| BenefitsLink Retirement Plans Newsletter |   |
September 10, 2004
Today's sponsor: IBF
(Click on company name or banner to learn more.)
7th Annual Pensions&Investments Defined Contribution West Coast Conference The 7th Annual Pensions&Investments Defined Contribution West Coast Conference will be held October 24-26, 2004 at the Fairmont Hotel in San Francisco, CA. With increased liability exposure and reform initiatives, plan sponsors need solutions. This program is dedicated entirely to educating and training plan sponsors to incorporate superior risk management and control practices into their existing DC plan programs. To register or for more information click above or call 516-765-9005.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
IRS Grants Tax, Form 5500 Relief for Florida Hurricane Victims
(Internal Revenue Service (IRS))
US Airways Seen as Likely to Declare Bankrup.tcy
Excerpt: "Barring a last-minute change of heart by its recalcitrant unions, US Airways appears all but certain to seek bankrup.tcy protection on Sunday, people briefed on the situation said yesterday." (The New York Times; one-time registration required)
Alabama State Pension Fund Has Big Stake in US Airways: Employees Could Lose $240 Million
Excerpt: "Alabama's retired teachers and government employees could lose a $240 million stake in US Airways if the airline can't pull out of its financial nose dive, but the high-profile head of the state's pension fund said Thursday the system is diversified enough to withstand the loss. While huge for most investors, the loss would be small for the more than $25 billion portfolio of the Retirement Systems of Alabama, said chief executive officer David Bronner." (AP via The Buffalo News)
Some See Delta Air Lines Plan as Setup for Bankrup.tcy
Excerpt: "Key elements of Delta Air Lines Inc.'s broad turnaround plan will take months if not years to implement, suggesting the struggling carrier is setting itself up for how it will survive after a likely Chapter 11 filing, industry observers and legal experts said Thursday." (AP via The Ledger)
Rollover IRAs: Choose the Investments You're Most Comfortable With and Consider Fees and Services
Excerpt: "When you go to work for an employer, you're not just getting a job but a retirement account as well. You'll be stuck with the 401(k) or similar alternative that's offered, and you get no opportunity to shop around for more attractive investment options or services." (Ellen Hoffman in BusinessWeek)
Overview: IRS Modifies Separate Accounting Rules for Required Minimum Distribution Purposes
Excerpt: "On June 14th, 2004, the IRS issued regulations on the required minimum distributions (RMD) for defined benefit plans and annuity contracts providing benefits under qualified plans, individual retirement plans, and section 403(b) contracts. The regulations, which are effective January 1st, 2003, also include a change to the separate-accounting rules for defined contribution plans, which were included in the final RMD regulations issued in 2002." (Denise Appleby, CISP, CRC, CRPS, CRSP, APA on Investopedia.com)
Reforming the Japanese Retirement Income System: a Special Case? (PDF)
16 pages. Excerpt: "This brief is the fourth in a series that profiles national retirement income systems and their response to the impending demographic transition." (Center for Retirement Research at Boston College)
How Does Your Retirement Program Look? 2004 Retirement Financial Management Benchmarking Data
Excerpt: "Equity markets were favorable to most pension plans during 2003, compared to their dismal performance during 2000 – 2002. In 2003, the S&P 500 index experienced a total return of 29 percent." (Mercer Human Resource Consulting)
DOL Staff Offer Opinions on Issues Relating to Blackout Periods
Excerpt: "Department of Labor officials have provided informal guidance on applying new blackout period notice rules to situations involving a transfer of assets from one individual account plan to another as part of a corporate transaction or otherwise. The DOL officials also responded to a question about whether ERISA section 404(c) protections apply during blackout periods." (Deloitte's Washington Bulletin)
Pension Plans Urged to Show Votes: GAO Report Calls For Greater Proxy Vote Transparency
Excerpt: "Pension plans, like mutual funds, should disclose how they vote shares of the stocks they hold to shield investors from potential conflicts of interest, a Government Accountability Office report said." (CBS MarketWatch)
Pinching Pennies to Increase Fund Investment Returns
Excerpt: "In the past, the first response of companies facing falling returns has been to reallocate assets into investments with better yields--although presumably with more risk.... But while asset allocation clearly remains an important element in a plan's returns, many plan sponsors are also taking a closer look at ways they can boost returns by increasing their plan's efficiency and limiting expenses." (Treasury and Risk Management)
Links to Items on Executive Comp, Benefits in General
Choice Is Overrated; Easy to Have Too Much of a Good Thing
Excerpt: "[U]p to a point, choice does enhance efficiency and consumer welfare. But at some point, there get to be so many options about what to buy or what career to go into or which mutual fund to invest in that many people make worse decisions than they would if they had fewer choices -- or simply put off making a decision at all." (Washington Post; one-time registration required)
Filling in the Blanks on Section 404 Compliance with a November Deadline Looming and Costs in Mind
Excerpt: "Any way you slice it, U.S. companies and their compliance teams are being pushed to the max. One quarter remains until the first batch of companies, and their auditors, must attest to their internal controls as required by the Sarbanes-Oxley Act. Controls are being rethought and remade as internal tests reveal weaknesses, and for many the last leg of the process--external auditors showing up at your door--is finally within sight." (Treasury & Risk Management)
Hewitt Federal Legislation Quick Guide - Sept. 8, 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 Associates)
House Opposes New Overtime Rules: Democrats Prevail in 223 to 193 Vote
Excerpt: "The House voted 223 to 193 yesterday to block the Bush administration's sweeping new eligibility rules for overtime pay, giving Democrats a significant victory that they hope will boost the party's standing among middle-class voters in key battleground states in the fall election." (The Washington Post; one-time registration required)
Newly Posted Events
Drug Importation Legislation: The Debate Over Drug Pricing, Cross-Border Purchases, and Government Regulation
Nationwide on September 10, 2004
presented by Food and Drug Law Institute
Obesity: Science, Policy and Regulation Focus on a Growing Consumer Problem
Nationwide on September 10, 2004
presented by Food and Drug Law Institute
Understanding Part D: The Voluntary Medicare Prescription Drug Benefit
Nationwide on September 10, 2004
presented by Food and Drug Law Institute
Newly Posted Press Releases
McHenry Surveys Launched - TPA and Investment Advisors To Be Polled
(McHenry Consulting Group)
Benefit Advisors Network Adds DiMartino Associates, Inc.
(Benefit Advisors Network)
Newly Posted or Renewed Job Openings
Benefits Specialist
for Milliman, Inc.
in WA
Actuarial Analyst
for Gabriel, Roeder, Smith & Company
in FL
Paralegal
for ExpertPlan, Inc.
in NJ
Director, Client Services
for BISYS Retirement Services
in PA
Compliance Consultant
for The Vanguard Group
in PA
Compliance Testing Manager - PA
for The Vanguard Group
in PA
Plan Conversion Manager - PA
for The Vanguard Group
in PA
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