| BenefitsLink Retirement Plans Newsletter |   |
October 13, 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)
Federal Reserve Rate Moves Should Trigger Review of 401(k) Holdings
Excerpt: "With the stock market just sputtering along this year and the Federal Reserve raising interest rates, it may be time to review the holdings in your 401(k) retirement account. Stocks aren't expected to do as well this year as they did last. The Dow Jones industrial average, for example, is down some 2 percent so far this year after rising more than 25 percent in 2003.' (AP via observer-reporter.com)
401(k) Service Provider Directory
Excerpt: "Welcome to the Service Provider Directory. The Service Provider Directory provides company information and detailed product profiles on the leading Service Providers in the 401(k) industry." (401kExchange.com; one-time registration required)
Overview: Cash Balance Controversy Costly to All of Us But Especially to IBM
Excerpt: "The ... article is a slightly modified and updated version of a piece that appeared in the September 6, 2004 issue of Barron's under the title 'Against the Trend; Don't outlaw the cash-balance pension plan'" (Barron's via Pension & Benefit Power)
Text of Employees' Brief on Motion for Summary Judgment in AT&T Cash Balance Conversion Case (PDF)
44 pages; file 7/7/04. Excerpt: "AT&T's failure to disclose the relative values of benefit options violates the fiduciary duty to disclose, the SPD rules, and the Treasury regulation on consent for immediate distributions. There is no exception to the disclosure obligation for philosophical differences about 'value.'" (ERISAPensionClaims.com)
Text of Employees' Reply Brief on Motion for Summary Judgment in AT&T Cash Balance Conversion Case (PDF)
20 pages; filed 10/7/04. Excerpt: "AT&T did not give employees advance notice of a significant reduction in accrual rates." (ERISAPensionClaims.com)
Solo 401k Attractive for Small Business Loans
Excerpt: "When seeking money to boost their new business many entrepreneurs are turning to the Solo 401k to get a loan, says Lamaute Capital, Inc., an investment firm specializing in retirement plans. Solo 401k retirement plans with a loan feature first became available after the tax law changes of 2001. These changes allowed a business owner to take a loan from his 401k account and therefore avoid the 10% tax penalty generally associated with early withdrawals." (401khelpcenter.com)
A SMarT Way to Encourage 401(k) Investing and Overcome Loss Aversion, Inertia and Procrastination
Excerpt: "Seeing the problem in behavioral terms opens up opportunities to help employees do the right thing, said DiCenzo. The idea is to turn inertia and procrastination into behavioral advantages. That is the premise behind the SMarT Plan, a 401(k) program founded on the principles enunciated by Shlomo Benartzi and Richard H. Thaler in 'Save More Tomorrow: Using Behavioral Economics to Increase Employee Savings,' a paper published in August 2001." (Southern Connecticut Newspapers, Inc.)
Investing and Retirement Income and Social Security Benefits Considerations
Excerpt: "Many people feel that the odds of getting Social Security ... benefits at retirement are about the same as finding the Hope Diamond in a Cracker Jack box. This is probably an overreaction, although it is likely that benefits may be reduced, the retirement age raised, or both. If you're planning on retiring without Social Security, however, you're probably not saving enough." (USA TODAY via Yahoo! News)
Keller Rohrback LLP Law Firm Investigating Delta Over Alleged Violations of ERISA
Excerpt: "'The Seattle-based law firm's investigation focuses on investments in company stock by the Delta Family Care Savings Plan between Sept. 15, 2000 and the present." (Cincinnati Business Courier bizjournals.com; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Analysis: Nonqualified Deferred Comp Legislation Requires Immediate Consideration of Existing Plans (PDF)
6 pages; useful question-and-answer format. Excerpt: "[T]he legislation is expected to create $158 million in tax revenues in 2005 and $1.05 billion in tax revenues over the next ten years from nonqualified deferred compensation plans. To avoid being part of these revenue numbers, plan sponsors must act promptly." (Womble Carlyle)
Overview: New Legislation to Impact Nonqualified Deferred Compensation (PDF)
4 pages. Excerpt: "The Act does not include provisions previously included in the Senate bill (the 'Jumpstart Our Business Strength Act of 2004,' S. 1367) that would have prohibited the deferral of stock option and restricted stock gains and imposed restrictions on investment options under nonqualified deferred compensation plans." (LeBoeuf, Lamb, Greene & MacRae, L.L.P.)
