Headlines about "International, expatriate issues"

Gathered from the web by the editors at BenefitsLink.com.
In Japan, All-Payer Rate Setting Under Tight Government Control Proving to Be Effective at Containing Costs
"Japan's single payment system contains spending while retaining the advantages of multiple health insurance plans. Combining hospital and physician fees -- not typically done in the U.S. -- also helps achieve these objectives. Applying a single rate to U.S. providers, a growing number of whom are employed by hospitals, would simplify billing, provide incentives for physicians to practice more efficiently, and possibly encourage more physicians to locate in medically underserved areas." (The Commonwealth Fund)

Employers Becoming More Generous with Corporate Relocation Benefits
Provides the text of the 2012 Atlas Moving Companies Corporate Relocation Survey. "For new hires [during 2011], full reimbursement [of relocation costs, as an employee benefit,] retakes the top spot as the most popular method, reversing its progressive decline from 2009-2011. The percentage of firms using full reimbursement is [57%]. This method is followed closely by lump-sum payments (50%) ... The percentage using partial reimbursement [was 40%] and is at its lowest level since 2006." (Atlas)

[Opinion] Text of ICI Comments on Proposed IRS Regs Under Foreign Account Tax Compliance Act (PDF)
"[ICI suggests an alternative approach for improving further on the many positive changes made by the Proposed Regulations in the treatment of retirement accounts. Specifically, the Final Regulations should state that, except to the extent provided by the Secretary, any retirement plan organized under a country's laws for the principal purpose of saving for retirement will be eligible for treatment as a certified deemed compliant FFI, will be treated as an exempt beneficial owner, and will be excluded from the definition of financial account[.]" (Investment Company Institute)

[Opinion] American Benefits Council Comment Letter to IRS on Priority Guidance Plan (PDF)
"The Council is writing to recommend items relating to employee benefit matters that should be included on the [IRS] 2012-2013 Guidance Priority List. The Council is submitting a letter separately recommending a project to modify the current nondiscrimination and minimum participation regulations to protect older, long-service participants. This letter focuses on other recommendations for the Guidance Priority List." (American Benefits Council)

Can a Public Pension Plan File Bankruptcy? Historic Northern Mariana Islands Chapter 11 Case Might Tell
"[A motion was filed recently] on the behalf of two anonymous retirement plan participants, arguing that the plan cannot file for Chapter 11 restructuring because it's not a person under the bankruptcy code and because it's a governmental unit.... [An attorney said] that by filing for bankruptcy, the fund was permitting the local government to avoid its obligation to its retirees." (Investment News)

[Guidance Overview] 2011 Tax Year FATCA Reporting by U.S. Persons of Participation in Foreign Retirement Plans and Deferred Compensation (PDF)
"[One] major part of FATCA requires reporting of foreign accounts by individual US persons, generally beginning with the 2011 tax year. Such reporting involves a requirement to file new IRS Form 8938, which accompanies the individual's US tax return, usually one of the 1040 series, and which is due at the same time.... For purposes of the Form 8938, non-US. pensions and deferred compensation, whether funded or not, and including equity-based compensation and stock options, may be treated as a foreign account subject to reporting." (Groom Law Group)

[Guidance Overview] Puerto Rico Tax Amnesty Program Extension Could Help Retirement Plans Correct Failures with Former PR Code's Withholding and Reporting Requirements (PDF)
"[The] Tax Amnesty Program is ... available to Puerto Rico qualified retirement plans, both Puerto Rico-only qualified plans and dual-qualified plans (i.e., plans qualified both in Puerto Rico and the U.S.), that may have failed to comply with the 1994 PR Code's tax withholding (i.e., 5%, 10%, 20% Puerto Rico income tax withholdings, as applicable depending on the type and time of distribution) and reporting requirements (i.e., Forms 480.6A and 6B, and Form 480.7C, as applicable depending on the type and year of distribution) on distributions to participants in Puerto Rico." (Groom Law Group)

GAO Report on Defined Contribution Plans: Approaches in Other Countries Offer Beneficial Strategies in Several Areas
"GAO was asked to examine, for selected countries' DC systems, (1) how are service providers overseen by regulatory agencies; (2) what key strategies are used to improve fee disclosure to participants; and (3) what key strategies are used to reduce fees? GAO selected Australia, Chile, Sweden and the United Kingdom based on, among other factors, the importance of the DC plans to the country's retirement system and the use of strategies to address service providers' fees." (Government Accountability Office)

Traveling4Health Unveils Interactive Map of Medical Travel and Retirement Health Destinations
"America's leading travel resource for discovering vacationing, destination locations, international health, and medical travel news, Traveling4Health & Retirement unveils first ever online travel and tourism map for travelers, baby boomers, and everyone seeking affordable alternatives to the rising costs of healthcare while learning about the many advantages of international travel." (Traveling4Health)

