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Retirement Plans
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April 30, 2004 - 13447 subscribers
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IASB Publishes Proposals on Pension Cost Accounting
Excerpt: "The International Accounting Standards Board (IASB) today published an Exposure Draft of proposals on aspects of pension cost accounting, in particular giving entities an option to show, in full, pension deficits and available surpluses." (International Accounting Standard Board)

California GOP Attacks CalPERS on Shareholder Activism
Excerpt: "California's Republican Party criticized the state's giant CalPERS pension fund Thursday, suggesting that board members be fired for putting a social agenda ahead of profit." (Reuters via Los Angeles Times; one-time registration required)

Morningstar Lets Funds Out of Doghouse
Excerpt: "Morningstar has reversed field, saying that corrective steps taken by a growing number of fund companies are enough to let them out of the doghouse and make them worthy again of a look by investors." (Wall Street Journal via SFGate.com)

Why You're Such a Lousy Investor
Excerpt: "The idea of privatizing Social Security is based on the notion that you'll invest your savings better than the government would. The ascendance of 401(k) plans over guaranteed employee pensions has the same foundation-- that employees will make informed and prudent decisions when they invest. But what if it's not true?" (Slate)

The Decline of Private-Sector Defined Benefit Promises and Annuity Payments-- What Will It Mean? (PDF)
36 pages, by Jack VanDerhei and Craig Copeland. (Employee Benefit Research Institute)

Pension Missiles: Is the Cure Worse Than the Disease? (PDF)
26 pages. See also http://www.ebri.org/policyforums/may2004/ (Morgan Stanley via Employee Benefit Research Institute)

PowerPoint Slides: Pension Missiles-- Is the Cure Worse Than the Disease? (PDF)
13 pages. See also http://www.ebri.org/policyforums/may2004/ (Morgan Stanley via Employee Benefit Research Institute)

Pension Crisis Survey 2004 (PDF)
At pp. 1-3 of 11-page document. See also http://www.ebri.org/policyforums/may2004/ (Deloitte via Employee Benefit Research Institute)

Selected Retirement Income Statistics: 2002 (PDF)
6 pages. See also http://www.ebri.org/policyforums/may2004/ (Employee Benefit Research Institute)

Text of Prepared Testimony at 4/29/04 Hearing on Reforming and Strengthening Defined Benefits Plans
Witnesses included Kenneth A. Kent, American Academy of Actuaries; Greg Heaslip, PepsiCo, Inc.; J. Mark Iwry, Esq., The Brookings Institution; Timothy Lynch, Motor Freight Carriers Association; John S. 'Rocky' Miller, Esq., Cox, Castle & Nicholson, L.L.P.; and Teresa Ghilarducci, Ph.D., University of Notre Dame. (U.S. House of Representatives Committee on Education and the Workforce, Subcommittee on Employer-Employee Relations)

Another Question is Answered in the Estate Planning for IRAs Q&A Column
Client dies, post-RBD, with estate as beneficiary. There are 3 children beneficiaries. Brokerage house has already retitled account into name of estate. Will the executor of estate be allowed to segregate into 3 inherited IRA accounts for each beneficiary? Can beneficiaries utilize their own life expectancy or are they required to continue to utilize deceased RMD method? (BenefitsLink.com)

Another Question is Answered in the Who's the Employer Q&A Column
A bank holding company (which owns a bank 100%) becomes the sole owner of an insurance agency. Should the insurance agency be included in the bank's 401(k) plan? Currently the bank holding company won't even allow the insurance agency to start a separate plan. (BenefitsLink.com)

Overview: House Approves Tax Relief for Reservist and Guard Member Distributions (PDF)
Excerpt: "H.R. 1779 would allow members of the reserves and National Guard who are called to active duty to make penalty-free withdrawals from certain types of retirement accounts without being subject to the 10 percent additional tax on early distributions (Code sec. 72(t))." (National Council on Teacher Retirement)

Links to Items on Executive Comp, Benefits in General

Employment Costs Mount, Benefits Jump
Excerpt: "Benefit costs advanced 2.4 percent - the largest three-month rise since a 2.7 percent leap in the third quarter of 1982 -- after a 1.4 percent increase in the fourth quarter. A Labor Department official said first quarter's gain was largely due to a rise in payments by companies to defined benefit pension plans." (Reuters via New York Times; one-time registration required)

Opinion: How Much Longer Will We Be Conned by 'Talent'?
Excerpt: "The idea that some people are just too special to be valued precisely has become so deeply ingrained in our economy that we scarcely think about it anymore. In 2003, the chairman and chief executive officer of McDonald's Corp., James Cantalupo, took home $7.95 million in pay.... But the number is still large, and it implies that Cantalupo couldn't simply be replaced with some cheaper model -- that he was more like a Rembrandt than a corporate employee." (Michael Lewis on Bloomberg.com)

The Plight of the Self-Employed
Excerpt: "Hundreds of thousands of Americans have started their own businesses since the technology crash and the last recession. Many report that they are happy being self-employed, but they are struggling with health insurance costs, diminished incomes and mounds of unexpected paperwork. NPR's Laura Sydell reports." (National Public Radio)

Selected Historical Benefit Statistics: 1974, 1978 and 2003 (PDF)
2 pages. See also http://www.ebri.org/policyforums/may2004/ (Employee Benefit Research Institute)

ERISA at 30: Where Is the Employer-Sponsored System Going? (PDF)
9 pages; after-dinner speech presented April 14, 2004. See also http://www.ebri.org/policyforums/may2004/ (Dallas L. Salisbury of the Employee Benefit Research Institute)

Newly Posted Press Releases

Two Newkirk Entries Receive Four Awards in ACPHC Contest
(Newkirk)

DataPath,Inc. to Serve as Health Savings Account Administrator to the State of Arkansas
(DataPath, Inc.)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Benefits Analyst
for Edward Hospital & Health Services
in IL

Enrolled Actuary Position
for Baltimore Based Pension and Profit Sharing Consulting Firm
in MD

Account Executive Director
for Principal Financial Group
in NY

OmniPlus Systems Administration Manager
for NADA Retirement Administrator's Inc
in VA

Conversion Manager
for Professional Capital Services, LLC
in PA

Exclusive Care Plan Manager
for County of Riverside
in CA

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