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July 30, 2004
Today's sponsor: Natalie Choate's Life and Death Planning for Retirement Benefits

(Click on company name or banner to learn more.)

The Essential Handbook for Estate Planners
Do your clients expect you to know the best planning ideas for their
IRAs and other retirement plans and the pitfalls to avoid? If so,
Natalie Choate's book Life and Death Planning for Retirement Benefits
will be an invaluable resource for your work. Thousands of pros swear
by this handy desk reference, which covers everything from basic (such
as minimum required distributions, pre-age-59½ distributions, trusts
as beneficiaries) to advanced (such as disclaimers, non-citizen spouse,
life insurance, TEFRA 242(b)). Including the forms, checklists and
tables, you get 500 pages packed with information to help you win clients
and avoid lawsuits.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Machinists Sue UAL Over Pension Payments
Excerpt: "The union is seeking judgment against the three executives for the amount owed to the plans. The suit also asks the court to require the three executives to secure funding for the plans." (Washington Post; one-time registration required)

United Airlines Retirees' Future is 'Up in the Air'
Excerpt: "If the [PBGC] were to take over, it would immediately pick up the payments to beneficiaries. But the retirees might face reductions of their benefits because the government agency insures pension plans only up to set limits. United called the union lawsuit 'baseless,' and said it moved to stop the pension-fund contributions 'to preserve our liquidity and flexibility as we work to secure exit financing.'" (Los Angeles Times; one-time registration required)

Independent Mutual Fund Directors Speaking Up on Soft Dollars Issue
Excerpt: "[T]he Mutual Fund Directors Forum, which counts as members independent directors who oversee funds offered by 37 companies, recommended that funds stop paying higher brokerage commissions in exchange for goods and services such as research. This nearly universal practice, known as paying 'soft dollars' -- inflates funds' costs and reduces investors' returns." (Wall Street Journal via SFGate.com)

SEC Scrutinizes DC Plan Payments in its Continuing Examination of Mutual Funds
Excerpt: "The [SEC] announced in early July 2004 that its ongoing inquiry into the mutual fund industry is now targeting the disclosure and use of payments between mutual funds and defined contribution pension plans (DC plans), such as 401(k) plans, in order to better understand the role such payments may play in the selection of service providers and of funds to be included in DC plan investment menus. The SEC has reportedly asked several mutual fund companies ... for extensive information ..." (Pillsbury Winthrop LLP)

Bank of America Diversifies Matching Contributions in 401(k)
Excerpt: "Starting Monday, Bank of America Corp. employees, for the first time, will be able to get the company match in their 401(k) plans in something other than the bank's shares. Employees vested in the Charlotte company's retirement plan will be offered 18 mutual funds as well as Bank of America stock." (AP via Tallahassee [FL] Democrat)

Policy Brief: Limiting Federal Spending Growth Through Large Personal Retirement Accounts
Excerpt: "Escalating federal spending presents a real and present danger to the fiscal health of the nation. The solution to bringing congressional budgeting back under control is personal retirement accounts. They would provide a built-in mechanism to control federal spending, pay off the national debt, eliminate the long-run unfunded liability of Social Security, keep the trust funds perpetually solvent, and boost economic growth." (Institute for Policy Innovation)

Canadian High Court Rules Employees Must Get Share of Excess Assets On Plan Termination
Excerpt: "The superintendent said the Ontario Pension Benefits Act required distribution of a proportional share of the actuarial surplus when a defined benefit pension plan is partially wound-up." (Business Insurance)

Recent Pension and Social Security Developments of Interest to Teachers' Pension Funds (PDF)
Excerpt: "NCTR members should note several other proposed changes. The following practices would be banned: Displaying SSNs on checks issued for payment and accompanying documents; Displaying SSNs on identification cards and tags issued to employees or their families; [and] Requiring the transmission of SSNs over the Internet without encryption or other security measures." (National Council on Teacher Retirement)

The Changing Retirement Prospects of American Families: Impact of Labor Market Shifts
Excerpt: "[T]o the extent that the kinds of labor market conditions experienced by baby boomers during their early working years were less advantageous than those of their predecessors, the adequacy of boomers' retirement income early in the next century may be significantly affected." (AARP Research)

Links to Items on Executive Comp, Benefits in General

Policy Brief: New Social Security Display Ban Bill Provides Less Burden on Plan Administration (PDF)
1 page. Excerpt: "H.R. 2971 Prohibits Social Security Numbers on Employee IDs, Allows Exemptions" (HR Policy Association)

CEO Pay Continues to Rise, Despite Calls for Restraint
Excerpt: "The median pay for U.S. chief executives increased 15% last year and rose even more -- 22% -- for those at larger companies, according to a survey by Corporate Library, a corporate governance research firm." (Los Angeles Times; one-time registration required)

Benefit Costs Keep Surging At 14-Yr High
Excerpt: "Employee benefit costs continued to soar in the second quarter, while slim wage gains failed to keep pace with inflation." (Investor's Business Daily)

Newly Posted Events

Discover2005
in Colorado on February 25, 2005
presented by First Trust, Lincoln Trust and Resources Trust

Healthcare Cost Containment Strategies For Employers
in Louisiana on October 26, 2004
presented by International Quality & Productivity Center (IQPC)

Life Insurance Company Products - Current Securities, Tax, ERISA, and State Regulatory Issues
in District of Columbia on November 4, 2004
presented by ALI-ABA (American Law Institute-American Bar Association)

Managing Critical HR Issues During Divestitures and Spin-Offs
Nationwide on July 30, 2004
presented by Hewitt Associates LLC

Pay For Quality & Provider Scorecards For Employers
in Massachusetts on September 30, 2004
presented by International Quality & Productivity Center (IQPC)
Newly Posted Press Releases

Federal Insurer Will Pay Pensions At Kaiser Aluminum
(Pension Benefit Guaranty Corporation (PBGC))

Employer-Sponsored Investment Advice Survey Report
(Society for Human Resource Management (SHRM))

ERISA Advisory Council to Hold Working Group Meetings in August
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)

Retirement Industry Expert Delivers Leading Edge Insights to Top CPA Firm
(White Horse Advisors)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Pension Administrator
for A Leading Accounting and Consulting Firm
in MN

Pension Administrator
for New England Pension
in RI

Client Delivery Team Leader
for Towers Perrin
in VA

401(k) / ESOP Plan Administrator
for Employee Administration and Consulting Company
in MN

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