| BenefitsLink Retirement Plans Newsletter |   |
September 3, 2004
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Overview of Sept. 2 Wall Street Journal Article on Progress of Mutual Fund Marketing 12b-1 Fees Suit
Excerpt: "The article reports that '[a] lawsuit accusing a mutual fund of charging investors excessive fees has cleared a legal hurdle and could spell a new round of legal woes for fund companies.' According to the article, '[t]he suit questions how it could be reasonable for the firm to collect twice as much money from shareholders for marketing the fund after it was shut to new investors as it was collecting when the fund was still open and looking for new shareholders.'" (Attorney B. Janell Grenier on BenefitsBlog.com)
Weighted Average Interest Rate Table Updated for September 2004
Excerpt: "Note: The 120% weighted average figures from 2001 may be used for IRC section 412(m) purposes for the 2002 plan year." (Internal Revenue Service)
Composite Corporate Bond Rate Table Updated for September 2004
Excerpt: "Note: In determining whether a plan is subject to quarterly contributions under section 412(m)(1) for the plan year beginning January 1, 2004, the funded current liability percentage for 2003 may be recalculated using the corporate weighted average interest rate." (Internal Revenue Service)
US Airways, Pilots Seek Common Ground on Wages and Benefits
Excerpt: "Pilots and management at US Airways continue talks Friday in hopes of making a deal to help save the struggling carrier." (USA TODAY)
Pilots, US Airways Continue Negotiations on Labor Contract
Excerpt: "Negotiators for US Airways' management and pilots met again Thursday to discuss a new labor contract the airline says is necessary to avoid a second trip into bankrup.tcy." (AP via The Washington Post; one-time registration required)
Coffee, Tea or Job? For Airline Workers, an Uncertain Future
Excerpt: "For decades, an airline job was a coveted plum. Good pay, generous benefits, strong unions and the glamour of air travel made pilots, flight attendants, mechanics and even baggage handlers the envy of their neighbors." (The New York Times; one-time registration required)
Court: No Fiduciary Duty to Disclose Separation Benefits Offered Under Plan Started After Retirement
Beach v. Commonwealth Edison Co. (7th Cir. 2004). Excerpt: "EBIA Comment: We will have to wait and see whether other courts consider important the distinction between benefits offered under amendments and benefits offered under new plans. In the amendment cases the courts are split, with the majority adopting the rule that fiduciaries have a duty to make accurate disclosure when a specific proposal is being discussed ..." (Employee Benefits Institute of America Inc. (EBIA))
The IRA: Thirty Years of Promoting Savings and Realizing Retirement Goals
Excerpt: "On Labor Day 1974, President Gerald Ford signed into law the Employee Retirement Income Security Act (ERISA), legislation creating the individual retirement account, or IRA, one of the nation's most important retirement savings tools." (Investment Company Institute)
2004 Trends in the Corporate Governance Practices of the 100 Largest U.S. Public Companies (PDF)
37 pages. Excerpt: "The 2004 proxy season was the first proxy season that most of the Top 100 companies were required to comply with the revised NYSE and Nasdaq listing standards, the nominating committee disclosure rules implemented by the Securities and Exchange Commission ('SEC') in November 2003 and various provisions of the Sarbanes-Oxley Act of 2002 ('Sarbanes-Oxley')." (Shearman & Sterling LLP via Financial Executives International)
Securian Retirement Services Provide Real-Time Online 401(k) Service
Excerpt: "Securian Retirement Services, in a step aimed at aiding plan sponsors meet their fiduciary duties, has released an updated online reporting system that lets employers know who isn't maximizing their 401(k) plan." (PLANSPONSOR.com; one-time registration required)
Oregon Public Employees Retirement Fund Is Doing Well for State's Retirees
Excerpt: "Of the nation's largest state retirement funds, Oregon's $43.5 billion Public Employees Retirement Fund ranks among the top 5 percent in financial performance this year. And, in a five-year comparison study by State Street Corp.'s Public Funds Division, Oregon ranked in the top 1 percent." (The Portland Tribune)
Fund Scandal Fails to Rattle Investors Reports Survey of Mutual Fund Investors
Excerpt: "A year after the mutual fund industry's biggest scandal, investors remain surprisingly ignorant of regulatory probes into trading schemes that bilked hundreds of millions of dollars from their portfolios, a survey said on Thursday." (Reuters via MSN Money)
Links to Items on Executive Comp, Benefits in General
Major Changes in Deferred Compensation and Stock Options Accounting Possible Before Year's End
Excerpt: "Two significant changes that affect executive compensation--legislative restrictions on nonqualified deferred compensation plans and a mandatory standard on stock option expensing--will be in play this fall. Meanwhile, the issue of permitting relocation loans under Sarbanes-Oxley has been raised again on Capitol Hill." (HR Policy Association)
Summary: IRS Reproposes "Source" Rules for Compensation Attributable to US and Foreign Services (PDF)
2 pages. Excerpt: "In early 2000, the IRS issued a proposed regulation regarding the proper 'sourcing' of compensation (including fringe benefits) for U.S. taxpayers and nonresident aliens. The proposed regulation would replace the 'facts and circumstances' test for individuals that work both within and without the United States during the year with a required allocation of the compensation based on time spent here and abroad." (Groom Law Group via American Benefits Council)
Newly Posted Events
Crafting an Appropriate Response to the New Medicare Prescription Drug Regulations
Nationwide on September 2, 2004
presented by Hewitt Associates LLC
Newly Posted Press Releases
New Tax-Advantaged Health Accounts: Options Abound, But Impact Still Unknown
(Employee Benefit Research Institute (EBRI))
Failed Plan: Bush Plan Would Increase the Deficit While Doing Nothing to Help Middle-Class Families Save
(Kerry-Edwards 2004)
Newly Posted or Renewed Job Openings
RVP-Credit Union Services (Insurance and Employee Benefits)
for CUNA Mutual Group
in ANY STATE
Retirement Services Account Manager
for SunTrust Bank
in GA
Client Services Consultant-Princeton, NJ
for American United Life Insurance Company
in NJ
ERISA Compliance Consultant
for American United Life Insurance Company
in IN
Actuarial Analyst
for RSM McGladrey
in IL
Division Head Client Services
for Trust Company-Based Employer
in PA
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- Employee Benefits Library
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