Governmental Accounting Standards Board
Bureau of Labor Statistics
IRS , Hill Staff Worried About 457 Trust Compliance
Officials at the Internal Revenue Service recently reported their concern regarding whether state and local employers were overlooking the January 1, 1999, deadline for placing Section 457(b) plan assets into trust, custodial accounts, or in annuity contracts for the exclusive benefit of their participants and beneficiaries, as required by the Small Business Job Protection Act of 1996. Congressional staff also echoed anxiety, noting that plan assets that are not in trust can potentially be seized by creditors of the employer.
At the recent annual conference of the National Association of Government Deferred Compensation Administrators (NAGDCA), Hill staff encouraged plan administrators with concerns about the requirement to speak with them regarding what Congress can do to improve the rules to aid compliance. One administrator noted, however, that according to recently published results of NAGDCA’s 1997 survey of plans, 37 states responded that they would have trusts in place by the January 1, 1999, deadline; 10 states would satisfy the requirement with annuities or custodial accounts; and only three states left open the possibility that they would not meet the requirement. It remains uncertain, however, to what level smaller jurisdictions will be in compliance.
IRS Reopens 457
Rulings, Provides Model Trust Amendments
The IRS recently released Revenue Procedure 98-40, announcing that the agency will consider all requests for rulings regarding the tax effects of the 1996 Small Business Job Protection Act (SBJPA) and the 1997 Taxpayer Relief Act (TRA ’97) provisions affecting Code Sec. 457 plans, provided that certain conditions are met. This action amends IRS Rev. Proc. 98-3, which provided that the IRS would not issue such rulings related to SBJPA.
The IRS has also released Internal Revenue Procedure 98-41, providing model amendments that may be used by an eligible employer to amend its 457 plan to reflect revisions made to Section 457 plans by SBJPA and TRA ’97.
Pick-up of Service Credits (PLR No. 9741049)
The IRS held that the pick-up of payments for the purchase of credited service and of make-up contributions will qualify as picked-up contributions under Section 414(h)(2), in accordance with Rev. Rules. 87-10, 81-36, and 81-35. Pursuant to Rev. Rule 77-462, these picked-up contributions will not be wages for federal income tax withholding purposes. Finally, member contributions to reinstate service under the plan, whether made on an after-tax basis or picked up by participating employers, are not annual additions for purposes of Section 415(c).
IRS Confirms $10,000 403(b) Limit
In an information letter dated November 26, 1997 the IRS confirmed that elective deferral limits for contributions to Section 403(b) annuities are indexed for cost-of-living adjustment in the same manner as contributions to Section 401(k) plans (Set at $10,000 for 1998). The letter was in response to concerns raised by the Committee of Annuity Insurers that confusion existed on the issue.
In Notice 98-2, issued December 16, the IRS outlined a simplified method for calculating the basis recovery for joint and survivor annuities. The simplified exclusion ratio reflects changes made to IRC Section 72 by the 1996 and 1997 tax legislation.
Notice 98-2 will appear in Internal Revenue Bulletin 1998-2, dated January 12, 1998. For a copy before that time, fax or email a request to the NASRA Washington Office.
IRS Issues 1998 Federal Withholding Tables
To determine federal income tax withholding for pension plan distributions made after January 1, 1998, the IRS has issued the 1998 federal withholding tables. The table can be found on the IRS Web site, http://www.irs.ustreas.us.gov.
IRS Ruling on FICA Withholding for Pick-Ups
In Private Letter Ruling No. 9749012, the IRS concluded that contributions to a governmental plan, which are picked-up by the sponsoring government, will not be wages for purposes of the Old Age, Survivors, and Disability Insurance portion of FICA taxes (but will be wages for purposes of the Medicare portion of FICA taxes) with respect to employees who are members of a retirement system, within the meaning of Section 3121(b)(7)(F) and who are not covered by a Section 218 agreement as defined under Section 3121(b)(7)(E).
IRS Updates Publication on TSAs
The IRS has updated publication 571, "Tax-Sheltered Annuity Programs for Employees of Public Schools and Certain Tax-Exempt Organizations." Included in the revised publication will be changes made by the Small Business Job Protection Act of 1996. Specifically explained is that, beginning in 1997, required minimum distributions from a tax-sheltered annuity contract generally do not have to be made until April 1 of the calendar year following the later of the calendar year in which the participant retires or reaches age 70½ (the same as the general rule applicable to 401(a) and 457 plans).
