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December 10, 2004
Today's sponsor: APSCREEN, Employee Locator
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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)
Pennsylvania Issues Tax Ruling on Employer Matching Contributions
Excerpt: "The Pennsylvania Department of Revenue has ruled that an employer's matching contributions to an employee's savings plan are exempt from the state's income tax in the year of contribution." (PLANSPONSOR.com; one-time registration required)
NCPERS Calls Plan to Privatize California Pension System 'Dumb'
Excerpt: "The measure ... would eventually scrap California's $177 billion Public Employee Retirement System (CalPERS), as well as 20 independent county retirement systems and the California State Teachers Retirement System (CalSTRS). In its place would be a 401K-style 'defined contribution' system ..." (National Conference on Public Employee Retirement Systems)
Supreme Court Denies Cert in First Circuit Decision Allowing Creditor Access to Paid Pension Benefit
Excerpt: "Hoult v. Hoult ... [held] that ERISA's anti-alienation provision did not bar a creditor from access to pension benefits once they were distributed to the participant by the plan administrator" (CCH News & Information Library)
Woman Posed As Dead Sister to Collect Pension
Excerpt: "A Westmoreland County [Pa.] woman admitted in federal court this week that she received more than $75,000 in United Mine Workers of America pension benefits by pretending to be her dead sister." (Pittsburgh Post-Gazette)
Link to Practitioner Forum Discussion on Proposed Phased Retirement Regulations
Excerpt: "The following is the transcript of an informal discussion of employee benefit practitioners held in Washington, D.C. on November 15, 2004. The topic is the proposed regulations on phased retirement issued by the IRS on November 10, 2004." (BNA Tax Management)
Overview: DB Plans Must Make Distributions (PDF)
Excerpt: "Most defined benefit plans begin making pension payments at a participant's RBD, rather than making just an MRD payment. However, MRD rules do apply and may be most notable when an employee earns additional benefits after reaching his RBD." (CIGNA's Pension Analyst)
San Diego's City Attorney Begins Probe of Pension Fund
Excerpt: "San Diego's new city attorney said Thursday that he was investigating the handling of the city's pension fund for possible criminal acts. The pension fund is already the subject of investigations by the U.S. Justice Department, FBI and the Securities and Exchange Commission." (AP via NCTimes.com)
IBM's Cash Balance Move Could Start Trend
Excerpt: "IBM's (IBM) decision to drop cash-balance plans for new hires could put pressure on other companies to close similar programs amid lawsuits and attacks from critics who say the plans hurt older workers." (USA Today)
Social Security Changes Feasible, White House Says
Excerpt: "The Bush administration said yesterday that it can create private Social Security accounts for younger workers without raising taxes or breaking the president's pledge to cut the deficit in half by 2009. " (Washington Post; one-time registration required)
Report Denies Windfall from Social Security Partial Privatization
Excerpt: "The Securities Industry Association said in a report that partial privatization under scenarios being considered could generate as little as $39 billion for investment firms over the next 75 years and no more than $279 billion. " (Washington Post; one-time registration required)
Many Employers Doing Away with Traditional Pension Plans
Excerpt: "A 401K savings plan isn't your father's retirement plan, but it is the choice of more and more corporations trying to stabilize the bottom line. NPR's Inskeep talks with Dallas Salisbury, President and CEO of the Employee Benefit Research Institute, about IBM's decision to jettison traditional pensions -- and why the move represents the future of retirement options." (National Public Radio)
2004 Year-End Compliance Reminders for DC Plans (PDF)
6 pages. Excerpt: "Plan sponsors that have decided to implement optional EGTRRA provisions in 2004, such as catch-up contributions, must adopt appropriate 'good faith' EGTRRA plan amendments by the last day of the 2004 plan year." (Prudential Retirement's Pension Analyst)
Opinion: Formula for Social Security Partial Privatization is 'Borrow, Speculate and Hope'
Excerpt: "[I]t is now apparent that the Bush administration's privatization proposal will amount to ... borrow trillions, put the money in the stock market and hope." (Paul Krugman in the New York Times; one-time registration required)
Opinion: Look to Chile for Social Security Reform Principles
Excerpt: "During his visit here last month, President Bush pointed out that the Chilean pension model was a 'great example' for Social Security reform in the United States. For 24 years, I have championed the Chilean retirement system, which is based on ownership, choice and personal responsibility." (José Piñera via International Center for Pension Reform)