FASB Delays Stock Options Expensing Rule
Excerpt: "A controversial measure that would have made expensing of stock options compulsory has been put off for six months, the Financial Accounting Standards Board announced on Wednesday." (Financial Times)
EBRI Offers Cafeteria Plan/401(k) Plan Federal Tax Savings Calculator for Employees
Excerpt: "Increase participation by providing your employees with a powerful, easy-to-use tool to estimate their federal tax savings from participating in your benefit plans. Our calculator is a 'must have' tool for every employer that sponsors a cafeteria plan, transportation plan, and/or a 401(k) or 403(b) plan and for anyone that designs or administers plans for others." (Employee Benefits Institute of America)
Carol Calhoun's Employee Benefits Site Completely Redesigned. Some new features:
Search form on every page; Official documents; See popular features; State retirement systems updated; Dated list of publications; Site map (Calhoun Law Group, P.C.)
2005 Vendor Directory from Workforce.com
Excerpt: "Browse or keyword-search through 2,863 product and service listings (2,688 companies) in 140 categories.' Categories include Benefits Administration, Pension Administration/Management, Financial/Investment Planning, Pension Plan Design/Consultants, Third-party Administrators (Health Benefits), more. (Workforce.com)
Full Text of Fall 2004 Issue of NRLN Focus Published by the National Retiree Legislative Network (PDF)
4 pages. The issues includes two articles: A View from Washington and NRLN Releases Health Care Reform Report. (National Retiree Legislative Network)
How Will We Pay for Social Security and Medicare for the Next 75 Years?
Excerpt: "Social Security and Medicare are making future promises much greater than the taxes that will be collected at current rates. Unfortunately, some policymakers seem to be intent on making the problem worse, not better. Reforms are needed that create more saving today for retirement and increase the nation's capital stock." (National Center for Policy Analysis)
Newly Posted Events
"Getting It Right": Know Your Fiduciary Responsibilities
in Washington on November 9, 2004
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
"Getting It Right": Know Your Fiduciary Responsibilities
in Texas on December 2, 2004
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
15th Annual National Institute on Health and Welfare Benefit Plans Seminar
in District of Columbia on October 21, 2004
presented by McDermott Will & Emery LLP
Controlling Benefit Costs: From Tactical to Strategic
in New York on October 15, 2004
presented by WEB-New York
Final COBRA Notice Regulations
in New York on October 22, 2004
presented by WEB-New York
HRA/Consumer Driven Health
Nationwide on October 13, 2004
presented by National Association of Professional Benefit Administrators (NAPBA)
HSAtoday(TM) Concept Seminar
in Arkansas on October 14, 2004
presented by DataPath, Inc.
New York University 63rd Institute on Federal Taxation
in New York on October 17, 2004
presented by McDermott Will & Emery LLP
Overview of Top-heavy Plan Rules and Requirements
Nationwide on November 15, 2004
presented by McKay Hochman
Qualified Domestic Relation Order (QDROS) and Qualified Medical Child Support Orders (QMCSOs)
in New Jersey on October 19, 2004
presented by Worldwide Employee Benefits Network (WEB)
Newly Posted Press Releases
Bonnie Whyte appointed ECFC President - Named to ECFC Board of Directors
(Employers Council on Flexible Compensation (ECFC))
Health Care Costs Show Signs of Moderating, but Still Outpace Inflation
(Hewitt Associates LLC)
Disaster Relief Announcements 04-25 through 04-32
(Pension Benefit Guaranty Corporation (PBGC))
HSAtoday(TM): DataPath's HSA Solution
(DataPath, Inc.)
Retirement Plan Participation Ends Decline; Increases for Full-Time, Full-Year Workers
(Employee Benefit Research Institute (EBRI))
Major Medical Plan Outsources Administration and Plan Management to Gilsbar, Inc.
(Gilsbar, Inc.)
With Flu Vaccination Scarce, Companies Should Take Special Steps to Combat 'Presenteeism' This Flu Season
(CCH Incorporated)
Benefits & Compensation Digest Examines Retirement Timing of Married Couples
(International Foundation of Employee Benefit Plans)
Guide to Qualified Retirement Plans: A Plain Language Primer Discusses Retirement Plans at a Basic Level
(International Foundation of Employee Benefit Plans)
New Survey Results Highlight Severance Policies
(International Foundation of Employee Benefit Plans)
Assist America Teams with TD International to Expand Security Capabilities - SecurAssist® Addresses The Complexities Of The Business Traveler
(Assist America, Inc.)
Chiropractic Health Plan Benefits Proven to Substantially Reduce Employers' Annual Healthcare Expenses
(American Specialty Health (ASH))
Newly Posted or Renewed Job Openings
DB / DC Administrator
for Howard Simon & Associates, Inc
in IL
Marketing Communications Director
for Diversified Investment Advisors
in NY
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