| BenefitsLink Retirement Plans Newsletter |   |
August 19, 2004
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IRS Describes Amendment Restrictions After Election of Alternative Deficit Reduction Contribution (PDF)
7 pages. Excerpt: "This notice provides guidance on the restrictions that are placed on plan amendments following an employer's election of the alternative deficit reduction contribution under ยง 412(l)(12) of the Internal Revenue Code (the 'Code') and section 302(d)(12) of the Employee Retirement Income Security Act of 1974 ('ERISA'), as added by section 102 of the Pension Funding Equity Act of 2004, Pub. L. 108-218 ('PFEA '04')." (Internal Revenue Service)
Applicable Federal Rates for September 2004 (PDF)
3 pages. Excerpt: "Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code." (Internal Revenue Service)
SEC Votes to Bar Directed Brokerage
Excerpt: "Voting 5-0 to end the practice, the Commission said directed brokerage arrangements created a conflict of interest that ultimately could raise the fees mutual fund investors pay, Reuters is reporting. Under directed brokerage arrangements, mutual funds would funnel a portion of their brokerage commissions toward Wall Street firms based on their promotion of the funds' shares." (PLANSPONSOR.com; one-time registration required)
Mercer Releases Projected 2005 IRS Figures
Excerpt: "Although the Internal Revenue Service (IRS) figures have yet to be released, Mercer Human Resources Consulting has issued estimates for qualified retirement plans for the year 2005." (PLANSPONSOR.com; one-time registration required)
United 'Likely' to Terminate Pension Plans
Excerpt: "Cash-strapped United Airlines said in a bankrup.tcy court filing [on Thursday] that it 'likely' will be necessary to terminate and replace its employee pension plans." (AP via Los Angeles Times; one-time registration required)
US Airways' Grim Warning: Chairman Foresees No Rescue From Another Bankrup.tcy
Excerpt: "If US Airways files for bankrup.tcy a second time, its chairman says, there will be no outside investor, other airline or government aid to rescue it.' (Washington Post; one-time registration required)
Overview: Cash Balance Plans Developments
Excerpt: "The controversy surrounding cash balance and other hybrid pension plans shows no signs of letting up." (Watson Wyatt Worldwide)
Los Angeles Behind In Its Pension Contributions
Excerpt: "Officials blamed the underpayment on a pension actuary and said they might need to pay $3 million a year for the next 15 years to compensate for shortchanging the Los Angeles City Employees Retirement System. Employee pensions will not be affected, officials said." (Los Angeles Daily News)
Putting the Pinch on Pensions: YWCA Worries That Court Ruling Could Jeopardize Its Mission
Excerpt: "The problem is that a federal judge in Illinois has ruled that retirement plans such as the YWCA's, known as cash-balance plans, violate age-discrimination laws." (Washington Post; one-time registration required)
Employee Ownership Update for August 19, 2004
NCEO Executive Director Corey Rosen discusses a new Mellon study of how companies are responding to the possibility of mandatory stock option expensing, a new book on 'Democratic Capitalism' by the founder of security company ADT, final incentive stock option rules from the IRS, a new academic program for executives at employee ownership companies, and the dismissal of claims in the Amsted Industries ESOP lawsuit. (National Center for Employee Ownership)
Overview: Supreme Court Rules ERISA Prohibits Retroactive Changes to Plan Benefit Suspension Provisions
Excerpt: "In Central Laborers' Pension Fund v. Heinz, the Supreme Court ruled that ERISA's anticutback rule prohibits changes to a pension plan's suspension-of-benefits rules that would reduce benefits for employees who continue working after retirement." (Watson Wyatt Worldwide)
Are Firms or Workers Behind the Shift Away from DB Pension Plans? (PDF)
Paper-in-Progress from the EBSA Research Conference. Excerpt: "In this study we estimate the contribution of changes in workforce characteristics and production environments to the shift in pension coverage." (Aaronson and Coronado, U.S. Department of Labor, Employee Benefits Security Administration)
Links to Items on Executive Comp, Benefits in General
FASB: Options Are Equity
Excerpt: "The Financial Accounting Standards Board (FASB) has reaffirmed its basis that stock option awards should be treated as equity and not a liability. With the decision, the Norwalk, Connecticut-based accounting standards board has effectively ruled out the possibility that companies would be allowed to adjust options expense to reflect how much employees actually get." (PLANSPONSOR.com; one-time registration required)
Overview: Nonqualified Deferred Compensation Legislation Has Broad Implications
Excerpt: "On June 17, the House approved the American Jobs Creation Act (H.R. 4520) which would make several significant changes to the rules on nonqualified deferred compensation (NQDC)." (Watson Wyatt Worldwide)
Hewitt Federal Legislation Quick Guide [updated on August 17, 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." (Hewitt)
Newly Posted Events
Pathfinder Demo - for Advisors
Nationwide on August 31, 2004
presented by PLANSPONSOR
SPARK Accredited Retirement Plan Consultant (ARPC) Training and Designation Program
in Pennsylvania on September 21, 2004
presented by Society of Professional Administrators and Recordkeepers (SPARK)
SPARK Accredited Retirement Plan Specialist (ARPS) Training and Designation Program
in Pennsylvania on September 22, 2004
presented by Society of Professional Administrators and Recordkeepers (SPARK)
Newly Posted Press Releases
Health Insurance Coverage Dropped for Workers at Large Firms in 1987-2002 Period
(Employee Benefit Research Institute (EBRI))
Invesmart Urges Department of Labor to Mandate Fee Transparency in Retirement Plans
(Invesmart, Inc.)
Effective Claim Denials Management
(Health Resources Online)
Treasury Issues Guidance On Funding Requirements For Employers Who Elected Funding Relief
(U.S. Department of Treasury)
Large Financial Institutions Widely Use Supplemental Retirement Plans
(Todd Organization)
UnitedHealth Group Reports Marked Increase In HSA Activity Among Both Employer Groups and Individuals
(UnitedHealth Group)
Newly Posted or Renewed Job Openings
Senior Pension/ 401 (k) Administrator - Takeover
for Polycomp Administrative Services, Inc.
in
Senior Compensation & Benefits Analyst
for Providence Health System
in WA
System Benefits Manager
for Providence Health System
in WA
Institutional Investment Group Sales/Client Sales Support RFP
for PNC Advisors
in PA
TPA Specialist - Western Region
for Transamerica
in CA
Retirement Plan Actuary/Consultant
for Charles Schwab
in OH
Retirement Services Implementation Specialist (So.California) Bi-lingual / Spanish
for ADP Retirement Services
in CA
Retirement Services Implementation Manager - Baltimore / Atlanta area
for ADP Retirement Services
in GA, MD
Benefits Delivery Project Manager
for Hewitt Associates
in TX
Health & Group Benefits Manager
for Hewitt Associates
in FL
Communications Manager
for BISYS Retirement Services
in MN
Benefits Administrator for Employee Benefits Firm
for Ganim Group, Inc.
in CT
Financial Services Specialist
for Nationwide Insurance
in OH
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- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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