If this message looks garbled to you or if the headlines in this message don't connect you to Web pages when you click on them, please request the "plain text" version of this newsletter ("Retirement Plans Edition") by emailing your request to publisher Dave Baker
February 26, 2001
Today's sponsor: The International Quality & Productivity Center (click)
Pensions and Contemporary Socioeconomic Change (PDF)
Link to a 32-page Working Paper available for downloading from the National Bureau of Economic Research. (Assar Lindbeck, Stockholm University)
Encouraging Teachers to Continue Working Past Retirement Age Affects Plan Funding Needs
A legislative committee has developed a proposed resolution that has not yet been examined by its Executive Committee, but which shows the concern of some members of this trade association as to the effect that 'phased retirement' and other work incentives might have on the funding needs of teacher retirement systems across the country. (National Council on Teacher Retirement )
Reversing Decades-Long Trend, Americans Retiring Later in Life
Excerpt: "As companies cut pensions and retiree medical coverage, many aging employees doubt they can afford to retire, several experts and workers say. While tight labor markets are also keeping older people at work, other causes appear likely to outlast the current worker shortage." (New York Times; free registration required)
Pension Distribution Paid To Daughter Under Divorce Order Was Taxable To Participant
Excerpt: "A pension plan distribution paid to a participant's daughter pursuant to the terms of a divorce judgment was includible in the participant's gross income because it was not paid to his spouse or former spouse. This was the decision of the U.S. Tax Court in Stahl v. Commissioner." (Spencernet)
IRS Corrects Minimum Distribution Regulations
Excerpt: "On February 21, 2001, the IRS issued technical corrections of 27 errors in its January 17, 2001 regulations. Worthy of note is the correction to the Model Amendment for Qualified Plans, which provides for an effective date of the Model Amendment of January 1, 2001, rather than January 1, 2000 (as was printed in the January 17, 2001 version)." (EBIA Weekly)
An Outline of the New Proposed Regulations on Required Minimum Distributions
Excerpt: "[I]t appears that the moratorium [by the Bush administration on regulations issued late in the Clinton administration] has no effect on whether you can rely on the new proposed regulations at this time." (Greg Reymann, J.D., LL.M (Tax), on NewRMD.com)
Insurer Demutualizations: DOL Unveils Non-Enforcement Policy for Reporting, Trust Requirements
Excerpt: "This DOL Information Letter provides important new guidance on the handling of insurance company demutualization proceeds distributed to employers that maintain insured ERISA plans not otherwise subject to a trust or Form 5500 reporting requirement under ERISA ... Demutualization occurs when an insurance company converts under state law from a mutual insurance company to a stock insurance company." (EBIA Weekly)
National Council on Teacher Retirement: Legislative Outlook for 2001
Excerpt: "Possible candidates for enactment are pension reform that includes portability expansion and bankruptcy legislation that contains public pension protections. Less certain are proposals to address Social Security's future insolvency, but legislation to restrict how state and local governments, including their retirement systems, use Social Security numbers as identifiers will undoubtedly be introduced." (National Council on Teacher Retirement )
ASPA Provides Comments to DOL on Need for Additional Fiduciary Disclosure Rules
Excerpt: "[W]e believe that the Department should not issue regulations at this time addressing fiduciary disclosure requirements. In our view, such regulations would either be incomplete because they cannot realistically address all of the facts and circumstances which may arise, or will be unduly burdensome on plan sponsors." (American Society of Pension Actuaries)
Profit Sharing/401k Council Invites You to Urge Lawmakers to Support Pension Reform
Excerpt: "Tell Congress how appropriate pension reform will help your business. Show your support of the Portman-Cardin and Grassley-Baucus bills by writing Congress. To help you, PSCA has prepared a letter which you may customize and print or e-mail directly from this site. To identify the representatives in your district, enter your zip code." (Profit Sharing/401k Council of America; free registration required)
Some Chrysler Workers Retire Early
Excerpt: "Many older employees -- who have experienced the auto industry's wrenching cycles before -- are readily accepting early retirement incentives, according to workers and officials of the United Auto Workers (UAW) union, which represents nearly 80,000 Chrysler workers in the United States." (Reuters via Excite! News)
Workers Not Focused On Retirement Saving Needs
Excerpt: "A survey conducted for Strong Investments found that 53 percent of all working Americans have not calculated how much money they will need to save for their retirement." (San Jose Mercury News)
Earliest Baby Boomers Now Hitting 55
Excerpt: "It's time for the rock-and-roll generation to think about retirement communities. This year, the oldest of the baby boomers -- the 76.5 million Americans born from 1946 to 1964 -- turn 55. That's the birthday that makes them eligible to live in the type of age-restricted communities they have always associated with their parents." (Washington Post)
(Following items also appear in Welfare Plans Edition)
Supreme Court Holds State Employees May Not Sue Under ADA