IRS Consolidates Compliance Programs
On March 9, the IRS released Revenue Procedure 98-22, which would modify various pension compliance programs and detail in one guidance item the rules and procedures surrounding such programs. The programs outlined in the revenue procedure are the Administrative Policy Regarding Self-Correction, the Voluntary Compliance Resolution program, the Walk-in Closing Agreement Program and the Audit Closing Agreement Program.
Six members of the Senate Finance Committee asked the IRS in February for information on its plans to improve the Administrative Policy Regarding Self-Correction and similar programs so that they could assess the need for legislation aimed at improving the programs. IRS Commissioner Charles O. Rossotti responded to the Senators’ request in a February 20th letter outlining the IRS proposed changes to the programs.
IRS to Survey Audited Employee Plans
The IRS has announced (IRS News Release No. 98-07, February 12, 1998) that it will be conducting a series of surveys of audited employee plans and exempt organizations regarding their experiences with the IRS. The surveys, which are being conducted by a private contractor, will ask respondents to rate IRS services and the results are expected to provide the IRS with customer service feedback at the district, regional and national level.
The IRS released Announcement 98-45 (published in Internal Revenue Bulletin 1998-23), stating that employers who must currently report on Form W-2 "prior-year" contributions to pension plans made on behalf of employees absent from work because of military service will have the option of instead providing employees with separate statements showing those contributions. This Announcement is in response to reported employer difficulties with their payroll systems being able to accommodate the Uniformed Services Employment and Reemployment Rights Act of 1994’s requirement that employers must separately report these prior-year contributions in Box 13 of Form W-2. Contribution to pension plans for the current year will continue to be reported on Form W-2.
Optional Forms of Benefits Under DC Plans
The IRS issued Notice 98-29 on proposed guidelines for employers to use when examining optional forms of benefits under DC plans. The IRS expects to issue regulations that would allow greater flexibility with respect to plan payment forms and is examining a number of concerns that have been raised under Section 411(d)(6) of the Internal Revenue Code. Comments should be submitted by August 31, 1998, in writing, and should reference Notice 98-29, to IRS, P.O. Box 7604, Ben Franklin Station, Attn: CC:CORP:T:R (Notice 98-29), Room 5226, Washington, DC 20044.
Treasury, IRS Seek Comments on New Technologies for Plan Administration
On July 6, The Treasury Department and the IRS asked for comments on the paperless administration of retirement plans (Announcement 98-62). Under consideration is whether sponsors of employee benefit plans may be able to use new technologies, including telephonic response systems, computers, and email to satisfy record keeping and participant disclosure requirements. As required by Section 1510 of the Taxpayer Relief Act of 1997, the Secretaries of Labor and the Treasury must issue guidance on the use of new technologies for plan purposes no later than December 31, 1998.
Conversion of Unused Sick Leave
In a recent private letter ruling (P.L.R. 9827040), the IRS determined that a school district’s proposal to mandatorily convert unused sick leave accumulated at the end of a school year into an amount contributed to a Section 401(a) defined contribution plan, will not constitute a property transfer for purposes of Section 83. The IRS also held that this will not create taxable income, at the time of conversion of accrued sick leave, to the plan for participants or their beneficiaries who use the cash method of accounting.
Fiduciaries Urged to Disclose Y2K Readiness
Members of Congress and Labor Department officials are warning pension plan fiduciaries of their duty to consider Year 2000 issues when selecting plan service providers and when selecting investments and assessing their current portfolios. Plan administrators are urged to take immediate steps to identify the computer systems essential for plan operation, determine who is responsible for those systems, and establish procedures for ensuring that remedies are in place, including ensuring that service providers' systems are corrected.
At a recent benefits conference in Washington DC, questions were posed to Labor Department officials regarding state and governmental plan fiduciaries' potential Y2K exposure. While these plans are not governed by the federal Employee Retirement Income Security Act's fiduciary laws, many of them are subject to state fiduciary laws modeled after ERISA. The federal officials warned that although state and governmental plans may not be subject to ERISA they can still be held liable for Y2K problems they fail to address. "Even if your plan or client is not subject to Title I [of ERISA] it would behoove you to look at this area because others could be suing you," the official was reported replying. "In general, fiduciaries of non-ERISA plans sometimes think that because their plan is not covered under Title I of ERISA, they are immune from the possibility of a PWBA investigation, but the department has the authority to issue subpoenas for documents or sworn testimony from non-ERISA plans."
