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
May 24, 2001
Today's sponsor: The Plan Sales System (click)
Senate Passes Retirement Reform As Part of Tax Bill
The Senate-passed tax cut legislation incorporates a revised version of the Comprehensive Retirement Income Security Act (S. 742) as part of its income tax reduction legislation. On the ESOP front, the bill would make it much more difficult for sham S corporation ESOP transactions to occur. Other features include changes to defined contribution plans that affect 401(k) plans as well as ESOPs (and ESOP-401(k) combinations). This NCEO update also has news on stock options-related issues. (National Center for Employee Ownership (NCEO))
Senate, House Negotiate Tax Bill
Excerpt: "President Bush is eager to sign an 11-year, $1.35 trillion tax cut that mirrors most of his own goals. Now, it's up to House and Senate negotiators to agree on details of the largest tax cut in 20 years. The two sides planned to continue closed-door meetings Thursday ..." (Associated Press, via Yahoo! News)
Senate Votes for Tax Cut, 62-38
Excerpt: "The Senate overwhelmingly approved an 11-year, $1.35 trillion tax cut package yesterday and sent it immediately to House and Senate negotiators, as Republicans rushed to work out a compromise in time for President Bush to sign on Memorial Day." (Washington Post)
Senate Passes $1.35 Trillion Tax Cut Plan
Excerpt: "With a dozen Democrats joining in, the Senate passed an 11-year, $1.35 trillion tax relief package Wednesday that represents the largest tax cut in two decades and matches the priorities President Bush has been pushing since his campaign for the White House.... The Senate bill also would ... boost contribution limits for 401(k) plans and IRAs ..." (Associated Press, via Yahoo! News)
Senate Tax Bill Vote Brings Momentum for Prompt Enactment of Retirement Legislation
Press release. Excerpt: "'With the Senate's approval of the tax bill, which contains an important package of retirement savings provisions, Americans are one step closer to a brighter and more secure retirement future,' said American Benefits Council President James Klein regarding today's 62-38 vote in favor of the Restoring Earnings to Lift Individuals and Empower Families (RELIEF) Act." (American Benefits Council)
Retirement Planning Engagements - Part I: the Team Approach
Excerpt: "Clients who are planning for retirement and those who are already retired have unique financial planning needs and considerations. Accordingly, financial planning for older clients includes a broad range of issues and services. Such engagements typically include one or more of the following services ..." (Practitioners Publishing Company)
AARP Study: After Age 50, Gap Widens Between Rich, Poor In U.S.
Excerpt: "While most Americans over age 50 are financially better off than their counterparts 20 years ago, the gap between the rich and poor is widening, a new report says. The American Association of Retired Persons report says only 25 percent of people in their 50s are secure for retirement." (CNN.com)
The Golden Years: Gleaming or Tarnished?
Excerpt: "The good news for Americans age 50 and older is that the economic well-being has never been better. The bad news is that there are cracks in the pillars on which this unprecedented affluence rests. That's according to an analysis of retirement security by AARP." (ABCNews.com)
Annuities Aren't for Everyone
Excerpt: "It's been said that variable annuities are not so much bought by consumers as they are sold to them. Most people first encounter these complex savings plans when they're presented by insurance agents, brokers or financial advisers." (Las Vegas Sun)
Opinion: Privatization Will Save Social Security?
Excerpt: "The president is either unaware of, or remains undaunted by, the illogic of privatization and its potential for mischief." (David Langer in the Christian Science Monitor)
Another Question is Answered in the Who's the Employer Q&A Column
A construction company (CC) is owned 50% by two brothers, Joe and Chuck. Joe and Chuck receive 100% of their compensation from a construction management company (CMC) that is owned 100% by Steve, an unrelated individual. Currently 85% of CMC's revenue comes from CC; the rest comes from outside clientele. Is CMC a separate employer, which can establish a plan totally unrelated to the construction company CC? (BenefitsLink.com)
Another Question is Answered in the Who's the Employer Q&A Column
Dad owns 100% of corporation A. Son, age 30, owns 100% of unrelated corporation B. If I read "Who's the Employer" correctly, these corporations are not in a controlled group situation; because son is over age 21, the stock does not get attributed between father and son for controlled group purposes. Do you agree? (BenefitsLink.com)
Successful Founder Keeps ESOP Company Close to Home
Excerpt: "My assignment is to write about small companies. With sales expected to reach $230 million this year, 20-year-old American Business Forms Inc. hardly fits that definition. But the assignment also includes entrepreneurship, and on that count founder Larry Zavadil and his Glenwood [Minn.] company clearly qualify." (StarTribune.com)
(Following items also appear in Welfare Plans Edition)
PWBA Creates Compliance Assistance Web Page
Excerpt: "The following is a compilation of the many items available on the Pension and Welfare Benefits Administration's website that have been specifically developed by or for the PWBA to assist and inform employers and employee benefit plan practitioners in understanding and complying with many requirements of [ERISA] ..." (U.S. Department of Labor, Pension and Welfare Benefits Administration)
Technical Tip: Beware of DOL Service Provider Investigations
Excerpt: "In the PWBA's Strategic Enforcement Plan, it states that service providers, including third party administrators, will be a primary target for investigative activity. Why is that?" (Reish Luftman McDaniel & Reicher)
Effect of Change in Parties by Jeffords May Transform Powerful Senate Committees
Excerpt: "The new chairman of the Senate Health, Education, Labor and Pensions Committee would probably be Senator Edward M. Kennedy of Massachusetts. Mr. Kennedy would replace Senator Jeffords, who is now the Republican chairman of the committee. Mr. Jeffords is thought likely to move to the chairmanship of the Environment Committee under an agreement with the new Democratic leadership." (New York Times; free registration required)
How Employees Value (Often Incorrectly) Their Stock Options
Excerpt: "The typical explanation for the use of stock options is that these compensation vehicles enable companies to attract and retain the best employees and also provide superior incentives for employees to increase shareholder value.... [These explanations assume] that employees understand how stock options work. Yet according to recent research by Wharton professors David F. Larcker and Richard A. Lambert, employees, in fact, tend not to understand the basic economics of stock options ..." (The Wharton School of the University of Pennsylvania)
Are Employers Out of Step With Older Employees?
