| BenefitsLink Retirement Plans Newsletter |   |
October 1, 2004
Today's sponsor: Actuarial Systems Corporation
(Click on company name or banner to learn more.)
ASC - QUALITY SOFTWARE FOR THE PENSION INDUSTRY FOR OVER 20 YEARS ASC provides complete automation for the pension office, including: DC/401(k) and DB administration and valuation systems, sophisticated Compliance Testing, DV Direct Daily Valuation, Advanced Information Manager Database (AIM), and Single-Step Processing. All ASC Technical Support Members were experienced Pension Administrators or Actuaries before joining ASC -- and most have been with ASC for over 10 years.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of Field Assistance Bulletin 2004-02 on Locating Missing Plan Participants and Beneficiaries
Excerpt: "Issue: What does a plan fiduciary need to do in order to fulfill its fiduciary obligations under ERISA with respect to: (1) locating a missing participant of a terminated defined contribution plan; and (2) distributing an account balance when efforts to communicate with a missing participant fail to secure a distribution election?" (U.S. Department of Labor, Employee Benefits Security Administration)
EEOC Sues Lucent; Charges Pension Discrimination Against Women Who Took Pregnancy Leave
Excerpt: "A federal civil rights agency sued Lucent Technologies Inc., charging the telecom equipment manufacturer had discriminated in its pension policy against female workers who took pregnancy leave. The Equal Employment Opportunity Commission said it filed its lawsuit Thursday against Lucent because it gave women who took pregnancy leave less credit toward calculating their pensions compared with employees who took disability leave for reasons other than pregnancy." (Reuters via CNN Money)
401(k) Participants Maintain Balances, Keep Few Investments in 2003 Says Building Futures Study
Excerpt: "Participants in 401(k) plans are maintaining healthy account balances, but many appear to need some help with asset allocation. Fidelity Investments notes in its annual Building Futures study that average 401(k) account balances last year increased by 25% from the year before, bringing account totals to $55,000. While the average deferral rate remained steady at 7%, more than 10% of the 8.2 million participants surveyed contributed the maximum $12,000 contribution limit in 2003." (The Adviser)
ASPA Files Comments with the JBEA on Actuarial Services Performance
Excerpt: "The American Society of Pension Actuaries (ASPA) offers these comments in response to the Solicitation for Comments on the Regulations Governing the Performance of Actuarial Services under the Employee Retirement Income Security Act of 1974 by the Joint Board for the Enrollment of Actuaries (JBEA)." (American Society of Pension Actuaries)
Alabama Pension Fund Gets $111 Million Over WorldCom Suit
Excerpt: "Alabama's pension fund received 111 (m) million dollars today from three securities firms and an accounting firm to settle claims over the WorldCom bankrup.tcy. The settlement resolves the Retirement Systems of Alabama's claims against J-P Morgan Securities, Citigroup Global Markets, Banc of America Securities, and Arthur Andersen." (AP via WorldNow and WKRN)
Issue Brief: The Truth About Public Pension Funds Involvement in Terrorism Allegation (PDF)
Excerpt: "To keep you informed about this issue, NCPERS has developed a fact sheet on terrorism to counter the claims made by the Center for Security Policy. This so-called think tank claims that the investments of public pension funds are 'aiding and abetting' terrorists by their investments. The claim is false and the Center is also 'hawking' a computer software program that funds can buy for thousands of dollars. DO NOT be fooled by this group and learn the facts." (National Conference on Public Employee Retirement Systems)
Employee Ownership Update for October 1, 2004
NCEO Executive Director Corey Rosen discusses a proposal from the Government Accountability Office (GAO) for Congress and the Department of Labor to tighten rules for proxy voting in defined contribution and defined benefit retirement plans. In other news, two bills to amend the treatment of U.S. corporate income earned overseas that have significant provisions affecting ESOPs and equity compensation continue to face an uncertain fate. (National Center for Employee Ownership)
How Not to Outlive Your Savings for Retirement: Annuities
Excerpt: "Although not enough Americans take advantage of it, there is in fact a way to buy some low-cost insurance, to assure ourselves that we won't outlive our savings or see them eroded by inflation, just as we buy life insurance to protect our families should we die young. And it wasn't invented by some Wall Street whiz. Ancient Romans sold something called an annua that promised a stream of cash in return for an upfront payment." (Wall Street Journal via SFGate.com)
Is Pension Benefit Guaranty Corporation Defined Benefit Pension Plan Insurance System a Liability?
