Month: June 2003

Today’s Federal Register is here.

“Federal tax relief on the way”: this article by Dave Copeland for the Pittsburgh-Tribune Review discusses how 21,000 Pennsylvanians will be eligible for the new health care tax credit–a 65 percent tax credit against health care payments for people between the ages of 55 and 65 who are receiving a pension from the Pension Benefit Guaranty Corporation. The article reports that in Pittsburgh, the tax credit could have a substantial impact, as retirees from both LTV Steel and Bethlehem Steel Corp. are potentially eligible for the tax credit. The tax credit was discussed here in an article by Deloitte & Touche at Benefitslink.com. You can also read about the credit on the IRS website here.

This article–“Nation’s largest pension fund targets executive stock options”–by Don Thompson for the Associated Press at KansasCity.com (Kansas City Star) reports that the investment committee of the California Public Employees’ Retirement System (“CALPERS”) on Monday set new standards for executive stock option plans it will support for the 1,000 largest companies in which the $130 billion fund invests its money. According to the article, CALPERS will only support plans if 5 percent or fewer of the stock options go to the company’s top five executives, and if the executives have to wait at least four years to cash in.

403bwise.com has this article explaining in layman terms the differences between 403(b) plans and 457 plans: “Read Between the Numbers: 403(b)s & 457s.”

Today’s edition of the Wall Street Journal provides this article by Lenn Cowan in its special E-Commerce section discussing do-it-yourself investment-management tools online: “Buy? Sell? Hold? A Guide to some of the best online investment-management tools.” Some of the ones reviewed and discussed were Financial Engines Inc., mPower.com Inc. (which you can access at MSN.com) and Morningstar Inc..

An enjoyable article at BusinessWeekOnline–“This SEC Cop Means Business”–gives the inside story on William H. Donaldson, SEC Chairman, who took over on February 18th of this year. Another article at BusinessWeekOnline–“A Conversation with Bill Donaldson”–reports him as stating the following in regards to why he took the job at age 71:

“I ask myself why I took this job at this stage in my life. It’s because we’re at a pivotal point in the reestablishment of faith in the business and financial communities. I would like to be remembered for having an effect on that, for bringing everybody back to a sense of business integrity. There are alot of people out there, not just business people but also some of the gatekeepers — accountants, lawyers — where there has been a shift in ethics and morality, [thinking] that cutting corners a little bit is justified because “everybody else is doing it.” I hope [to] have an impact in righting that.”

Sutherland Asbill & Brennan LLP provides us with this very good article discussing the new incentive stock option proposed regulations issued June 9th by the IRS and discussed in previous posts here.

A very analytical article by David M. Gische and Jo Ann Abramson of Ross, Dixon & Bell LLP at Findlaw.com: “Corporate Fiduciary Liability Claims In The Post-Enron Era.” The article provides a detailed discussion of the class-action litigation that is going on in the ERISA arena against ERISA plan fiduciaries of 401(k) plans. The article gives a rundown of the Enron, Global Crossing, WorldCom, and Qwest cases which are making their way through the courts and provides a discussion about the parallel securities law claims which may provide double exposure for insurers, if the ERISA claims succeed.

Another article by Jason Hoppin for the Recorder at Law.com–“A Matter of Trust: Stung by corporate collapses, workers look to ERISA for relief“–also discusses the “burgeoning arena of ERISA cases filed on behalf of company employees who lose their retirement savings when corporate scandals hit.” He calls it “an oasis for plaintiffs’ lawyers, where you can make new law, the bar is friendly on both sides of the aisle, there are few competitors and, of course, huge recoveries are the norm.”

CorpLawBlog at a post here and Securities Beacon have also reported on the subject today.

This article by Jill Elswick for BenefitNews.com–“DOL develops educational resources for fiduciaries”–comments on the ERISA Advisory Council’s Working Group on Fiduciary Education and Training and its educational initiative to help fiduciaries comply with the myriad requirements of ERISA. The Group’s final report can be accessed here. The article also reports that the Foundation for Fiduciary Studies has released 27 “prudent investment practices”–each substantiated with existing legislation, case law, and regulatory opinion letters and vetted by the American Institute of Certified Public Accountants (AICPA)–into the public domain for comment here. Finally, the article discusses a new program for fiduciary education offered by New York Life Investment Management’s (NYLIM) retirement plan services division which you can read about here.

This article by David Firestone for the New York Times–“Fate of Tax Credits Rests With Houses Divided”–reports on the political and philosophical divide between the Senate and the House regarding bills introduced which would provide tax credits for low-income families.