference - Los Angeles Chapter
ERISA Basics, 18th National Institute
in Illinois on May 19, 2004
presented by ABA Joint Committee on Employee Benefits
Employee Benefits in Mergers and Acquisitions, 18th Annual National Institute
in New York on April 22, 2004
presented by ABA Joint Committee on Employee Benefits
Introduction to ESOPs
in Oregon on April 13, 2004
presented by National Center for Employee Ownership
Introduction to ESOPS
in California on March 24, 2004
presented by National Center for Employee Ownership
Introduction to ESOPs
in Washington on April 14, 2004
presented by National Center for Employee Ownership
Introduction to ESOPs
in California on March 25, 2004
presented by National Center for Employee Ownership
Introduction to ESOPs
in Connecticut on March 3, 2004
presented by National Center for Employee Ownership
Introduction to ESOPs
in Maryland on March 31, 2004
presented by National Center for Employee Ownership
Introduction to ESOPs
in Ohio on April 1, 2004
presented by National Center for Employee Ownership
Newly Posted Press Releases
The President’s Savings Proposals: Tax-Free Savings and Retirement Security Opportunities for all Americans
(Internal Revenue Service (IRS))
Newly Posted or Renewed Job Openings
Retirement Consultant
for Lincoln Financial Group
in AZ, CO, KS, NM, OR
Plan Tax & Reporting Supervisor
for The Vanguard Group
in PA
Personal Trust And Investment Management Sales (BDO)
for Channel Synergy... recruiter...first advertised here in 1995!
in IL, MI, MN, WI
Account Executive
for Transamerica-The Winning Organization
in IL
Account Specialist
for Leading Producing TPA- Excellent Opportunity for Growth
in CA
Customer Service Representative
for Flexsoft, Inc.
in ALL STATES
Human Resources Supervisor
for Stanley Associates, Inc.
in VA
Daily Valuation Specialist/DC Record-Keeper
for R-Tech Consultants, Inc.
in CA
Software Business Analyst
for SunGard Employee Benefit Systems
in AL
Flex Benefits Team Leader
for BB&T/Stanley Hunt DuPree & Rhine
in SC
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