| BenefitsLink Retirement Plans Newsletter |   |
November 3, 2004
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Aon Employees Say the Firm Misled on Company Stock by Allowing Investment in 401(k) Plan
Excerpt: "Employees of insurance broker Aon Corp. slapped the firm with a lawsuit last Friday alleging the company failed to protect 401(k) participants from imprudent investments in company stock. The suit, filed by Wolf Haldenstein Adler Freeman & Herz LLP, becomes the latest in a rash of similar complaints against employers under the Employee Retirement Income Security Act." (BenefitNews Connect)
The IRA Rollover Wave Gathering Speed; Advisers With Right Tools and Knowledge Can Ride It
Excerpt: "A recent FRC report says that two demographic elements provide an underlying foundation to these IRA trends. Aging baby boomers will retire, shifting money from company plans to IRAs, while increasing job mobility will convince departing employees to take their money with them. 'Job changers tend to produce more rollovers, but retirees tend to have higher balances,' explains [FRC's] Chris Brown ..., adding that both markets may offer opportunities for financial planners." (The Thomson Corporation and Financial-Planning.com)
Additional Strategies to Reduce Taxes on Inherited Retirement Money
Excerpt: "The second part of this article will discuss how the maxi-IRA can be used as an effective asset protection tool. It will also address what strategies advisers can take to lessen the 75% tax trap when money is in a qualified retirement plan (profit-sharing or defined benefit plan)." (The Thomson Corporation and Financial-Planning.com)
Pension Savings and Defined Benefit Reform Proposals Likely to Be on 2005 Congressional Agenda
Excerpt: "Legislation designed to enhance retirement savings is likely to be on the agenda of Congress in 2005, but the form of such legislation will depend on the outcome of the Presidential election, according to Brian H. Graff, Executive Director of the American Society of Pension Professionals and Actuaries (ASPPA). Graff spoke at the 2004 Annual ASPPA Conference in Washington, DC on October 24, 2004." (CCH Pension & Benefits News)
How to Open Your Own Socially Responsible Investment Retirement Portfolio
Excerpt: "In this real-life profile, an SRI-oriented financial planner advises a 34 year-old woman how to transfer her non-SRI retirement account into a portfolio of SRI mutual funds." (SocialFunds.com)
A Gold-Plated 401(k) Replaces a Terrible Retirement Plan at Cardiology Practice
Excerpt: "If you're stuck in a lousy 401(k), show this article to your boss. It proves that excellent plans exist among small and mid-size employers, as well as the Fortune 500. After dredging up an array of bad retirement-plan practices, such as 401(k) plans loaded with high-cost annuities, I found a plan that's the model of excellence." (MSN Money)
Links to Items on Executive Comp, Benefits in General
Letter to Treasury Department on Guidance Under Section 409A of P.L. 108-357 on NQDC Plans (PDF)
Excerpt: "As a follow-up to the Treasury Department's invitation to provide input into the issues that Treasury and the IRS should address in guidance regarding Section 409A of the American Jobs Creation Act, P.L. 108-357, the HR Policy Association is submitting the attached recommendations for issues to be clarified in the short term." (HR Policy Association via Mercer Human Resource Consulting)
American Benefits Council Letter to Treasury Department on Guidance on New NQDC Restrictions (PDF)
Excerpt: "We are writing on behalf of the member companies of the American Benefits Council ... to request immediate and broad transition relief under new [IRC] Section 409A, which was enacted as part of the American Jobs Creation Act of 2004, ..., and will govern the taxation of deferred compensation effective January 1, 2005. [T]he Council and its member companies have serious concerns ... about the application of Code Section 409A, ...." (American Benefits Council via Mercer Human Resource Consulting)
The 2004 Form 5500; Lost (and Found) EINs and Other Updates
Excerpt: "The Form 5500 and Form 5500-EZ for plan year 2004 are essentially unchanged from 2003. Some modifications ... made to the instructions and attachments to be filed with the forms, [are] noted .... The good news is that IRS has stopped deactivating retirement plan EINs for 'non-use' as of January 2004. .... A change has been made to the instructions for the 2004 Form 1099-R, used to report distributions from retirement plans." (form5500help.com)
Phasing Out of Work: Easing Into Retirement Can Be a Boon to Worker and Company
Excerpt: "Retiring from a lifetime in the work force traditionally means cleaning out a desk or locker, the bittersweet moments of a retirement party and a sudden shift to a vastly different daily routine. .... 'Phased retirement can be absolutely ideal for workers and employers when it is fully voluntary and when workers fully understand what the offer entails,' said Sara Rix, senior policy adviser for AARP, a lobbying group for older-than-50 Americans." (The Star-Ledger; subscription required)
Newly Posted Press Releases
State of Oklahoma's Online Benefits Enrollment System Exceeds Expectations
(The State of Oklahoma Employees Benefits Council)
Newly Posted or Renewed Job Openings
Manager, Compliance Testing
for Diversified Investment Advisors
in NY
Business Developer Manager
for Merrill Lynch
in CA, IL, NY
Senior Recordkeeper/Tester
for Wachovia Corporation
in NC
Special Products Analyst
for ICMA Retirement Corporation
in DC
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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