Journal of Pension Benefits articles from January 2003

Journal of Pension Benefits archives from January 2003

From the editor.
January 1, 2003... Well, I have some exciting news to share with the readers of JPB: my other job, that of a consulting actuary, has changed substantially as of January 1, 2003. My firm, Gucciardi Benefit Resources, Inc. is now part of Summit Benefit &...

Congress avenges corporate fraud: the Sarbanes of a benefit professional's existence.
January 1, 2003... Intended, at least in part, to protect 401(k) plan accounts from the effects of corporate fraud, the Sarbanes-Oxley Act has missed its mark. Many of its benefits-related provisions merely impose burdensome administrative requirements on plans...

Plan expenses for multiemployer pension and welfare plans: a comparative surveys.(Industry Overview)
January 1, 2003... The extensive data on multiemployer plan expenses summarized in this article can be used to evaluate what a plan is spending on administrative costs relative to similar plans, thereby helping its trustees meet their fiduciary duties when...

Defined contribution health plans--a green light for health reimbursement arrangements.(Column)
January 1, 2003... This past July, the Treasury and the Internal Revenue Service (IRS) gave a bright green light to innovative health plan designs that use employer-funded, defined contribution accounts to pay employee and dependent health care expenses. Termed...

Disqualifying defects and disqualifications.(Column)
January 1, 2003... In the Summer 2002 issue of the Journal of Pension Benefits, Part I of this article addressed the consequences of disqualification. Part II of this article examines specific disqualifying defects and applies the principles discussed in Part...

ERISA procedural prudence: the appropriate standard for selecting an annuity provider.
January 1, 2003... Selecting an annuity provider begins with evaluating the ability of potential providers to meet the ERISA fiduciary standards for procedural prudence as outlined by the Fifth Circuit, and not the minimum standards of DOL Interpretive Bulletin...

Federal and Puerto Rico taxation of benefits from Puerto Rico qualified retirement plans received by United States residents.
January 1, 2003... The IRS has finally provided guidance on the taxation of benefits from Puerto Rico qualified plans received by United States residents. ********** After years of regulatory uncertainty, in Field Service Advice No. 200215019 of April...

Are flexible spending account debit cards a convenience or a necessity?(Column)
January 1, 2003... Remember dial phones? If you ore a baby-boomer, you'll have to confess that you do. They were basic--not a lot of bells and whistles--but they certainly were convenient. And it didn't take long before the trend dictated that not only should a...

Helping clients to measure and manage their retiree medical liabilities.(Column)
January 1, 2003... Tough economic times and other factors have combined to focus attention on retiree medical benefits. This article reviews those factors and the forces that are driving up retiree medical care costs. More important, it explains what employers...

Retirement plan distributions under the United States tax treaties.
January 1, 2003... The Code's treatment of retirement plan distributions received by non-U.S, citizens who worked for U.S. corporations is complicated, and many of the tax treaties to which the United States is a party are unclear on the matter. It may...

Section 412(i) plans: emerging abuses involving depressed cash value insurance.(Column)
January 1, 2003... It was inevitable. First it was Internal Revenue Code (Code) Section 419A(f)(6). Then it was charitable split dollar. Now it is Code Section 412(i). This article is about a laudable concept--the Section 412(i) defined benefit plan--that...

The times they are a changin' (maybe).(qualified retirement plans)(Column)
January 1, 2003... With apologies to Bob Dylan, the times may be changing for participants in qualified retirement plans. The trend to allow participants to allocate or direct their own investments may be slowing down or reversing. In the early 1980s, a series...

Focus on ... prohibited transactions--Part I.(for pension plans)(Column)
January 1, 2003... Understanding the prohibited transaction rules of ERISA and the Code is crucial for plan fiduciaries, since even an unintentional violation of these rules can result in severe penalties. Concentrating on employer-sponsored retirement plans,...

Enron, 404(c), and the personal liability of corporate officers. (401(k) Investment Issues).
January 1, 2003... Corporate officers who serve as 401(k) investment fiduciaries are legally responsible for participants' investment decisions--not just for the investment options, but also for the directions given by the participants. Is that statement a...

New guidance allows taxpayers to preserve retirement savings. (Plan Distributions).
January 1, 2003... To provide relief to those receiving distributions from qualified retirement plan accounts that have declined in value, the IRS is allowing distributees to switch their method for satisfying the series of substantially equal periodic payments...

IRS proposes rules for disclosing relative values of optional payment forms, consolidates guidance on QPSA and QJSA notices. (Plan Actuary).(Internal Revenue Service guidance on notice requirements for qualified preretirement survivor annuities and qualified joint and survivor annuities)(Column)
January 1, 2003... Proposed regulations would require QJSA notices to state the relative values of the optional forms of benefit available under a defined benefit plan, either in a participant-specific manner or in a generalized manner. That requirement and...

Murder on the M&A express: how benefits killed the deal. (Mergers and Acquisitions).(problems with benefits can kill mergers or acquisitions)(Column)
January 1, 2003... "How are we doing resolving the problems with the acquisition"? I asked. Bang! And then a shot rang out.... "The deal is dead," my client told me. "We decided not to pursue it." This was the first time that I had ever witnessed a deal being...

Fiduciaries need not violate insider trading rules to avoid a breach. (Plan Fiduciary).
January 1, 2003... A federal district court's rulings on motions to dismiss an Enron-type lawsuit provide a peak at the complex ERISA issues raised by this type of litigation. This column explains those rulings and explores the extent to which they may affect...

Those $#%&*!@ accountants: how to survive a financial audit of the plan. (Plan Administration).(Column)
January 1, 2003... Staying clear of the independent Certified Public Accountant Audit is not something that con be achieved by all plans: an audit is required for plans that have more than one hundred participants. But, there are some tricks you can play to...

Death of an insurance salesman: is the future of split-dollar life insurance in jeopardy? (Nonqualified Plans).
January 1, 2003... Proposed regulations issued in July 2002 and the Sarbanes-Oxley Act of 2002 may mean the end of the split-dollar life insurance, as explained in this column. Over the past year, the Internal Revenue Service (IRS) has issued significant...