OL information and recommendations regarding the Y2K problem can be found on the
agency's web site: http://www.dol.gov/dol/pwba.
Report Submitted on Retirement Savings Summit
DOL Secretary Alexis Herman submitted to Congress and the Administration a report on the first National Summit on Retirement Savings. The Summit, held June 4-5, 1998, in Washington, DC, brought together leaders from Congress and the Administration, state and local governments, large corporations and small businesses, labor organizations, and numerous groups involved with employee benefits, personal finance and retirement issues. NASRA President Sparb Collins (ND) and Vice President Frank Ready (MS) were among the delegates. The law mandating the summit, The Savings are Vital to Everyone's’ Retirement (SAVER) Act, signed into law late 1997, required that Herman submit a report on the summit's proceedings. The 71-page report details the opinions and recommendations of the 250 summit delegates who participated in nine breakout sessions led by professional facilitators from the Office of Personnel Management's Federal Executive Institute.
The goal of the summit was to determine how best to raise awareness of the need for pension and individual savings so that working Americans and their families might enjoy a secure and comfortable retirement. The summit was the first of three conferences devoted to retirement security mandated by the SAVER legislation. Additional summits are scheduled for 2001 and 2005. In a letter accompanying the report , Herman stated that while there was extraordinary diversity in views on both the barriers to retirement security and the ways to address the problem, delegates repeatedly returned to the theme that retirement education will be a crucial element in any strategy to increase savings.
The report is available on the DOL’s web site: http://www.dol.gov/dol/pwba/public/pubs/98report.pdf
The DOL recently released a 19-page educational booklet, A Look at 401(k) Plan Fees, to help consumers understand the fees and expenses associated with 401(k) plan accounts. The booklet is aimed at teaching workers the right questions to ask about 401(k) fees and also encourages participants to make informed investment decisions, consider fees as one of several factors when making a decision, compare all services received with the total cost and realize that cheaper is not necessarily better. The publication is available from the Pension Welfare Benefits Administration’s (PWBA) Publication Hotline at 1-800-998-7542 and is posted on the PWBA website at http://www.dol.gov/dol/pwba
The PWBA is also making available the results of recent research on 401(k) plan fees. Study of 401(k) Plan Fees and Expenses examines current practices relating to what fees and expenses are paid by employers sponsoring 401(k) plans and/or employees participating in the plan. The study is only available on the PWBA website.
DOL Advisory
Council Reports on DB/DC and Soft Dollars
The Labor Department’s Advisory Council on Employee Welfare and Pension
Benefit Plans released its final working group reports on two areas of pension policy:
PBGC Issues DB Education Booklet
The Pension Benefit Guaranty Corporation recently released a 24-page booklet explaining and touting the merits of defined benefit plans. The publication is aimed at providing basic facts about defined benefit pension plans, including how benefits are typically calculated, defined benefit plan provisions, how workers accrue retirement benefits under such plans, vesting criteria, methods of plan administration, and disclosure requirements that employers who sponsor defined benefit plans must meet.
A free copy of PBGC's educational booklet, A Predictable, Secure Pension for Life: Defined Benefit Pensions, is available by writing to: Consumer Information Center, Dept. 639E, Pueblo, Colo. 81009 or via the Internet at http://www.pbgc.gov. Also available on the web site, including a fact sheet on defined benefit plans, is state-by-state information on defined benefit plans, and a written description of the simplified defined benefit plan which the Clinton administration has proposed as a means to expand pension coverage within the small business sector.
Governmental Accounting Standards Board (GASB)
GASB issued an exposure draft (ED) that, if approved, would rescind current GASB guidance on the appropriate accounting and financial reporting for 457 plans. This is in response to changes in the tax code enacted last year requiring that the assets of such deferred compensation plan henceforth be placed in trust for the exclusive benefit of the participants and their beneficiaries, an action previously prohibited by the tax code. If approved, the proposed guidelines would take effect as soon as a plan’s assets are place in trust (i.e., no later than fiscal years beginning after December 15, 1998).
