An online, clickable version of this newsletter is available at: http://benefitslink.com/2007/2007_12_19_welfare.html =========================================================== BenefitsLink Health & Welfare Plans Newsletter (Plain Text Format) December 19, 2007 Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. =========================================================== TODAY'S SPONSOR: www.ftwilliam.com Ftwilliam.com has added a Transportation Spending Account Plan (IRC 132(f)) to our list of high quality plan documents. (Advert.) http://benefitslink.com/modperl/a_d_top.cgi?a_d=2007_12_19_welfare (Click on the above address or copy and paste it into your web browser.) This new plan provides a substantial benefit to employees, allowing purchases of qualified transportation spending expenses pre-tax. The plan also includes wage deferral agreement forms, reimbursement forms (when applicable) and a summary plan description for employees. Contact Holly Roussel with questions at 800.596.0714 or via email at sales@ftwilliam.com. ----------------------------------------------------------- (a) NEW GUIDANCE DOCUMENTS ----------------------------------------------------------- (None today.) ----------------------------------------------------------- (b) NEWS ---------------------------------------------------------- G.M. to Start Another Round of Buyouts and Seek Cheaper Labor http://www.nytimes.com/2007/12/19/business/19auto.html?ex=1355720400&en=081b7f4377d710be&ei=5090&partner=rssuserland&emc=rss Excerpt: "G.M. said it would not reveal the dollar amounts or other terms of the buyouts until union locals hold informational meetings for eligible workers early in 2008, but it said the deals were similar to what it offered all 113,000 hourly workers in 2006." (The New York Times; free registration required) ---------------------------------------------------------- Health Insurance Industry to Propose Steps to Make It Easier for Individuals to Obtain Coverage http://www.nytimes.com/2007/12/19/business/19health.html?ex=1355720400&en=39da532d1edc5897&ei=5090&partner=rssuserland&emc=rss Excerpt: "Acknowledging that too many people simply cannot obtain health insurance on their own, the insurance industry plans . . . to propose a series of steps the companies say would let more individuals, even those who have health problems, obtain coverage." (The New York Times; free registration required) ----------------------------------------------------------- (c) SUMMARIES OF GUIDANCE; FILED COMMENTS ---------------------------------------------------------- December Health Plan Update on Guidance (PDF) http://www.groom.com/documents/December2007HealthUpdate.pdf 3 pages. Excerpt: "The Department of Labor and the Internal Revenue Service recently issued two pieces of guidance affecting health plans-- supplemental health plan guidance and qualified medical expense guidance. Both of these guidance items are described in the [target page]." (Groom Law Group) ---------------------------------------------------------- Overview: DOL Establishes an 'Enforcement Safe Harbor' for Supplemental Health Insurance to Be Excepted from HIPAA Compliance http://benefitslink.com/articles/washbull071217.html Excerpt: "On a coordinated basis with the Departments of Treasury and of Health and Human Services, the Department of Labor recently established an 'enforcement safe harbor' by which supplemental health insurance will be treated as excepted from certain HIPAA portability requirements if it meets a straightforward four-part test." (Deloitte via BenefitsLink.com) ---------------------------------------------------------- Retiree Plan Found to Be Primary Payer in Triple Coordination of Benefits Dispute http://www.ebia.com/weeklyguest/19228/20080104b41efb78dd049444270b1d69760eac30/BNL071213 Excerpt: "The court decided that under the COB terms of both the retiree plan and the wife's plan, the retiree plan was primary, and thus had little difficulty ruling that the retiree plan must pay first. The court rejected two other arguments raised by the retiree plan: (1) that Medicare provisions referenced in state law should be read into the wife's plan (the court refused to do so because the state law was preempted by ERISA); and (2) that ambiguities between the wife's plan and the retiree plan should be read consistently with the National Association of Insurance Commissioners (NAIC) Model COB rules. The court rejected this argument because it found no ambiguity and neither party had incorporated the model rules into their plans." (Employee Benefits Institute of America) ----------------------------------------------------------- (d) TRENDS, SURVEYS, RESEARCH ---------------------------------------------------------- California Employer Health Benefits Survey 2007 http://www.chcf.org/topics/healthinsurance/index.cfm?itemID=133543 Excerpt: "This annual survey shows how premiums and benefit design has changed over time. Key findings include: Premiums increased 8.3% in California in 2007, outpacing a 6.1% rise in premiums