DENVER - An appeals court affirmed the dismissal of a federal suit brought by four former Thiokol Corp. employees who claimed Ogden, Utah-based Thiokol's raising of its retirement age from 65 to 67 was illegal.
The 10th Circuit U.S. Court of Appeals' 3-0 decision affirmed the early 1996 dismissal of the suit in U.S. District Court.
The Denver-based appellate court said the district court was correct in concluding Thiokol's 1991 amendments to its system, including increasing the normal retirement age, were not violations of the Employee Retirement Income Security Act. The four former Thiokol workers had taken early retirement and said they would have received greater pension benefits if Thiokol had not changed the retirement age.
FASB to issue
revised disclosure rules
STAMFORD, Conn. - The Financial Accounting Standards Board plans to issue revised disclosure rules for pensions and post-retirement benefit obligations for public comment by the end of May.
The changes would modify footnote disclosure under Financial Accounting Statements 87 and 106. Under the proposal, some current disclosure items would be eliminated, but additional information would be required about changes in the value and size of assets and benefit obligations, and contributions and benefits paid.
The exposure draft will be open to public comment for 60 days after issuance.
PBGC, Lockheed Martin
make pact on L-3 benefits
BETHESDA, Md. - The Pension Benefit Guaranty Corp. and Lockheed Martin, agreed to insuring pensions for nearly 3,000 workers and retirees who are becoming part of newly created L-3 Communications Corp.
The company is spinning off some aerospace and defense communications businesses into L-3, which will be jointly owned by the aerospace company, Lehman Brothers Capital Partners and the unit's management team. As part of the transaction, the pension plan covering the divested unit's employees will be transferred to L-3 and Lockheed Martin will be responsible for three underfunded plans that will become part of L-3.
Four other plans also being transferred are well-funded and not covered by the agreement.
CalPERS wants to link
CIO pay to performance
SACRAMENTO, Calif. - The $110 billion California Public Employees' Retirement System executive performance and compensation committee is considering an incentive pay proposal for its chief investment officer heavily weighted toward investment performance.
About 75% of the proposed weighting would be based on quantitative performance, including aggregate active managed investment returns vs. benchmark returns. Another 25% would be qualitative measures, such as management of staff. A final incentive compensation package could be approved before the end of May.
Bankers Trust uses equities
for synthetic GIC
NEW YORK - Bankers Trust Co., New York, created what it says is the first synthetic guaranteed investment contract to include an equity market component. Traditionally synthetic GICs involve using a book value wrap for a short- to intermediate-term bond portfolio. Bankers Trust completed a $25 million synthetic contract using a wrapped balanced fund, said Scott Carter, vice president at BT's benefit strategies group. The placement was with a pooled fund he would not identify.
inflation-index bond fund
NEW YORK - The Teachers Insurance Annuity Association-College Retirement Equities Fund, with $190 billion in assets, began offering participants an inflation-indexed bond fund this month. The fund is being managed internally by Steven Traum, fund manager.
Florida municipal fund
realigns manager roster
OCALA, Fla. - The city of Ocala, Fla., dropped two managers from its $6 million 457 deferred compensation plan and retained ICMA Retirement Corp. as the sole manager, said Glen L. Baker, the city's finance director.
The plan dropped Aetna Retirement Services and Great American Reserve. ICMA was chosen as the sole manager because it offered better reporting information and educational material and fewer restrictions on moving funds. Participants will be able to invest in all 26 options offered by ICMA, which also will be record keeper.
Derivatives group gets
new name, new home
PALO ALTO, Calif. - The Managed Futures Association changed its name to the Managed Funds Association and will relocate its head office to Washington from Palo Alto. The group also will be looking for a new leader. Jane Martin, executive director, chose not to relocate, said Chairman John R. Frawley Jr. The MFA will seek a replacement in 1998, when Ms. Martin's contract expires.