GASB Issues Statement on 457 Plans
According to the recently issued GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, state and local governments are required to report certain 457 plans as expendable trust funds in their financial statements. Statement No. 32 was issued in response to the 457 code changes enacted in the Small Business Job Protection Act of 1996, rescinds GASB Statement No. 2 and expands the investment valuation provision of GASB Statement No. 31 to include 457 plans.
Copies of Statement No. 32 can be purchased for $10.50 by contacting the GASB Order Department, 401 Merritt 7, P.O. Box 5116, Norwalk, CT 06856-5116; or calling (203) 847-0700, ext. 10 (Request product code No. GS32).
GASB Bulletin on Bank Holding Co. Transactions
GASB has issued accounting guidance covering the reporting of deposits and investments for certain bank holding company transactions. The technical bulletin (No. 97-1; product code No. GTB97-1) can be obtained from the Order Department, GASB, 401 Merritt 7, P.O. Box 5116, Norwalk, CT 06856-5116; or by calling (203) 847-0700, ext. 10.Social Security Administration (SSA)
SSA Seeks Comments on Information Collection Packet Verifying Pensions From Non-Covered Employment
The Social Security Administration said it is seeking comments on eight information collection packages submitted to the Office of Management and Budget for approval under the Paperwork Reduction Act, including the SSA's modified benefits formula questionnaire for persons who are eligible for both Social Security benefits and a pension from non-covered employment after 1985. The agency uses the form to verify that a pension based on non-covered employment after 1956 was allegedly received by the claimant. SSA said the form also shows whether or not the individual became eligible for that pension before 1985.
Written comments and recommendations regarding the information collections should be sent by Nov. 9 to the SSA Reports Clearance Officer at the following address: Social Security Administration, DCFAM, Attention: Frederick W. Brickenkamp, 6401 Security Blvd., 1-A-21 Operations Building, Baltimore, MD 21235.
1998 Social Security Wage Base, COLA
The Social Security Administration announced that the maximum earnings subject to Social Security taxes will rise from $65,400 in 1997 to $68,400 in 1998. In addition, Social Security recipients will receive a 2.1 percent cost-of-living increase in their benefits in January, the lowest in a decade.
Securities and Exchange Commission (SEC)
SEC Releases Soft Dollar Report
The SEC recently released a report on soft dollar practices in the securities industry, summarizing its findings from a series of inspections conducted November 1996 through April 1997 of broker-dealers, investment advisers, and mutual funds. In general, the SEC found that while most of the products acquired with soft dollars are research, a significant number of broker-dealers (35%) and advisers (28%) provided and received non-research products and services through soft dollar arrangements. Although receipt of non-research (or non-brokerage) products for soft dollars can be lawful if adequate disclosure has been made, sweep inspections revealed that virtually all of the advisers that obtained non-research products and services had failed to provide meaningful disclosure of such practices to their clients. In addition, even with respect to research and brokerage products and services within the safe harbor, the SEC found many advisers' disclosure of their soft dollar practices was inadequate, in that it did not appear to provide sufficient information to enable a client or potential client to understand the adviser's soft dollar policies and practices, as required under the law. There were also inconsistencies regarding the classification of certain equipment and "mixed use" items.
The report also recommended that the SEC: 1) issue further guidance on the scope of the safe harbor, particularly concerning (a) the uses of electronically provided research and the various items used to send, receive, and process research electronically, and (b) the uses of items that facilitate trade execution; 2)adopt recordkeeping requirements that would provide greater accountability for soft dollar transactions and allocations; 3)modify Form ADV to require more meaningful disclosure by advisers and more detailed disclosure about nonresearch products that are received; 4)adopt rules to require advisers to provide more detailed information to clients upon request; and encourage advisers and broker-dealers, through publication of this report, to strengthen their internal control procedures regarding soft dollar activities.