Link to PBGC Publications in Spanish
Excerpt: "Casi todas las publicaciones de la PBGC están disponibles en el sitio de Web. Si desea copias imprimidas de cualquier publicación favor de escribir, llamar o mandar un correo electrónico a PBGC." (Pension Benefit Guaranty Corporation)
Text of December 2004 Newsletter from University of Michigan Retirement Research Center
Excerpt: "MRRC research is germane to the topic of individual accounts [as part of Social Security reform]. Key findings from completed MRRC research projects that are especially relevant for building policy are highlighted in this newsletter." (University of Michigan Retirement Research Center)
Links to Items on Executive Comp, Benefits in General
AARP Surveys Virginia Businesses About Plans for Older Workers
Excerpt: "Given their desire to keep skilled workers and their positive evaluation of older workers' solid experience in the job or industry, Virginia businesses should be considering strategies to retain older workers. Yet, this AARP survey of 1,056 businesses in the Old Dominion found that ..." (AARP Research)
Recommended Action Steps for Nonqualified Deferred Compensation Plans of Tax-Exempt Employers
Excerpt: "Below are a few examples of the effects of the Act on nonqualified deferred compensation plans (NQDCPs) maintained by tax-exempt organizations: ..." (Hanson Bridgett)
Overview: Nonqualified Deferred Compensation Plans for Tax-Exempt Employers
Excerpt: "This Act, which is effective January 1, 2005, will adversely affect many executives of tax-exempt organizations. Every participant in a NQDCP could suffer severe tax penalties if the new rules are not met." (Hanson Bridgett)
USERRA Did Not Afford Military Reservists 'Escalator' Protection
Excerpt: "Fifteen employees of the San Antonio Fire Department who are members of either the United States military reserves or the National Guard ... asserted that the City's collective bargaining agreement and policies regarding military leave of absence deprived them of straight and overtime pay, opportunities to earn extra vacation leave and vacation scheduling flexibility and opportunities to secure unscheduled overtime work and job upgrades." (Cypen & Cypen)
Overview: New IRS Rulings Include Signing Bonuses and Cancellation of Contract Payments as 'Wages' (PDF)
3 pages. Excerpt: "On November 23, the IRS released Revenue Rulings 2004 109 and 2004-110, in which it expanded the definition of 'wages' for employment tax purposes (Federal Insurance Contributions Act (FICA), Federal Unemployment Tax Act, and Federal income tax withholding)." (Morgan Lewis)
Newly Posted Events
Advanced IRAs 2005
in North Dakota on January 19, 2005
presented by BISYS Retirement Services
Advanced IRAs 2005
in Minnesota on January 19, 2005
presented by BISYS Retirement Services
Advanced IRAs 2005
in North Dakota on January 21, 2005
presented by BISYS Retirement Services
Advanced IRAs 2005
in Minnesota on January 21, 2005
presented by BISYS Retirement Services
Annual Benefits Fair And Trade Show
in Massachusetts on May 25, 2005
presented by New England Employee Benefits Council
Basic IRAs 2005
in Minnesota on January 18, 2005
presented by BISYS Retirement Services
Basic IRAs 2005
in North Dakota on January 18, 2005
presented by BISYS Retirement Services
Basic IRAs 2005
in North Dakota on January 20, 2005
presented by BISYS Retirement Services
Basic IRAs 2005
in Minnesota on January 20, 2005
presented by BISYS Retirement Services
IRA Online Institute
Nationwide on January 17, 2005
presented by BISYS Retirement Services
Mercer’s HIPAA Security Rule Web Briefing Recording
Nationwide on December 10, 2004
presented by Mercer Human Resource Consulting
Plan Structure
Nationwide on January 25, 2005
presented by NAGCDA (National Association of Government Defined Contribution Administrators, Inc.)
Seventh Annual "Best Practices" Conference
in Massachusetts on December 8, 2005
presented by New England Employee Benefits Council
Newly Posted Press Releases
Women's Institute for a Secure Retirement Convenes National Symposium
(Women’s Institute for a Secure Retirement (WISER))
Consumer Reports Launches Public Education Campaign to Help Consumers Save on Medicines
(Consumers Union)
Prudential Retirement Introduces Fiduciary Protection Program; Comprehensive New Program of Tools and Services Helps Plan Sponsors Manage the `New Realities' of Fiduciary Risk
(Prudential Financial, Inc.)
Comptroller General To Appoint Members of New Citizens' Health Care Working Group
(U.S. Government Accountability Office)
After A Quarter Century Trial, The Results Are In: Chile's Private Pension System Has Failed
(Center for Alternative National Development (CENDA)
Newly Posted or Renewed Job Openings
Retirement Plan Wholesaler
for Retirement Marketing Specialists
in DC, DE, MD, PA, VA
Recordkeeper/401(k) Administrator
for ATR, Inc.
in PA
Third Party Pension Administrator
for Schiller's Pension Consulting
in CA
Senior Employee Benefits Analyst - Retirement
for Automobile Club of Southern California
in CA
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