nationally. Since 2002, premiums in California have increased 86.3% compared to 78.5% nationally." (California HealthCare Foundation) ---------------------------------------------------------- Private Firms Recognize Value of Cash Bonuses http://www.workforce.com/section/00/article/25/27/40.html Excerpt: "Cash bonuses are still king for high-performing employees, and many privately held companies are responding accordingly, a recent study says." (Workforce Management; free registration required) ---------------------------------------------------------- Options for Managing Cost and Risk Associated with Retiree Health Coverage, Including Remarks on Current Interest in VEBAs (PDF) http://www.sibson.com/publications/spotlight/dec07VEBAs.pdf 2 pages. (The Segal Group, Inc.) ---------------------------------------------------------- Research on the Comparative Effectiveness of Medical Treatments (PDF) http://www.cbo.gov/ftpdocs/88xx/doc8891/12-18-ComparativeEffectiveness.pdf 43 pages. Excerpt: "This [paper] examines options for expanding federal support for research on comparative effectiveness. It reviews the current state of such research in both the public and private sectors and discusses several mechanisms for organizing and funding additional research efforts. It also discusses the different types of research that could be pursued and their likely benefits and costs. Finally, it considers the potential effects that such research could have on health care spending and the difficult steps that public and private insurers would probably have to take to achieve substantial savings on the basis of that research . . . ." (U.S. Congressional Budget Office) ---------------------------------------------------------- Experts Discuss the Challenges of Predictive Modeling http://eba.benefitnews.com/asset/article/513265/experts-discuss-challenges-predictive-modeling.html?pg= Excerpt: "Predictive modeling is one concept that is quickly gaining traction among advisers and employers as a way to control health care costs. It involves providing a risk assessment and adjustment process that applies available data to identify employees 'at risk' for high medical costs in the future." (Employee Benefit Advisor; free registration required) ----------------------------------------------------------- (e) POLICY, OPINION, ADVOCACY ----------------------------------------------------------- Lawsuits Claim That PBMs Violate Their Fiduciary Duties to Clients, Members http://www.hr.cch.com/news/benefits/121907.asp Excerpt: "From Spencer's Benefits Reports: Pharmacy benefit managers' (PBMs) practices have been under scrutiny in the past few years, and a number of lawsuits have been filed against several major PBMs, including Medco (formerly Merck-Medco Managed Care), Caremark, and Express Scripts." (Wolters Kluwer Financial Services) ---------------------------------------------------------- Individual Health Insurance 2006-2007: A Comprehensive Survey of Premiums, Availability, and Benefits (PDF) http://www.ahipresearch.org/pdfs/Individual_Market_Survey_December_2007.pdf 27 pages. Excerpt: "According to the survey, most applications for coverage were approved, and the benefits commonly purchased by consumers provided substantial financial protection. In some states with restrictions on premium variation and underwriting -- often known as 'guaranteed issue' and 'community-rated' states -- overall premiums were significantly higher than average." (America's Health Insurance Plans) ========================================================= Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- Overview: Financial Accounting for Nonqualified Deferred Compensation Plans (PDF) http://www.thecochlangroup.com/pdf/4q07/Accounting_Nonqualified-Deferred-Compensation-Plan.pdf 2 pages. Excerpt: "During the initial development and periodic revisions of nonqualified deferred compensation plans, often the tax consequences receive a thorough analysis, but the financial accounting treatment is forgotten and can result in unwelcome surprises. The accounting treatment is critical for all companies, but especially for publicly traded companies, those contemplating an initial public offering or companies with debt covenants." (The Cochlan Group, Inc.) ---------------------------------------------------------- Study Sizes Up States' Substantial Retiree Benefit Costs http://www.washingtonpost.com/wp-dyn/content/article/2007/12/18/AR2007121802054.html Excerpt: "According to a new analysis by the Pew Charitable Trusts' Center on the States, states owe employees about $2.73 trillion for pension and health-care costs, much of which is unfunded." (The Washington Post; free registration required) ---------------------------------------------------------- Overview: SEC Shortens the Holding Periods under Rule 144 (PDF) http://www.seyfarth.com/dir_docs/news_item/6222819d-4d53-4dcc-976e-dbbea786c60a_documentupload.pdf 4 pages. Excerpt: "Shortening the holding periods for restricted securities, eliminating the manner of sale and volume limitations