| BenefitsLink Retirement Plans Newsletter |   |
October 6, 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)
Text of Notice 2004-69: Weighted Average Interest Rates Update for October 2004 (PDF)
Excerpt: "This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code. In addition, it provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II), and the weighted average interest rate and permissible ranges of interest rates based on the 30-year Treasury securities rate." (Internal Revenue Service)
Are Cash Balance Plans Discriminatory? - Responses to Quickpoll
Excerpt: "In response to the Sept. 23 QuickPoll question, 'Do you believe cash balance pension plans are inherently discriminatory against older workers?' BenefitNews.com received the response below from Don Wood, senior energy program advisor for San Diego Gas & Electric. We then asked readers, in the Sept. 28 edition of Connect, to respond to some of Mr. Wood's comments. Their responses follow Mr. Wood's original e-mail." (Benefit News Connect)
U.S. Supreme Court Declines to Review 11th Circuit Ruling on ESOP and Stock Option Plan Payouts
The US Supreme Court declined to review a federal appeals court ruling that the Employee Retirement Income Security Act (ERISA) did not preempt the fiduciary breach claims of plaintiff Roger Ervast. The case, Ervast v. Flexible Products Co., U.S., No. 03-1240, was denied on October 4, 2004. The 20 page 11th Circuit ruling is at http://www.ca11.uscourts.gov/opinions/ops/200215769.pdf. (PLANSPONSOR.com; one-time registration required)
Strategy Using FLPs & Irrevocable Trusts Helps Heirs Avoid Losing Up to 75% of an IRA's Value
Excerpt: "Despite regulatory changes, there is a simple but interesting way to reduce the income and estate taxes on qualified (deferred) money, both for IRAs and qualified plans. This two-part series on the 75% tax trap will also show how your clients can asset-protect their IRAs, reduce required minimum distributions, and in certain circumstances employ tax-deferred money to buy life insurance for estate planning purposes." (Financial Planning)
Disclosure: How SEC Proxy Voting Rules May Shift the Definition of Fiduciary Duty
Excerpt: "Will mandatory disclosure of mutual fund proxy voting records drive change in the general definition of fiduciary duty, or will the principle of undivided loyalty prevent this development? Part two of a two-part article." (SocialFunds.com)
Fiduciary Duty, Undivided Loyalty, and Socially Responsible Investment Performance
Excerpt: "Does the principle of undivided loyalty preclude fiduciaries from practicing SRI, or will competitive SRI financial performance shift the definition of fiduciary Duty? Part one of a two-part article." (SocialFunds.com)
Links to Items on Executive Comp, Benefits in General
Pilots at US Airways Will Vote on Plan to Cut Pay and Benefits
Excerpt: "US Airways' pilots will get to vote on the company's demand for $300 million in wage and benefit concessions, including an 18.25 percent pay cut and a reduction in pension contributions, the union said last night. The master executive council of the Air Line Pilots Association, which represents US Airways' pilots, agreed to send a tentative agreement with the company to pilots after a 12-hour meeting in Pittsburgh." (The New York Times; one-time registration required)
Human Resource Executive Announces Winning Applications in HR and Training Technology
Excerpt: "In the past, product awards issued by Human Resource Executive magazine were announced in two separate issues–-one devoted to HR products, the other to training applications. This year, in the interest of streamlining the process and bringing the latest features and systems to your attention in one publication, the editors have chosen to combine the contests and have listed below their top 10 choices for HR products and top five choices for training." (Human Resource Executive)
Perspective on the Current Frenzy of Class-Action Employment Litigation
Excerpt: "Unless your company a) is bankrupt, b) has a reputation for being a vicious litigator, and c) has never had a disgruntled employee in its history, you're probably in the cross hairs of a plaintiffs' attorney somewhere casting about for an easy mark for a class-action employment case." (Richard F. Stolz in Human Resource Executive)
Louisiana State Judge Rejects G.ay Marriage Ban
Excerpt: "A state judge on Tuesday threw out a Louisiana constitutional amendment banning same-sex marriage, less than three weeks after voters overwhelmingly approved it. The judge, William A. Morvant of the 19th Judicial District Court, said the amendment was flawed because it had more than one purpose: banning not only g.ay marriage but also civil unions." (AP via The New York Times; one-time registration required)
October 5, 2004, ERLIC Update on Nonqualified Deferred Compensation Provisions in H.R. 4520
Excerpt: "The House and Senate Conferees to the corporate/international tax bill (H.R.4520) are continuing to meet today to try to reach agreement on a final bill. Nonqualified deferred compensation provisions have not yet been brought up for amendment. The Conference Chairman, Bill Thomas (R-CA) wants to finish the conference sometime tomorrow." (The ERISA Industry Committee)
Opinion: Anthem, UnitedHealth, Wellpoint Pay Their CEOs Fortunes
Excerpt: "While 45 million Americans don't have health insurance, the chief executive officers of the major companies that provide health coverage to much of the nation are munificently paid. Among 12 U.S. health insurers, all with 2003 net sales of $1 billion or more, the median and average total pay came to $9 million and $15.2 million, respectively." (Graef Crystal at Bloomberg News)
Will Proposed Legislation Make Deferred Compensation Packages Less Attractive for Executives?
