Archives


This last year has been a very costly one for health insurance carriers. As a result, the HMO’s and insurance companies are proposing significant renewal rate increases. When you combine that with the current economic condition, it creates a difficult problem for employers. However, it is possible to mitigate the increases by doing some planning at least two to three months in advance of the renewal date of the group policy. The...

Read More

Congress has rolled out its heavy artillery to blast away any possibility for a repeat of the Enron mess. Backed by a heavy media blitz, the proposed legislation is designed to avoid other 401(k) participants, in large and small plans, from being “Enron-ed.” However, this legislation hurts the small employer. We provide a summary of the key proposals as of the date we go to press. On April 11, the House passed H.R. 3762,...

Read More

I. Overview. On January 31, 2003, the Bush Administration proposed two new tax-advantaged savings programs plus a reorganization of the defined contribution plan rules. This follows the Administration’s earlier proposal to end the double taxation of dividends. The savings proposals, if enacted, would rewrite many of the rules under which employers and employees save for retirement. It is not clear at this time to which...

Read More

Not content to rest on his dubious laurels in having initiated last year’s Congressional action resulting in the shackling of Treasury’s attempt to promulgate its regulation proposed in 2002 to free cash balance plans from vulnerability to charges of age discrimination – by a bill barring Treasury from spending any of it 2004 appropriation to that end — Rep. Bernard Sanders (I-VT) has renewed his tactics in...

Read More

As of December 2004, the Pension Benefit Guaranty Corp. PBGC had taken over pension plans with liabilities that exceeded assets by $23 billion. Earlier this year United Airlines increased the PBGC’s deficient by an additional $6 billion, and the other airlines are only a breath away from adding even more. Where will the PBGC come up with the all the money to pay retiree benefits? Currently, the only source of revenue available...

Read More

In June, the IRS released guidance (confirming its prior position on this issue) blocking one corporate tax strategy to accelerate the deductibility of 401 (k) salary deferrals and matching contributions that are attributable to compensation paid after the end of the tax year. But another strategy was given the “okay.” The prior position blocked a tax deduction technique where an employer — with a plan year that...

Read More