| BenefitsLink Retirement Plans Newsletter |   |
August 13, 2004
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Pension Funds' Investments Linked to Terrorism
Excerpt: "The nation's biggest public pension funds have nearly $200 billion invested in stock of companies that conduct business in countries that support terrorism, according to a report released Thursday.... Frank Gaffney, president of the Center for Security Policy, the think tank that issued the report, accused the funds of 'enabling' terrorism by propping up regimes that send money to terrorist organizations." (Los Angeles Times; one-time registration required)
Opinion: Empowering Americans to Defeat Terror
Excerpt: "[E]ach and every one of us actually can play a pivotal role in winning the War on Terror. How? By demanding that our public and private pensions plans, college endowments, individual retirement account managers, 401(k) plans, and other investment vehicles exploit the leverage represented by investments in publicly traded companies that operate in terrorist-sponsoring states.... DivestTerror.org envisions using financial pressure to achieve three types of divestment ..." (DivestTerror.org)
W.R. Grace 401(k) Plan Participants File Suit
Excerpt: "Participants in W.R. Grace & Co's 401(k) have filed a class-action suit, alleging the company breached its fiduciary duty when it failed to sell or take other actions regarding the company's common stock held by its 401(k) plan." (PLANSPONSOR.com; one-time registration required)
Another Question is Answered in the 401(k) Plans Q&A Column
What date starts the 5-year limitation period for a plan loan? (BenefitsLink.com)
Defined Contribution Survey Extended Through August 16
Excerpt: "Looks like the 2004 Defined Contribution Survey will be bigger and better than ever – but we need YOUR input. We've extended the deadline – but only until August 16." (PLANSPONSOR.com; one-time registration required)
ASPA Opposes Proposal to Exclude Nonqualified Annuity Distributions from Taxable Income
Excerpt: "ASPA opposes H.R. 4849, which will negatively affect small business retirement plan coverage, unless it is expanded to cover annuity distributions from qualified plans." (ASPA)
PBGC Rates for Terminating Single-Employer Plans for September 2004 Valuation Dates (PDF)
2 pages. Immediate annuity rate is 3.25%. (Pension Benefit Guaranty Corporation)
Grand Rapids, Michigan Considers Early Retirement Program as Cost-Cutting Measure
Excerpt: "More than 50 employees would be eligible for the early retirement incentives ... The incentives could include a $20,000 lump-sum payment upon retirement and full pension benefits.... [but one councilman] said the city should forgo the early retirement perks because it will make the layoff process drag on and limit the city's ability to keep valuable employees." (MLive.com)
A Good Retirement Home for IRA Savings
Excerpt: "Right now, rollover accounts are hot financial products. With baby boomers starting to retire and some $150 billion rolled out of retirement plans into IRAs in 2003 alone, according to Boston-based research firm Cerulli Associates, rollover IRAs are being marketed aggressively ... Here are some tips on the three most important things you need to consider when choosing an IRA ..." (BusinessWeek)
PBGC Rates for Multi-Employer Plans for Variable-Rate Premiums Through August 2004 (PDF)
Excerpt: "The following table lists the required interest rates to be used in determining variable-rate premiums for premium payment years beginning between September 2003 and August 2004." (Pension Benefit Guaranty Corporation)
Nest Eggs in Multiple Baskets
Excerpt: "[I]ncreasingly, employers have begun offering so-called life cycle funds, which include broad mixes of stocks and bonds. By picking one life cycle choice, an investor can hold a nicely diversified portfolio.... The funds come in a variety of load and no-load share classes, but some advisors have been reluctant to try the offerings for one very good reason: life cycle portfolios are designed for do-it-yourselfers or people with small accounts." (Registered Rep)
Asset Mix Took Toll on United's Pension Fund
Excerpt: "United Airlines, which appears likely to default on its pension plans in the coming months, invested a larger-than-average share of its $6.6 billion pension portfolio in illiquid investments, while also investing liberally in junk bonds, technology and pharmaceutical start-ups, even a gold mining company in Ghana." (New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
High Court in California Nullifies G.ay Marriages
Excerpt: "California's Supreme Court on Thursday nullified the nearly 4,000 same-sex marriages that San Francisco sanctioned this spring, ruling that the city did not have the authority to take such action in defiance of state law.... Some city officials had thought the court might keep the same-sex marriages valid at least until it decides whether the ban on such unions is constitutional. But five justices decided that it would not be 'prudent or wise' ..." (Washington Post; one-time registration required)
PNC Could Mean Payday for Riggs Executives
Excerpt: "Riggs National Corp. executives would receive more than $7 million in severance payments if PNC Financial Services Group Inc. buys Riggs early next year as anticipated.... The payments would result from the change-in-control agreements that are part of the executives' contracts." (Washington Post; one-time registration required)
Executive Compensation Regulatory Update (PDF)
2 pages. Excerpt: "This letter briefly updates our readers on the status of several accounting and federal tax issues that could affect executive compensation.... [Topics include:] Stock Option Expensing ... Earnings Per Share ... Deferred Compensation ... Incentive Stock Options" (Frederic W. Cook & Co., Inc.)
Wealth, Happiness Don't Necessarily Go Hand In Hand
Excerpt: "On a scale of 1 to 7, where 1 means 'not at all satisfied with my life' and 7 means 'completely satisfied,' it's no surprise that survey-respondents who make Forbes magazine's list of the 400 richest Americans average 5.8, while homeless pavement dwellers in Calcutta average 2.9.... [but] the Inuit people of frigid northern Greenland also average 5.8. So do the cattle-herding Masai of Kenya, who live in dung huts with no electricity or running water." (Wall Street Journal via SFGate.com)
Newly Posted Events
19th Annual Advanced ALI-ABA and ABA Section of Taxation Course of Study - Tax Exempt Charitable Organizations
in District of Columbia on November 4, 2004
presented by ALI-ABA (American Law Institute-American Bar Association)
Compensation
in Georgia on September 14, 2004
presented by ASPA Benefits Council of Atlanta
The Final Word on HSAs – Overview of Recent IRS Guidance
Nationwide on August 26, 2004
presented by International Foundation of Employee Benefit Plans
What You Need to Know About Retirement Plan Audits
in Georgia on August 19, 2004
presented by Worldwide Employee Benefits Network (WEB) - Atlanta Chapter
Newly Posted Press Releases
Fred Reish to Receive ASPA’s Eidson Award
(Reish Luftman Reicher & Cohen)
PBGC To File Objection To UAL Agreement Blocking Pension Payments
(Pension Benefit Guaranty Corporation (PBGC))
IRS Chief Counsel Appoints Zelnik as Senior Counsel, Position Focuses on Abusive Transactions
(Internal Revenue Service (IRS))
Form 5500 Update
(FreeERISA.com)
401kRolloverGuide.com Announces the Launch of its Website
(401k Rollover Guide)
Newly Posted or Renewed Job Openings
Relationship Manager (Potential Future Opportunities)
for Fidelity Investments
in KY
DC Plan Administrator
for Acuff & Associates, Inc.
in TN
401 (k) Benefits Analyst
for Watson Wyatt & Company
in MA
Pension Education Consultant
for Diversified Investment Advisors
in CT, MA, ME, NH, NY, RI, VT
Defined Contribution/401 Administrator
for Berlin, Ramos & Co., Rockville, Maryland
in DC, MD, VA
Plan Administrator
for Pension Specialists, Inc.
in AZ
Retirement Plan Sales Consultant - New England
for Invesmart, Inc.
in CT, MA, ME, NH, RI, VT
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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