Continuing Clashes over Cash Balance Pension Plans
November 27, 2006
The fight over cash balance plans is proving to be one for the ages. A hybrid of defined contribution (DC) and defined benefit (DB) pension plans, cash balance plans have engendered both confusion and dispute over the appropriate framework for analyzing their compliance with applicable law. Two recent conflicting decisions issued by the same U.S. District Court in New York reveal a continuing absence of clarity about the plans' legality, despite support given in August by the U.S. Court of Appeals for the Seventh Circuit in the <i>Cooper v. IBM</i> decision and by Congress in the Pension Protection Act of 2006 (PPA). <br>This article reviews recent developments, focusing on features of cash balance plans that have proven problematic, and on the prospect for a solution under the PPA.
Managing Editor's Note
November 27, 2006
Some of the law firms mentioned in this issue have provided Marketing the Law Firm with marketing materials for consideration for inclusion in the MLF 50. There is no connection to any editorial contributions from the firms and the commentary is solely that of the author, who does not receive any compensation from the firms mentioned.
<b>Op-Ed:</b> 'Progress Is Our Most Important Product'
November 27, 2006
The progress that law firm marketing has made is in large part due to the staying power of the key marketing executive, and that staying power requires a level of maturity, sophistication and a clear understanding of how to play in the same sandbox as the owners. Marketing programs are not easy to sell, but like other 'purchases' the purchaser/owner can be persuaded to approve the marketing budget if the case can be made that 'this is about progress' that will make the firm more viable and, yes, profitable. Chief Marketing Officers and Directors need to step up and stand behind their programs. Of course that means developing a plan that doesn't have an unrealistic end game. Too often, over-zealous CMOs and Directors reach for the moon and wind up 'cratering.' This does not have to happen if one recognizes that, in order to succeed, one needs to develop a plan, implement the plan using a step-by-step program, and deliver on the plan in a manner that demonstrates progress. Let's be honest; no one expects the infamous 'ROI,' but owners do expect progress and this is key to winning the hearts and minds of law firm owners.
The Second Annual MLF 50: The Top 50 Law Firms in Marketing and Communications
November 27, 2006
At the outset, let me congratulate the 50 firms that made this year's MLF 50. The fact that out of the hundreds of law firms with marketing programs, these 50 firms have attained the status of being considered the best programs in the country is a testament to the fabulous strides that law firm marketing, business development and media programs have achieved over the last year. There is good news here: Marketing is alive, well and prospering at many of the AmLaw 200 firms. This year, the MLF 50 showcases a wide range of firms and their marketing activities that can best be described by using a sports metaphor ' a full contact sport. The profession has come a long way in terms of sophistication, depth and creativity. In the following pages, you will see the power of marketing, business development and media and how can transform and strengthen a law firm ' and yes, make it more profitable. What is important to note is that many of these marketing activities were created as vehicles for pro bono and diversity initiatives. It should come as no surprise that doing good deeds for others and creating a diverse environment leads to prosperity.
Managing the New Company Thief
November 17, 2006
It used to be that an employee desiring to steal $2 million from your company would have a hard time doing so unnoticed. Today, that employee can do so undetected while having a casual conversation with you in the office.
U.D. Registry, Inc. Topples California Security Freeze Act
November 17, 2006
In a decision that may have repercussions throughout the United States, a California Court of Appeal has ruled that California's Security Freeze Act violates the First Amendment because it precludes the reporting of information contained in public records. The challenge to the Freeze Act was brought by U.D. Registry, Inc. ('UDR'), a company that maintains information on tens of millions of people in California and elsewhere, providing landlords and property managers with reports about prospective tenants. UDR had challenged California's freeze law, Cal. Civil Code §1785.11.2, as unconstitutional. The appellate court, however, also reversed an injunction that had completely barred the state from enforcing the law, and directed a new injunction be issued barring enforcement against UDR only.
Outsourcing to India
November 17, 2006
As a growing number of companies seek more centralized and less expensive methods of processing information, they are turning to offshore outsourcing to fulfill many of their business and human resources processes. Given India's success in building a significant share of the offshore business process outsourcing ('BPO') market, a significant portion of the data is now being processed in India. Recently, there have been allegations that call center employees based in India have stolen data outsourced to Indian service providers. Regardless of whether these allegations represent a trend or are just dramatic headlines, there have been concerns raised about the security of data held by Indian service providers, and the remedies that non-Indian companies may have in India in the event of a breach, either to seek recourse against the offender or to prevent the misuse of data. This article describes some of the remedies that are available to companies to deal with and prevent the misuse of data in India.
Offshore Outsourcing: Protecting Privacy A World Away
November 17, 2006
Business Process Outsourcing ('BPO') to offshore service pro-viders has become an integral part of the global economy, finding particular success in the financial services, health care, and IT industries. To cite just a few examples, an estimated 400,000 American IRS tax returns were prepared in India last year, while as much as 30% of all medical transcription is now done overseas. Studies confirm that offshore BPO will not only continue to grow, but accelerate in the years to come. One study projects that by 2010, the world's 100 largest financial institutions will move $400 billion of their cost base offshore, saving an average of just under $1.5 billion annually each. The same survey also forecasts that by 2010 more than 20% of the financial industry's global cost base will have gone offshore.
The Government: Both a Problem and a Solution on Security Breaches
November 17, 2006
As private entities in virtually all industries have faced private data security breach challenges, we also are seeing the parallel rise of security breaches involving government entities. These recent breaches — led by the enormous publicity surrounding the Veterans' Administration loss/theft of a laptop containing the personal information of more than 26 million veterans — have focused attention on the government as both the collector of enormous amounts of personal information and the source of many security problems. With this new attention, the government needs to redouble its efforts to improve overall security and focus leadership attention on developing best practices that can both protect against government breaches and provide useful information to private sector entities facing the same challenges.
Bingham To Open Hong Kong Office
November 14, 2006
Coming late in the game to the China market, Bingham McCutchen announced on Nov. 13 that it will open a Hong Kong office on Jan. 1.