Excerpt: "What if you held a contest for best workplace and no one applied? AARP, the advocacy organization for people 50 and over, almost found out when it invited employers to compete for a listing in its Modern Maturity magazine as one of the 'best employers for workers over 50.' ... Total applicants: 14." (CareerJournal.com)
Newly Posted or Renewed Job Openings ( Post Yours! )
Newly Posted Conferences ( Post Yours! )
Newly Posted Press Releases
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 registered trademark of BenefitsLink.com, Inc., published by Dave Baker with much help from Mary Hall and lots of friends.
We're proud of our privacy policy .
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
May 24, 2001
Today's sponsor: The Plan Sales System (click)
The Plan Sales System is a comprehensive, 16-step system for growing a retirement plan sales practice. It provides detailed resources, contact names and numbers, checklists, charts, handouts, letters, extensive prospecting techniques, descriptions of current market opportunities, and tools for planning and monitoring sales activity. Click to order!
Senate Passes Retirement Reform As Part of Tax Bill
The Senate-passed tax cut legislation incorporates a revised version of the Comprehensive Retirement Income Security Act (S. 742) as part of its income tax reduction legislation. On the ESOP front, the bill would make it much more difficult for sham S corporation ESOP transactions to occur. Other features include changes to defined contribution plans that affect 401(k) plans as well as ESOPs (and ESOP-401(k) combinations). This NCEO update also has news on stock options-related issues. (National Center for Employee Ownership (NCEO))
Senate, House Negotiate Tax Bill
Excerpt: "President Bush is eager to sign an 11-year, $1.35 trillion tax cut that mirrors most of his own goals. Now, it's up to House and Senate negotiators to agree on details of the largest tax cut in 20 years. The two sides planned to continue closed-door meetings Thursday ..." (Associated Press, via Yahoo! News)
Senate Votes for Tax Cut, 62-38
Excerpt: "The Senate overwhelmingly approved an 11-year, $1.35 trillion tax cut package yesterday and sent it immediately to House and Senate negotiators, as Republicans rushed to work out a compromise in time for President Bush to sign on Memorial Day." (Washington Post)
Senate Passes $1.35 Trillion Tax Cut Plan
Excerpt: "With a dozen Democrats joining in, the Senate passed an 11-year, $1.35 trillion tax relief package Wednesday that represents the largest tax cut in two decades and matches the priorities President Bush has been pushing since his campaign for the White House.... The Senate bill also would ... boost contribution limits for 401(k) plans and IRAs ..." (Associated Press, via Yahoo! News)
Senate Tax Bill Vote Brings Momentum for Prompt Enactment of Retirement Legislation
Press release. Excerpt: "'With the Senate's approval of the tax bill, which contains an important package of retirement savings provisions, Americans are one step closer to a brighter and more secure retirement future,' said American Benefits Council President James Klein regarding today's 62-38 vote in favor of the Restoring Earnings to Lift Individuals and Empower Families (RELIEF) Act." (American Benefits Council)
Retirement Planning Engagements - Part I: the Team Approach
Excerpt: "Clients who are planning for retirement and those who are already retired have unique financial planning needs and considerations. Accordingly, financial planning for older clients includes a broad range of issues and services. Such engagements typically include one or more of the following services ..." (Practitioners Publishing Company)
AARP Study: After Age 50, Gap Widens Between Rich, Poor In U.S.
Excerpt: "While most Americans over age 50 are financially better off than their counterparts 20 years ago, the gap between the rich and poor is widening, a new report says. The American Association of Retired Persons report says only 25 percent of people in their 50s are secure for retirement." (CNN.com)
The Golden Years: Gleaming or Tarnished?
