IRS Handout on Abusive Tax Avoidance Transactions and Emerging Issues Presentation (PDF)
17 pages. Excerpt: "The [August 27, 2010 phone] Forum will focus on potential abusive schemes and new emerging issues including insurance funded plans, schemes involving defined benefit pension plans, S Corporation ESOP abuses, ROBS compliance issues, reversion and distribution schemes, management company promotions, abuses involving union plans and other issues of concern. IRS EP will also discuss strategies to proactively detect and deter abuse, including the use of Promoter Investigations."
(U.S. Internal Revenue Service)
On the Subject of Being a Non-ERISA 403(b)
Excerpt: "Since the final 403(b) regulations in July of 2007, there have been questions about how a non-ERISA 403(b) arrangement may maintain the status of being exempt from ERISA. This article addresses that issue."
(McKay Hochman Co.)
September Deadline Set for Refiling Pension Overpayment Suit
Excerpt: "[The U.S. District Court] ordered that if a new suit against [the defendant] is not filed under [ERISA] by that date, [the court's] order throwing out ING's original case filed under Illinois state law will become permanent. The court ruled that the state law claims against Barrington in the original suit would be pre-empted by ERISA."
Court Orders Rehired Lucent Technologies Employee Readmitted to DB Plan
Excerpt: "[A U.S. District] ruled that committee members had ignored a section of the plan documents for the Lucent Retirement Income Plan . . . allowing such re-entry to the service-based DB program if Lucent rehired a temporarily laid-off employee within three years."
Lifetime Income Options for Retirement Plans Hearing Agenda Unveiled
Excerpt: "The hearing was designed to hear testimony regarding: certain participant concerns affecting the choice of lifetime income relative to other options; information to help participants make choices on the management and spend down of retirement benefits; disclosure of account balances as monthly income streams; the fiduciary safe harbor for selection of lifetime income issuers or products; and alternative designs of in-plan and distribution lifetime income options."
19% Decline in U.S. Retirement Benefits Seen Over 10 Years
Excerpt: "According to Towers Watson's industry-specific analysis -- including defined benefit (DB) and defined contribution (DC) plans, as well as retiree medical and life insurance plans -- the value, as measured by percentage of pay, of total retirement benefits for U.S. workers dropped 19% between 1998 and 2008."
States Watching Minnesota Pension Lawsuit
Excerpt: "A legal battle in Minnesota next month will test the ability of states to change benefits of current retirees. The outcome could prompt other cash-strapped states to follow suit or grind a fleeting movement to a sharp halt."
(Franklin Center for Government & Public Integrity)
Retirement Industry Acronyms and Abbreviations
Excerpt: "Like many industries, the retirement profession is acronym and abbreviation crazy. [401khelpcenter.com] compiled this list of the more common acronyms and abbreviations to help those who are not familiar with their meaning."
Caterpillar to Move Non-Union Workers to 401(k) Plan
Excerpt: "Caterpillar Inc. . . . will switch more than half its 50,000 U.S. employees to 401(k) accounts from defined benefit plans to save the company money."
(Pensions & Investments; registration may be required)
Public Pensions and Our Fiscal Future
Excerpt: "Few Californians in the private sector have $1 million in savings, but that's effectively the retirement account [guaranteed] to many government employees."
(Arnold Schwarzenegger via The Wall Street Journal)
Pension Time Bomb: The Shadow Hanging Over GM's Turnaround
Excerpt: "The net effect is that the pension time bomb is still ticking. If GM earns robust profits, . . . the bomb won't detonate. Otherwise -- well, in a worst-case scenario, GM winds up back in bankrup.tcy, with PBGC intervention both unavoidable and more expensive than it would have been last year. And that could necessitate a bailout from Congress, because of the PBGC's own deficits. "
(The Washington Post; free registration required)
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Benefits in General; Executive Compensation
SEC Adopts Proxy Access Rules
Excerpt: "[on August 25, 2010], the SEC adopted proxy access rules at an open Commission meeting by a 3-2 vote and posted its 451-page adopting release. Neither the adopting release nor Proxy Access generally has an automatic or direct impact on executive compensation."
(Michael Melbinger via Winston & Strawn LLP)
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