[Guidance Overview] Have You Assumed Pension Termination Liability? Long Arm of the U.S. PBGC Reaches Non-U.S. Parent
"This lawsuit arose after the PBGC took over the Metaldyne Pension Plan to force an involuntary termination. PBGC seeks $175 million from the parent company of Metaldyne, which filed for bankruptcy reorganization under Chapter 11 of the U.S. Bankruptcy Code and did not fund its pension plan. The non-U.S. parent company, Asahi Tec, moved unsuccessfully to dismiss the PBGC's complaint on the ground that Asahi had no role regarding the U.S. plan or its termination." (Osler)

Bailout by U.S. Taxpayers Could Resolve Northern Mariana Islands Retirement Fund Bankruptcy
"There are times when a pension story is one thing for the general public, and a totally different thing for the ERISA community, or in this case the employee benefits community because the plan involved is not truly an ERISA plan, it is a governmental plan, and not really even a governmental plan but a retirement fund for a commonwealth of the United States." (The Pension Protection Act Blog)

Trouble in Paradise: Public Pension Plan of U.S. Commonwealth in Pacific Files for Bankruptcy
"[The Northern Mariana Islands Retirement Fund, Saipan] is only 38.8% funded, thanks to low investment returns and a benefit structure that's been increased without raises in funding, according to the bankruptcy filing.... [The f]und has been bedeviled by the commonwealth's inability to make its share of contributions to the pension plan, according to court documents and an April 17 letter to participants." (Pensions & Investments)

Medical Tourists Getting Root Canals, Knee Surgeries and Hip Replacements at Foreign Hospitals
"For Americans, the attraction is obvious: medical care is a lot cheaper abroad. At CIMA Hospital, in Costa Rica, for instance, hip-replacement surgery costs around fifteen thousand dollars, roughly a sixth of the average here." (The New Yorker)

[Guidance Overview] Court Finds Jurisdiction Exists over Foreign Parent in Pension Plan Liability Suit
"A recent federal district court decision defeats a long-standing assumption that a foreign corporate parent would not be subject to personal jurisdiction for a suit seeking payment of pension liabilities merely by acquiring a U.S. subsidiary." (McDermott Will & Emery)

[Guidance Overview] New Foreign Financial Asset Reporting Requirement with Deadline of April 17, 2012
"The Foreign Account Tax Compliance Act (FATCA) requires certain U.S. taxpayers holding foreign financial assets, including an interest under a foreign pension or deferred compensation plan and foreign equity awards, to report those interests beginning with this tax filing season. Taxpayers who fail to meet their obligation to file Form 8938 are subject to significant penalties.... Note that FATCA reporting requirements are separate from FBAR reporting of foreign financial accounts[.]" (McDermott)

[Guidance Overview] New FATCA Regulations Solve Some Issues for Pension Plans, But Other Problems Remain (PDF)
"For multinational companies, it is increasingly common to move key employees in and out of different countries -- a practice that can trigger a variety of issues. New regulations proposed in February offer some relief for companies with an international workforce, as they indicate that most non-U.S. pension plans will be treated by the U.S. as 'deemed compliant' with Foreign Account Tax Compliance Act (FATCA). But multinational employers still have reasons to look closely at pension-based U.S. tax liabilities affecting mobile employees." (Pillsbury)

[Guidance Overview] Retirement Plans with Puerto Rico Employees Can File Form 5500 Rather than Puerto Rico Annual Return
"Plan sponsors that elect to file Form 5500 to satisfy the Puerto Rico annual return requirement must still complete the part of Form 480.7(OE) containing the biographical data of the plan on the first page of Form 480.7(OE) and attach a copy of Form 5500 as the annual filing." (McDermott Will & Emery)

Puerto Rican Treasury Issues Guidance Regarding Title I ERISA Plans (PDF)
"On February 13, 2012, the Puerto Rico Treasury Department ... issued Circular Letter 12-02 ..., which establishes the rules for an employer that participates or sponsors a retirement plan that is subject to the provisions of Title I of [ERISA] to have the option of filing a Form 5500 or 5500-SF with Treasury, in lieu of a Form 480.70[.]" (McConnell Valdes LLP)

[Guidance Overview] US Taxpayers Participating in Non-US Retirement Plans: When is There an FBAR or FATCA Reporting Obligation? (PDF)
"Although some guidance has been issued on retirement plans under [the Report of Foreign Bank and Financial Accounts ('FBAR') and the Foreign Account Tax Compliance Act ('FATCA')], the application to retirement plans is still somewhat vague, and there remain a number of important issues for US taxpayers who work in the US or abroad and participate in non-US retirement plan(s)." (Groom Law Group)

