| BenefitsLink Retirement Plans Newsletter |   |
September 21, 2004
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
(Click on company name or banner to learn more.)
Software for 401(k), DB and Flexible Benefits DATAIR BENEFIT ADMINISTRATION SOFTWARE for Pension, Profit Sharing, 401(k) and Cafeteria/Flexible Benefits plans. Designed for administrators and consultants. Modules include proposals, IRS-approved documents, enrollment, administration, government reporting, distribution, tax planning, and client and task management. Training and support included. For free demo versions and pricing, contact sales@datair.com or call 1-888-DATAIR4 (328-2474).
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Pension Benefit Guaranty Corporation Posts Technical Update 04-4: 2004 Participant Notice
Excerpt: "Plan administrators of certain underfunded plans must notify participants and beneficiaries annually of the plan's funding status and the limits of the PBGC's guarantee. See ERISA section 4011 and 29 CFR Part 4011." (Pension Benefit Guaranty Corporation)
Passive Enrollment in 401(k)s May Be Automatic in Many Ways, But It Still Requires Action (PDF)
8 pages. Excerpt: "The concept of 'passive' enrollment appeals to many 401(k) plan sponsors. Surveys show an increasing number of sponsors adopting this approach -- also referred to as 'automatic' or 'negative' enrollment." (HRO Today via Mellon Financial Corporation)
Evolution of the 401(k): Local Investment Pro Gives Small Investors New Option
Excerpt: "Darwin Abrahamson believes 401(k) investing should encompass more than blindly pouring money into a mutual fund. Hence Abrahamson, who's run the Portland-based 401(k) specialty group Invest N Retire LLC for the last three years, has developed a way for small investors to fortify their earnings institutional investor-style." (The Business Journal (Portland) via bizjournals.com; one-time registration required)
Beyond the 401(k): Few Start-ups Make It But New Retirement Plan Options Can Help Hedge the Risk
Excerpt: "You may think you can't afford to start saving just yet. But if putting off planning for the future is problematic for anyone, it's especially risky for entrepreneurs. Unlike the average salaried employee, entrepreneurs, especially those running start-ups, often have the bulk of their assets wrapped up in their venture." (Inc. Magazine)
Lawmakers Hit United Airlines on Pension Plan: 112 Oppose Default in Letter to Tilton, United's CEO
Excerpt: "More than 100 lawmakers have signed a letter being sent to United Airlines' chief in opposition to its plan to terminate its pension plans to survive bankrup.tcy." (AP via Chicago Tribune; one-time registration required)
Creditors' Committee Appointed for US Airways
Excerpt: "US Airways' four major unions and nine of its largest creditors were appointed yesterday to a creditors' committee, which will play a critical role in the carrier's reorganization." (The Washington Post; one-time registration required)
New Question and Answer on Financial Education Programs on the Achieving Financial Finesse Archive
Excerpt: "Question: I work for a large corporation with a diverse employee demographic. We want a financial education program to help everyone. Employees range in age from early 20s to mid 60s and earn salary figures across the board. What can we offer?" (workindex.com)
New Question and Answer on Financial Education Programs on the Achieving Financial Finesse Archive
Excerpt: "Question: We are looking into setting up a financial education program and want to learn from companies that have done everything right. Can you share with us what a successful program looks like, what can be addressed and what results to expect?" (workindex.com)
Retirement Plan Loans: Is the Interest Deductible?
