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April 22, 2004 - 13496 subscribers
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House Bill Allows National Guard, Reserve Troops to Withdraw Retirement Funds Early without Penalty
Excerpt: "The House approved the bill unanimously, 415-0.... The waiver would apply to National Guard and Reserve troops deployed for six months or longer and activated between Sept. 11, 2001, and Sept. 12, 2005. Those military personnel would be given two years to replenish the accounts." (AP via Washington Post; one-time registration required)

Text of H.R. 1779 as Passed by House (Engrossed Version)
Guardsmen and Reservists Financial Relief Act of 2004 (Engrossed as Agreed to or Passed by House) [H.R.1779.EH]; click on the phrase 'H.R.1779.EH' on the target page. (U.S. Library of Congress)

PBGC Gets New Executive Director
Excerpt: "Bradley D. Belt, outgoing president of the Washington Capital Group, has been appointed executive director of the Pension Benefit Guaranty Corp., the government said Wednesday." (AP via Washington Post; one-time registration required)

Pension Funded Status Declined in 2003
Excerpt: "The percentage of pension plans with accrued benefit security ratios greater than 100 percent declined from 84 percent in 1998 to 23 percent in 2003, according to Watson Wyatt's annual Survey of Actuarial Assumptions and Funding." (Watson Wyatt)

Pension Costs Rise During Hybrid Conversions
Excerpt: "Companies that recently converted to cash balance and other hybrid pensions saw total retirement plan costs increase by 2.2 percent on average, after taking into account measures to protect workers during conversions and enhance 401(k) plans, according to a Watson Wyatt study." (Watson Wyatt)

Overview: IRS Issues Proposed Anticutback Regulations
Originally published 3/29/04. Excerpt: "The IRS this week issued comprehensive proposed regulations that would define the scope of the anticutback rule and provide exceptions for eliminating early retirement benefits, retirement-type subsidies, and optional forms of benefit from defined benefit plans. 69 FR 13769 (March 24, 2004). Plan sponsors may not rely on these proposed regulations until they are adopted in final form." (The Human Capital practice of Deloitte Consulting LLP)

Opinion: Pension Funds Playing Politics
Excerpt: "In the wake of the shareholder revolt at Disney, some of the big institutional investors are feeling their oats. American Federation of State, County and Municipal Employees (AFSCME) and other union pension funds sponsored almost half the shareholder proposals on proxy statements during this annual meeting cycle." (Stephen Bainbridge on Tech Central Station)

IRS Help Page: Check-up for Your SEP, SIMPLE or Similar Plan
Excerpt: "Plan information packets are now available online to help business owners who sponsor IRA-based retirement plans (SIMPLE IRA plans, SEPs or SARSEPs) develop a better understanding of the requirements for their plans. The goal of the packets is increased awareness by business owners of the need to properly operate their plans, pointing them to further information and services." (Internal Revenue Service)

Opinion: Ethical Behavior An Obligation, Not a Regulation
Excerpt: "[The] misdeeds of a few are forcing government policymakers to respond with new regulations. Even more unfortunately, the problem is not insufficient regulation, it's people in positions of trust betraying that trust." (David Wray of the Profit Sharing/401(k) Council of America; one-time registration required)

BISYS Picks Up Delaware RK Biz
The recordkeeping landscape appears to be entering another period of consolidation, as BISYS is tapped by Philadelphia-based Delaware Investments to provide recordkeeping and administration services for approximately 1,700 retirement plans. (PLANSPONSOR; one-time free registration required)

Lack of Opportunity, $$ Hinders Savings
There are a lot of reasons given for not saving for retirement, but one that still looms large – lack of a company-sponsored retirement plan. (PLANSPONSOR; one-time free registration required)

Economist Assesses Social Security Using a 'Real' Trust Fund
Working paper. Excerpt: "In this paper we investigate why and to what extent the government should have a social security trust fund, and how it should manage the fund in the face of demographic shocks, based on a simple overlapping-generations model. We show that, given an aging population, a trust fund in some form could achieve the (modified) golden rule or to offset the negative income effect of a PAYGO system." (National Bureau of Economic Research)

Links to Items on Executive Comp, Benefits in General

Judge Halts Oregon Same-Sex Marriages
Excerpt: "An Oregon judge has put the brakes on same-sex marriages in one Oregon county, but said those licenses that have already been issued are valid." (PLANSPONSOR.com; one-time registration required)

Massachusetts' Highest Court Is Asked to Delay G.ay Marriage
Excerpt: "Seeking to keep same-sex marriages from taking place as scheduled on May 17, the head of a conservative Roman Catholic group filed a petition on Tuesday asking the state's highest court to keep g.ay marriages from occurring for at least two and a half years." (New York Times; one-time registration required)

