| BenefitsLink Retirement Plans Newsletter |   |
February 10, 2004 - 13,655 subscribers
Today's sponsor: Securities Industry Association
(Click on company name or banner to learn more.)
SIA's Mutual Funds Reform & Public Trust Conference February 26, 2004 Grand Hyatt Hotel, New York The conference will focus on the various regulatory and legislative initiatives which have been adopted or proposed to reform mutual fund industry practices, improve investor disclosure, and restore public trust and confidence in this core investment product. Panel and workshop sessions will address the specific components of these initiatives and their impact on broker-dealers, funds and investors. CLE credit will be available for this event. Fee reduction may be available for qualified registrants. Click above to register
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of ASPA Comments on IRS EPCRS Program
Excerpt: "The American Society of Pension Actuaries (ASPA) submits the following comments regarding the Employee Plans Compliance Resolution System (EPCRS), as currently described in Revenue Procedure ('Rev. Proc.') 2003-44." (ASPA-- The Retirement Plan Professionals)
Overview: Bush Administration Reissues Modified Retirement Savings Proposal
Excerpt: "CCH Note: The impetus behind the Administration's plan is the belief that the simplification of existing retirement savings vehicles will significantly boost plan participation and increase saving. Exclusive of the future impact of the proposal on the budget deficit after initial revenue gains, critics, however, have countered that elimination of the up-front deduction would discourage saving among middle income people, who use traditional IRAs to lower their tax liability." (CCH News & Information Library)
ERSA 2.0 and the 403(b)
Excerpt: "When the Employer Retirement Savings Account (ERSA) was first rolled out last year many 403(b) advocates, including 403(b)wise, were cautiously optimistic.... While still intrigued by the ERSA concept, we at 403(b)wise are beginning to question the wisdom of this plan." (403bWise.com)
Political Money Said to Sway Pension Investments of Governmental Plan in Pennsylvania
Excerpt: "For more than a decade, a small group of businessmen contributed tens of thousands of dollars to the campaigns of their county commissioners in Luzerne County, a waning coal center in eastern Pennsylvania. The elected officials gave the businessmen control over the county pension fund, about $200 million at its peak. After hiring insurance companies, brokerage firms and others to manage the money, the businessmen reaped several million dollars in commissions and fees ..." (New York Times; one-time registration required)
Overview: Participants Lose Challenge to Vesting Service That Ended After Plant Closed
Excerpt: "This case involved a plan that used the elapsed time method of crediting service, which is one of the available methods for determining an employee's years of service for eligibility, vesting and accrual purposes.... Employees who were not fully vested under the five-year cliff vesting schedule of the company's qualified plan challenged the application of the plan's elapsed time provision to stop the vesting 'clock' on the day of their employment termination." (Employee Benefits Institute of America (EBIA))
Estate Could Not Defer Recognition of Gain from Decedent's Sale of Stock to ESOP, Absent Election
Excerpt: "The estate of a deceased individual was not entitled to defer recognition of gain that resulted from the sale of the decedent's shares in a domestic C corporation to its employee stock ownership plan (ESOP). The decedent failed to elect such treatment pursuant to Code Sec. 1042." (CCH News & Information Library)
California Treasurer Proposes Environmental Screening for State Pension Investments
Excerpt: "California Treasurer Phil Angelides pitches the Green Wave Initiative to CalPERS and CalSTRS, the state's huge pension funds, asking them to support green investments." (SocialFunds.com)
Overview: IRS Addresses Coverage Testing Relief After Subsidiary Sale
Excerpt: "This ruling provides guidance on Code Section 410(b)(6)(C), which temporarily excuses a plan from satisfying the minimum coverage requirements following certain changes in the plan sponsor's controlled group. This temporary relief generally extends from the date of the change until the last day of the following plan year (referred to as the 'transition period'). There are two important prerequisites ..." (Employee Benefits Institute of America (EBIA))
Employers Paying Closer Attention to 401(k) Fees
Excerpt: "Employers are increasingly scrutinizing 401(k) plan fees and investment performance. The trend began about four years ago, when the market downturn prompted companies to pay more attention to what funds were returning and what it was costing employees. Now, the vigilance is accelerating ..." (Dow Jones via Philadelphia Inquirer)
Text of SEC Proposed Rule on Disclosure of Conflicts of Interest by Broker-Dealers (PDF)
50 pages. Excerpt: "The two new rules would require broker-dealers to provide their customers with targeted information, at the point of sale and in transaction confirmations, regarding the costs and conflicts of interest that arise from the distribution of mutual fund shares, unit investment trust interests (including insurance securities), and municipal fund securities used for education savings." (U.S. Securities and Exchange Commission)
Opinion: the SEC Takes a Swing At Sleaze-- and Misses
Excerpt: "Mutual fund regulators' new 'reform' proposals don't demand an end to the chiseling and double-dealing, only that the fund cheat you right out in the open." (MoneyCentral.com)
Links to Items on Executive Comp, Benefits in General
5th Circuit Case: SPD Controlled Over Conflicting Language in Plan Enrollment Guide
Excerpt: "This case involved a beneficiary who received physical therapy covered under an employer-sponsored group health plan. After about three months of therapy, the beneficiary was informed that no additional sessions would be covered because the plan limited physical therapy coverage to 60 visits per year. The plan's summary plan description (SPD) described the 60-visit-per-year limit, but an Enrollment Guide also provided by the plan did not specify any limit." (Employee Benefits Institute of America (EBIA))
Newly Posted Press Releases
Optimistic Alliance Benefit Group Enters 2004 Rolling
(Alliance Benefit Group)
Former Owner of Mississippi Home Health Care Agency Sentenced for Embezzling Pension Assets
(U.S. Department of Labor, Office of Public Affairs, Atlanta)
ICC Plan Solutions Continues Rapid Expansion With 2 New Client Wins
(Metrics Partners)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Dean Rodewald (DATAlynx)
Newly Posted or Renewed Job Openings
Retirement Plan Administrator
for Benefit Consultants Group
in NJ
Financial Control/401 (k) Specialists
for Constantin Control Associates
in
Conversion Team Administrator
for Administaff
in TX
iFlex New Plans Specialist
for First Trust
in CO
Internal Wholesalers
for Minnesota Life
in MN
Pension Actuary Consultant/Expert
for Philadelphia-based law firm
in ALL STATES
Disability Claims Practices Professionals
for Law firm
in ALL STATES
Pension Administrator/Compliance Analyst
for CNA Trust
in IL
Sr. Technical Analyst - Consulting, Planning and Compliance
for Black Mountain Management, Inc.
in NY
Retirement Benefits Specialist
for Excellent opportunity with a leading global manufacturing organization!
in IN
Processing and Quality Assurance Specialist
for GoldK, Inc.
in MA
Trust Reconciliation Analyst
for GoldK, Inc.
in MA
Sales Consultant - Retirement Benefits
for Diversified Investment Advisors
in NY
Director, Communications and Product Development
for BISYS Retirement Services
in PA
Defined Benefit Actuarial Specialist
for Standard Insurance Company
in OR
Dir-Compensation
for American Express
in MN
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