Can you believe it? Pensions the subject of a computer game? That’s what the BBC News reports in this article : “Pension crisis: The game.” The article states that the Amicus union will e-mail the game to 50,000 people who are not in a trade union in a bid to highlight the threat to company pension schemes.
More on pension deficits from TheStreet.com: “Pension Problems Threaten Earnings Quality.”
Reuters reports: “NYSE to Let Investors Block Option Plans.” The article reports that the “New York Stock Exchange has informed its U.S. listed companies that new stock option plans or significant changes to existing plans will require shareholder approval under stricter rules expected to take effect next week.” A memo provided by the exchange to Reuters on Monday “described the imminent changes to executives of 2,800 companies listed on the Big Board.”
Jana Tchinkova for The Ticker reports–“Odd Blend May Be a Match”–and discusses pension funds turning to hedge funds as an alternative investment.
Today’s edition of the Wall Street Journal provides this report: “Fidelity Ends Sales Charge On Five of Its Largest Funds.”
The WSJ also contains a very good article today: “Employees May Pay More on Retirement Plans: Labor Department Guides Sponsors to Pass on Costs Involving Administration.” The article discusses Field Assistance Bulletin 2003-3 which allows certain plan expenses to be passed on to participants. Highlighted is the Internal Revenue Code Section 411 issue which arises due to the fact that, according to the FAB, plan expenses can now be charged to those employees who have left a company yet are still vested in their account, even if those same expenses are not charged to participants still employed by the plan sponsor. The article reports Don Roberts, an IRS spokesman, as stating: “We are aware of the issue that is out there, but we don’t have any guidance at this point as it may relate to Code Section 411.”