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Retirement Plans
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April 6, 2004 - 13,655 subscribers
Today's sponsor: Financial Research Associates, LLC

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STARS & STRIPES ’04 Summit
The 2004 National Public Employees’ Retirement Funds Summit
July 18-20, 2004 * Disney’s Yacht & Beach Club, Orlando, FL
To register call 800-280-8440 or visit www.frallc.com
General Highlights:
* A Closed-Door/Private Public Fund Exchange
* Enhanced Asset Allocation & Diversification in Today’s Economy
* Effectively Valuing A Fund’s Liabilities
* Managing a Mature Fund Versus a New Plan
* Corporate Governance, Late Trading & Market-Timing Scandals

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Senator Frist Wants Pension Bill Action This Week
Excerpt: "The majority leader of the U.S. Senate wants to pass pension legislation this week that would save U.S. companies more than $80 billion over two years and has already cleared the House of Representatives." (Reuters via Forbes.com)

Rolling Out Automatic 401(k) Enrollments
Excerpt: "There is growing recognition among employers that the 401(k) and similar plans widely replacing traditional pensions won't work unless workers both enroll and invest adequate amounts -- and many employees seem to be doing neither. One employer response has been automatic enrollment ..." (Washington Post; one-time registration required)

Escalating California Pension Costs Threaten to Choke California State, Local Budgets
Excerpt: "The runaway costs of public employee pension contributions soon will double or even quadruple for many government agencies, including the city of Los Angeles, driven by investment losses, improved benefits and in some cases reduced employee contributions." (Knight Ridder/Tribune Business News via Miami Herald)

Overview: IRS Proposes Regulations on Elimination of §411(d)(6) Protected Benefits
Excerpt: "Under the proposed regulations, a plan may be amended to eliminate an optional form of benefit if: the optional form is 'redundant' with respect to a retained optional form of benefit; and the plan amendment is not applicable with respect to an optional form of benefit with an annuity starting date that is less than 90 days after the date the amendment is adopted." (BNA Tax Management)

Some Teachers in Ohio Getting Pay Plus Pension
Excerpt: "About 11,000 retired teachers in the state were back in classrooms last year, a number that has risen nearly 40 percent since 2000. While most work only part time as substitutes, 11.6 percent of them take home salaries in excess of $50,000 while also drawing their pensions." (Akron Beacon Journal)

Overview: IRS Extends Remedial Amendment Period for New Plans and Amendments
Excerpt: "Even though EGTRRA is now effective, the IRS is not yet willing to review plan language for compliance with the new law. (However, the Service did issue sample language that could be used as a model for a 'good faith' amendment.) At the present time, the IRS will not issue determination, opinion or advisory letters that cover EGTRRA. The only exception is for a plan that is terminating." (SunGard Corbel)

Many Will Find Gold Scarce In Golden Years
Excerpt: "Three of 10 workers aren't putting a single dime away for retirement. Close to half of the rest have less than $25,000 saved. Yet, somehow, most people think they'll have enough money to live comfortably after their careers end, according to a survey released [Monday]." (Miami Herald via [San Jose] Mercury News)

Retirement Savings Falling Far Short
Excerpt: "Judging from the 2004 retirement survey by the Employee Benefit Research Institute (EBRI) and the American Savings Council (ASEC), I and other personal finance writers might reconsider just how well we're serving you." (CNN/Money)

Overview: Cleaning Up the Mutual Funds Industry
Excerpt: "Following criticism that it did too little to prevent the abusive behavior uncovered in the scandal, the Securities and Exchange Commission has gone into overdrive, drafting 10 significant overhaul measures for the fund industry since December. That is in addition to adopting final rules on measures proposed before the scandal erupted, including requirements for funds to name chief compliance officers and to disclose their complete portfolios every three months." (Wall Street Journal via SFGate.com)

Putnam Defends Payment To Fund Client As 'Common'
Excerpt: "Putnam Investments yesterday said that a $40,000 payment Massachusetts regulators are investigating was a 'commonly used' form of reimbursement to retirement funds clients for expenses. Massachusetts Secretary of State William F. Galvin is probing whether Putnam reimbursed a Boilermakers Local 5 retirement plan for the so-called 12b-1 fees that Putnam and many other fund companies often collect from investors to cover distribution-related costs." (Boston Globe)

Mutual Fund Scandals and Retirement Plans
Reports of abuses in the mutual fund industry should spur those with fiduciary responsibility for administering retirement plans to review the investment practices of any mutual funds or similar vehicles, such as insurance company separate accounts, offered as investment options ... (Sanders, Schnabel & Brandenburg, P.C., Washington, D.C.)

New Rules for a New Retirement
Excerpt: "Conventional wisdom of mixing bonds, pensions and Social Security simply doesn't apply anymore. Improve your odds by staying in the market until the day you get your gold watch." (CNBC via MSN Money)

Opinion: Here Are Fixes for Social Security
Excerpt: "If Social Security is in crisis, it is a very slow-moving crisis. The trust fund will not be exhausted until 2042, and even after that the annual Social Security tax revenues could keep paying out some 70 percent of the promised benefits. What we are looking for here is a fix that could cover the other 30 percent. There are a range of ways to get there." (New York Times; one-time registration required)

Links to Items on Executive Comp, Benefits in General

Which Nations Will Go Forth and Multiply?
Excerpt: "Countries like France and Japan at least got a chance to grow rich before they grew old. Most developing countries are growing old before they get rich." (Fortune)

Newly Posted or Renewed Job Openings
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Retirement Plan Administrator
for R.J.L. Pension Services, Inc.
in FL

Project Manager
for Transamerica-The Winning Organization
in CA

401(k) Sr Plan Specialist
for BISYS Retirement Services
in PA

Account Executive
for Transamerica
in

Account Service Representative, Employee Benefits
for Fred C. Church Insurance
in MA

Client Service Representative
for TPA Firm in Southeastern MI
in MI

Trust Accounting Administrator
for Associated Pension Consultants
in CA

Regional Manager – Institutional Trust & Custody
for U.S. Bank
in MN

Institutional Services Communication Specialist
for BB&T (Branch Banking and Trust Co.) in Knoxville, TN
in TN

Defined Contribution Software Customer Support
for DATAIR Employee Benefit Systems, Inc.
in IL

Employee Benefits Sales and Service
for Tow Financial Advisors
in CA

ERISA Consultant
for BISYS Retirement Services
in MN

FSA Administrator
for Oxford Associates
in MD

Pension/Corporate Paralegal
for Edwards & Angell, LLP
in FL

Account Executive-Boston
for Transamerica
in MA

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