The monthly benefit was based on the value of the insurance sold and required virtually no additional sales in order to continue. In 1991, the company stopped offering this plan to new hires. The Associated Press reports that a group of NYL agents hired prior to 1991 is now claiming that the company is forcing them out in large numbers, generally through newly-required sales quotas, before they can reach their 20th year. The company, while admitting the previous plan was too expensive, denies the accusation. While turnover statistics show a faster turnover of experienced agents since 1991, the law is on New York Life's side.
Preliminary indications are that the initial testing went well.
If you hear that everybody is buying a certain stock, ask who is selling. That's the name of the multi-function tax law moving rapidly toward enactment. In addition to reforming and reorganizing the IRS, this legislation will reduce the long-term capital gains holding period from 18 months down to 12 months effective for sales made on or after January 1, 1998. There is also a section of the Act dealing with technical corrections to last year's Taxpayer Relief Act of 1997. If enacted, the tax rate cut would be effective for sales on or after June 24, 1998.