The SEC soft dollar report can be found on the commission’s web site at: http://www.sec.gov/news/studies/softdolr.htm
On September 28, SEC Chairman Arthur Levitt called for increased regulatory guidance and rule changes to ensure more accurate financial accounting and reporting. In a press release statement, the chairman speculated that overzealous earnings expectations have supplanted common sense on Wall Street. Therefore, the SEC plans to issue, possibly before the end of the year, guidance in the form of Staff Accounting Bulletins that are intended to address five specific accounting "illusions", including: 1) "Big bath" charges, where companies overstate charges associated with restructuring so that investors and analysts will look beyond the one-time loss and focus on future earnings instead; 2) "Merger magic," where large portions of an acquisition price are written off as "in-process" research and development charges to reduce future earnings slumps; 3)"Cookie jar reserves," where companies use unrealistic assumptions to estimate items like sales returns or warranty costs to "stash" accruals away during good times and utilize them when needed in bad times; 4)"Materiality abuse," where companies intentionally record errors within a somewhat arbitrarily drawn percentage ceiling, arguing that the amount is too small to matter; and 5) "Revenue recognition manipulation," where companies recognize a sale before its completion, before the product is delivered to the customer, or during a time when the customer still has the option to terminate or void the sale.
SEC Adopts
Amendments to Discipline Accountants for Negligence
On September 23 the SEC adopted a rule amendment spelling out when it will discipline accountants for ''improper professional conduct.'' The revised SEC Rule 102(e) would subject accountants to SEC sanctions for ''negligent'' conduct under certain circumstances. As amended, Rule 102(e)(1)(ii) provides that ''improper professional conduct'' by accountants means: 1) Intentional or knowing conduct, including reckless conduct, that results in a violation of applicable professional standards; or 2)Either of two types of negligent conduct: (i) a single instance of highly unreasonable conduct that results in a violation of applicable professional standards in circumstances in which an accountant knows, or should know, that heightened scrutiny is warranted; (ii) repeated instances of unreasonable conduct, each resulting in a violation of applicable professional standards, that indicate a lack of competence to practice before the commission.
For more information, contact Michael Kigin, Associate Chief Accountant, Office of the Chief Accountant, (202) 942-4400; or David Fredrickson, Assistant General Counsel, Office of the General Counsel, (202) 942-0890.
SEC Modifies
Eligibility Criteria for Performance Fee Contracts
Effective August 20, 1998, Rule 205-3 is amended to change the eligibility criteria for clients to enter into performance fee contracts with their investment advisers. Currently, investment advisers may charge performance fees to clients with at least $500,000 under the adviser's management or with a net worth of more than $1,000,000. Under the amended rule, clients must have at least $750,000 under the adviser's management or have a net worth of more than $1,500,000 to participate in such arrangements.
SEC Creates Office of Internet
Enforcement
The Securities and Exchange Commission announced the formation of a new and specialized unit to combat securities fraud occurring over the Internet. The SEC hopes the launching of this new unit will beef up it internet presence and continue the success of its Internet Program, which has forwarded more than 30 cases involving Internet-related securities fraud that have involved virtually every type of investment scam. The Office of Internet Enforcement will operate out of SEC headquarters in Washington, D.C. and will report to Joan McKown, the Chief Counsel of the Enforcement Division.
Investment Advisors
Required to Report on Y2K Readiness
The Securities and Exchange Commission Oct. 2 announced that it has adopted a new rule and form under the 1940 Investment Advisers Act to require reports on preparations for the Year 2000 computer problem. The rule requires most investment advisers registered with the commission to file a form, Form ADV-Y2K, regarding the preparations that advisers, and the registered investment companies they manage, have taken, and will take, to prepare for the Year 2000 problem. For further information, contact Carolyn-Gail Gilheany at the SEC, (202) 942-0716.
Multi-State Investment Advisor
Amendments
The Securities and Exchange Commission (SEC) has adopted an amendment under the Investment Advisers Act of 1940 (Act) that will exempt multi-state investment advisers from the prohibition on Commission registration. Effective August 31, 1998, any investment adviser required to register with more than 30 state securities authorities can instead register with the SEC. Currently, an investment adviser must have at least $25 million of assets under management or must be an investment adviser to an investment company registered under the Act in order to be exempt from the prohibition.
Also effective August 31, 1998, the SEC has revised the definition of the term "investment adviser representative" to exclude supervised persons of SEC-registered investment advisers who have the greater of either five natural person clients or the number of natural person clients permitted under the "ten-percent allowance" (no more than 10% of clients are natural persons other than "excepted persons"). Also, "qualified clients" will now be considered "excepted persons" for purposes of the "ten-percent allowance." "Qualified clients" include (1) clients with $750,000 or more under management with the investment adviser; (2) clients with a net worth of more than $1,500,000 when the contract is entered into or who are qualified purchasers under the Act; (3) executive officers, directors, trustees, general partners or persons serving in a similar capacity; or (4) certain employees of the adviser who participate in investment activities for at least one year.
