Page 756 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Appendix B. Selected Laws 741

1988 Insider Trading and Security Fraud Enforcement Act
• Penalties increased if trading on insider information
1988 Technical and Miscellaneous Revenue Act
• Alternative minimum tax on disqualifying dispositions is voided only if disposition is in year of
exercise
• Single-premium life insurance contracts made less attractive with definition of taxable
withdrawals
1988 Medicare Catastrophic Coverage Act
• Restructured benefits
• Outpatient drug benefit to begin in 1991
1989 Worker Adjustment and Retraining Notification Act (WARN)
• Required employers with 100 or more employees to give a minimum of 60 days’ advance notice
of a mass layoff or site closing
1989 Deficit Reduction Reconciliation Act
• Modified Medicaid reimbursement
1989 Omnibus Budget Reconciliation Act (OBRA)
• Added COBRA clarification
• Added transitional rule for Medicare maximum taxable earnings
1990 Omnibus Budget Reconciliation Act (OBRA)
• Increased maximum marginal income tax rate to 31% (was 28%)
• Expanded AMT to 24% (was 21%)
• Expanded Medicaid coverage
• Imposed 10% luxury tax on furs and jewelry above $10,000, cars above $30,000, boats above
$100,000, and private airplanes above $250,000
1990 Older Workers Protection Act
• Seemingly restored “equal benefit or equal cost” payment in age-based employee benefit
differences
• Waivers and releases must be voluntary
1990 Americans with Disabilities Act
• Provided employment protection to physically and mentally impaired individuals
1991 Securities Exchange Act
• Introduced the mandatory filing of Form 5 within 45 days of the close of the fiscal year to
report any stock transactions not reported during the year on Forms 3 and 4 (e.g., company
stock in qualified pension plans).
1991 FDIC Improvement Act
• Directors required to defend pay practices of executive offers to federal regulatory agencies as
well as to stockholders
1991 Civil Right Restoration Act
• Permitted recovery of up to $300,000 in legal fees and punitive damages in addition to back
wages in discrimination cases
1992 Unemployment Compensation Amendment Act
• Imposed mandatory 20% withholding on non-IRA rollover and lump-sum distributions
• Liberalized rollover rules between plans and IRAs
1992 Pension Portability Act
• Permitted direct transfers to IRA of lump-sum pension payout