| BenefitsLink Retirement Plans Newsletter |   |
October 7, 2004
Today's sponsor: DATAIR Employee Benefit Systems, Inc.
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(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Remarks: Assist Sec Ann L. Combs at the 57th National Conference of the Profit Sharing/401(k) Council
Excerpt: "Today I want to provide an update on EBSA's outlook and priorities for employer provided retirement plans. But first I want to put them in context by briefly reviewing some of the President's accomplishments in enhancing retirement security and his vision of expanding individual opportunities through an 'ownership society.'" (U.S. Department of Labor)
Overview: Changing 401(k) Defaults on Cashing Out
Excerpt: "Although the majority of workers lucky enough to have a pension will rely on a 401(k) plans, these plans are coming up short. The main reason is that 401(k) plans shift all the risks and decision-making from the employer to the individual, and individuals make mistakes all along the way.' For full text of the 4 page paper in PDF format, go to http://www.bc.edu/centers/crr/facts/jtf_12.pdf. (Center for Retirement Research at Boston College)
Social Investment Research Analysts' Perspectives on Corporate Sustainability Reporting (PDF)
6 pages. Excerpt: "This document represents a collective effort by North American social research analysts at 17 investment firms representing over $147 billion in assets under management to: (1) articulate our expectations for corporate reporting of social and environmental performance information; (2) provide answers to companies' most frequent questions on reporting; and (3) suggest ways companies can enhance the usefulness and credibility of their reports." (Social Investment Forum)
Opinion: The Truth about SRI Mutual Funds
Excerpt: "The term 'socially responsible investing' is so broad it is meaningless. If a fund doesn't own companies involved with gambling and pornography, it can be called socially responsible. Never mind that it owns Halliburton and Monsanto. SRI can be determined by what is called a negative screen, i.e., if you don't do something, you qualify." (Paul Hawken on Dragonfly Media)
Announcement Concerning the AT&T Pension Plan Class Action Lawsuit on Cash Balance Conversions
October 1, 2004. Engers v. AT&T Management Pension Plan, C.A. 98-3660 (D.N.J.) Excerpt: "We are in the final stages of writing briefs for the U.S. District Court in New Jersey in this case. A final reply brief is due October 7th. We expect to post the briefs on behalf of the class on this website at that time. An oral argument may be scheduled in Newark at a later date. When it is scheduled, we will post notice so class members can attend." (ERISA Pension Claims)
The Most Catastrophic QDRO Mistake -- and How to Avoid Making It in the Divorce Cases You Handle
Excerpt: "Over the years, the one recurring situation that has presented the biggest problem for our clients (and ourselves) is any case where you wind up with 'dueling QDRO's'. This happens when each attorney hires an expert to draft an order and one, or both, of the experts write orders that are skewed to the interest of the client of the attorney for whom they are working." (Divorce, Pensions and Retirement Benefits on Divorcenet.com)
Federal Thrift Savings Plan Funds Continue Steady Growth
Excerpt: "Thrift Savings Plan funds continued to gain value in September, according to Federal Retirement Thrift Investment Board figures released Monday. After a rough July, three of the funds - C, S and I - experienced modest gains in August. The G Fund saw no change, while the F Fund dropped less than a quarter of a percent in September." (GovExec.com)
House Considers a More Expensive Overhaul of Thrift Savings Plan Rules
Excerpt: "Two bills -- and a billion dollars' worth of difference in them. That's the bottom line on efforts to revamp how the Thrift Savings Plan works. Legislation in the House and Senate would change TSP rules, allowing federal employees and military personnel to start or change their TSP contributions at any time instead of just during the 'open seasons' held twice each year." (The Washington Post; one-time registration required)
U.S. Pension Agency Chief Sees Pension Insurance Program Solvency Risk
Excerpt: "The longer-term solvency of the U.S. fund that insures traditional pensions is at risk the director of the Pension Benefit Guaranty Corp. told lawmakers on Thursday. PBGC Director Bradley Belt said he expected to report a significantly increased deficit for fiscal 2004 that ended Sept. 30, eclipsing 2003's record $11.2 billion deficit for the single employer insurance fund." (Reuters)
Amex Participant Satisfaction Survey: Goal Setting Improves Confidence in Retirement Planning
Excerpt: "Those who set goals for their retirement saving are more likely to consider themselves confident in their retirement planning, according to a customer survey conducted by American Express Retirement Services. The 2004 version of the Participant Satisfaction Survey, ..., found that participants who said they have calculated the amount of money they will need to retire were more likely to be 'very confident' that they are doing a good job ...." (HR.BLR.com)
Privatizing Social Security Puts More at Risk
Excerpt: "Wall Street can barely wait to get its hands on the $940 billion in fees ... that it will collect if Social Security is converted into individual investment accounts, .... Young workers are intrigued by the idea of diverting their payroll taxes into Wall Street accounts. Privatizers promise ownership of accounts and big investment returns. What they fail to mention are the costs ...." (The Miami Herald; one-time registration required)
Letters to the Editor on an October 2, 2004, NYT Editorial on Saving Social Security
