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August 5, 2004
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
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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)
Lessons Learned From City Pension Deficits
Excerpt: "From San Diego to Houston to Milwaukee, cities scramble to balance stock-market losses and retiring employees." (Christian Science Monitor)
Disaster Relief Relating to PBGC Deadlines In Response to Severe Storms and Flooding in New Jersey
Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the major disaster declared by the President of the United States on account of severe storms and flooding beginning July 12, 2004, in New Jersey." (Pension Benefit Guaranty Corporation)
Disaster Relief Relating to PBGC Deadlines In Response to Severe Storms and Flooding in Michigan
Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the major disaster declared by the President of the United States on account of severe storms, tornadoes, and flooding beginning May 20, 2004, in Michigan." (Pension Benefit Guaranty Corporation)
Disaster Relief Relating to PBGC Deadlines In Response to Severe Storms and Flooding in Wisconsin
Excerpt: "The Pension Benefit Guaranty Corporation is waiving certain penalties and extending certain deadlines in response to the major disaster declared by the President of the United States on account of severe storms and flooding during the period May 19-July 3, 2004, in Wisconsin." (Pension Benefit Guaranty Corporation)
Proposed Fund Trading Cutoff Assailed
Excerpt: "A group of more than 50 administrators of 401(k) retirement plans said Wednesday that it had pitched an alternative plan to the SEC, one that would provide more time for fund orders to be processed each day while still ensuring that investors submit their orders by the normal market closing." (Los Angeles Times; one-time registration required)
Delta Pilots Might 'Take Another Path'
Excerpt: "Delta Air Lines' pilots union said Wednesday the struggling carrier will edge closer to bankruptcy if management continues to seek $1 billion in concessions from them without asking other stakeholders to tighten their belts." (AP via New York Times; one-time registration required)
UAL Pension Issue Has Big Implications
Excerpt: "Following United on the degree of pension plan underfunding are: Delta at $5.7 billion; Northwest at $3.7 billion, American at $2.7 billion and Continental at $1.1 billion, according to Fitch Ratings." (Reuters)
Large Employers' Pension Funding Levels Rise
Excerpt: "Aided by improved investment returns, the average funding level of large U.S. employers' pension plans rose in 2003, but the funding level still remains well below that of a few years ago." (Business Insurance)
Bookmark: Retirement Plan Correction Programs Online Resource Guide
Excerpt: "The office of Employee Plans (EP) under the Tax Exempt and Government Entities (TE/GE) operating division of the Internal Revenue Service has created a cd-rom for use as a reference guide to the correction programs offered to plan sponsors by the IRS, the U.S. Department of Labor and the PBGC." (Internal Revenue Service)
Overview: Post-Retirement Plan Amendment Violated ERISA's Anti-Cutback Rule, Supreme Court Rules (PDF)
At pp. 3-4 of 5-page document. (Trucker Huss)
The Rules of the Domestic Relations Order Game
Excerpt: "If you represent the non-participant spouse always draft the section of the settlement agreement dealing with the retirement assets prior to negotiations, or employ a pension consultant to prepare one for you, to insure that all of the plans and the plan provisions are addressed in the negotiations. If you have any trepidation about your knowledge in this area – always use a pension consultant." (Paul R. Commerford on DivorceNet.com)
Distribution of Escrowed Stock On Plan Termination Was Eligible Rollover Distribution
Excerpt: "Distributions to plan participants who elected lump sum payments on the termination of an employee stock ownership plan (ESOP), in the form of cash and shares of an escrow account, qualified as eligible rollover distributions, the IRS has privately ruled." (CCH News & Information Library)
Opinion: Kentucky State Legislators Must Stop Pension 'Double-Dipping' by Employees
Excerpt: "Double-dipping is a new way for people in the public sector to earn, in some cases, large sums of money drawing a retirement pension while doing the same job they just retired from. It applies to elected officials as well as employees in the public sector. The higher the pay is before retirement, the larger the pension and the salary in the new job. In 1998 the General Assembly changed the law to allow double-dipping." (The Kentucky Post)
Overview: PBGC Announces New Participant Notice Voluntary Correction Program (PDF)
At pp. 1-2 of 5-page document. (Trucker Huss)
Selecting a Default Fund for a Defined Contribution Plan
Excerpt: "Many plan sponsors currently choose a fixed-dollar fund as the default option for their defined contribution plan. This report analyzes the legal and investment considerations underlying the selection of a default fund, and suggests that in light of the 'prudent investor' standard that governs such fiduciary decisions, a better choice for a default fund is one or more balanced investment options." (Vanguard Center for Retirement Research)
Mutual Funds Unable to Regulate Short-Term Trading in Third-Party Accounts, Study Says
Excerpt: "U.S. Senator Peter Fitzgerald (R-IL) [on August 4] praised a newly released private study that concludes the largest mutual fund groups are unable to monitor or regulate market timing in shareholder accounts held by third-party financial institutions." (U.S. Senator Peter G. Fitzgerald via 401kHelpCenter.com)
SIMPLE Plan Notification to Employees Due Soon
Excerpt: "The deadline for providing the SIMPLE IRA plan notice is quickly approaching. This article serves as a reminder of the required notice for SIMPLE IRA plans and a review of its necessary content." (Compliance Headquarters)
Mexican Senate Approves Social Security Overhaul
Excerpt: "The 82-23 vote came after large protests by employees of the Social Security Institute, who blocked main avenues across Mexico's capital, surrounded the Senate building and fought with police." (AP via SFGate.com)
Links to Items on Executive Comp, Benefits in General
Immediate Disclosure of Executive Compensation Arrangements Now Required
Excerpt: "Securities and Exchange Commission (SEC) will require public companies to disclose management contracts and compensation plans for, and awards to, their senior executives within four business days of entering into the contract or agreement. This [issue of Mercer Human Resource Consulting's] Perspective discusses the substance of the new disclosures and how they may affect executive compensation decisions." (Mercer Human Resource Consulting)
Washington State Backs Same-Sex Marriage
Excerpt: "Gay and lesbian couples can marry under Washington state law because denying them that right is unconstitutional, a judge ruled Wednesday.... If sustained, the ruling would go beyond the law in Massachusetts because Washington has no residency requirements and would allow out-of-state couples to wed." (Los Angeles Times via Yahoo! News)
ERISA Geeks on the Move: Trucker Huss Firm Walks for Charity, Raises $9,200 (PDF)
At page 5 of 5-page document; way to go, Brad et alia! (Trucker Huss)
Newly Posted Events
23rd Annual ISCEBS Employee Benefits Symposium
in Nevada on October 3, 2004
presented by International Foundation of Employee Benefit Plans
Certificate Series - 401(k) Plans
in Arizona on October 6, 2004
presented by International Foundation of Employee Benefit Plans
Certificate Series - Basic Compensation Concepts
in Arizona on October 6, 2004
presented by International Foundation of Employee Benefit Plans
Certificate Series - Choice-Based Benefits
in Arizona on October 6, 2004
presented by International Foundation of Employee Benefit Plans
Certificate Series - Health Care Cost Management
in Arizona on October 8, 2004
presented by International Foundation of Employee Benefit Plans
Certificate Series - Retirement Plan Basics
in Arizona on October 8, 2004
presented by International Foundation of Employee Benefit Plans
Certificate Series-Health Benefit Plan Basics
in Arizona on October 4, 2004
presented by International Foundation of Employee Benefit Plans
Certificate Series-Investment Basics
in Arizona on October 4, 2004
presented by International Foundation of Employee Benefit Plans
Health Care as a Campaign Issue: Ready to Rally?
Nationwide on August 4, 2004
presented by Kaiser Family Foundation
Portfolio Concepts and Management
in Pennsylvania on October 4, 2004
presented by International Foundation of Employee Benefit Plans
Strategic HR: Aligning With the Business to Drive Results
in California on October 12, 2004
presented by Society for Human Resource Management (SHRM)
Workplace Diversity Conference & Exposition
in Illinois on October 25, 2004
presented by Society for Human Resource Management (SHRM)
Newly Posted Press Releases
OppenheimerFunds, Inc. Joins CPI Platinum Partner Retirement Plan Platform
(CPI Qualified Plan Consultants, Inc.)
Drug Company Front Group -- "CURES" -- Opposes Drug Reimportation Legislation
(Foundation for Taxpayer and Consumer Rights)
Newly Posted or Renewed Job Openings
401(k) Sr Plan Specialist
for BISYS Retirement Services
in PA
Vice President, Group Insurance Operations
for The Pyramids Group
in VA
Retirement Services District Manager (Sales) upstate NY
for ADP
in NY
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