Today’s Federal Register.
More on the IBM Cash Balance Plan decision handed down yesterday and reported on here yesterday:
Albert B. Crenshaw for the WashingtonPost.com reports: “Judge Finds Age Bias in IBM Pensions: Experts Say Ruling Could End Other Employers’ ‘Cash Balance’ Plans.“
The American Benefits Council has issued a statement on the case. James Klein, ABC’s President, states:
“Conversions to cash balance plans are currently the one good thing going on in the defined benefit pension plan system because they demonstrate a commitment by employers to remain within the defined benefit world. Other companies are exiting the system altogether. A decision like this sends one more negative signal to employers that ‘no good deed goes unpunished’ since it penalizes employers trying to provide their workers with a pension that is funded by the employer and guaranteed by the government, as opposed to requiring workers to rely solely on employee-funded retirement alternatives.”
You can also access a copy of the case on their website as well.
PlanSponsor.com reports: “Murphy’s Law: IBM Loses Cash Balance Ruling.” (One time registration required.)
The Associated Press in this article–“IBM loses lawsuit over pensions: Federal judge rules firm discriminated against older workers at MSNBC.com quotes Mr. Klein as saying that “cash balance plans are ‘currently the one good thing going’ in an environment where many companies are dropping pension plans altogether and requiring employees to save for retirement on their own.”
On other matters:
“FASB vetoes more disclosure on some pension changes.”: Reuters reports. The article states that “FASB has agreed that companies do not need to disclose the impact of changes in assumptions used to calculate pension income or costs on earnings, arguing that existing and other proposed disclosure requirements are enough.” You can also read about the decision at PlanSponsor.com in this article: “FASB Passes on Pension Assumption Change Reporting.”
CFO.com has published this article: “Who Rules Accounting? Congress muscles in on FASB — again.” If you like charts, at the very end of the article is a chart showing the history of the debate over stock option accounting which you can access here.
Benefitslink.com has posted final Internal Revenue Code section 280G regulations (golden parachute). Benefitslink.com also reports the IRS has issued Revenue Procedure 2003-68 which provides guidance on the valuation of stock options solely for purposes of Internal Revenue Code sections 280G and 4999.