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May 27, 2003 - 13,225 subscribers
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"HRA's & Other Consumer-Directed Health Care Plans" 90-Minute Pre-Recorded Audio Conference Are the promised cost savings of consumer directed health plans real or an illusion? What does the future hold for these kinds of plans? How will developments in Congress and the marketplace affect them? What are the design features of successful consumer-directed health plans? Who is currently enrolling in these plans? Attorney and benefits consultant Terry Humo, Esq., addresses these questions and more during this audio conference presented May 20, 2003 and now available on tape or CD.
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ERIC Tells FASB to Drop Rule that Would Inflate Balance Sheet Liabilities for Cash Balance Plans
Press release. Excerpt: "In a letter to FASB, ERIC estimated that FASB's proposal to change the discount interest rate used to value certain cash balance plans to a more conservative rate would, in some cases, increase plan liabilities by 20 to 40 percent. The proposal was advanced without any notice, comment period or discussion." (ERISA Industry Committee)
Text of ERIC Letter to FASB Over Cash Balance Discount Rates
Excerpt: "The issue relates to the discount rate used to value the liabilities under cash balance plans that credit participants' accounts with a market-related interest rate. We understand that, at the end of the EITF's May 15th meeting, a member of the FASB staff commented that, in the case of a cash balance plan that credits participants' cash balance accounts with a market-related interest rate, the plan's liabilities must be valued using that same interest rate." (ERISA Industry Committee)
Overview: New Guidance on Allocation of Plan Expenses Among Participants' Accounts (PDF)
2 pages. Excerpt: "Plan sponsors should review their plan documents and expense allocation methods. As a general rule, the safest approach is for the plan document to specify the allocation of various plan expenses because doing so is not subject to review under ERISA's fiduciary rules." (Milliman USA)
Witnesses' Statements at Hearing on 'What Seniors Need to Know About Protecting Their Futures'
Hearing held on Thursday, May 15, 2003. Target page includes written statements from Frank Keating, American Council of Life Insurers; David F. Woods, National Association of Insurance & Financial Advisors; Lavada DeSalles, AARP; M. Cindy Hounsell, Women's Institute For a Secure Retirement; and Tom Gallagher, National Association of Insurance Commissioners. (U.S House of Representatives Committee on Financial Security, Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises)
Opinion: The 'Alternative' Investment Quagmire
Excerpt: "While pensions generally are aware that 'alternative' investments such as hedge funds and venture capital funds are not regulated by the SEC or state securities regulators, few pensions fully appreciate the complexities involved in reviewing and monitoring investments in these funds. When these investments turn sour, pensions may suddenly discover they are completely unprepared to investigate what went wrong, identify an appropriate exit strategy and recover losses." (The Benchmark Companies)
Opinion: Recent Orange County Calif. Actions Illustrate Harm of State's Restrictive 403(b) Rules
Excerpt: "California 403(b) plans suffer from a dubious insurance law known as 770.3. Under this provision school districts are denied the ability to select 403(b) vendors of their choosing through the Request for Proposal process." (403bWise.com)
Links to Items on Executive Comp, Benefits in General
Court Case Emphasizes the Importance of Providing Requested Plan Documents
Excerpt: "A recent Minnesota federal district court case (Keogan v. Towers, Perrin, Forster & Crosby, Inc., 2003 WL 21058167) awarded a disability plan participant nearly $65,000 in penalties under ERISA because the plan administrator/employer failed to provide the claimant with a copy of the applicable plan document." (Faegre & Benson LLP)
New Techniques for Handling Underwater Options (PDF)
4 pages. Originally published in March, 2003. Excerpt: "The new program involves a more timely buyout of the underwater options, either for cash or vested shares. Not only is employee morale improved as a result of the buyout, but the substantial dilution attributable to these significantly out-of-the-money options is eliminated." (Morgan Lewis)
Newly Posted or Renewed Job Openings
Pensions/"D.B." ERISA Compliance Specialist
for Pension Careers, Inc.
in NY
Pension Plan Administrator
for The Angell Pension Group, Inc.
in RI
401k Contribution Processor / Pension Assistant
for Preferred Pension Planning Corporation
in NJ
Newly Posted Webcasts
(Post Yours!)
The 21st Century Challenge: Providing and Paying for Long-Term Care
on May 21, 2003
presented by Georgetown University Long-Term Care Financing Project
Businesses, Listen Up: The Cost of Inaction on Healthcare
on May 19, 2003
presented by National Coalition on Health Care
Newly Posted Conferences
(Post Yours!)
Consumer-Driven Health Care: Turning Health Care Users Into True Consumers
in NY
June 12, 2003
The New York Metropolitan Area Chapter - ISCEBS
Fiduciary Liability Issues and Sarbanes-Oxley
in MA
June 19, 2003
Worldwide Employee Benefits Network
Annual Enrollment Strategies to Achieve Your 2004 Health Care Goals
in ALL STATES
June 11, 2003
Hewitt Associates
Newly Posted Press Releases
(Post Yours!)
IRS Recognizes Milberg Consulting as Pension Compliance Advocate
(Milberg Consulting LLC)
Tax Bill Cuts 2003 Taxes for Persons Using Child Care Tax Credit
(U.S. Treasury Department)
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research
- Employee Benefits Library
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