Sens. William Roth, R-Del., and John Breaux, D-La., introduced an IRA package yesterday expanding on Majority Leader Trent Lott's tax proposal introduced Tuesday.
The Roth/Breaux bill, the Savings and Investment Act of 1997, would allow all Americans to participate in a fully tax deductible IRA by 2001. Current law allows the option for taxpayers not covered by a pension plan whose income isn't more than $40,000 for couples, or $25,000 for individuals.
Under the proposal, homemakers and other workers not covered by a pension plan also could contribute up to $2,000 regardless of whether their spouses are covered. Also, taxpayers could opt for the ``IRA Plus Account.'' Contributions would not be tax deductible, but earnings could be withdrawn tax-free under certain conditions.
Also, the $2,000 maximum contribution would be indexed for inflation; people could withdraw funds tax free for first-time home purchases; and IRA and 401(k) plan contributions would not have to be coordinated.
Board members of the University of Iowa Foundation, Iowa City, are discussing the addition of an international equity manager to bring diversity to international investments, said Larry Bruse, treasurer.
The board of the $398 million foundation will hear a presentation from an international manager ``known to be a contrarian'' on Feb. 10, Mr. Bruse said. He would not identify the firm. Assets for an additional manager possibly would come from U.S. equity managers and its current international stock manager, Warburg Pincus. Warburg runs about 12% of the foundation's assets and the board has been pleased with the firm's performance, he said.
Cambridge Associates is assisting.
A spokesman for Sen. James Jeffords, R-Vt., said the senator will not hold up the confirmation of former White House adviser Alexis M. Herman to be secretary of labor.
Mr. Jeffords, chairman of the Senate Labor and Human Resources Committee, said in an earlier report that Ms. Herman's confirmation depends on the results of the Senate Governmental Affairs Committee's look at the role she might have played in alleged campaign finance violations by the Democratic National Committee. Mr. Jeffords has no evidence Ms. Herman did anything improper, but every area must be checked out, the spokesman said.
Prior to being White House director of public liaison, Ms. Herman was deputy director of President Clinton's 1992 transition team. She also headed the Democratic National Convention Committee during Mr. Clinton's first campaign and was chief of staff at the DNC.
Milwaukee Employes' Retirement System board members selected the incumbent domestic custodian, Northern Trust, to act as global custodian, said Pat Cronin, financial manager for the $2.8 billion fund. Northern was selected over Mellon Trust and Chase Manhattan. The switch to a global mandate anticipates a possible move into active international equity management.
The Oklahoma Public Employees' Retirement System, Oklahoma City, hired two emerging markets equity managers in its first allocation to the asset class. Capital International and Genesis Asset Management will run portfolios of $35 million each. Steve Edmonds, executive director of the $3.4 billion fund, said funding is from a reshuffling of assets. Strategic Investment Solutions assisted.
Diebold Inc., Canton, Ohio, hired six new managers and a new trustee and record keeper as a result of a yearlong restructuring of its defined benefit plan. Fund officials decided to boost equities and add international equities and domestic small-cap stock to the $230 million plan's asset mix as part of its ``corporate culture that fosters change,'' said Timothy McDannold, director of treasury services.
Hired were: Ark Asset Management and MacKay-Shields Financial for domestic equities; Strong Capital Management and Loomis Sayles for domestic fixed-income; and Capital Guardian Trust and Bank of Ireland Asset Management for international equities. Each will split evenly their mandates as detailed by the fund's new asset mix: 50% domestic stock, 20% international equities, 30% fixed income. All of Diebold's previous managers were terminated. Mr. McDannold would not disclose their names.
Mellon Trust will replace Key Trust as master trustee and record keeper. Mellon was a better fit for the growing fund. Mercer and Paine Webber Consulting assisted.
Joyce A. Mader today was named as chair of the ERISA Advisory Council; Carl S. Feen was named vice chair. Ms. Mader represents employee organizations on the 15-member council and is a partner at O'Donoghue & O'Donoghue. Mr. Feen, an employer representative, is an estate and business planner and employee benefit specialist for CIGNA Financial Advisors.
Ms. Mader succeeds Judy Mares, president of Mares Financial; Mr. Feen succeeds David Hirschland, assistant director of the social security department for the United Auto Workers union