Social Security Programs Throughout the World: The Americas, 2011
"Guide to Reading the Country Summaries, including: Table 1. Types of social security programs; Table 2. Types of mandatory systems for retirement income; Table 3. Demographic and other statistics related to social security, 2011; Table 4. Contribution rates for social security programs, 2011" (U.S. Social Security Administration)

test
"test" (benefitslink)

Cost Major Concern with International Relocation Assignments and Determining ROI Remains an Issue
"The Cartus study confirms that most multinational employers are clearly worried about the high price tag associated with international relocations (which some estimate can be as much a three times an expat's salary) and, in turn, are taking specific steps to ensure their costs don't spin out of the control." (Human Resource Executive Online)

[Guidance Overview] PR Treasury Allows Certain Puerto Rico Qualified Retirement Plans to File Copy of Form 5500 Instead of Form 480.70 (PDF)
"Only plans that (i) are subject to Title I of [ERISA], and (ii) have been previously filed with the PR Treasury for qualification under the 2011 PR Code or the Puerto Rico Internal Revenue Code of 1994, as amended,have the option to file Form 5500 with the PR Treasury." (Groom Law Group)

[Guidance Overview] IRS Reissues Notice, Enhances Transition Relief for Plans Qualified in Puerto Rico
"The reissuance of Notice 2012-6 underscores just how complex and difficult it is to deal with the differences between Puerto Rico's qualification requirements for retirement plans and the requirements of the U.S. tax code. While employers continue to work through the difficulties in the context of recent changes to the Puerto Rico tax code, some will at least temporarily not have to cope with a potential testing problem (the inclusion of Puerto Rico employees in nondiscrimination testing for coverage) and a potential tax problem for individual participants (recognition of certain distributions as U.S. income)." (Thomson Reuters/EBIA)

Relocation Benefits Are on the Move
"New trends in relocation are growing out of economic necessity as companies find new ways to move their talent while protecting both the employee and the company from the volatility of the real estate market." (Workforce)

British Pensions Face £85 Billion
British companies with defined benefit pension schemes are likely to face rising pressure to plug deficits that could grow by 85 billion pounds this year against a backdrop of falling bond yields and prolonged market volatility[.] (The New York Times)

[Guidance Overview] Puerto Rico Treasury Dept. Guidance for Qualification of Retirement Plans under 2011 PR Code and Relief for Retroactive Qualification under 1994 PR Code (PDF)
"[The guidance] includes a list of the 2011 PR Code qualification provisions that must be included in the plan document (or appendix/supplement to the plan) in order to obtain a qualification letter under the 2011 PR Code. However, note that a plan must have been operated in compliance with all applicable 2011 PR Code provisions since January 1, 2011, even though the plan is not amended untilsometime in 2012." (Groom Law Group)

Global Pensions Asset Study, 2012 (PDF)
"This is a study of the 13 largest pension markets in the world and accounts for more than 85% of global pension assets. The countries included are Australia, Canada, Brazil, France, Germany, Hong Kong, Ireland, Japan, Netherlands, South Africa, Switzerland, the UK and the US." (Towers Watson)

Global Pension Fund Assets Hit Record High in 2011
"Global institutional pension fund assets in the 13 major markets grew by 4% during 2011 to reach a new high of US$28 trillion, up from US$26 trillion in 2010 according to Towers Watson's Global Pension Assets Study released today." (Towers Watson)

[Guidance Overview] IRS Extension of Transition Relief for Puerto Rico Qualified Plans to Participate in U.S. Group Trusts and Deadline to Transfer Assets
"There are now two separate deadlines: First, in recognition of the fact that Puerto Rico adopted a new tax code in 2011 with significant changes to the requirements for qualified retirement plans, the IRS has extended the general deadline to December 31, 2012, for dual-qualified plans to make transfers to Puerto Rico-only plans, in order to give plan sponsors time to consider the effect of the changes made by the new tax code." (The Bureau of National Affairs, Inc.)

[Guidance Overview] Recent Developments Affecting Puerto Rico Retirement Plans (PDF)
"First, the Governor of Puerto Rico recently signed legislation making technical amendments to the retirement plan provisions in the Puerto Ricotax code enacted in January 2011. Second, Puerto Rico issued Circular Letter 11-10 which provides guidance for amending plans and obtaining plan qualification letters. Finally, the IRS issued Notice 2012-6 which further extends the transfer deadline for U.S. qualified plans tospin off their Puerto Rico participants into a second plan." (Buck Consultants, LLC)

[Guidance Overview] Puerto Rico Treasury Department Issues New Income Tax Withholding Tables on Wages Paid in 2012 (PDF)
"The PR Treasury confirms in the Guide that every employee whose gross annual wages does not exceed $20,000 will not be subject to Puerto Rico income tax withholding in 2012." (McConnell Valdes LLC.)

