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December 7, 2001 - 12,718 subscribers
Today's sponsor: EmployeeBenefitsJobs.com
(Click on company name or banner to learn more.)
(Help BenefitsLink to provide this newsletter at no charge to you -- our sponsors pay our way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor)
The Fiction of Pension Accounting
Excerpt: "[W]e are not dealing with a reasonable accounting system. We are dealing with pension accounting, American style. The amount of expense, or profit, that companies report from their pension systems are not based on the actual profits earned by investments in the pension fund. Instead, companies report profits as if the pension investments earned what was assumed when the year began." (New York Times; free registration required)
Liberalized Contribution Rules in EGTRRA Could Cause State Income Taxes
Excerpt: "State tax laws are causing concerns for some retirement plan practitioners. In states that impose an income tax on individuals, retirement plan sponsors may need to determine whether the state's income tax code will take into account the more liberal EGTRRA contribution limits allowed in 2002 under the federal income tax code." (BenefitsLink)
CGU Life Reaches Settlement in 403(b) Teacher Annuity Class Action
Excerpt: "CGU Life Insurance Company of America ('CGU'), formerly known as Commercial Union Life Insurance Company of America, announced the settlement of a class action lawsuit affecting approximately 14,000 teachers and other school district employees, most of whom are in Texas. The suit, filed by a group of teachers in Corpus Christi, Texas, is subject to court approval on January 23, 2002, and involves annuities sold as part of Section 403(b) Plans." (403bWise.com)
Loans Made To Company From Officer's Pension Plans Were Prohibited Transactions: Court
Affirming a ruling by the U.S. Tax Court, the Eighth Circuit U.S. Court of Appeals has held that a corporation was liable for the IRC Sec. 4975(a) excise tax on loans that it received from a corporate officer's pension plans because the company was a 'disqualified person' and, hence, the loans constituted prohibited transactions. The case is Flahertys Arden Bowl, Inc. v. Commissioner (No. 01-1158). (Spencernet)
Railroads Receive Congressional Support In Quest to Overhaul Retirement System
Excerpt: "The overhaul would take the railroad retirement system, which invests in government securities in the same manner as Social Security, and permit some of the funds to be invested in private securities such as stocks and bonds." (Wall Street Journal, on GlobalAging.com)
Report on Pension Coverage in Great Britain
Excerpt: "In summer 1997 the [British] Government asked us to look at current levels of pension provision ['coverage'] in the UK, and likely future trends. We are independent of Government and come from a wide range of pensions experience and expertise." (Pension Provision Group)
Argentina Seizes Private Pension Funds
Excerpt: "The state-run Banco de la Nacion is set to take over Argentina's private pension fund accounts held in banks to pay public service wages and pensions ..." (Boston Globe)
(Following items are in both editions of the BenefitsLink Newsletter)
Steel Company Decries Bailout Bid
Excerpt: "The head of nation's second-largest steel-maker [Nucor] criticized an industry bailout being pursued by rivals, saying it will lead the government into an expensive quagmire.... The companies are seeking to have the government assume responsibility for their $10 billion to $13 billion in pension costs. Nucor doesn't face the massive health and pension benefit obligations plaguing the companies talking about a merger." (Associated Press via Yahoo! News)
Gephardt: Congress Should Mull Helping Steel Companies with Pensions, Retiree Health Costs
Excerpt: "House Minority Leader Richard Gephardt said on Thursday Congress should consider picking up some pension and retiree health costs in order to help two of the biggest U.S. steel companies merge." (Reuters via Yahoo! Finance)
Overview: Employment Taxes and Tax Withholding - Stock Options
Summary of new rules applicable to incentive stock options exercised after 2002, by attorney Mark Poerio. (xpay.net)
Newly Posted or Renewed Job Openings ( Post Yours! )
Newly Posted Press Releases
Copyright 2001 BenefitsLink.com, Inc., but you may freely distribute this email newsletter in whole. This newsletter is edited by David Rhett Baker, J.D.
Jobs | Today's Messages | Topical News | Q&A Columns | Services & Products | Search | Reference
The BenefitsLink Newsletter -
Retirement Plans Edition
Retirement Plans Edition
December 7, 2001 - 12,718 subscribers
Today's sponsor: EmployeeBenefitsJobs.com
(Click on company name or banner to learn more.)
Fill your employee benefits job openings fast by advertising on BenefitsLink. What better place to find qualified candidates? Your help wanted ad will be listed in the BenefitsLink Newsletter (over 19,000 subscriptions to the two editions), will be seen by thousands of candidates who view our listings online, and will be emailed to over 2,000 job-seekers. Click to see how easy it is to place an ad!
