Ask Rande 10,000+

Top 606. Dec 9, 2001 10:11 AM

» R_Lewis - Re: Re: Re: Re: "Pension Accounting"

In response to message posted by Rande:

"Workers in private industry these days, by and large, must fend for themselves"

I learned that before you were born.

It's important to make sure before you retire to have enough cash to last the rest of your life without the need for any income, private or public.

Richard

-- posted by R_Lewis

Top 607. Dec 9, 2001 10:20 AM

» Slick - Re: "Pension Accounting"

In response to message posted by Bob_in_CowTown:

Hi Bob :

FYI , our pension ( Paper Worker's Union contract ) is based on the best Five years out of the last 10. And then , it is further based on the number of total months worked since initial hire.

Slick

-- posted by Slick

Top 608. Dec 9, 2001 10:28 AM

» dewam - Re: Re: Re: "Pension Accounting"

In response to message posted by Bob_in_CowTown:

Bob, same thing here. Virtually all overtime goes to the officers that will be retiring in 3 years. Ours include 100% medical for life after 15 years. Den

-- posted by dewam

Top 609. Dec 9, 2001 11:57 AM

» Eagle_i - Re: "Pension Accounting"

In response to message posted by Kirk:

Some observations about the Floyd Norris article:

- The high return assumptions Norris criticizes where taken from 2000 annual report disclosures at Dec 31, 2000. The FED has not started lowering interest rates until January 2001. Assumptions used in 2001 annual report pension disclusures will likely be more appealing to Norris.

- The notion that Pension Plan returns are not disclosed is false. These returns are required to be disclosed as part of the analysis of changes in Plan assets. Also, audited financial statements of Pension Plans are required to be filed annually with the Dept of Labor as part of Form 5500. I believe (correct me if I'm wrong, Rande) the 5500 Plan filings are open for public view.

- Expected Plan Returns on Plan assets are disclosed in company footnotes as part of the components of the charge to Pension Expense for the year, together with a smoothing charge or credit for the effect of actual vs estimates for all plan assumptions including investment returns. Since pension expense is required to be charge to company operations over the employee's working career and future investment returns and other plan assumptions are unknowable, they must me estimated.

No only would Jane not understand these points, but neither would plain Floyd.

-- posted by Eagle_i

Top 610. Dec 9, 2001 12:09 PM

» Kirk - Re: Re: "Pension Accounting"

In response to message posted by Eagle_i:

Thanks Eagle_i, it sounds like you really know what you are talking about here and I appreciate your comments.

Using 9% returns for a 2000 annual report would not be a problem for me considering most were
still expecting 15% or more.

I thought our accounting laws had most of this stuff well disclosed if you know what to look for. Still, I read the bears all the time go after IBM for this and that "accounting gimick" and I sure wanted to be sure there was not really a "new one" that I was not aware of. I remember in years past that IBM was getting bottom line income due to their pension needs were more than met by their pension investments and some bears screamed about it. To me it was more like "well, what else are they to do with the money their good investments earn?" as they didn't need it to fund their pension plan so giving it back to shareholders seemed logical....

-- posted by Kirk

Top 611. Dec 11, 2001 9:41 AM

» martin_lowe - National Audit Defense Network

Hi Rande,
Have you heard about the National Audit Defense Network? Its established by former IRS employees and CPA's trying to provide strategies for reducing taxes. I'm a tax guy (EA) and a client asked me about them. They claim (guarantee) on their website that they can reduce a persons taxes by $3k or more.
tx, Martin

-- posted by martin_lowe

Top 612. Dec 11, 2001 9:55 AM

» Rande - Re: National Audit Defense Network

In response to message posted by martin_lowe:

Martin,

Don’t know anything about them, except that such bodacious claims set off the old smell-test alert. Did find this:

The San Diego Union-Tribune, September 1, 2001

National Audit Defense Network bills itself as "America's leading professional tax audit defense team."

The Las Vegas company advertises, "At Least $3000 in New Deductions Or Your Money Back! 30 Days No Questions Asked." It advertises heavily in the San Diego market.

San Diegan Eugene L. Morrill, 82, paid $1,024.95 to get the services of National Audit Defense Network. According to a lawsuit filed in San Diego Superior Court, Morrill did not get any refund within the 30 days.

He asked for the money in mid-March, within the 30-day window, and it suddenly appeared last week, just after the lawsuit was filed by Alan M. Mansfield on behalf of the Utility Consumers' Action Network.

UCAN's Jodi Beebe had checked the Better Business Bureau in Las Vegas. Beebe found that there had been more than 1,000 inquiries on the company in each of the last two years, and 300 complaints. Because complaints have not been answered satisfactorily, the company has an unsatisfactory record.

All that information was embodied in the lawsuit filed by UCAN. It hopes to qualify the suit as a class action.

-- posted by Rande

Top 613. Dec 11, 2001 10:47 AM

» Rob_Larsen - Re: Re: Re: "Pension Accounting"

In response to message posted by Bob_in_CowTown:

Hi Bob,

I can tell you that that isn't allowed in the California Public Employee Retirement System (Cal PERS)... When a state safety employee retires, ie;firefighter, police officer, etc. The pension is based on the last highest year, but that is only on base pay which means no overtime, uniform allowance, etc. I know first hand as I am a retired safety employee.

Rob

-- posted by Rob_Larsen

Top 614. Dec 11, 2001 11:02 AM

» Rande - Re: Re: Re: Re: "Pension Accounting"

In response to message posted by Rob_Larsen:

Good policy.

-- posted by Rande