Nearly a Third of Employers Willing to Cover Relocation Now
"While employers continue to struggle finding qualified workers for skilled positions, 32 percent say they're willing to pay for relocation expenses in 2012, according to a nationwide CareerBuilder study." (BenefitsPro)

[Guidance Overview] IRS Extension and Expansion of Relief Provided for Transfer of Assets from U.S. Retirement Plans to Retirement Plans in Puerto Rico (PDF)
"After many requests by professional organizations and legal practitioners, both in the U.S. and Puerto Rico, the [IRS] recently issued Notice 2012-6 . . . providing relief for certain asset transfers from U.S. retirement plans to Puerto Rico plans." (McConnell Vald?s LLC)

[Guidance Overview] IRS Extends Transition Relief for Plans Qualified in Puerto Rico
"This relief gives employers more time to figure out how best to handle retirement benefits for their Puerto Rico employees in light of extensive amendments to the Puerto Rico tax code that generally took effect on January 31, 2011." (Thomson Reuters/EBIA)

[Official Guidance] Text of IRS Notice 2012-6: Qualified Pension, Profit-Sharing, and Stock Bonus Plans under the Puerto Rico Internal Revenue Code (PDF)
"This notice extends and expands the transition relief provided under Rev. Rul. 2011-1, 2011-2 I.R.B. 251, and Rev. Rul. 2008-40, 2008-2 C.B. 166, for certain group trusts, certain retirement trusts that qualify under the Puerto Rico Internal Revenue Code . . . and that participate in group trusts, and certain qualified retirement plans that benefit Puerto Rico residents. This notice also provides additional time for governmental retiree benefit plans described in ? 401(a)(24) of the [IRC] (? 401(a)(24) plans) to be amended to satisfy the applicablerequirements of Rev. Rul. 2011-1." (U.S. Internal Revenue Service)

[Opinion] A Transatlantic Crisis for Pension Plans: Italy, Ireland, and Greece Are Just the Beginning (PDF)
"[Plan sponsors, both governments and companies, face financial obligations to retirement programs] they do not have the wherewithalto meet. Steps taken to address the crisis will worsen the financial condition of pension plans worldwide. On top of this, pension plans on both continents operate under restrictive regulatory regimes that provideinsufficient flexibility for the plans themselves to address the current difficulties they are facing." (The Bureau of National Affairs, Inc. via Kraw & Kraw)

The Strengths and Failures of Incentive Mechanisms in Notional Defined Contribution Pension Systems
"Public pension systems based on the Notional Defined Contribution (NDC) principle were introduced during the '90s in Italy, Sweden and Poland, among other countries. They mimic private savings, in that individuals get back, as pensioners, what they contributed to social security during working life, plus returns. As such, NDC systems should realize actuarial equity and incentive neutrality." (Social Science Research Network)

Social Security in an International Context
"[This discussion describes] how U.S. social security operates for multinational employers and employees, and how it currently coordinates with other countries' social security systems." (Pillsbury Winthrop Shaw Pittman LLP)

Developing a Global Policy for Controlling Your Defined Contribution Plans
"The purpose and rationale for switching the provision of retirement benefits to a DC model is to allow the multinational to reduce its financial risks and pass most of these onto employees, including investment, inflation and longevity risks. DC has now become the new global standard. In this new DC world, is there a need for control through a global policy and, if so, how would a multinational develop one?" (Mercer LLC)

China's New Foreign Exchange Control Rule on Equity Incentive Plans for Employees in Chinese Affiliates
"New requirements for foreign exchange registration of equity incentive plans are now in effect. Overseas-listed companies that grant equity awards to employees of their Chinese affiliates should review their registration status and periodic filing schedules to make sure they are in compliance, especially in view of the new, shorter deadline for filing quarterly reports and the need to file amendments." (Pillsbury)

How to Explain High U.S. Health Care Spending? A Look at Supply, Utilization, Prices and Quality in Other Countries
"[The] high spending cannot be attributed to higher income, an older population, or greater supply or utilization of hospitals and doctors. Instead, the findings suggest the higher spending is more likely due to higher prices and perhaps more readily accessible technology and greater obesity. Health care quality in the U.S. varies and is not notably superior to the far less expensive systems in the other study countries." (The Commonwealth Fund)

The links shown above have been gathered from the web by the editors at BenefitsLink.com. Each article's publisher is shown above in parentheses. Opinions expressed in each article are those of the article's publisher, not necessarily those of BenefitsLink.com, Inc. or any web site that displays these headlines in a "frame." You should contact the listed publisher for copyright information about any particular article or to inquire into the right to use the article in any manner.