Britain Moves Toward Endorsing Civil Unions
Excerpt: "A civil partnership bill was introduced in the House of Parliament earlier this month and the House of Lords was set to consider the legislation on Thursday. According to a government spokeswoman, the bill could become law by November, allowing same-sex couples to legalize their partnership a year later." (MSNBC.com)

Opinion: Derelict Directors on the Compensation Committee
Excerpt: "This year, the Executive PayWatch is profiling 10 directors who serve on over-generous compensation committees. Each one of these directors is responsible for a CEO pay package that is out of this world. By voting 'No' on these derelict directors, shareholders can help send a message that excessive CEO pay must be stopped." (AFL-CIO)

Bookmark: Executive Employment Agreements
Dozens of them, in full text. (FindLaw.com)

Opinion: Kumar, Wang Got One-of-a-Kind Pay Plan
Excerpt: "Now that Computer Associates International Inc. Chief Executive Officer Sanjay Kumar has resigned and the company has had a flurry of firings and guilty pleas in connection with a federal investigation of securities fraud, longtime shareholders can look back and, well, simply just look back." (Graef Crystal on Bloomberg.com)

AICPA Launches Employee Benefit Plan Audit Quality Center
Excerpt: "The center will create a community of firms committed to performing quality employee benefit plan audits, including defined benefit, defined contribution and health and welfare benefit plans. It will provide a comprehensive resource for member firms and others in the employee benefit plan arena. The center's Web site is www.aicpa.org/ebpaqc/homepage.htm." (American Institute of Certified Public Accountants)

Overview: FASB Issues Draft Statement on Stock Option Expensing (PDF)
2 pages. Excerpt: "Under the Proposed Statement, companies would be required, with limited exceptions, to expense stock options." (Dechert LLP)

Prepared Testimony of Witnesses at 4/21/04 Hearing on Stock Option Accounting
Includes testimony by Jeff Thomas, Altera Corporation; Douglas Holtz-Eakin, Congressional Budget Office; Kevin A. Hassett, American Enterprise Institute; Douglas Kruse, Rutgers University; Phil Smith, Taser International, Inc.; Robert E. Grady, Carlyle Venture Partners; and George M. Scalise, Semiconductor Industry Association. (U.S. House of Representatives Committee on Financial Services)

Employees Undervalue Stock Option Grants
Excerpt: "Employees at U.S. companies discount the value of stock option grants by 30 to 50 percent relative to the options' actual value, according to a Watson Wyatt survey of nearly 650 high-income employees who received stock option grants." (Watson Wyatt)

Expensing Stock Options: Can FASB Prevail?
Excerpt: "[A] FASB Exposure Draft, Share-Based Payment, an Amendment of FASB Statements No. 123 and 95, seeks to 'improve existing accounting rules and provides more complete, higher quality information for investors,' according to the Board. The comment period for the exposure draft ends June 30, and FASB plans to hold public roundtable meetings to gather additional input on the proposal." (The Wharton School of the University of Pennsylvania)

Newly Posted Events

This Friday-National Teleconference on 412i Plans!
Nationwide on April 23, 2004
presented by The 412(i) Company
Newly Posted Press Releases

SunGard Announces New Health Savings Account Plan Service
(SunGard Corbel)

PBGC to Pay Pensions at Ingersoll International
(Pension Benefit Guaranty Corporation (PBGC))

IRS Names New Members to TE/GE Advisory Group
(Internal Revenue Service (IRS))

ERIC Supports EEOC Rule to Exempt Retiree Health Benefits from ADEA
(ERIC (ERISA Industry Committee))

Bradley D. Belt to Head Pension Benefit Guaranty Corporation
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)

Health Management Corporation Expert To Present Strategies For Developing Physician Collaboration At National Disease Management Summit
(Health Management Corporation)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Sr. Conversion Specialist
for Branch Banking & Trust Company (BB&T)
in NC

Benefit Service Specialist
for Sun Healthcare Group
in CA

Product Manager
for BISYS Retirement Services
in MN

Administrative Assistant
for Retirement Plan Administration and ERISA Specialists
in IL

Benefits Manager
for Hunton & Williams LLP
in VA

Communication Specialist
for Aon Consulting
in MD

Product Manager, Group Products
for GE Financial
in VA

Health and Welfare Specialist
for Aon Consulting
in MD

Director of Pension Administration
for Associated Pension Consultants
in CA

Senior Advisor, Business Integrator & Production Support
for NRECA (National Rural Electric Cooperative Association)
in VA

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