Rate Reform Still on Hold
Congress did not enact pension interest rate reform before wrapping up its 2003 legislative session.
As a result, the temporary relief enacted in 2002 by the Job Creation and Worker Assistance Act
will expire at the end of employers'' 2003 plan year. Cash Balance Debate Continues in Congress and the Courts
The controversy over cash balance plans continues to play out. The first appellate court to consider
whether the plan design violates federal age discrimination laws has ruled in favor of the plans. Last Call for Preferable Stock Option Accounting
Absent any last-minutes surprises, 2004 will be the final year of no accounting expense for stock
options. The Financial Accounting Standards Board’s tentative decision is for the new standard to
become effective for fiscal years beginning after December 15, 2004. Final Regulations on Disclosure of Optional Forms of Benefit Require Revisions to QJSA and QPSA Explanations
The IRS’ final regulations on disclosing optional forms of benefit govern the content of Qualified
Joint and Survivor Annuity and Qualified Preretirement Survivor Annuity notices, and specify
requirements for disclosing the relative values of optional forms of benefit.
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