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May 18, 2005
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Audio: Pension Benefit Guaranty Corporation's Financial Troubles Deepen with United Terminations
Excerpt: "The government corporation that insures pensions for 35 million Americans is facing a serious financial shortfall of $23 billion. The deficit increased when United Airlines was allowed to transfer its pension obligations to the government. Now there's concern that taxpayers could face a costly bailout if other companies follow United's lead." (Morning Edition via National Public Radio)
Text: H.R. 2321, Pension Security Disclosure Act of 2005 (PDF)
8 pages. Excerpt: "To amend titles I and IV of the Employee Retirement Income Security Act of 1974 to improve disclosure of the funding status of pension plans." (U.S. House of Representatives via American Benefits Council)
Wilshire Associates Annual Corporate Pension Funding Report Shows Asset Rise in 2004
Excerpt: "According to the fifth annual report by consultant Wilshire Associates on defined benefit pension plans of the S&P 500 companies that sponsors such programs, assets rose $84 billion in 2004, from $1.031 trillion to $1.115 trillion, while liabilities increased $60 billion, rising from $1.154 trillion to $1.214 trillion. The combination closed the aggregate funding gap of the 332 plans studied from 89% to 92% funded, based on Wilshire's analysis of the companies' 10-k filings." (PLANSPONSOR.com; one-time registration required)
United Airline's Pension Termination May Ease PBGC Deficit
Excerpt: "As Congress mulls a possible six-month moratorium on transferring pension plans to the Pension Benefit Guarantee Corp., an actuarial organization reports the PBGC's deficit could actually drop after United Airlines transfers its pension fund obligations." (BenefitNews Connect)
Audio: Fed Pension Safety Net Strained by Bankruptcies
Excerpt: "Madeleine Brand examines whether the Pension Benefit Guaranty Corporation, the federal agency that takes charge of pension plans when corporations default, can handle its growing financial burden. Observers are concerned about the agency's future effectiveness in the wake of United Airlines pension plan default last week." (National Public Radio)
Text: H.R. 2233, Pension Fairness and Full Disclosure Act (PDF)
37 pages. Excerpt: "To amend title I of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to limit the availability of benefits under an employer's nonqualified deferred compensation plans in the event that any of the employer's defined pension plans are subjected to a distress or PBGC termination in connection with bankrup.tcy reorganization or a conversion to a cash balance plan, to provide appropriate funding restrictions in connection ...." (U.S. House of Representatives via American Benefits Council)
Text: H.R. 2327, Bill Imposing Six-Month Moratorium on Termination of Certain Plans under ERISA (PDF)
3 pages. Excerpt: "To impose a 6-month moratorium on terminations of certain plans instituted under section 4042 of the Employee Retirement Income Security Act of 1974 in cases in which reorganization of contributing sponsors is sought in bankrup.tcy or insolvency proceedings." (U.S. House of Representatives via American Benefits Council)
Text: S. 991, Pension Fairness and Full Disclosure Act of 2005 (PDF)
26 pages. Excerpt: "To amend title I of the Employee Retirement Income Security Act of 1974 to limit the availability of benefits under an employer's nonqualified deferred compensation plans in the event that any of the employer's defined benefit pension plans are subjected to a distress or PBGC termination in connection with bankrup.tcy reorganization or a conversion to a cash balance plan, to provide appropriate funding restrictions in connection with the maintenance of nonqualified ...." (U.S. Senate via American Benefits Council)
Question on IRA Rollovers — The 12-Month Rule and an Important Restriction
Excerpt: "This article clarifies the distinction between an IRA and an IRA investment when applying IRA rules and explains the effects of the 12-month rule on the rollover of IRA distributions." (Bankers Systems Retirement Plan Services)
Economists Shovan and Orszag Say Medicare a Bigger Crisis than Social Security
Excerpt: "Despite the Bush administration's active lobbying efforts to reform Social Security, two economists at the Stanford Institute for Economic Policy Research (SIEPR) warned that health-care reform remains a much more serious -- and fundamentally unaddressed -- challenge." (Stanford Report)
Working Paper Abstract: Social Security Programs & Retirement Around the World: Fiscal Implications
Excerpt: "This is the introduction to and summary of Phase III of an international research project to study the relationship between social security provisions and retirement. The project relies on the work of a large group of economists in 12 countries who conduct the analysis for each of their countries." (National Bureau of Economic Research)
Working Paper Abstract: The Life-Cycle Personal Accounts Proposal for Social Security -- A Review
Excerpt: "The life-cycle accounts proposal for Social Security reform has been justified by its proponents using a number of different arguments, but these arguments generally involve the assumption of a high likelihood of good returns on the accounts. A simulation is undertaken to estimate the probability distribution of returns in the accounts based on long-term historical experience. U.S. stock market, bond market and money market data 1871-2004 are used for the analysis." (National Bureau of Economic Research)
GAO Report: Social Security Reform -- Answers to Key Questions (PDF)
80 pages. Excerpt: "This guide tries to boil down the complexities of Social Security and the implications of reform to the basic choices we face as a nation." (U.S. Government Accountability Office)
Links to Items on Executive Comp, Benefits in General
Questions & Answers: Tech Session between SEC Staff and ABA Joint Committee on Employee Benefits (PDF)
10 pages. Excerpt: "The following questions and answers are based on informal discussions between private sector representatives of the JCEB and SEC staff members. The questions were submitted by ABA members and the responses were given at a meeting of JCEB and government representatives. The responses reflect the unofficial, individual views of the government representatives as of the time of the discussion, and do not necessarily represent the position of the agency." (American Bar Association)
Federal Appeals Court Throws Out Workforce-Wide Coli Purchase Citing Lack of Insurable Interest
Excerpt: "A federal appeals court has ruled that corporations cannot buy corporate-owned life insurance policies (COLIs) for all of their full-time workers because they don't have an insurable interest in their whole workforce. In overturning the decision of a lower court, the US 10th Circuit Court of Appeals said that an employer has to have a 'substantial economic interest' in the employee in order to be an insurance beneficiary." (PLANSPONSOR.com; one-time registration required)
State Officials Continue Legislative and Political Deliberations on Pensions and Benefits
Excerpt: "State governments around the country continue grappling with often-severe employee pension and benefit woes, including recent actions in states such as West Virginia, New Jersey and Louisiana." (PLANSPONSOR.com; one-time registration required)
Newly Posted Press Releases
PSCA's Signature Awards Deadline Extended to July 5, 2005
(Profit Sharing/401(k) Council of America (PSCA))
Assistant Secretary Ann L. Combs Calls for Reforms To Strengthen Workers’ Retirement Security
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))
IRS, Treasury Clarify Circular 230 Written Opinion Standards
(U.S. Treasury Department and Internal Revenue Service)
SEC Report on the Pension Consulting Industry
(Segal Advisors)
Newly Posted or Renewed Job Openings
Pension Administration Project Manager
for Hewitt Associates
in IL
Account Manager, Employee Benefits
for The Protector Group Insurance Agency, Inc.
in MA
Plan Consultant
for Weaver Partners, Inc.
in ANY STATE
Sr. Sales Representative
for ING U. S. Financial Services
in FL
FSA/Cobra Sales Rep
for Primark Benefits
in CA
Qualified Plan Administrator
for Crowe Chizek
in IL
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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