Board of Trustees of the University of Alabama v. Garrett (Supreme Ct. 2001). Excerpt: "When the case made its way to the Eleventh Circuit, it held that the ADA validly abrogated Eleventh Amendment immunity. In this opinion, the Supreme Court reverses, holding that employees of state government employers are barred from suing for violations of the ADA." (EBIA Weekly)
Terminated: It Could Happen to You
Excerpt: "On the one hand, the newspaper headlines feature mordant layoff news. On the other, most American companies say they still can't find enough workers. So if you ever have to lose a job, let it be now." (Jane Bryant Quinn, in the Washington Post)
Taking Stock In Employee Benefits: The Democratization of Broad-Based Stock Plans (PDF)
Excerpt: "This report outlines the major types of stock ownership programs offered by employers today, the tax treatment of stock benefits, and the growth and prevalence of such plans. Public policy issues related to stock ownership programs are discussed in detail, and the report concludes with the recommendations of the American Benefits Council." (American Benefits Council)
The Five Biggest Stock Option Mistakes
Excerpt: "Here are the five most common mistakes jobseekers make when negotiating for stock options: ..." (MSN Careers)
Evaluating Options in a Private Company
Excerpt: "When you are offered stock options as part of an employment package, the exercise price is supposedly based on the company's current value. For a publicly held company, that value is easy to gauge. Just open your morning newspaper and find the company's stock price. But for a private company, determining the accuracy of an exercise price is much more difficult." (MSN Careers)
Playing to Win: Strategic Rewards in the War for Talent
Fifth Annual Survey Report 2000/2001. Excerpt: "A worker's paradise of 4 percent unemployment is a recruiter's headache. Companies are having more difficulty attracting new workers and keeping the ones they already have. More than twice as many companies are experiencing higher turnover rates than lower ones as employees seek to maximize the return on their own human capital." (Watson Wyatt)
Newly Posted or Renewed Job Openings ( Post Yours! )
Subscribe to the Welfare Plans Edition, too (click)
Copyright 2001 BenefitsLink.com, Inc.
You may freely distribute this email newsletter in whole.
Click here to learn how your company can sponsor a future issue!
BenefitsLink is a trademark of BenefitsLink.com, Inc., published by Dave Baker with much help from Mary Hall and lots of friends.
To subscribe (free): visit https://benefitslink.com/newsletter - or the person desiring to subscribe can send an email to BLretirement@add.mb00.net
We have an online archive of prior issues at
https://benefitslink.com/newsletters/
The BenefitsLink Newsletter -
Retirement Plans Edition
Retirement Plans Edition
February 26, 2001
Today's sponsor: The International Quality & Productivity Center (click)
BENEFITS 2001 CONGRESS: How to Increase Customer Satisfaction & Leverage Your Benefits Dollars March 26-27, 2001 Scottsdale, AZ For more information call 1-800-882-8684 or visit http://www.iqpc.com/b156benefits2001
Pensions and Contemporary Socioeconomic Change (PDF)
Link to a 32-page Working Paper available for downloading from the National Bureau of Economic Research. (Assar Lindbeck, Stockholm University)
Encouraging Teachers to Continue Working Past Retirement Age Affects Plan Funding Needs
A legislative committee has developed a proposed resolution that has not yet been examined by its Executive Committee, but which shows the concern of some members of this trade association as to the effect that 'phased retirement' and other work incentives might have on the funding needs of teacher retirement systems across the country. (National Council on Teacher Retirement )
Reversing Decades-Long Trend, Americans Retiring Later in Life
Excerpt: "As companies cut pensions and retiree medical coverage, many aging employees doubt they can afford to retire, several experts and workers say. While tight labor markets are also keeping older people at work, other causes appear likely to outlast the current worker shortage." (New York Times; free registration required)
Pension Distribution Paid To Daughter Under Divorce Order Was Taxable To Participant
Excerpt: "A pension plan distribution paid to a participant's daughter pursuant to the terms of a divorce judgment was includible in the participant's gross income because it was not paid to his spouse or former spouse. This was the decision of the U.S. Tax Court in Stahl v. Commissioner." (Spencernet)
IRS Corrects Minimum Distribution Regulations
Excerpt: "On February 21, 2001, the IRS issued technical corrections of 27 errors in its January 17, 2001 regulations. Worthy of note is the correction to the Model Amendment for Qualified Plans, which provides for an effective date of the Model Amendment of January 1, 2001, rather than January 1, 2000 (as was printed in the January 17, 2001 version)." (EBIA Weekly)
An Outline of the New Proposed Regulations on Required Minimum Distributions
Excerpt: "[I]t appears that the moratorium [by the Bush administration on regulations issued late in the Clinton administration] has no effect on whether you can rely on the new proposed regulations at this time." (Greg Reymann, J.D., LL.M (Tax), on NewRMD.com)
Insurer Demutualizations: DOL Unveils Non-Enforcement Policy for Reporting, Trust Requirements
Excerpt: "This DOL Information Letter provides important new guidance on the handling of insurance company demutualization proceeds distributed to employers that maintain insured ERISA plans not otherwise subject to a trust or Form 5500 reporting requirement under ERISA ... Demutualization occurs when an insurance company converts under state law from a mutual insurance company to a stock insurance company." (EBIA Weekly)
