| BenefitsLink Retirement Plans Newsletter |   |
September 30, 2004
Today's sponsor: IBF
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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)
I.B.M. Agrees to Settle Part of Giant Cash Balance Pension Plan Case
Excerpt: "I.B.M. said yesterday that it had agreed to pay $320 million to current and former employees to settle in part a class-action lawsuit over its pension plan in a case that may affect millions of workers at many companies and nonprofit organizations." (The New York Times; one-time registration required)
Study: the Adequacy of Investment Choices Offered by 401(k) Plans (PDF)
45 pages. Excerpt: "This study analyzes the adequacy and characteristics of the investment choices offered to 401(k) participants in over 400 plans. The authors conclude that, for 62% of the plans, the choices offered are inadequate and that, over a 20-year period, that inadequacy could result in a difference in terminal wealth of over 300%." (Reish Luftman Reicher & Cohen)
Plan Sponsors Are Uncovering a Road to Improving Fund Returns
Excerpt: "A penny is a penny, and a basis point is a basis point. Accumulate enough pennies, and eventually you will have dollars. Save enough basis points, and your defined benefit plan might have a slightly more appealing return. Simple? Perhaps, but that is the thinking behind an evolving strategy for running pension money that depends on a program of baby steps to reach a better-funded goal." (Treasury & Risk Management)
Analysis: New Puerto Rico Law Temporarily Reduces Tax on LSDs from Qualified Pension Plans (PDF)
1 page. Excerpt: "The Governor of Puerto Rico has signed a bill (House Bill 4531) into law that provides for a temporary reduction in the long-term capital gains tax rate. This reduction will affect lump sum distributions from qualified pension plans received by individuals on account of separation from service. The new law is effective for transactions occurring during the one-year period that begins on July 1, 2004 and ends on June 30, 2005." (Mellon)
Opinion: the Power of Pensions – - Especially Defined Benefit Pension Plans
Excerpt: "As defined-benefit plans die out and more companies foist their responsibilities on the PBGC, the retirement prospects of many Americans will severely suffer. I wish it weren't the case. I wish we didn't need pensions; I wish we all saved for retirement and we all made good decisions." (The Motley Fool)
Opinion: a Social Security Swindle and the Effects of Tax Cuts
Excerpt: "Sometimes mixed metaphors say it best. Federal Reserve chairman Alan Greenspan's call for significant reductions in Social Security can best be described as a case of the fox in the chicken coop crying wolf. He is greatly exaggerating the dimensions of a problem that he helped create." (Barney Frank via The Boston Globe)
Links to Items on Executive Comp, Benefits in General
Labor Department Releases Form 5500 Annual Report and Filing Requirements for 2004
Excerpt: "Information copies of the forms, schedules and instructions are available on EBSA's web site at www.efast.dol.gov. Filers should monitor the EFAST web site for information on approved software vendors for completing the 2004 forms and on the availability of the official, government printed forms." (U.S. Department of Labor, Employee Benefits Security Administration)
Text: Accounting for Wages and Benefits Using the Employment Cost Index (PDF)
16 pages. Excerpt: "Using the data set behind the Employer Cost Index to impute benefit values on the National Longitudinal Study of Youth and the Current Population Survey, this study finds that workers at the bottom part of the wage distribution exhibit a much stronger correlation between benefits and wages than those at the top." (Department of Labor, Bureau of Labor Statistics)
Analysis: Staying Ahead of the Curve 2004: Employer Best Practices for Mature Workers (PDF)
20 pages. Excerpt: "In light of this demographic shift, AARP engaged Mercer Human Resource Consulting in 2004 to conduct an analysis of the workforce practices of current and former AARP Best Employers for Workers Over 50 in order to identify how best to address the needs of mature workers." (AARP)
Overview: Section 404 Compliance With a November Deadline Looming for an Expensive Process
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)
Motorola to Cut 1,000 Jobs, Take $50 Million Charge for Severance Pay
Excerpt: "Motorola Inc. will cut 1,000 jobs worldwide and take a charge of $50 million for severance benefits, officials said Tuesday. .... The job cuts are set to take place at the end of the third quarter of the calendar year, Weyrauch said. Motorola employs 88,000 people worldwide." (AP via Chicago Sun-Times)
Newly Posted Press Releases
ERIC Statement Regarding IBM and Plaintiffs Agreement to Resolve Certain Claims in Cash Balance Case
(ERIC (ERISA Industry Committee))
Majorities of Heterosexuals Agree Same-Sex Partners Deserve Same Adoption Benefits and Leave Rights Offered by Employers as Married Co-Workers’ Spouses Receive
(Out & Equal Workplace)
Newly Posted or Renewed Job Openings
Vice President, Sales
for LTSave, Inc.
in MA
Benefits Communications Practice Leader
for Milliman, Inc.
in WA
Benefit Calculation Developer - PA
for The Vanguard Group
in PA
DCS Compliance Reporting & Testing Analyst
for Boston Financial Data Services
in MA
Account Coordinator - 401(k)
for Precept
in CA
Defined Benefits Project Manager
for Hewitt Associates
in NJ
COBRA Administrator
for Precept/ProView
in CA
Benefits Administrator
for Black Mountain Management, Inc.
in NY
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