(Help BenefitsLink to provide this newsletter at no charge to you -- our sponsors pay our way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor)
The Fiction of Pension Accounting
Excerpt: "[W]e are not dealing with a reasonable accounting system. We are dealing with pension accounting, American style. The amount of expense, or profit, that companies report from their pension systems are not based on the actual profits earned by investments in the pension fund. Instead, companies report profits as if the pension investments earned what was assumed when the year began." (New York Times; free registration required)
Liberalized Contribution Rules in EGTRRA Could Cause State Income Taxes
Excerpt: "State tax laws are causing concerns for some retirement plan practitioners. In states that impose an income tax on individuals, retirement plan sponsors may need to determine whether the state's income tax code will take into account the more liberal EGTRRA contribution limits allowed in 2002 under the federal income tax code." (BenefitsLink)
CGU Life Reaches Settlement in 403(b) Teacher Annuity Class Action
Excerpt: "CGU Life Insurance Company of America ('CGU'), formerly known as Commercial Union Life Insurance Company of America, announced the settlement of a class action lawsuit affecting approximately 14,000 teachers and other school district employees, most of whom are in Texas. The suit, filed by a group of teachers in Corpus Christi, Texas, is subject to court approval on January 23, 2002, and involves annuities sold as part of Section 403(b) Plans." (403bWise.com)
Loans Made To Company From Officer's Pension Plans Were Prohibited Transactions: Court
Affirming a ruling by the U.S. Tax Court, the Eighth Circuit U.S. Court of Appeals has held that a corporation was liable for the IRC Sec. 4975(a) excise tax on loans that it received from a corporate officer's pension plans because the company was a 'disqualified person' and, hence, the loans constituted prohibited transactions. The case is Flahertys Arden Bowl, Inc. v. Commissioner (No. 01-1158). (Spencernet)
Railroads Receive Congressional Support In Quest to Overhaul Retirement System
Excerpt: "The overhaul would take the railroad retirement system, which invests in government securities in the same manner as Social Security, and permit some of the funds to be invested in private securities such as stocks and bonds." (Wall Street Journal, on GlobalAging.com)
Report on Pension Coverage in Great Britain
Excerpt: "In summer 1997 the [British] Government asked us to look at current levels of pension provision ['coverage'] in the UK, and likely future trends. We are independent of Government and come from a wide range of pensions experience and expertise." (Pension Provision Group)
Argentina Seizes Private Pension Funds
Excerpt: "The state-run Banco de la Nacion is set to take over Argentina's private pension fund accounts held in banks to pay public service wages and pensions ..." (Boston Globe)
Steel Company Decries Bailout Bid
Excerpt: "The head of nation's second-largest steel-maker [Nucor] criticized an industry bailout being pursued by rivals, saying it will lead the government into an expensive quagmire.... The companies are seeking to have the government assume responsibility for their $10 billion to $13 billion in pension costs. Nucor doesn't face the massive health and pension benefit obligations plaguing the companies talking about a merger." (Associated Press via Yahoo! News)
Gephardt: Congress Should Mull Helping Steel Companies with Pensions, Retiree Health Costs
Excerpt: "House Minority Leader Richard Gephardt said on Thursday Congress should consider picking up some pension and retiree health costs in order to help two of the biggest U.S. steel companies merge." (Reuters via Yahoo! Finance)
Overview: Employment Taxes and Tax Withholding - Stock Options
Summary of new rules applicable to incentive stock options exercised after 2002, by attorney Mark Poerio. (xpay.net)
Newly Posted or Renewed Job Openings ( Post Yours! )
for Lynden Incorporated
in WA
in WA
for An Excellent Opportunity with a Growing, Privately Held Firm
in CA
in CA
for This Top Notch Team!!
in CA
in CA
for GreenPoint Financial Corp.
in NY
in NY
for Ceridian
in CA, CO, VA
in CA, CO, VA
Newly Posted Press Releases
SECURIAN RETIREMENT SERVICES LISTED ON 401KEXCHANGE.COM
(401kExchange.com)
PacifiCare Dental Introduces New and Improved Dental PPO Plans
(PacifiCare Dental & Vision)
Subscribe to the Welfare Plans Edition, too (click)
Copyright 2001 BenefitsLink.com, Inc., but you may freely distribute this email newsletter in whole. This newsletter is edited by David Rhett Baker, J.D.
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