Products March 16, 2009

EASi Updates Stock Plan Administration Software

Equity Administration Solutions, Inc. (EASi), an independent stock plan management software company, released the first of three planned releases for 2009.
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Companies that rely on EASi’s software now have the ability to flag grants with a “Continue to Vest after Termination” provision, according to a press release. The plan setting for the default treatment of unvested shares for each termination reason has been expanded to include continue to vest. Termination provisions are maintained and can be overwritten on each grant.

EASi also introduced retirement eligibility accounting support for stock option and stock appreciation rights (SAR) grants, the release said. If unvested option or SAR shares will not be forfeited upon retirement, expense acceleration for the grant occurs when the retirement eligibility date is reached even if the participant has not yet retired.

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The system also has a notification to alert appropriate individuals as a grant nears the retirement eligibility date. Notifications can be sent out in 15, 30, and 60 day increments prior to the retirement eligibility date on the grant record. Users also receive reports providing information on individuals and grants impacted by reaching retirement eligibility.

In addition, EASi introduced its newest loader which makes it easier to import historical employee stock purchase plan (ESPP) purchase information to ensure the system has a record of prior purchases. Dispositions may be applied to specific lots of previously purchased shares.

“This allows for better tracking of disqualifying dispositions that require W2 reporting of the ordinary income and have an associated compensation expense tax deduction for the company. The new functionality also makes it easier to maintain and report on qualifying dispositions, full participation history and current ‘holdings’ for ESPP participants,” said Denise Vitale, vice president of product development, in the release.

EASi said it also made 60 minor enhancements and upgrades in response to customer requests.

 

More information is available at www.easiadmin.com.

 

Data & Research March 16, 2009

Nearly Half of Workers Would Skip SS Deductions

Almost of half of respondents to a new survey would prefer to stop paying into the Social Security system—even if it meant giving up their own benefits.
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The U.S. division of Sun Life Financial has released data from the Sun Life Unretirement Index showing 48% of survey respondents would prefer to stop paying into the Social Security system even if it meant that they would not receive these benefits once eligible.

A Sun Life news release said workers in their 30s are most likely to favor not paying into the Social Security system, with 59% responding they would rather not pay the taxes and not receive benefits.

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The survey also found:

  • 51% of workers age 40 to 49 prefer to not participate in the Social Security program;
  • 44% of workers age 50 to 59 prefer to not participate;
  • 39% of workers 50 and older would rather not participate.

Even a significant amount of respondents who are nearing traditional retirement age would choose to stop paying Social Security taxes. One in three (33%) workers older than the age of 60 said they would stop paying Social Security taxes even if it meant they would not receive any benefits.

According to the release, income level was not a strong factor impacting American workers’ attitudes toward Social Security. In fact, results were largely consistent across income levels: Almost half (47%) of Americans with a household income of less than $25,000 would choose to opt out of the system, and 48% of those making between $25,000 and $50,000 a year would as well. Slightly more than half (52%) of Americans making more than $125,000 a year would choose to stop paying Social Security taxes and not get the benefit.

The research also shows men are more likely than women to say they would rather not pay into Social Security or receive any Social Security payments. Fifty-seven percent (57%) of men age 40 to 49 would opt out of Social Security, while 45% of women in that age group would choose to stay out of the system. Sixty-two percent of men age 30 to 39 would opt out, while just more than half (56%) of women age 30 to 39 would.

“As American workers approach the traditional retirement age, they increasingly begin to see the value of some component of guaranteed income, whether or not they plan to keep working,” said Wes Thompson, president of Sun Life Financial U.S., in the release.

The most recent version of the Sun Life Unretirement Index was conducted by Interviewing Service of America by telephone between December 3 and 14.

More information is available at www.unretirementindex.com.

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