The tax bill outlined yesterday by House Ways and Means Committee Chairman Bill Archer, R-Texas, contains several pension provisions affecting public sector employers and a plan to expand IRAs, but lacks any provisions affecting private sector employers. One provision would let local irrigation, water conservation or drainage companies set up 401(k) plans; another provision would permanently exempt government pension plans from non-discrimination rules.
Jennifer Belles, a spokeswoman for the Association of Private Pension and Welfare Plans, and other sources speculated the Senate Finance Committee version of the tax bill might include pension provisions not included in the House version.
Philadelphia Municipal Pension Fund put Delaware Investment Advisors' U.S. large-cap portfolio on watch because of concerns about personnel departures and the impact that might have on performance, said Joseph J. Herkness, executive director of the $2.75 billion fund. Delaware manages $64.8 million in U.S. large-cap stocks for the fund.
Delaware's performance has been fine for the international stocks it runs for the fund, but U.S. stock performance has lagged the S&P 500 somewhat in the first three quarters of the fiscal year ending June 30, Mr. Herkness said.
Fairfax County Police Officers Retirement System trustees will hear a presentation on international stock managers tomorrow from Mercer Investment Consulting and then decide whether to consider hiring a second international stock manager or replace the system's existing international manager, said Don McCorry, acting executive director. The Fairfax, Va.-based system, with about $437 million in assets, has 8.5% of its assets in international stocks with WorldInvest. It will look at managers with similar styles, but those that ``don't take as large bets,'' he said. The fund's target for international stocks is 10%.
The U.K.'s High Court today ruled the National Grid Co. PLC had appropriately used £62 million ($101 million) in surplus pension assets to pay for layoffs and other employer-related costs. The High Court ruling overturned findings by the U.K.'s Pensions Ombudsman. The court also held similar arrangements involving £377 million in surplus assets from the Electricity Supply Pension Scheme, an industrywide pension fund, were valid.