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
March 20, 2001
Today's sponsor: HRnext.com (click)
Teacher Applauds Portman-Cardin Bill Provisions on Using 403(b) Funds to Purchase Service Credit
Excerpt: "By allowing teachers to use 403(b) money on a pre-tax basis to purchase service credit, the Portman-Cardin bill would help 'teachers, many of whom are military wives, who have taught all over the country.' Those individuals would be able to receive decent retirement benefits, she added. (Ms. Gruber's full remarks are attached.)" (National Council on Teacher Retirement)
2001 Model Participant Notice Issued by PBGC
Technical Update 01-2. Excerpt: "The Retirement Protection Act of 1994 requires certain underfunded plans to notify participants and beneficiaries annually of the plan's funding status and the limits of PBGC's guarantee.... The regulation includes a model notice that plans can use to meet this requirement. For the convenience of plan administrators, this Technical Update republishes the Model Participant Notice, updated to reflect the 2001 maximum guaranteed benefits." (Pension Benefit Guaranty Corporation)
Another Question is Answered in the Who's the Employer Q&A Column
X corp is a not-for-profit entity. X corp is the sole member and controlling entity of Y hospital. X corp also created several for-profit entities. Each for-profit entity issued all of its stock to a trust. X corp is the sole beneficiary of each trust. Are X corp, Y hospital and each of the for-profit entities a controlled group under Internal Revenue Code section 414? (BenefitsLink.com)
3 Pension Funds Sue to Halt AT&T Vote
Excerpt: "Three union pension funds filed a lawsuit yesterday, seeking to block an AT&T proposal that would make it easier for the company to get the votes it needs to win approval of a breakup." (New York Times; free registration required)
Legislative and Regulatory Proposals of Interest to Teachers' Retirement Systems
Excerpt: "Federal Capsule, 107th Congress (2001-2002)" (National Council on Teacher Retirement)
Office of Personnel Management Issues Rules Helping Victims of Federal Retirement Coverage Errors
Excerpt: "The error occurred during the transition from the old Civil Service Retirement System (CSRS) to the Federal Employees Retirement System (FERS). Confused agencies placed some employees in CSRS when they should have been in FERS, while some employees who should have been in FERS wound up in CSRS. Up to 18,000 federal workers may have been affected." (GovExec.com)
Manufacturing Finds Defined Contribution Plans Work Best
Excerpt: "Here's a look at how three companies, each involved in manufacturing of various kinds, are coping with changing workforce demographics and the retirement issue." (Workforce)
Obit: Phyllis Spielman, 82, Advocate for Pensioners
Excerpt: "Phyllis Spielman ... was most proud of serving as Minnesota's first director of pension protection." (StarTribune.com)
(Following items also appear in Welfare Plans Edition)
Do You Have an Employee Benefits Business For Sale?
We now have 122 subscribers to our benefits-businesses mailing list, which opened last Friday -- these are folks who receive the full text of each new Employee Benefits Business For Sale advertisement that is posted here on BenefitsLink. If you are selling an employee benefits business, BenefitsLink's new online listing can help you find a buyer: https://benefitslink.com/bizforsale (BenefitsLink)
Medicare, Social Security Get Good Short-Term Checkup
Excerpt: "The short-term financial underpinnings of Medicare and Social Security brightened in the past year, the programs' trustees reported yesterday. But the long-term financial condition of the old-age health program slipped because of higher projected health care costs.... [T]he Medicare trust fund for hospital expenses would remain solvent until 2029, four years longer than previously estimated, largely because of the strong economy and a successful crackdown on Medicare fraud." (Washington Post)
Trustees' Report Shows Need to Reduce Tax Cut, Reserve Some of General Fund Surpluses, Group Says
Excerpt: "The Social Security and Medicare trustees' report issued today shows the danger of proceeding with a tax cut as large as the Administration has proposed and thereby failing to set aside a healthy portion of projected non-Social Security, non-Medicare surpluses for use in helping to restore long-term solvency to these programs. This is a conclusion of an analysis the Center on Budget and Policy Priorities issued today on the trustees' report." (Center for Budget Policies and Priorities)
Trustees Extend Solvency Estimates for Medicare, Social Security Benefits
Excerpt: "The government announced today that the principal Medicare trust fund would not run out of money until 2029, the longest period of solvency ever projected in the history of the program. And officials extended the life of the Social Security trust fund by one year, to 2038.... But the Bush administration said the long-term financial outlook for Medicare was bleak because health costs were rising rapidly. And it said Congress still needed to make major changes in Social Security ..." (New York Times; free registration required)
2001 Annual Report of Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds
Excerpt: "Under the intermediate assumptions the combined OASDI Trust Funds are expected to become exhausted in 2038, one year later than projected in last year's report. The projected actuarial deficit is 1.86 percent of taxable payroll, 0.03 percent smaller than in last year's report. Between about 2010 and 2030, OASDI costs will increase rapidly due to the retirement of the large baby-boom generation, and annual costs will exceed tax income starting in 2016." (Social Security Administration)
Newly Posted or Renewed Job Openings ( Post Yours! )
Newly Posted Conferences ( 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
To unsubscribe: visit https://benefitslink.com/newsletter - or you can send an email to BLretirement@remove.mb00.net
We have an online archive of prior issues at
https://benefitslink.com/newsletters/
The BenefitsLink Newsletter -
Retirement Plans Edition
Retirement Plans Edition
March 20, 2001
Today's sponsor: HRnext.com (click)
Think you know a lot? Here is your chance to find out. The FREE HR Challenge from HRnext.com quizzes you on 25 HR questions. Your results are instant, and you can compare to your peers. Plus, you get a free Special Report from BLR.