Excerpt: "As you already know, interest expense isn't deductible simply because it's interest. Any of you who have paid interest on a credit card know that to be the case. In order to be deductible, interest must be defined as deductible in the Internal Revenue Code." (Roy Lewis on The Motley Fool)
Your Retirement Plan Recordkeeping System: Make It Your Strategic (not Silent) Partner (PDF)
1 page. Excerpt: "Those responsible for the administration of a pension or savings plan should always be ready with an answer to the important question: 'Is your plan running OK?'" (HRO Today via Mellon Financial Corporation)
Working Paper: Bulls, Bears, Retirement Behavior and the Labor Supply
Excerpt: "The historic boom and bust in the stock market over the past decade had the potential to significantly alter the retirement behavior of older workers. Previous research examining the impact of wealth shocks on labor supply supports the plausibility of this hypothesis." (National Bureau of Economic Research)
Federal Thrift Savings Plan Is Striving to Increase Efficiency and Cut Administrative Costs
Excerpt: "The Thrift Savings Plan is taking steps to operate more efficiently, steps that should lead to lower fees for the plan's 3.3 million participants, officials said yesterday. On average, investors in 2006 will save an estimated $3.84 annually on the TSP's administrative costs." (Stephen Barr in The Washington Post; one-time registration required)
Know Your Pension Fiduciary Responsibilities
Excerpt: "The vast majority of corporate leaders and investment managers want to 'do the right thing,' but many of them may not be fully aware of the important responsibilities required of them in their fiduciary capacities." (US Secretary of Labor Elaine L. Chao in PLANSPONSOR.com; one-time registration required)
Baby Boomers and the Need for Phased Retirement
Excerpt: ".... That brings up the topic of phased retirement and the fact that, in order for employers to be able to offer phased retirement on a larger scale, many legal barriers to phased retirement will need to be addressed by Congress and governmental agencies.' Ms. Grenier lists the chief advantages of phased retirement programs for employers and employees and provides links to relevant articles on the subject. (Attorney B. Janell Grenier on BenefitsBlog.com)
Text of ASPA Testimony to ERISA Advisory Council on Disclosure of Fees to Plan Participants
Excerpt: "ASPA believes our suggestions for new fee and expense disclosure to plan participants represents a strong step toward better transparency and a more secure retirement. ASPA would be happy to work with DOL to develop a prototype format for this proposed disclosure statement." (ASPA)
Opinion: Pressing issue of Social Security Reform Revived by Bush
Excerpt: "In his acceptance speech at the Republican National Convention, President Bush revived several initiatives from his first presidential campaign. Not the least was a pledge to 'fix' Social Security by letting younger workers invest some of their payroll taxes in personal retirement accounts." (The Washington Times)
Links to Items on Executive Comp, Benefits in General
Delta, Pilots Agree on Deal: If Union Members Give OK, Airline Will Get Right to Rehire Retirees
Excerpt: "Delta Air Lines and its pilots reached a deal Monday to prevent staffing problems stemming from a wave of early retirements, an issue the airline has said could force it into bankrup.tcy court at the end of this month. The tentative agreement --subject to ratification by rank-and-file pilots -- allows Delta to temporarily rehire pilots who retire after month's end to keep certain aircraft flying." (The Atlanta Journal-Constitution; one-time registration required)
Court Rules That Indiana Has Jurisdiction in Suit Against Florida Employer for Wrongful Termination (PDF)
9 pages. Excerpt: "Plaintiff Justin Tracy filed his action against Defendant Financial Insurance Management Corporation ('FIMC') alleging, among other things, violations of the Americans with Disabilities Act ('ADA') and the Employee Retirement Income Security Act ('ERISA')." (United States District Court, Southern District Of Indiana)
Washington Legislative Wrap Up for the 108th Congress (2003-2004) as of September 20, 2004 (PDF)
6 pages. Excerpt: "Federal Legislative and Regulatory Proposals of Interest to National Council on Teacher Retirement Members are current as of September 20, 2004; Federal Updates referenced in chart are available at http://www.nctr.org/federal/index.html." (National Council on Teacher Retirement)
Newly Posted Events
Earned Income — A Practical Approach
Nationwide on October 28, 2004
presented by SunGard Corbel
Newly Posted Press Releases
Standard Insurance Company Launches New Partnership Platform
(Standard Insurance Company)
ICC Plan Solutions Hits Milestone With 100th Enrollment Kit Customer
(Metrics Partners)
ADP Introduces Solo Retirement Plan for Owner-Only Businesses; Cost-Effective, Hassle-Free Solution for Small Business Owners Looking to Maximize Their Retirement Contributions
(ADP Retirement Services)
American Century Joins CPI Gold Partner Retirement Plan Platform
(CPI Qualified Plan Consultants, Inc.)
New 401(k) Cost Benchmarking Book Released
(HR Investment Consultants)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Matthew McPhail (Sentinel Benefits)
Bert Entwistle (Sentinel Benefits)
Newly Posted or Renewed Job Openings
Senior DB or DC Tiered Plan Administrator
for The Pension Group, Inc.
in CA
Compliance Analyst
for Transamerica
in CA
Daily Valuation Team Leader
for Associates in Excellence
in CA
Merger & Acquisition Benefit/Compliance Analyst
for Swiss Re is a leading reinsurer company
in NY
Implementation and Processing Services Manager
for Ceridian
in FL
Client Account Manager
for New York Life Investment Management LLC
in NJ
Plan Administrator
for New York Life Investment Management LLC
in NJ
Defined Contribution Operations Manager
for New York Life Investment Management LLC
in NJ
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