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April 20, 2004 - 13514 subscribers
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High Court Takes Up Key Pension Case
Excerpt: "[T]he Supreme Court took up a case Monday that could decide the rules for millions of early retirees and determine whether they could count on receiving their promised pension benefits if they took a new job in the same industry.... The case involves a collision of two provisions of the nation's pension laws. One is the 'anti-cutback rule' ... The other allows multi-employer pension plans to suspend benefits to retirees who take a new job in the same industry." (Los Angeles Times; one-time registration required)

Overview: IRS Issues Guidance On New Corporate Bond Interest Rate for Determining Current Liability
Excerpt: "IRS said that it will publish the composite corporate bond rate, the corporate weighted average interest rate, and the Code Sec. 412(b)(5)(B)(ii)(III) permissible range by notice each month. The notice will also specify if there is any change in the group of indices that are taken into account in determining the component corporate bond rate, and the manner in which they are taken into account." (RIA Pension & Benefits Week)

Overview: IRS Issues New Interest Rate For Pension Funding Calculations
Excerpt: "The interim guidance, on which plan sponsors may immediately rely, applies to the determination of the weighted average interest rate for minimum funding purposes and to the calculation of unfunded vested benefits for purposes of the PBGC's variable rate premium." (CCH News & Information Library)

Further Guidance on 401(k) and 403(b) Automatic Enrollment (PDF)
2 pages. Excerpt: "In the General Information Letter, dated March 17, 2004, the Service makes it clear that a plan's automatic enrollment provisions can ... be for any percentage of compensation that is otherwise permitted under the plan; contain an automatic schedule under which the percentage changes over time; and automatically apply to compensation increases such as a pay raise or bonus." (Gardner Carton & Douglas)

Mutual Fund Participation Falls in 403(b) Plans
Excerpt: "The following chart illustrates the distribution of investments in the 403(b) market as of December 31, 2003. Numbers in red indicate the percent change since 2002." (403bWise.com)

San Diego Pension Official Cites Gains In Investments
Excerpt: "The president of San Diego's troubled employee pension system told the City Council yesterday that market gains this winter may help the city reduce the payment needed to prevent a $1.1 billion deficit from growing." (San Diego Union-Tribune)

Millions Needed To 'Stop the Bleeding' of San Diego Government Employees' Pension Fund
Excerpt: "The chair of the San Diego Pension Reform Committee told the City Council that $202.6 million needs to be paid into the pension fund just to keep the $1.1 billion deficit from growing." (TheSanDiegoChannel.com)

Pension Director Skips Houston City Council Committee Hearing on Pension Funding
Excerpt: "A City Council investigation into Houston's municipal pension crisis got off to a rocky start Monday when the main pension's executive director chose not to appear before a council committee." (Houston Chronicle)

Pension Fund-Controlled Airline Replaces Chief Executive
Excerpt: "US Airways Group Inc. chief executive David Siegel, who took the airline through a painful bankrup.tcy reorganization and angered many employees with demands for deeper cost cuts, resigned Monday. Bruce Lakefield ... will take over as CEO ... Lakefield is close to chairman David Bronner, whose Retirement Systems of Alabama owns a controlling stake in US Airways." (St. Petersburg Times)

Calif. Pension Fund Targeting Citigroup
Excerpt: "Citigroup's annual meeting could be contentious this year with the California Public Employees' Retirement System, the nation's largest pension fund, pledging to withhold its votes for more than half of Citi's directors." (AP via Washington Post; one-time registration required)

Thirteen Pension Funds Call on SEC to Require Disclosure on Climate Change Risk
Excerpt: "Institutional investors ask the Securities and Exchange Commission to issue a clarification that climate change is a material risk which must be disclosed in filings." (SocialFunds.com)

Disney Dissidents, Armed with 401(k) Voting Results, Say Eisner Lacks Support
Excerpt: "An overwhelming number of retirement fund shares held by current and former employees of The Walt Disney Co. were cast against chief executive Michael Eisner at the company's annual meeting - further evidence that Eisner should go, two Disney dissidents said Monday." (AP via Washington Post; one-time registration required)

Links to Items on Executive Comp, Benefits in General

Deflating the Golden Parachute
Excerpt: "The new Internal Revenue Service golden parachute regulations that took effect January 1 may help you better understand the ground rules for these controversial packages--but they also may cost you and your executives money." (PLANSPONSOR.com; one-time registration required)

Newly Posted Events

Boosting Savings in Spite of ERISA & Qualified and Non-Qualified Plans for Tax-Exempt Organizations
in Massachusetts on May 19, 2004
presented by MA Chapter-National Institute of Pension Administrators
Newly Posted Press Releases

China's Aging Surge Threatens Economic Prospects; Funded Pension System, Old-Age Safety Net Required to Avoid Hardship
(Prudential Financial, Inc.)
Newly Posted or Renewed Job Openings
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Defined Benefit/Defined Contribution Account Manager
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Plan Administrator
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Account Executive - Client Relationship Management
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in MI

Vice President, Benefits Law
for Top Media and Entertainment Company
in NY

Plan Administrator
for LarsonAllen Financial, LLC
in MN

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