Excerpt: "I applaud your sound and sensible recommendations for saving Social Security (editorial, Oct. 2). Increasing the amount of wages subject to the Social Security payroll tax imposes very little hardship on top earners and makes a major contribution to Social Security funds." (The New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
More Michigan Companies Offering Same-Sex Domestic Partner Benefits to Employees
Excerpt: "After initially lagging behind companies in other states, a growing number of Michigan employers now are offering same-sex domestic partner benefits. About 55 Detroit area employers - including private companies, government agencies and nonprofits - now offer same-sex benefits, up from just a handful in 1997, according to the Human Rights Campaign, a Washington-based g.ay advocacy group." (AP via The Miami Herald; one-time registration required)
The Potential Impact of the Proposed Nonqualified Deferred Compensation Legislation on 457 Plans (PDF)
4 pages. Excerpt: "The purpose of this alert is to highlight for tax-exempt employers the key areas of their Code Section 457 plans that would likely be affected by the enactment of the proposed nonqualified deferred compensation legislation." (Gardner Carton & Douglas)
Washington Legislative Wrap Up, 108th Congress (2003-2004) (PDF)
6 pages. Excerpt: "The chart of federal legislative and regulatory proposals concerning employee benefits of interest to NCTR members has been updated to be current as of October 6, 2004." (National Council on Teacher Retirement)
Civil Servant Bonuses Bill Passes House
Excerpt: "Federal agency heads would be able to offer employees bonuses of up to 100 percent of their annual salaries as an incentive to join or stay in the federal work force under legislation the House passed Wednesday. The measure, aimed at helping the government recruit and retain highly qualified people who might otherwise join the private sector, passed on a voice vote and now returns to the Senate for a final vote before going to the president." (AP via The New York Times; one-time registration required)
415(m) Plans Will Likely Be Exempted from Proposed Deferred Compensation Rules (PDF)
1 page. Excerpt: "As I reported to you in Federal Update 2004-23, provisions in corporate and international tax reform legislation passed by the House and Senate would substantially change the rules applicable to nonqualified deferred compensation plans (H.R. 4520, the 'American Jobs Creation Act of 2004'). In general, the provisions would tax immediately amounts deferred (including earnings) under a nonqualified deferred compensation plan unless certain requirements were satisfied." (National Council on Teacher Retirement)
Why You Should Pay Off Your Home Mortgage Before You Retire
Excerpt: "More Americans are quitting the work force without retiring their mortgage. Big mistake? It could prove more taxing than they ever imagined. According to the most recent Federal Reserve Survey of Consumer Finances, 32 percent of households headed by someone age 65 to 74 were carrying home-mortgage debt as of 2001, up from 26 percent three years earlier." (Wall Street Journal via SFGate.com)
Newly Posted Events
2nd Annual Made in America. The 2005 Taft Hartley Benefits Summit
in California on February 6, 2005
presented by Financial Research Associates
ERISA Workshop
in New York on December 1, 2004
presented by SunGard Corbel
ERISA Workshop
in New Mexico on December 1, 2004
presented by SunGard Corbel
ERISA Workshop
in Colorado on December 2, 2004
presented by SunGard Corbel
ERISA Workshop
in Pennsylvania on December 2, 2004
presented by SunGard Corbel
ERISA Workshop
in Washington on December 2, 2004
presented by SunGard Corbel
ERISA Workshop
in Kansas on December 3, 2004
presented by SunGard Corbel
ERISA Workshop
in Massachusetts on December 3, 2004
presented by SunGard Corbel
ERISA Workshop
in Michigan on December 3, 2004
presented by SunGard Corbel
ERISA Workshop
in California on December 3, 2004
presented by SunGard Corbel
ERISA Workshop
in Ohio on December 8, 2004
presented by SunGard Corbel
ERISA Workshop
in Indiana on December 8, 2004
presented by SunGard Corbel
ERISA Workshop
in Pennsylvania on December 8, 2004
presented by SunGard Corbel
ERISA Workshop
in North Carolina on December 9, 2004
presented by SunGard Corbel
ERISA Workshop
in Iowa on December 9, 2004
presented by SunGard Corbel
ERISA Workshop
in District of Columbia on December 9, 2004
presented by SunGard Corbel
ERISA Workshop
in New York on December 10, 2004
presented by SunGard Corbel
Stars and Stripes 2005 National Employee Benefits Summit
Nationwide on April 3, 2005
presented by Financial Research Associates
Newly Posted Press Releases
2004 COBRA Survey: Cost For Continuing Health Coverage Is 146% Of Active Employee Cost
(Spencer Benefits Reports)
U.S. Labor Department Extends Annual Reports Deadline After Hurricane Jeanne Hits Puerto Rico
(U.S. Department of Labor, Office of Public Affairs, New York, N.Y.)
Newly Posted or Renewed Job Openings
Paralegal
for American International Group, Inc.
in NY
Client Services Representative
for NADA Retirement Trust Administrators Inc.
in VA
Compensation Strategy Leader
for Hewitt Associates
in IL
Senior Employee Ownership Consultant
for Beyster Institute, UC San Diego
in CA
Senior Employee Benefits Analyst - Retirement
for Automobile Club of Southern California
in CA
Chief of Pension Education
for ASPA
in DC
Consulting Actuary
for The Angell Pension Group, Inc.
in RI
Benefit Project Specialist
for Aon Consulting
in MD
Retirement Sales/Business Development
for ABG Consultants
in UT
Compliance Specialists
for The ANGELL Pension Group, Inc.
in RI
Implementation Project Manager I
for Great-West Life & Annuity
in CO
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