January 3, 2003 - 12,880 subscribers

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Today's sponsor: International Foundation of Employee Benefit Plans

(Click on company name or banner to learn more.)

  New! International Foundation Books Available on BenefitsLink. 
 
When you have the right resources, you can answer the questions
   that come your way. Each year, the International Foundation teams
   with respected authors and publishes books on a variety of topics.
   Whether you're managing pharmacy benefit costs, designing a cash
   balance plan or communicating benefits to your employees, the
   International Foundation is your single source of benefit and
   compensation information and education.

(Help BenefitsLink to provide this newsletter at no charge to you -- our sponsors pay your way. Remember to visit them periodically; we try to make sure their products and services will be of interest to you. Thanks! --Editor)

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IRS Provides Qualified Plan Model Amendment for Adoption of Deemed IRA
Rev. Proc. 2003-13. Excerpt: "This revenue procedure provides guidance for employers that want to amend their plans qualified under § 401(a) of the Internal Revenue Code to include 'deemed IRAs' described in § 408(q). The revenue procedure also provides a sample plan amendment that may be used, in conjunction with IRA language, to amend a qualified plan to provide for deemed IRAs." (Internal Revenue Service)

Company Stock Continues to Fill 401(k) Plans
Excerpt: "Workers continue to cling to company stock in retirement plans even though many companies made it easier to sell in the past year. Negative publicity and congressional hearings into wiped-out retirement plans at Enron, WorldCom and elsewhere did little to sour workers." (USA Today)

Rite-Aid to Settle 401(k) Investment Lawsuit
Excerpt: "Rite Aid Corp. has reached a settlement agreement over a company retirement plan that permitted additional purchases of the drugstore chain's stock in the late 1990s when former managers allegedly were manipulating the books." (The [Harrisburg, Pa.] Patriot-News via NewsAlert.com)

Critics Say Accounting Rules for Pensions are 'Funding Fun House'
Excerpt: "After years of getting a bottom-line boost from pension gains, companies are now experiencing pension losses, which show up in a variety of forms, including hits to earnings, cash flow, and equity, depending on the particulars of the plan and complex accounting rules.... The real question is, why are the negative effects of pension plans just now starting to make their way onto the corporate radar screen, even though the plans have performed miserably for the past three years?" (CFO.com)

The Culture of Employee Ownership: What Happened at United?
Excerpt: "What happened? Why didn't United fare better, especially in light of the claims of employee ownership proponents that cutting workers in on a share of the ownership is a sure way to improve business results? This important story bears careful examination." (Foundation for Enterprise Development)

Another Question is Answered in the Who's the Employer Q&A Column
A person owns 51% of a non-service Company A and 100% of sole proprietorship Company B. Company B derives 100% of its business from Company A. Is this is a controlled group for most purposes? For 415 limit purposes? (BenefitsLink.com)

ERIC Comments on Proposed Regs on Explanation of Annuity Benefit Options (PDF)
3 pages. Excerpt: "[ERIC] is pleased to submit the following comments on the proposed regulations regarding the content requirements that apply to explanations of qualified joint and survivor annuities ('QJSAs') and qualified preretirement survivor annuities ('QPSAs') and requiring disclosure of the relative value of optional forms of benefit that are payable in lieu of a QJSA. The proposed regulations were published in the October 7, 2002, issue of the Federal Register." (ERISA Industry Committee)

Tracking Key Birthdays for Your Retirement Planning Clients
Excerpt: "Key ages for your clients with retirement accounts are 55, 59-1/2, and 70-1/2. Start by addressing clients nearing these ages. The natural planning succession would go from the retirement account to beneficiary and estate planning and then to product sales, such as life or long-term care insurance. This is what taking care of your clients and their families means. This is how you build your business by building your client relationships." (Financial Planning Interactive)

California Schoolteachers to Get Golden Handshake, But Exodus Could Hurt School District in Long Run
Excerpt: "Though this exodus of veteran teachers is expected to save the district hundreds of thousands of dollars during the worst school budget crisis in nearly 20 years, it may also cost the district its most experienced educators-- already a rare commodity. Ten years ago, 80 percent of Torrance teachers had 30 years of experience or more. Today, it is reversed: 80 percent of teachers have 10 years of experience or less." (The [Torrance, Calif.] Daily Breeze)

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Newly Posted or Renewed Job Openings


Plan Administrator
for Alliance Benefit Group of New England
in NH

Document Compliance Analyst
for Automatic Data Processing
in NJ

Vice President/Team Leader Retirement Services
for City National Bank
in CA

Customer Service Representative (CSR) - Pension Administration
for Pan-American Life Insurance Company
in LA

Manager - Benefits Accounting
for Delta Air Lines, Inc.
in GA

Plan Restatement Specialists (Temporary)
for CNA Trust
in CA

Independent Investment Representatives - 403(b) Educational Sales
for NEBSonline, Inc.
in CA

Enrolled Actuary
for American Express Tax & Business Services
in IL

Defined Contribution/401(k) Administrator
for Boyce & Associates, Inc.
in AZ

Senior Benefits Consultant
for Apple Computer, Inc.
in CA

Actuarial Systems Engineer
for Northern Trust Retirement Consulting, L.L.C.
in WA

Senior/Associate Health Benefits Analyst
for The Segal Company
in MA

Pension Conversion Specialist
for Long Island Employee Benefits Group Ltd
in NY

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Newly Posted Conferences
( Post Yours! )

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in TX
February 5, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in IN
February 6, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in IA
February 20, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in DC
February 20, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in MO
February 21, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in NY
February 21, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in WA
February 26, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in MI
February 27, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in CA
February 27, 2003
SunGard Corbel

Safe Harbor 401(k) Plan Specialty Workshop (1/2 day only)
in OH
February 28, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in TX
February 5, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in IN
February 6, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in IA
February 20, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in DC
February 20, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in NY
February 21, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in MO
February 21, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in WA
February 26, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in MI
February 27, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in CA
February 27, 2003
SunGard Corbel

Cross-Tested Plans Specialty Workshop (1/2 day only)
in OH
February 28, 2003
SunGard Corbel

DOL's New Technology Regulations (29 C.F.R. Sections 2520.104b-1)
in NY
January 28, 2003
New York Metropolitan Area Chapter - ISCEBS

Charting the Course Forward: The Brave New World of Executive Compensation
in OH
January 16, 2003
WEB, Worldwide Employee Benefits Network

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Newly Posted Press Releases
( Post Yours! )

2003 Supplement to Governmental Plans Answer Book Now Available
(Calhoun Law Group, P.C.)

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Handy Links:

• View Today's Active Message Threads
• Search BenefitsLink
• Using the Web for Employee Benefits Research
• Employee Benefits Library

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Editor and Publisher: David Rhett Baker, J.D.

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