Teacher Applauds Portman-Cardin Bill Provisions on Using 403(b) Funds to Purchase Service Credit
Excerpt: "By allowing teachers to use 403(b) money on a pre-tax basis to purchase service credit, the Portman-Cardin bill would help 'teachers, many of whom are military wives, who have taught all over the country.' Those individuals would be able to receive decent retirement benefits, she added. (Ms. Gruber's full remarks are attached.)" (National Council on Teacher Retirement)
2001 Model Participant Notice Issued by PBGC
Technical Update 01-2. Excerpt: "The Retirement Protection Act of 1994 requires certain underfunded plans to notify participants and beneficiaries annually of the plan's funding status and the limits of PBGC's guarantee.... The regulation includes a model notice that plans can use to meet this requirement. For the convenience of plan administrators, this Technical Update republishes the Model Participant Notice, updated to reflect the 2001 maximum guaranteed benefits." (Pension Benefit Guaranty Corporation)
Another Question is Answered in the Who's the Employer Q&A Column
X corp is a not-for-profit entity. X corp is the sole member and controlling entity of Y hospital. X corp also created several for-profit entities. Each for-profit entity issued all of its stock to a trust. X corp is the sole beneficiary of each trust. Are X corp, Y hospital and each of the for-profit entities a controlled group under Internal Revenue Code section 414? (BenefitsLink.com)
3 Pension Funds Sue to Halt AT&T Vote
Excerpt: "Three union pension funds filed a lawsuit yesterday, seeking to block an AT&T proposal that would make it easier for the company to get the votes it needs to win approval of a breakup." (New York Times; free registration required)
Legislative and Regulatory Proposals of Interest to Teachers' Retirement Systems
Excerpt: "Federal Capsule, 107th Congress (2001-2002)" (National Council on Teacher Retirement)
Office of Personnel Management Issues Rules Helping Victims of Federal Retirement Coverage Errors
Excerpt: "The error occurred during the transition from the old Civil Service Retirement System (CSRS) to the Federal Employees Retirement System (FERS). Confused agencies placed some employees in CSRS when they should have been in FERS, while some employees who should have been in FERS wound up in CSRS. Up to 18,000 federal workers may have been affected." (GovExec.com)
Manufacturing Finds Defined Contribution Plans Work Best
Excerpt: "Here's a look at how three companies, each involved in manufacturing of various kinds, are coping with changing workforce demographics and the retirement issue." (Workforce)
Obit: Phyllis Spielman, 82, Advocate for Pensioners
Excerpt: "Phyllis Spielman ... was most proud of serving as Minnesota's first director of pension protection." (StarTribune.com)
Do You Have an Employee Benefits Business For Sale?
We now have 122 subscribers to our benefits-businesses mailing list, which opened last Friday -- these are folks who receive the full text of each new Employee Benefits Business For Sale advertisement that is posted here on BenefitsLink. If you are selling an employee benefits business, BenefitsLink's new online listing can help you find a buyer: https://benefitslink.com/bizforsale (BenefitsLink)
Medicare, Social Security Get Good Short-Term Checkup
Excerpt: "The short-term financial underpinnings of Medicare and Social Security brightened in the past year, the programs' trustees reported yesterday. But the long-term financial condition of the old-age health program slipped because of higher projected health care costs.... [T]he Medicare trust fund for hospital expenses would remain solvent until 2029, four years longer than previously estimated, largely because of the strong economy and a successful crackdown on Medicare fraud." (Washington Post)
Trustees' Report Shows Need to Reduce Tax Cut, Reserve Some of General Fund Surpluses, Group Says
Excerpt: "The Social Security and Medicare trustees' report issued today shows the danger of proceeding with a tax cut as large as the Administration has proposed and thereby failing to set aside a healthy portion of projected non-Social Security, non-Medicare surpluses for use in helping to restore long-term solvency to these programs. This is a conclusion of an analysis the Center on Budget and Policy Priorities issued today on the trustees' report." (Center for Budget Policies and Priorities)
Trustees Extend Solvency Estimates for Medicare, Social Security Benefits
Excerpt: "The government announced today that the principal Medicare trust fund would not run out of money until 2029, the longest period of solvency ever projected in the history of the program. And officials extended the life of the Social Security trust fund by one year, to 2038.... But the Bush administration said the long-term financial outlook for Medicare was bleak because health costs were rising rapidly. And it said Congress still needed to make major changes in Social Security ..." (New York Times; free registration required)
2001 Annual Report of Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds
Excerpt: "Under the intermediate assumptions the combined OASDI Trust Funds are expected to become exhausted in 2038, one year later than projected in last year's report. The projected actuarial deficit is 1.86 percent of taxable payroll, 0.03 percent smaller than in last year's report. Between about 2010 and 2030, OASDI costs will increase rapidly due to the retirement of the large baby-boom generation, and annual costs will exceed tax income starting in 2016." (Social Security Administration)
Newly Posted or Renewed Job Openings ( Post Yours! )
for The Standard Insurance Company
in ALL STATES
in ALL STATES
for Phillips-Van Heusen Corporation
in NJ
in NJ
for Allied Waste Industries, Inc.
in AZ
in AZ
for St. Jude Medical, world leader in cardiac medical devices
in CA
in CA
Newly Posted Conferences ( Post Yours! )
in VA
on April 26, 2001
presented by Richmond Chapter- Int'l Society of Certified Employee Benefits Specialists
presented by Richmond Chapter- Int'l Society of Certified Employee Benefits Specialists
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
To unsubscribe: visit https://benefitslink.com/newsletter - or you can send an email to BLretirement@remove.mb00.net
We have an online archive of prior issues at
https://benefitslink.com/newsletters/