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May 7, 2004 - 13437 subscribers
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(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of IRS Announcement on Participant Notices for Alternative Deficit Reduction Contributions (PDF)
Excerpt: "An employer is eligible to make such an election if it is (1) a commercial passenger airline, (2) primarily engaged in the production or manufacture of a steel mill product or the processing of iron ore pellets, or (3) an organization described in § 50 (c)(5) that established a plan on June 30, 1955, to which § 412 now applies." (Internal Revenue Service)
Text of Proposed PBGC Penalty Policy for Failure to Provide Participant Notices (PDF)
3 pages. Excerpt: "The new policy would tie the guideline penalty amounts primarily to the number of plan participants. Subject to a one-year transition period, the new policy would apply to: (1) 2004 and later Participant Notices, (2) 2002 and 2003 Participant Notices that do not meet the requirements for penalty relief under the Participant Notice Voluntary Correction Program ..." (Pension Benefit Guaranty Corporation)
Text of New PBGC Participant Notice Voluntary Correction Program (PDF)
6 pages. Excerpt: "The PBGC will not pursue any failure to provide a pre-2002 Participant Notice unless there is a 2002 or 2003 Participant Notice failure that is covered by the VCP but that does not meet the requirements for penalty relief under the VCP.... In general, a plan administrator must issue a Participant Notice for a plan year if a variable rate premium (which is tied to plan underfunding) is payable for that plan year ..." (Pension Benefit Guaranty Corporation)
Illinois Budget Director Seeks Special Probe of Early Retirement Program
Excerpt: "More than 11,000 state workers instead of the estimated 7,500 took early retirement estimated to cost $622 million with a pension price tag now at $2.5 billion with $136 million unaccounted for. State Budget Director John Filan feels lawmakers were misled about the cost of the program ..." (WBBM780.com)
Pension Funding Equity Act of 2004 Provides Plan Funding Relief (PDF)
5 pages. Excerpt: "WHO'S AFFECTED: The new law affects all qualified defined benefit plans that are subject to ERISA minimum funding rules. Governmental plans and nonelecting church plans are not subject to these.... The Pension Funding Equity Act of 2004 (PFEA), which was signed into law on April 10, 2004, provides temporary defined benefit plan funding relief for plan years beginning in 2004 and 2005." (Prudential Retirement's Pension Analyst)
IRS Ruling on Qualified Distributable Annuities Helps Nonspouse Beneficiaries of Plan Participants
Excerpt: "The Keogh plan purchased the custom annuity, and then the plan trustee transferred the qualified distributable annuity (QDA) to the trust named as the plan's beneficiary 'The transfer was tax-free under the ruling,' ... says [Steve Lockwood, president of Lockwood Pension Services in New York]. The doctor's son will receive annuity payments that conform to the IRS' minimum distribution table." (Financial-Planning.com)
Oklahoma Senate Unanimously Approves Measure To Open Pension Records
Excerpt: "The bill was introduced by Senate leader Cal Hobson and House Speaker Larry Adair after published reports pointed out that the information is currently confidential." (ChannelOklahoma.com)
Who Reads the Fine Print On Mutual Fund Fees? Plan Sponsors Had Better Start
Excerpt: "Employers don't pay most 401(k) plan fees, but after the mutual fund scandals, regulators and participants are apt to hold them accountable." (Treasury & Risk Management)
Should Mutual Fund Investments Be Made to Walk the Plank?
Excerpt: "[Retirement plan] sponsors' problems may lead to new opportunities for financial planners. 'Fiduciary liability relating to the mutual fund scandals will be a centerpiece of my practice this year,' ... says [Ivory Johnson at The Scarborough Group in Annapolis, Md.]. 'I'm planning to set up an advisory service as a gatekeeper for 401(k) and other retirement plans." (Financial-Planning.com)
Japan's Top Government Spokesman Resigns Over Social Security Scandal
Excerpt: "The right-hand man to the Japanese prime minister resigned Friday after admitting he failed to make mandatory payments into the national pension fund, fueling a government scandal just two months before parliamentary elections." (San Diego Union-Tribune)
Links to Items on Executive Comp, Benefits in General
Deferred Compensation Planning Opportunities For Executives of Tax-Exempt Entities
Excerpt: "[C]hanges in the [Tax] Code, which became effective in 2002, eliminated the offset of amounts deferred under an eligible Code Section 457 plan against deferrals that the executive may make under a tax-sheltered annuity or a 401(k) plan, thereby permitting an executive to 'double up' his or her pre-tax deferrals." (Buchanan Ingersoll)
Hewitt Federal Legislation Quick Guide Updated Through May 4, 2004
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law, regarding health and welfare benefit plans, retirement plans, and human resources and employment law. Click on the links below to learn more about pending legislation in each area. These files were updated on May 4, 2004." (Hewitt)
National Council on Teacher Retirement Publishes Washington Wrap-Up as of May 4, 2004 (PDF)
5 pages. Excerpt: "(Formerly Federal Capsule) ... Federal Legislative and Regulatory Proposals of Interest to NCTR Members" (National Council on Teacher Retirement)
The New Bible On Options Expensing
Excerpt: "[I]t may be corporate finance departments that should be howling. The problem is a small preference expressed by the FASB that will make their lives much more difficult, but should at the same time reduce the impact on corporate earnings from the switch to expensing." (Treasury & Risk Management)
Small Businesses May Get Different Stock Option Expensing Route
Excerpt: "FASB Chairman Robert Herz told a Congressional committee the nation's accounting rulemaker was concerned about a 'cost-effective' approach to mandatory stock option expensing for small businesses." (PLANSPONSOR.com; one-time registration required)
Population Aging: It's Not Just the Baby Boom
Excerpt: "[T]he baby boom is not the reason for the aging of the population; the aging is the result of long-term trends of increasing longevity and declining fertility. The bust/boom/bust pattern in fertility rates that resulted in the baby boom simply changes the path to an older society ..." (Alicia H. Munnell, published by the Center for Retirement Research at Boston College)
Newly Posted Events
Form 5500 Preparation Workshop
in Pennsylvania on May 26, 2004
presented by Central Pennsylvania Chapter - ISCEBS
Understanding Qualified Plans and 401(k) Plan Update
in Colorado on August 23, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in Ohio on September 1, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in Georgia on September 8, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in Illinois on September 20, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in Michigan on September 29, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in California on October 20, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in North Carolina on November 3, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in Ohio on November 10, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Understanding Qualified Plans and 401(k) Plan Update
in Texas on November 15, 2004
presented by Technical Answer Group, Inc. and Global Benefit Advisors
Newly Posted Press Releases
PBGC Proposes Expanded Enforcement For Failure To Inform Workers of Pension Underfunding
(Pension Benefit Guaranty Corporation (PBGC))
Standard Insurance Company Introduces Participant Reports Online
(Standard Insurance Company)
American Express Retirement Services Announces New Vice President, National Sales Manager
(American Express Retirement Services)
Vanguard Founder Bogle Calls For Better Mutual Fund Governance, Highlights Nine Emerging Issues
(Bogle Financial Markets Research Center)
Newly Posted or Renewed Job Openings
Qualified Plan Administrator
for Florida Pensions, LLC
in FL
Partnership Associate
for Transamerica
in CA
Senior Pension Administrator
for The Pension Group, Inc.
in CA
Counsel
for American Express
in MN
Sales Consultant
for MassMutual Financial Group
in MA
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