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April 22, 2005
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Changes to Pension Plan Reporting Rules Could Push $650 Billion Out of Stocks
Excerpt: "Efforts to change pension plan reporting rules could transform allocation of U.S. pension assets and reshape the market for bonds and other debt securities. Pension fund experts made those predictions here Thursday at a seminar sponsored by a unit of Merrill Lynch & Company Inc., New York." (National Underwriter)
ERIC Says Proposed PBGC Premium Increases Will Cost Jobs & Leave Future Retirees with Less Money (PDF)
2 pages. Excerpt: "An unprecedented $18.1 billion tax increase on pension plans assumed in the House Budget Resolution (H.Con.Res. 95) will cost jobs and leave workers who retire in the future with less money. If companies who voluntarily sponsor pension plans for their employees are forced to pay this unnecessary and excessive tax increase, they must divert cash from business investment ..., reduce funding for their pension plans, and/or reduce benefits paid from those plans in the future." (The ERISA Industry Committee)
Corrected Link: New Bankrup.tcy Law Is Good News for Tax-Exempt Retirement Plans and Participants
Excerpt: "The new bankrup.tcy law, signed by the President on April 20, 2005, provides broad protections for benefits under tax-exempt retirement funds. Basically, here is how the law will operate: The new bankrup.tcy law will effectively pre-empt states from opting out of the 'federal exemption list' relating to 'tax-exempt retirement' funds." (Ice Miller)
Compilation of Helpful Links on the Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005
Excerpt: "President Bush has signed into law the new bankrup.tcy legislation: 'The Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005.' Here are some helpful links for those trying to understand just what the legislation means for retirement plans: ...." (Attorney B. Janell Grenier via BenefitsBlog.com)
Overview: Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005 Enacted (PDF)
4 pages. Excerpt: "On April 20, 2005, President Bush signed into law the Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005 (the 'Amendments'). The new law substantially modifies the availability of bankrup.tcy relief for individuals by establishing a 'means test' which they will have to meet to be eligible for relief under chapter 7, or liquidation bankrup.tcy." (Powell Goldstein LLP)
April 2005 Company Stock Bulletin Reviews Recent ERISA Company Stock Cases (PDF)
Excerpt: "In this Bulletin, we look at two recent ERISA company stock drop cases: In re AOL Time Warner Inc. Securities and ERISA Litigation, No. 02 cv 8853 (S.D.N.Y. March 9, 2005) and In re Polaroid ERISA Litig., No. 03 Civ. 8335 (WHP), 2005 U.S. Dist. LEXIS 5386 (S.D.N.Y. March 31, 2005) Both cases involve failed motions to dismiss for a majority of the defendants." (Jenner & Block LLP)
Bill Would Restore Pension Credits to Returning Federal Employees
Excerpt: "A bill that would allow former government workers to recoup their pension credits when returning to federal employment has been introduced in the House by Rep. James P. Moran Jr. (D-Va.). Under the Federal Employees Retirement System, employees who leave the government can get a refund of their retirement contributions, a decision that erases their pension credits. If they rejoin the government, they are not allowed to pay back the money and restore their pension." (The Washington Post; one-time registration required)
Opinion: Social Security Private Accounts, Public Accountability
Excerpt: "So few specifics of President Bush's Social Security proposal have been made public that it is difficult to say which will make trouble. But one person who should be seriously concerned about the details is Alan Greenspan, chairman of the Federal Reserve." (The New York Times; one-time registration required)
Mutual Fund Trading Abuses: Lessons Can Be Learned from SEC Not Having Detected Violations Earlier (PDF)
52 pages. Excerpt: "[T]his report (1) identifies the reasons that SEC did not detect the abuses at an earlier stage and the lessons learned in not doing so, and (2) assesses the steps that SEC has taken to strengthen its mutual fund oversight program and improve mutual fund company operations. [Highlights of report are at http://www.gao.gov/highlights/d05313high.pdf]" (U.S. Government Accountability Office)
Summary of Latest Findings from the Segal Survey of Retirement Benefits at Large Law Firms (PDF)
2 pages. Excerpt: "The Segal Survey of Retirement Benefits at Large Law Firms was conducted in late 2003 as a follow up to a survey first conducted in 1993. A report summarizing the results of the follow-up survey, most of which were collected during 2004, is available online, ...." (The Segal Company)
Termination Notification Liability Depends on Date of Asset Purchase
Excerpt: "A federal judge has issued a tentative ruling against a group of employees who claim that their former employer should have given them 60 days termination notice or, alternatively, 60 days severance benefits..... The employees had contended that the Department of Labor interprets the act to mean the buyer becomes responsible to notify employees at the time of the sale, not the effective date of the sale. Schwarzer, however, disagreed." (PLANSPONSOR.com; one-time registration required)
Senator Grassley to Try New Strategy on Private Accounts for Social Security
Excerpt: "The Senate Finance Committee chairman, Charles E. Grassley, said Thursday that he would try to produce a Social Security bill with the support of Republicans alone, in an effort to jump-start a legislative effort now stymied by solid Democratic opposition." (The New York Times; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Overview: Supreme Court Makes It Easier to Bring Age Discrimination Claims (PDF)
3 pages. Excerpt: "Aged-based claims premised only on the impact of an employer's practice or decision now are a viable alternative to disparate treatment claims under the ADEA. Although this ruling may give rise to additional age claims, employers should be able to avoid liability if their practices and decisions are based on reasonable factors other than age." (Powell Goldstein LLP)
Connecticut Civil Union Bill Could Affect Employer State Tax Computations and Benefit Offerings
Excerpt: "Connecticut employers may need to change their HR recordkeeping systems to reflect the potential changes in the handling employee benefits under the state's new civil union law. Benefits consultant Andrew Sherman, a senior vice president at the Segal Company, said the differences will come in the tax treatment of both salary and benefits at the state level since federal law doesn't recognize domestic partners or civil unions." (PLANSPONSOR.com; one-time registration required)
Hewitt Federal Legislation Quick Guide Updated as of April 19, 2005
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates)
Greenspan Urges Congress to Rein in Entitlement Programs -- Social Security and Medicare
Excerpt: "Alan Greenspan, the chairman of the Federal Reserve, urged lawmakers on Thursday to scale back promised benefits for both Social Security and Medicare 'sooner rather than later.' Expressing particular alarm about health costs and Medicare, Mr. Greenspan warned that the federal budget was on an 'unsustainable path' that would lead to a vicious circle of higher deficits, higher interest rates and even higher borrowing." (The New York Times; one-time registration required)
Newly Posted Events
3rd Annual 412(i) Summit
in Washington on July 21, 2005
presented by 412i Company
Annual Benefits and Compensation Conference: Negotiate Your Way to Success & Happiness!
in Maryland on May 5, 2005
presented by Worldwide Employee Benefits Network (WEB) - Baltimore Chapter
Newly Posted Press Releases
PSCA Comments on Senator Bingaman's Automatic Enrollment Plans
(Profit Sharing/401(k) Council of America (PSCA))
WageWorks Launches ''Health Care Choice Account''; Single Consolidated Spending Account Provides Unprecedented Choice and Quality for Employers and Employees
(WageWorks Inc.)
Newly Posted or Renewed Job Openings
Senior Benefits Administrator
for Access Retirement Services, LLC
in TN
Pension Assistant
for Preferred Pension Planning Corporation
in NJ
Pension Consultant
for Preferred Pension Planning Corporation
in NJ
Defined Benefit Actuarial Specialist
for Standard Insurance Company
in OR
Claims Examiner III
for Great-West Corporate
in KS
Retirement Plans Specialist
for FBOP Corporation
in IL
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