National Council on Teacher Retirement: Legislative Outlook for 2001
Excerpt: "Possible candidates for enactment are pension reform that includes portability expansion and bankruptcy legislation that contains public pension protections. Less certain are proposals to address Social Security's future insolvency, but legislation to restrict how state and local governments, including their retirement systems, use Social Security numbers as identifiers will undoubtedly be introduced." (National Council on Teacher Retirement )
ASPA Provides Comments to DOL on Need for Additional Fiduciary Disclosure Rules
Excerpt: "[W]e believe that the Department should not issue regulations at this time addressing fiduciary disclosure requirements. In our view, such regulations would either be incomplete because they cannot realistically address all of the facts and circumstances which may arise, or will be unduly burdensome on plan sponsors." (American Society of Pension Actuaries)
Profit Sharing/401k Council Invites You to Urge Lawmakers to Support Pension Reform
Excerpt: "Tell Congress how appropriate pension reform will help your business. Show your support of the Portman-Cardin and Grassley-Baucus bills by writing Congress. To help you, PSCA has prepared a letter which you may customize and print or e-mail directly from this site. To identify the representatives in your district, enter your zip code." (Profit Sharing/401k Council of America; free registration required)
Some Chrysler Workers Retire Early
Excerpt: "Many older employees -- who have experienced the auto industry's wrenching cycles before -- are readily accepting early retirement incentives, according to workers and officials of the United Auto Workers (UAW) union, which represents nearly 80,000 Chrysler workers in the United States." (Reuters via Excite! News)
Workers Not Focused On Retirement Saving Needs
Excerpt: "A survey conducted for Strong Investments found that 53 percent of all working Americans have not calculated how much money they will need to save for their retirement." (San Jose Mercury News)
Earliest Baby Boomers Now Hitting 55
Excerpt: "It's time for the rock-and-roll generation to think about retirement communities. This year, the oldest of the baby boomers -- the 76.5 million Americans born from 1946 to 1964 -- turn 55. That's the birthday that makes them eligible to live in the type of age-restricted communities they have always associated with their parents." (Washington Post)
Supreme Court Holds State Employees May Not Sue Under ADA
Board of Trustees of the University of Alabama v. Garrett (Supreme Ct. 2001). Excerpt: "When the case made its way to the Eleventh Circuit, it held that the ADA validly abrogated Eleventh Amendment immunity. In this opinion, the Supreme Court reverses, holding that employees of state government employers are barred from suing for violations of the ADA." (EBIA Weekly)
Terminated: It Could Happen to You
Excerpt: "On the one hand, the newspaper headlines feature mordant layoff news. On the other, most American companies say they still can't find enough workers. So if you ever have to lose a job, let it be now." (Jane Bryant Quinn, in the Washington Post)
Taking Stock In Employee Benefits: The Democratization of Broad-Based Stock Plans (PDF)
Excerpt: "This report outlines the major types of stock ownership programs offered by employers today, the tax treatment of stock benefits, and the growth and prevalence of such plans. Public policy issues related to stock ownership programs are discussed in detail, and the report concludes with the recommendations of the American Benefits Council." (American Benefits Council)
The Five Biggest Stock Option Mistakes
Excerpt: "Here are the five most common mistakes jobseekers make when negotiating for stock options: ..." (MSN Careers)
Evaluating Options in a Private Company
Excerpt: "When you are offered stock options as part of an employment package, the exercise price is supposedly based on the company's current value. For a publicly held company, that value is easy to gauge. Just open your morning newspaper and find the company's stock price. But for a private company, determining the accuracy of an exercise price is much more difficult." (MSN Careers)
Playing to Win: Strategic Rewards in the War for Talent
Fifth Annual Survey Report 2000/2001. Excerpt: "A worker's paradise of 4 percent unemployment is a recruiter's headache. Companies are having more difficulty attracting new workers and keeping the ones they already have. More than twice as many companies are experiencing higher turnover rates than lower ones as employees seek to maximize the return on their own human capital." (Watson Wyatt)
Newly Posted or Renewed Job Openings ( Post Yours! )
for Fidelity Investments
in MA
in MA
for Fidelity Investments
in MA
in MA
for Fidelity Investments
in MA
in MA
for Chicago Suburban Pension Firm
in IL
in IL
for New York Life Benefit Services
in MA
in MA
for WESPAC Plan Services, Inc.
in CA
in CA
for Private Healthcare System
in MA
in MA
for Pan-American Life Insurance Company
in LA
in LA
Subscribe to the Welfare Plans Edition, too (click)
Copyright 2001 BenefitsLink.com, Inc.
You may freely distribute this email newsletter in whole.
Click here to learn how your company can sponsor a future issue!
BenefitsLink is a trademark of BenefitsLink.com, Inc., published by Dave Baker with much help from Mary Hall and lots of friends.
To subscribe (free): visit https://benefitslink.com/newsletter - or the person desiring to subscribe can send an email to BLretirement@add.mb00.net
We have an online archive of prior issues at
https://benefitslink.com/newsletters/