Excerpt: "The good news for Americans age 50 and older is that the economic well-being has never been better. The bad news is that there are cracks in the pillars on which this unprecedented affluence rests. That's according to an analysis of retirement security by AARP." (ABCNews.com)
Annuities Aren't for Everyone
Excerpt: "It's been said that variable annuities are not so much bought by consumers as they are sold to them. Most people first encounter these complex savings plans when they're presented by insurance agents, brokers or financial advisers." (Las Vegas Sun)
Opinion: Privatization Will Save Social Security?
Excerpt: "The president is either unaware of, or remains undaunted by, the illogic of privatization and its potential for mischief." (David Langer in the Christian Science Monitor)
Another Question is Answered in the Who's the Employer Q&A Column
A construction company (CC) is owned 50% by two brothers, Joe and Chuck. Joe and Chuck receive 100% of their compensation from a construction management company (CMC) that is owned 100% by Steve, an unrelated individual. Currently 85% of CMC's revenue comes from CC; the rest comes from outside clientele. Is CMC a separate employer, which can establish a plan totally unrelated to the construction company CC? (BenefitsLink.com)
Another Question is Answered in the Who's the Employer Q&A Column
Dad owns 100% of corporation A. Son, age 30, owns 100% of unrelated corporation B. If I read "Who's the Employer" correctly, these corporations are not in a controlled group situation; because son is over age 21, the stock does not get attributed between father and son for controlled group purposes. Do you agree? (BenefitsLink.com)
Successful Founder Keeps ESOP Company Close to Home
Excerpt: "My assignment is to write about small companies. With sales expected to reach $230 million this year, 20-year-old American Business Forms Inc. hardly fits that definition. But the assignment also includes entrepreneurship, and on that count founder Larry Zavadil and his Glenwood [Minn.] company clearly qualify." (StarTribune.com)
PWBA Creates Compliance Assistance Web Page
Excerpt: "The following is a compilation of the many items available on the Pension and Welfare Benefits Administration's website that have been specifically developed by or for the PWBA to assist and inform employers and employee benefit plan practitioners in understanding and complying with many requirements of [ERISA] ..." (U.S. Department of Labor, Pension and Welfare Benefits Administration)
Technical Tip: Beware of DOL Service Provider Investigations
Excerpt: "In the PWBA's Strategic Enforcement Plan, it states that service providers, including third party administrators, will be a primary target for investigative activity. Why is that?" (Reish Luftman McDaniel & Reicher)
Effect of Change in Parties by Jeffords May Transform Powerful Senate Committees
Excerpt: "The new chairman of the Senate Health, Education, Labor and Pensions Committee would probably be Senator Edward M. Kennedy of Massachusetts. Mr. Kennedy would replace Senator Jeffords, who is now the Republican chairman of the committee. Mr. Jeffords is thought likely to move to the chairmanship of the Environment Committee under an agreement with the new Democratic leadership." (New York Times; free registration required)
How Employees Value (Often Incorrectly) Their Stock Options
Excerpt: "The typical explanation for the use of stock options is that these compensation vehicles enable companies to attract and retain the best employees and also provide superior incentives for employees to increase shareholder value.... [These explanations assume] that employees understand how stock options work. Yet according to recent research by Wharton professors David F. Larcker and Richard A. Lambert, employees, in fact, tend not to understand the basic economics of stock options ..." (The Wharton School of the University of Pennsylvania)
Are Employers Out of Step With Older Employees?
Excerpt: "What if you held a contest for best workplace and no one applied? AARP, the advocacy organization for people 50 and over, almost found out when it invited employers to compete for a listing in its Modern Maturity magazine as one of the 'best employers for workers over 50.' ... Total applicants: 14." (CareerJournal.com)
Newly Posted or Renewed Job Openings ( Post Yours! )
for LaRhette Manin Benefits Service Group
in MA
in MA
for Harris Mason Recruiting Services
in CA
in CA
for International Foundation of Employee Benefit Plans, Inc.
in WI
in WI
for ICMA-Retirement Corporation
in DC
in DC
for First National Bank of Omaha
in IA, KS, MN, MO, ND, NE, SD
in IA, KS, MN, MO, ND, NE, SD
Newly Posted Conferences ( Post Yours! )
in DC
on December 3, 2001
presented by AICPA - American Institute of Certified Public Accountants
presented by AICPA - American Institute of Certified Public Accountants
in CA
on June 13, 2001
presented by AICPA - American Institute of Certified Public Accountants
presented by AICPA - American Institute of Certified Public Accountants
in CA
on May 20, 2002
presented by AICPA - American Institute of Certified Public Accountants
presented by AICPA - American Institute of Certified Public Accountants
in TX
on May 5, 2003
presented by AICPA - American Institute of Certified Public Accountants
presented by AICPA - American Institute of Certified Public Accountants
Newly Posted Press Releases
Senate Tax Bill Vote Brings Momentum for Prompt Enactment of Retirement Legislation
(American Benefits Council)
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 registered trademark of BenefitsLink.com, Inc., published by Dave Baker with much help from Mary Hall and lots of friends.
We're proud of our privacy policy .
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/