Excerpt: "Congress is taking aim at deferred compensation after recent scandals. At Enron and other companies, declining credit quality triggered accelerated payouts to senior executives shortly before the firms collapsed, leaving lower-level employees holding worthless company stock in their 401(k) accounts." (Financial Planning)
Text of Nonqualified Deferred Compensation Provisions in 'Chairman's Mark' of Corporate Tax Bill (PDF)
19 pages. Excerpt: "House-Senate talks on a final corporate tax bill including nonqualified deferred compensation (NQDC) curbs have shifted into overdrive with the release of a draft bill from conference chair Rep. Bill Thomas (R-CA)." (Mercer Human Resource Consulting)
Text: Description of Nonqualified Deferred Compensation Provisions by Joint Committee on Taxation (PDF)
10 pages. The document describes the treatment of nonqualified deferred compensation plans under the corporate tax bill. (Mercer Human Resource Consulting)
2003 Legislative and Regulatory Year in Review and the Outlook for 2004 (PDF)
31 pages. Excerpt: "Congress faces a considerable amount of unfinished legislative business related to the federal budget and tax matters. Before adjourning at the end of 2003, the Senate failed to act on appropriations legislation to fund federal government agencies for fiscal year 2004, which began October 1, 2003. These budget and tax bills also potentially address some significant provisions related to human resources and benefit programs." (Hewitt Associates)
EBRI Posts Frequently Asked Questions about Employment-Based Benefits
Excerpt: "This section of EBRI's Web site is designed to answer basic questions about major benefit issues and trends. It provides short, graphical answers, with links to the detailed data underlying the figure. In addition, references are provided to the relevant EBRI publication." (Employee Benefit Research Institute)
AAA Stock Options Task Force Letter to FASB on Use of the Fair Value Index Adjusted Method (PDF)
3 pages. Excerpt: "The Academy writes to FASB about a proposal to use a fair value index-adjusted method for valuing employee stock options." (American Academy of Actuaries)
Newly Posted Events
Automatic Rollover/Lost Participants Web Seminar
Nationwide on November 2, 2004
presented by SunGard Corbel
ERISA Workshop
in Texas on November 16, 2004
presented by SunGard Corbel
ERISA Workshop
in Wisconsin on November 17, 2004
presented by SunGard Corbel
ERISA Workshop
in Louisiana on November 18, 2004
presented by SunGard Corbel
ERISA Workshop
in Missouri on November 18, 2004
presented by SunGard Corbel
Fall Seminar
in Massachusetts on November 4, 2004
presented by MA Chapter-National Institute of Pension Administrators
Retirement & Life-Planning Education Webinars for October
Nationwide on October 18, 2004
presented by Planning For Life
SPARK Accredited Retirement Plan Consultant (ARPC) Training and Designation Program
in Massachusetts on November 30, 2004
presented by Society of Professional Administrators and Recordkeepers (SPARK)
SPARK Accredited Retirement Plan Specialist (ARPS) Training and Accreditation Program
in Massachusetts on December 1, 2004
presented by SPARK - the Society of Professional Administrators and Recordkeepers
Newly Posted Press Releases
PSCA's 47th Annual Survey of Profit Sharing and 401(k) Plans Now Available
(Profit Sharing/401(k) Council of America (PSCA))
PBGC Protects Pensions Of Hourly Workers At Kaiser Aluminum
(Pension Benefit Guaranty Corporation (PBGC))
MassMutual Introduces New, Timesaving Features for Retirement Plan Administrators
(MassMutual Retirement Services)
Workscape Executive to Explore Outsourced Benefits Administration Trend at Upcoming 14th Annual Southeast Human Resource Conference
(Workscape)
ICC Plan Announces Relationship with Advisors Capital Resource
(Metrics Partners)
BenefitStreet Selects ICC Plan Solutions as Enrollment Kit Provider
(Metrics Partners)
American Express 401(k) Participant Survey Reveals Individual Confidence in Retirement Planning Continues to be Driven by Goal Setting
(American Express Retirement Services)
TRI-AD Adds New COBRA Web site Administration Features
(TRI-AD)
Retirement & Life-Planning Education Webinars for October
(Planning For Life)
2004 Health Insurance Conference: Consumer Driven Healthcare - Washington State
(IB-Strategies)
USWA to Challenge Court Ruling, PBGC Takeaway of Pensions; Union Calls PBGC Preemptive Attack on Shutdown Benefits ``Outrageous''
(United Steelworkers of America (USWA))
Newly Posted or Renewed Job Openings
Pension Analyst
for Long Island Employee Benefits Group, Ltd.
in NY
Internal Wholesaler
for Principal Financial Group
in MA
Defined Benefits
for Pension Consulting Firm
in MA
Senior Benefits Administrator
for Sodexho
in MD
Benefits Analyst Executive Deferred Compensation Plan
for Target Corporation
in MN
Relationship Manager
for New York Life Investment Management LLC
in MA
CFP
for South Florida RIA, TPA and Record Keeping Firm
in FL
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: