| BenefitsLink Retirement Plans Newsletter |   |
July 22, 2004
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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)
Annuity Tax Break Might Put DC Retirement Plans at Disadvantage
Excerpt: "[T]he American Society of Pension Actuaries (ASPA, http://www.asppa.org/) has registered its opposition to the bill, because it excludes from taxation only nonqualified annuities. Since many small business owners would fare better with the tax-favored nonqualified annuity, officials say, fewer employees would benefit from employer-sponsored plans." (BenefitNews.com)
Text of Prepared Statements for Hearing on Social Security Pension Offsets for Government Employees
Regarding H.R. 4391, the 'Public Servant Retirement Protection Act.' Excerpt: "Two Social Security provisions, the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), potentially affect about 7 million Federal, State, and local government employees. While these provisions were intended to help equalize, not penalize, the treatment of workers, many of those affected believe the provisions are unfair." (U.S. House of Representatives Committee on Ways and Means, Subcommittee on Social Security)
Milwaukee County Retirees Eager To Cash In
Excerpt: "Facing eye-popping payouts to a surge of retirees now eligible for the maximum sweeteners granted in the 2000 pension deal, Milwaukee County pension officials on Wednesday moved for a $10 million advance on the pension fund's annual taxpayer-funded contribution." (Milwaukee Journal-Sentinel)
Milwaukee Still Dealing with Fallout from Pension Scandal
Excerpt: "The pension scandal that hit Milwaukee County 2 1/2 years ago is causing more fallout as retirees continue to take advantage of lucrative benefits." (Duluth News Tribune)
Overview: IRS Issues Final Deemed IRA Regulations (PDF)
3 pages. Excerpt: "The final regulations confirm that the Deemed IRA portion of a qualified retirement plan is subject to the rules that apply to IRAs generally rather than the rules that apply to qualified retirement plans." (Kirkpatrick & Lockhart LLP)
Long-Term Analysis of H.R. 3821, the Bipartisan Retirement Security Act of 2004
51 pages; July 21, 2004. Excerpt: "CBO projects that under current law, the Social Security Administration will be unable to pay scheduled benefits starting in 2053 and that Social Security outlays will exceed revenues from payroll taxes and taxation of benefits beginning in 2019. H.R. 3821 would enable the [SSA] to pay the benefits scheduled under that law throughout the 100-year projection period, and it would gradually establish a balance between Social Security revenues and outlays." (Congressional Budget Office)
Cost Analysis of H.R. 3821, the Bipartisan Retirement Security Act of 2004
30 pages; July 21, 2004. Excerpt: "The bill would establish a system of individual accounts (IAs) funded by the existing payroll tax, and would generally reduce defined benefits compared with current law. Some provisions would raise scheduled benefits for some recipients or increase payroll taxes for some workers." (Congressional Budget Office)
SPARK, National Defined Contribution Council to Merge
Excerpt: "The National Defined Contribution Council (NDCC) and the SPARK Institute will have a combined total of about 60 member companies, representing 401(k) service providers including mutual funds, banks, insurance companies, third party administrators and brokerage firms, the groups said in a news release. Members collectively will serve more than 97% of all 401(k) participants." (PLANSPONSOR.com; one-time registration required)
Application of 'Early Participation' Rule to Cross-Tested Plans
Excerpt: "In applying the average benefit percentage test to demonstrate compliance with the general nondiscrimination test (e.g., for cross-tested plans) must an employer take into consideration benefits disregarded under the early participation rule (Code §§401(k)(3)(F) and 401(m)(5)(C))?" (SunGard Corbel)
Europe Sets Vision for Private Pension Funds
Excerpt: "Leading industrial countries have agreed the most far-reaching multinational initiative on private pension provision to date. The Organisation for Economic Co-operation and Development will today unveil guidelines for the creation of private pension schemes across its 30 member states." (Financial Times)
Dividing Pensions At Divorce in the European Union (PDF)
8 pages. Excerpt: "[T]here appear to be several problems with the way in which retirement benefits are apportioned between former spouses in EU member states." (Mellon's Human Resources & Investor Solutions)
Opinion: Incidentally, Let's Call Them Investment Advisers
Excerpt: "On Tuesday, the Financial Planning Association filed a lawsuit challenging a proposed SEC rule that Elizabeth W. Jetton, president of the FPA, said 'essentially allows broker-dealers to avoid the fiduciary and disclosure standards of the Investment Advisers Act of 1940 while acting as investment advisers and offering financial planning services.' I know that is a mouthful, but stay with me on this," (Michelle Singletary in the Washington Post; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Text of ABA Joint Committee on Employee Benefits Q&As with IRS Officials (PDF)
24 pages. Caveat: The responses reflect only unofficial, nonbinding staff views as of the time of the discussion, and do not necessarily represent the official position of the HHS. Further, the report on the discussions was prepared by JCEB representatives, based on their notes and recollections of the meeting. (American Bar Association Joint Committee on Employee Benefits)
Text of ABA Joint Committee on Employee Benefits Q&As with Department of Labor Officials (PDF)
25 pages. Caveat: 'The responses reflect only unofficial, nonbinding staff views as of the time of the discussion, and do not necessarily represent the official position of the Department of Labor. Further, this report on the discussions was prepared by JCEB representatives, based on their notes and recollections of the meeting." (American Bar Association Joint Committee on Employee Benefits)
Text of ABA Joint Committee on Employee Benefits Q&As with HHS Officials (PDF)
24 pages. Caveat: The responses reflect only unofficial, nonbinding staff views as of the time of the discussion, and do not necessarily represent the official position of the HHS. Further, the report on the discussions was prepared by JCEB representatives, based on their notes and recollections of the meeting. (American Bar Association Joint Committee on Employee Benefits)
Text of ABA Joint Committee on Employee Benefits Q&As with EEOC Officials (PDF)
3 pages. Caveat: The responses reflect only unofficial, nonbinding staff views as of the time of the discussion, and do not necessarily represent the official position of the EEOC. Further, the report on the discussions was prepared by JCEB representatives, based on their notes and recollections of the meeting. (American Bar Association Joint Committee on Employee Benefits)
Employers Face Important Decisions in Valuing Stock Options
Excerpt: "Companies that award employee stock options and other forms of stock-based compensation face a number of important decisions in responding to the Financial Accounting Standards Board's (FASB's) proposed expensing rule for share-based payments. Among the most pressing, companies must decide which method and assumptions to use in valuing stock options and other stock-based rewards." (Towers Perrin)
Companies Altering Pay Arrangements for Outside Directors
Excerpt: "Companies are increasing the fees paid to their outside directors and diversifying stock-based pay to directors by trimming reliance on stock options, according to a Towers Perrin review of director compensation at most of the Fortune 500 companies." (Towers Perrin)
Department of Defense Stresses Reserve Component Troops' Re-Employment Rights Under USERRA
Excerpt: "National Guard troops, reservists and active duty military people can rest easy that their jobs will be waiting for them when they return from deployment. That is the message the U.S. Office of Special Counsel conveyed ... Passed in October 1994, the Uniformed Services Employment and Re-employment Rights Act is the tool the Office of Special Counsel wields to back up that statement." (DefenseLINK)
Newly Posted Events
Bringing Innovative, Results-Driven Thinking to Annual Enrollment
Nationwide on July 21, 2004
presented by Hewitt Associates LLC
Building a Better Health Care System: Specifications for Reform
Nationwide on July 20, 2004
presented by Kaiser Family Foundation
Newly Posted Press Releases
Thomas Announces Committee Action on H.R. 2971, the “Social Security Number Privacy and Identity Theft Prevention Act of 2004"
(U.S. House Ways and Means Committee)
NDCC And The SPARK Institute To Combine, Strengthening Defined Contribution Industry’s Voice In Washington
(RG Wuelfing & Associates)
SEC Extends Comment Period for Proposed Regulation B, Provisions Implementing Gramm-Leach-Bliley Bank Broker Rules
(U.S. Securities and Exchange Commission)
Newly Posted or Renewed Job Openings
Client Services Central Regional Manager
for Transamerica
in IL
Health & Welfare Specialist
for Long Island Employee Benefits Group, Ltd.
in NY
Technology Law Group - Paralegal
for American Express
in NY
Pension Specialist
for Large D.C. Law Firm
in DC
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- Employee Benefits Library
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