for nonaffiliates and relaxing those limitations for affiliates represent a significant reduction in the restrictions on resales of restricted securities." (Seyfarth Shaw LLP) ---------------------------------------------------------- White Paper: SEC Approves Amendments to Rule 144 (PDF) http://www.morganlewis.com/pubs/BF_Rule144Amendments_WhitePaper_18dec07.pdf 7 pages. Excerpt: "On November 15, 2007, the Securities and Exchange Commission (SEC) approved amendments to Rule 144 under the Securities Act of 1933, as amended (the Securities Act), substantially as the amendments were proposed in July. The Final Adopting Release 1 was issued on December 6, 2007, and the changes will become effective February 15, 2008." (Morgan, Lewis & Bockius LLP) ---------------------------------------------------------- Case Study -- Executive Benefit Plans (PDF) http://www.thecochlangroup.com/pdf/4q07/casestudy_executive-benefit-plans.pdf Excerpt: "The company had two primary concerns with the current situation. Key executives were unable to contribute a large percentage of their income to the 401(k) plan due to qualified plan contribution limitations. Many of the company's competitors had already established a nonqualified plan. As a result, the company was already losing key talent to the competition and concerned about losing others." (The Cochlan Group, Inc.) ---------------------------------------------------------- How to Secure Your Finances When on Assignment Abroad http://www.cfo.com/article.cfm/10259186/c_2984379/?f=archives Excerpt: "Given that international assignments are on the rise -- almost 40% of respondents to KPMG's 2007 survey on global assignment policies and practices expect to use expatriate employees more in the next five years -- resolving those issues means more time devoted to the job at hand and less time worrying about the impact of the job on your personal finances." (CFO.com) ========================================================== Newly Posted Events Cafeteria Plan Election Changes: What's Permitted and What Isn't? Nationwide on January 17, 2008 presented by Employee Benefits Institute of America (EBIA)/Thomson Tax & Accounting http://benefitslink.com/events/detail.php?id=43236 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases The Principal Financial Group Announces Plans To Acquire Retirement Consulting Actuaries Principal Financial Group http://benefitslink.com/pr/detail.php?id=41476 CitiStreet Expands Fiduciary Services in Rolling Out PlanFIRST CitiStreet http://benefitslink.com/pr/detail.php?id=41473 BenefitsCheckUp Has Served Two Million Seniors National Council on Aging (NCOA) http://benefitslink.com/pr/detail.php?id=41477 New Managing Attorney Enhances Legal Advantage's Role in Document Review Service Offerings. Legal Advantage, LLC http://benefitslink.com/pr/detail.php?id=41472 Pew Study Finds States Face $2.73 Trillion Bill for Retiree Benefits Pew Charitable Trusts http://benefitslink.com/pr/detail.php?id=41475 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Trust Administrator II or III for Associated Pension Consultants in CA http://benefitslink.com/modperl/job.cgi?n=H52091 Client Relationship Manager for Great-West Corporate in VA http://benefitslink.com/modperl/job.cgi?n=H53856 Regional Vice President of 401(k) New Business Development for ExpertPlan Inc., East Windsor New Jersey in ANY STATE http://benefitslink.com/modperl/job.cgi?n=H53857 Director of Business Retirement Services for COUNTRY Insurance & Financial Services in IL http://benefitslink.com/modperl/job.cgi?n=H53858 Ancillary Benefit Product Analyst for Administaff in TX http://benefitslink.com/modperl/job.cgi?n=H53859 Compliance Specialist for PlanMember Securities Corporation in CA http://benefitslink.com/modperl/job.cgi?n=H53860 Regional Sales Director for The Online 401(k) (aka Decimal, Inc.) in ANY STATE, CT, MA, ME, NH, NY, RI http://benefitslink.com/modperl/job.cgi?n=H53861 Senior Trust Administrator for AST Capital Trust Company in AZ http://benefitslink.com/modperl/job.cgi?n=H53865 OmniPlus Consultant for The IQ Business Group, Inc. in ANY STATE http://benefitslink.com/modperl/job.cgi?n=H53866 Benefits Analyst for National Financial Partners in NY http://benefitslink.com/modperl/job.cgi?n=H53867 Insurance Fund Manager for Montgomery County Office of Human Resources in MD http://benefitslink.com/modperl/job.cgi?n=H53868 Post yours! http://EmployeeBenefitsJobs.com/jobs/post_help_wanted.html View all jobs http://EmployeeBenefitsJobs.com/ RSS feed http://EmployeeBenefitsJobs.com/rss/jobs.rss =========================================================== Search previous newsletters: http://benefitslink.com/search =========================================================== Subscribe to the BenefitsLink Retirement Plans Newsletter, Too Sign-up form is at: http://benefitslink.com/newsletter/ =========================================================== This newsletter is sent to you each workday except federal holidays. 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