Go to Jeff Salisbury LWGate Home Page.From: Jeff Morgan <Morgajs@parsec.com>
Subject: Date: Mon, 11 May 1998 10:42:10 -0600
Date: Mon, 11 May 1998 10:42:10 -0600
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This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - ------ =_NextPart_001_01BD7CFB.79FEA150 Content-Type: text/plain >> 4. Mandate faster vesting of employee contributions to qualified >> plans, >> requiring full vesting after three years of service, or graduated >> vesting >> in 20% increments over the first 5 years of service. > > [Knight, Philip] > This all sounds fine except for #4. What business does the >government have > telling private companies at what rate to "vest" employees? >Employer-contributed > amounts are completely at the discretion of a company. They >don't *have* > to provide *any* "matching." The purpose behind vesting is to SIMPLE plans *require* matching, I'm not sure about 401(k)s. >reward employees who > stick with the company. (It's analagous, in some ways, to >providing stock options.) > If we take away (or diminish) employers' flexibility here, we >may find that many of them > will decide not to do matching at all. For the government to >come in and mandate > something like this is way over the line IMHO. > > BTW, I'm a "worker bee." So am I. With a SIMPLE plan. :-) - -- Jeff Morgan - morgajs@parsec.com - ------ =_NextPart_001_01BD7CFB.79FEA150 Content-Type: text/html Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2//EN"> <HTML> <HEAD> <META HTTP-EQUIV=3D"Content-Type" CONTENT=3D"text/html; = charset=3Dus-ascii"> <META NAME=3D"Generator" CONTENT=3D"MS Exchange Server version = 5.5.1960.3"> <TITLE></TITLE> </HEAD> <BODY> <P><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>> 4. Mandate = faster vesting of employee contributions to qualified</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>> = plans,</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>> requiring = full vesting after three years of service, or graduated</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>> = vesting</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>> in 20% = increments over the first 5 years of service.</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">></FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> [Knight, = Philip] </FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> This all sounds = fine except for #4. What business does the</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>government = have</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> telling private = companies at what rate to "vest" employees?</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">>Employer-contributed</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> amounts are = completely at the discretion of a company. They</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>don't = *have*</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> to provide = *any* "matching." The purpose behind vesting is = to</FONT> </P> <P><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">SIMPLE plans = *require* matching, I'm not sure about 401(k)s.</FONT> </P> <P><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>reward employees = who</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> stick with the = company. (It's analagous, in some ways, to</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>providing stock = options.)</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> If we take away = (or diminish) employers' flexibility here, we</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>may find that = many of them</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> will decide not = to do matching at all. For the government to</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">>come in and = mandate</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> something like = this is way over the line IMHO.</FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">></FONT> <BR><FONT COLOR=3D"#000000" SIZE=3D2 = FACE=3D"Arial">> BTW, I'm a = "worker bee."</FONT> </P> <P><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">So am I. With = a SIMPLE plan.</FONT> </P> <P><FONT COLOR=3D"#000000" SIZE=3D2 FACE=3D"Arial">:-)</FONT> </P> <P><FONT SIZE=3D2 FACE=3D"Tahoma">--</FONT> <BR><FONT SIZE=3D2 FACE=3D"Tahoma">Jeff Morgan - = morgajs@parsec.com</FONT> </P> <BR> <BR> </BODY> </HTML> - ------ =_NextPart_001_01BD7CFB.79FEA150-- - -
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