Excerpt: "The press coverage afforded companies whose pension plans are at risk, such as United, combined with the mounting deficits at the PBGC, has caused many to doubt the viability of the private pension system. However, the system's prospects are looking up. The economic rebound and temporary legislative relief will help all but the most troubled pensions revive, and this bodes well for the PBGC's long-term survival." (Federal Reserve Bank of Dallas)
Opinion: PBGC's Fees Do Not Relate to the Pension Fund Investments It Covers
Excerpt: "The agency's fees are unrelated to investment risk. It charges a fixed amount per corporation and an additional fee based on the amount its pension fund is underfinanced. United had about two-thirds of its pension fund in risky investments, including junk bonds and a Ghanaian gold-mining company. Yet if United had invested every dollar in United States Treasury bonds, it would have paid exactly the same premium to the pension agency." (The New York Times; one-time registration required)
Backgrounder: the Top 10 Myths about Social Security Reform
Excerpt: "Arguments against Social Security personal retirement accounts (PRAs) rest on a great deal of incorrect and misleading information. These myths have spread and taken on a life of their own, despite the absence of any factual foundation." (The Heritage Foundation)
Links to Items on Executive Comp, Benefits in General
US Airways, Pilots Union Near Cost-Cutting Accord; Contract Would Reduce Pay by 17.5%
Excerpt: "US Airways and its pilots union are close to reaching a $300 million cost-cutting agreement, a key part of a restructuring plan that the airline says it needs to help it emerge from bankrup.tcy." (The Washington Post; one-time registration required)
G.ay Advocates Praise Firms: Summit Finds More Partner Benefits Available Now
Excerpt: "Corporations' moves to extend domestic-partner benefits were widely praised Thursday at a national meeting of g.ay and les.bian advocates. The 14th-annual Out & Equal Workplace Summit is being held through Saturday at the Wyndham Buttes Resort in Tempe. A sold-out crowd of 750 has signed up to hear about how federal controversies over same-sex marriage could affect workplace policies." (The Arizona Republic; registration required)
Same-Sex Marriage Amendment Defeated in House
Excerpt: "The House joined the Senate yesterday in refusing to approve a constitutional amendment to bar same-sex marriage, described by Republican supporters as a vital protection for traditional families but denounced by Democratic foes as a divisive pre-election ploy to inflame prejudice." (The Washington Post; one-time registration required)
Employee Benefits Offer Myriad Financial Advantages to the Employee
Excerpt: "While the type and range of employee benefits vary by company, even the smallest organizations may offer plans that can mean significant tax breaks and savings for workers. Familiarizing yourself with programs and taking full advantage of available options can help you lay the groundwork for a solid financial future." (Certified Financial Planner Board of Standards)
Newly Posted Press Releases
Employee Benefits Security Administration Releases Guidance on Missing Participants
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))
IBM Pays Out $320 Million In Partial Settlement
(Pension Rights Center)
Assistant Secretary Ann L. Combs Calls For Reforms To Strengthen Workers’ Retirement Security
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)
Labor Department Extends Annual Report Deadlines After Hurricane Ivan Hits Gulf Coast
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)
Inaugural Issue of Patient Safety and Quality Healthcare (PSQH) Released
(Lionheart Publishing)
Two-Thirds of Middle Americans Do Not Have a Plan for “Paying Themselves” and Do Not Know What Their Monthly Budget Should be in Retirement, According to a Study Released by ING US Financial Services
(ING Group)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)
Celia McClelland (ABC Payroll)
Newly Posted or Renewed Job Openings
Retirement Account Manager
for Charles W. Cammack Associates, Inc.
in NJ, NY
Plan Implementation Administrator
for Phase II Systems PARS Trust Administrator
in CA
Project Manager
for The Paragon Consulting Group, Inc.
in CA
Pension Plan Manager
for Dean Pension Consultants, a division of CH Dean & Associates, Inc.
in OH
Health & Welfare Specialist
for Long Island Employee Benefits Group, Ltd.
in NY
Comp/Benefits/HRIS Manager
for Blackbaud
in SC
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
Copyright 2004 BenefitsLink.com, Inc.; except that you can reprint this newsletter in full (if you also include this boilerplate part) without obtaining our permission.
Published by:
BenefitsLink.com, Inc.
https://benefitslink.com/about.html
1298 Minnesota Avenue, Suite H
Winter Park FL 32789
(407) 644-4146
Fax: (407) 644-2151
Editor and Publisher: David Rhett Baker, J.D.
Housekeeping: