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December 19, 2001 - 12,792 subscribers
Today's sponsor: In Plain English
(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)
Rev. Rul. 2001-62 Provides Mortality Table for Use in Making Certain Present Value Calculations
Excerpt: "The required use of the mortality table in this revenue ruling is effective for distributions with annuity starting dates on or after December 31, 2002, except that a plan may specify any earlier date during calendar year 2002 as the effective date for the required use of the mortality table in this revenue ruling under the plan." (Internal Revenue Service)
The 401(k) Stumbles: Investment Losses and Employer Cutbacks Leave Workers Reeling
Excerpt: "The $1.8 trillion held in 401(k) accounts by 42 million investors provided the fuel for the '90s bull market. But with the market itself having suffered a reversal of fortune, the 401(k) is losing its luster. Workers who once viewed 401(k)'s as a smooth pathway to a secure financial future now find their retirement plans under siege on several fronts." (USNews.com)
Opinion: Hardship Withdrawals Are Often a Better Strategy than Loans
Excerpt: "In writing about early withdrawals, I came to a conclusion that surprised me -- I concluded that in situations where participants are forced to withdraw money early, hardship withdrawals are a better alternative than loans for most participants." (Ted Benna, by mPower Cafe)
Survey Finds 401(k) Contribution Increases Go Unheeded
Excerpt: "Few workers seem to be aware that as of Jan. 1, Congress is letting them save more in their 401(k) plans, perhaps because most companies have not told their workers about the changes. Those are the findings in a new survey by Cigna Retirement and Investment Services, a unit of the Cigna Corporation." (New York Times; free registration required)
Catching up on Catch-up Contributions
Excerpt: "Below we've provided some representative questions from clients about catch-up contributions, along with answers prepared by Vanguard's Plan Consulting Group and ERISA Legal Department." (Vanguard Institutional Services)
ERIC: Unnecessary Pension Contributions Will Forestall Economic Recovery
Excerpt: "Solely because of the Treasury Department's recent decision to curtail the 30-year bond and its earlier decision to buy back liabilities under that bond, rates on the long-term debt instrument have plummeted to historic lows. As a result, plan sponsors will be required to divert millions of dollars away from the economy and into financially sound pension plans at a time when the country can least afford it." (ERISA Industry Committee)
ERIC: Proposed Increase in Interest Rate Assumption Will Not Harm Participants
Excerpt: "Current law requires pension funding to be pegged to the rate of return on 30-year Treasury bonds, which reflects Congress's intent that pension funding be based on a relatively stable, long-term interest rate. The relief being sought by plan sponsors is consistent with that objective. It applies only to pension funding. It does not affect lump-sum payouts to plan participants." (ERISA Industry Committee)
401(k) Special Report: Dear Prudence
Excerpt: "The suit pits thousands of employees, former employees, and retirees against the telecommunications equipment manufacturer. The charge: by not restricting or eliminating the company's stock in the plaintiffs' 401(k) plans, Lucent officials cost the plaintiffs millions of dollars as the stock price fell from $37 a share to less than its current $6 a share." (CFO.com)
The Danger in a One-Basket Nest Egg Prompts a Call to Limit Stock
Excerpt: "Yesterday, the dangers of company stock were described at a hearing before the Senate Commerce Committee, one of several panels in Congress investigating Enron's demise." (New York Times; free registration required)
Two Senators Offer Post-Enron Bill on Employer Securities in 401(k) Plans
Excerpt: "Boxer and Corzine said 67 percent of the assets in Enron 401(k) retirement plans were invested in Enron stock. They proposed limiting to 20 percent the investment an employee can have in any one stock in their individual 401(k) accounts.... With Congress soon to recess for the year, Boxer and Corzine's bill will likely have to wait until next year to progress. They also acknowledged they have yet to round up Republican support." (Reuters via Yahoo! Finance)
The Lifetime Cost of Money Management
Excerpt: "What is the lifetime cost of money management? What's the difference between zero cost management and 75 or 200 basis points?" (Scott Burns of The Dallas Morning News)
Politics, Economy Stall Social Security Action
Excerpt: "The timing was never right for President Bush's Social Security Commission and its plan to set up personal investment accounts to supplement the retirement system. First, a plunging stock market undermined the public's faith in its basic idea; then the Sept. 11 attacks undercut the urgency of its task." (Chicago Tribune)
New Social Security Proposals Unveiled
Excerpt: "Following the recent release of Social Security reform proposals by a presidential commission, congressional leaders unveiled proposals of their own that would establish personal retirement accounts within the system." (CCH)
Newly Posted or Renewed Job Openings -
Newly Posted Press Releases ( Post Yours! )
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 19, 2001 - 12,792 subscribers
Today's sponsor: In Plain English
(Click on company name or banner to learn more.)
ERISA requires new SPDs by January 22, 2003. Will you be ready? Let In Plain English(R) write and produce your SPDs for print and the Web. Compliant, Correct, Easy-to-Read... Guaranteed! For more information on how we can help you, visit http://www.InPlainEnglish.com or email Ron Wohl at rwohl@InPlainEnglish.Com. To receive our FREE SPD ALERT Newsletter, subscribe at http://www.InPlainEnglish.com/welcome.htm
(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)
Rev. Rul. 2001-62 Provides Mortality Table for Use in Making Certain Present Value Calculations
Excerpt: "The required use of the mortality table in this revenue ruling is effective for distributions with annuity starting dates on or after December 31, 2002, except that a plan may specify any earlier date during calendar year 2002 as the effective date for the required use of the mortality table in this revenue ruling under the plan." (Internal Revenue Service)
The 401(k) Stumbles: Investment Losses and Employer Cutbacks Leave Workers Reeling
Excerpt: "The $1.8 trillion held in 401(k) accounts by 42 million investors provided the fuel for the '90s bull market. But with the market itself having suffered a reversal of fortune, the 401(k) is losing its luster. Workers who once viewed 401(k)'s as a smooth pathway to a secure financial future now find their retirement plans under siege on several fronts." (USNews.com)
Opinion: Hardship Withdrawals Are Often a Better Strategy than Loans
Excerpt: "In writing about early withdrawals, I came to a conclusion that surprised me -- I concluded that in situations where participants are forced to withdraw money early, hardship withdrawals are a better alternative than loans for most participants." (Ted Benna, by mPower Cafe)
Survey Finds 401(k) Contribution Increases Go Unheeded
Excerpt: "Few workers seem to be aware that as of Jan. 1, Congress is letting them save more in their 401(k) plans, perhaps because most companies have not told their workers about the changes. Those are the findings in a new survey by Cigna Retirement and Investment Services, a unit of the Cigna Corporation." (New York Times; free registration required)
Catching up on Catch-up Contributions
Excerpt: "Below we've provided some representative questions from clients about catch-up contributions, along with answers prepared by Vanguard's Plan Consulting Group and ERISA Legal Department." (Vanguard Institutional Services)
ERIC: Unnecessary Pension Contributions Will Forestall Economic Recovery
Excerpt: "Solely because of the Treasury Department's recent decision to curtail the 30-year bond and its earlier decision to buy back liabilities under that bond, rates on the long-term debt instrument have plummeted to historic lows. As a result, plan sponsors will be required to divert millions of dollars away from the economy and into financially sound pension plans at a time when the country can least afford it." (ERISA Industry Committee)
ERIC: Proposed Increase in Interest Rate Assumption Will Not Harm Participants
Excerpt: "Current law requires pension funding to be pegged to the rate of return on 30-year Treasury bonds, which reflects Congress's intent that pension funding be based on a relatively stable, long-term interest rate. The relief being sought by plan sponsors is consistent with that objective. It applies only to pension funding. It does not affect lump-sum payouts to plan participants." (ERISA Industry Committee)
401(k) Special Report: Dear Prudence
Excerpt: "The suit pits thousands of employees, former employees, and retirees against the telecommunications equipment manufacturer. The charge: by not restricting or eliminating the company's stock in the plaintiffs' 401(k) plans, Lucent officials cost the plaintiffs millions of dollars as the stock price fell from $37 a share to less than its current $6 a share." (CFO.com)
The Danger in a One-Basket Nest Egg Prompts a Call to Limit Stock
Excerpt: "Yesterday, the dangers of company stock were described at a hearing before the Senate Commerce Committee, one of several panels in Congress investigating Enron's demise." (New York Times; free registration required)
Two Senators Offer Post-Enron Bill on Employer Securities in 401(k) Plans
Excerpt: "Boxer and Corzine said 67 percent of the assets in Enron 401(k) retirement plans were invested in Enron stock. They proposed limiting to 20 percent the investment an employee can have in any one stock in their individual 401(k) accounts.... With Congress soon to recess for the year, Boxer and Corzine's bill will likely have to wait until next year to progress. They also acknowledged they have yet to round up Republican support." (Reuters via Yahoo! Finance)
The Lifetime Cost of Money Management
Excerpt: "What is the lifetime cost of money management? What's the difference between zero cost management and 75 or 200 basis points?" (Scott Burns of The Dallas Morning News)
Politics, Economy Stall Social Security Action
Excerpt: "The timing was never right for President Bush's Social Security Commission and its plan to set up personal investment accounts to supplement the retirement system. First, a plunging stock market undermined the public's faith in its basic idea; then the Sept. 11 attacks undercut the urgency of its task." (Chicago Tribune)
New Social Security Proposals Unveiled
Excerpt: "Following the recent release of Social Security reform proposals by a presidential commission, congressional leaders unveiled proposals of their own that would establish personal retirement accounts within the system." (CCH)
Newly Posted or Renewed Job Openings -
for Central Florida TPA
in FL
in FL
for U.S. Department of Labor, Pension And Welfare Benefits Administration
in DC
in DC
for U.S. Department of Labor, Pension and Welfare Benefits Administration
in CA, IL, KY, MD, PA, TX
in CA, IL, KY, MD, PA, TX
for Transamerica - the Winning Organization
in CA, GA
in CA, GA
for West Virginia Consolidated Public Retirement Board
in WV
in WV
for Transamerica
in CA
in CA
Newly Posted Press Releases ( Post Yours! )
Deferral.com, Inc. names new CEO, COO and Vice President of Marketing
(Deferral.com, Inc.)
Labor Department Publishes Year 2001 Form M-1 For Multiple Employer Welfare Arrangements
(United States Department of Labor, Pension and Welfare Benefits Administration)
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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