SEC Announces Microcap Crackdowns
On September 24, The Securities and Exchange Commission announced the filing of thirteen enforcement actions against forty-one defendants across the country for their involvement in fraudulent microcap schemes that defrauded investors of more than $25 million. SEC Chairman Arthur Levitt stated in an agency news release that, "Putting microcap fraudsters out of business is a top priority of this Commission, and [he is] pleased with the progress [they've] made."
These enforcement actions are part of the Commission's four-pronged approach to
attacking microcap fraud: enforcement, inspections, investor education and regulation. For
more information about the SEC's response to Microcap fraud and the litigation releases
for each of these cases, visit the SEC's Microcap Fraud Information Center at http://www.sec.gov/news/extra/microcap.htm.
SEC Overhauls Mutual Fund Disclosures
On March 10, the SEC overhauled the primary mutual fund documents that convey information to investors. Following many years of work on the project and a pilot program, the commission unanimously adopted the "profile," a new disclosure document that would make sweeping changes to the registration form for mutual funds, Form N1-A, to improve the information the form requires to be included in a fund prospectus; and would adopt a new Rule 498, which permits a fund to provide investors with a summary document, the profile.
SEC Approves NASD’s New Auditing System
The SEC recently approved NASD Inc.’s proposed Order Audit Trail System (OATS), a system designed to speed detection of trading abuses. For the first time, the new system will give the NASD the power to determine the time lag between the placement of an order and the execution of an order. This will allow NASD Regulation, Inc. to accurately reconstruct the market in its investigations.
CME to Offer Futures and Options on Euro
The Chicago Mercantile Exchange announced that its board of directors has approved a series of currency initiatives surrounding the scheduled January 1, 1999 introduction of a common currency in the European Union. According to the CME, the only current products likely to be affected directly are the Deutsche mark and the French franc. Although the euro is expected to replace both of the foreign currencies within the next few years, CME stated that it would continue to list them separately until that time.
On May 20, the SEC adopted reforms to the shareholder proposal process, including a reversal of its Cracker Barrel interpretation that permitted companies automatically to exclude from proxy statements all proposals dealing with employment-related issues. The amendments to rule 14a-8 will also provide companies with guidelines for the exercise of their discretionary voting authority in situations where a shareholder intends to present a matter at a corporate meeting without involving the shareholder proposal process. The final amendments will also rewrite the shareholder proposal rule in plain English and will put it in question and answer format.
CFTC Amends Large Trader Reporting Rules
The CFTC amended its large trader reporting rules to raise from 300 to 600 contracts the nominal level at which futures commission merchants, traders, and others must file large trader reports in Standard and Poors 500 futures. The commission noted that the rule change follows the Chicago Mercantile Exchange’s recent decision to split in half it S&P 500 stock index futures and futures options contracts from $500 to $250 per index point. The notice is listed in the November 17, 1997 Federal Register (62 FR 61226).
Futures-Style Marketing of Options
On June 11, the CFTC repealed one regulation and amended others to permit futures-style margining of commodity options. Under this system, the agency explained both the purchaser (long) and seller (short) of a commodity option will be required to post risk-based, original margin upon entering into an option position. During the life of the option, its value is marked to market daily, and gains and losses are posted to the accounts of the long and short position holders. Thus, the agency reported, under futures-style margining, the cash flows associated with option contracts will by symmetric, as is the case for cash flows for futures. The text of the release is available on the CFTC Web site ( http://www.cftc.gov ).
CFTC Will Eliminate Short Option Value Charge
Beginning July 16, a new rule by the CFTC will eliminate a charge presently required to be taken by futures commission merchants in the computation of the amount of their net capital. Commonly referred to as the Short Option Value Charge, this charge--4 percent of the market value of options sold by customers trading on exchanges—is being rescinded because the agency said it has found that the charge is not closely correlated to the actual risk of the customers’ short option positions.
Bureau of Labor Statistics (BLS)
The Bureau of Labor Statistics (BLS) has prepared a section on its Web page that offers articles and other materials related to the 1998 revisions in the CPI. The information is available on the Internet at http://stats.bls.gov/cpi1998.htm.