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May 4, 2004 - 8810 subscribers
Today's sponsor: Employee Benefits Institute of America Inc. 


Absolutely the Best Resource for Cafeteria Plan Rules!
So much has been happening in the cafeteria plans world (e.g., OTC
drug and electronic payment cards rulings)--and EBIA is here to help!
Our Cafeteria Plans manual is the best resource available. Written
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Learn More

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
DOJ Sues Promoters of Schemes to Report Lower Taxes Using Sham Health Care Reimbursements
Excerpt: "The DOJ claims that the schemes caused employers (who were customers of the defendants) to 'unlawfully underreport wages paid on federal employment tax returns and W-2 forms by reducing reported wages twice for employer-paid health insurance premiums.'" (Employee Benefits Institute of America Inc. (EBIA))

IRS Plans Revenue Ruling on Interaction of HSAs, Health FSAs, and HRAs
Excerpt: "The IRS is planning on releasing more guidance on health savings accounts (HSAs) before the end of June. The third quarterly update of the Treasury Department's 2003-2004 Priority Guidance Plan lists a revenue ruling on the interaction of HSAs, flexible spending accounts (health FSAs), and health reimbursement arrangements (HRAs) as a new project for the plan year ending June 30, 2004." (Employee Benefits Institute of America Inc. (EBIA))

Treasury Says Maximum Coverage Period Is Not Extended for HCTC-Eligible Workers
Excerpt: "After last week's article was published, we spoke informally with an official from the U.S. Department of the Treasury, who clarified that the IRS's informal position has not changed and is as follows: When COBRA is elected during the special second election period, the COBRA maximum coverage period is measured from the date of the initial loss of plan coverage." (Employee Benefits Institute of America Inc. (EBIA))

Company-Paid Financial Advice Gaining In Popularity
Excerpt: "Retirement Corporation of America, a registered investment adviser and independent financial advisory firm, offers services including custom 401(k) plans for a variety of businesses and specializes in working with current and retired Procter & Gamble employees." (Cincinnati Business Courier via bizjournals.com; one-time registration required)

Avoiding the Front Page: Employee Benefits Risk Management
Excerpt: "Here's a quick summary of the new laws that human resources professionals need to be aware of and adjust your compliance efforts accordingly: ..." (Buchanan Ingersoll)

Insurers With MSAs Are Well Positioned for HSA Market; Others Add Bank Partners
Excerpt: "Managed care plans are rushing to bring to market high-deductible health plans that are compatible with the health savings accounts (HSAs) created by the Medicare reform law. Although insurers' focus may be on benefit designs, deductible levels and premium rates, payers also must address how to administer the funds deposited into these accounts by employers and enrollees." (Managed Care Week via AISHealth.com)

Overview: EEOC Approves ADEA Regs on Retiree Health Benefits
Excerpt: "EBIA Comment: Employers that offer retiree health benefits or are considering doing so will welcome this development. However, we remind employers that the regulations are not effective until they are published in the Federal Register. As a result of the fluid state of the law on the issue of Medicare coordination and the ADEA, cautious employers facing this issue should consult with legal counsel." (Employee Benefits Institute of America Inc. (EBIA))

Participate In Spencer's 2004 COBRA Survey
Spencer Benefits Reports continues to collect information for its 2004 survey of COBRA continuation of health care coverage. Since 1990, this biennial survey has requested information concerning the costs, administrative procedures, and problems associated with COBRA. Survey forms are available online and by mail. According to the 2002 Spencer survey, about 16% of beneficiaries eligible for COBRA actually elected the coverage. (Spencer Benefits Reports)

Links to Items on Executive Comp, Benefits in General

Nonqualified Deferred Compensation Provisions Added To International Tax Bill
Excerpt: "Charles Grassley, Chairman of the Senate Finance Committee, has added amendments to the Jumpstart Our Business Strength Act (S. 1637) that would adversely change longstanding tax rules used by corporations to provide non-qualified deferred compensation to their employees.... The amendments generally follow the nonqualified deferred compensation provisions previously included in last year's [NESTEG] pension bill with some important exceptions." (McDermott, Will & Emery)

Failure to Provide Plan Documents Resulted in Statutory Penalties of $160,000
Gorini v. AMP Incorporated, 2004 U.S. App. LEXIS 7460 (3d Cir. 2004). Excerpt: "Although the trial court determined that the employee was not entitled to severance benefits, it assessed a penalty against the employer in the amount of $160,780 for the employer's failure to provide the requested documents. The employer appealed the penalty assessment, arguing that ... the employee was not a plan participant and consequently was not entitled to penalties under ERISA Section 502(c) ..." (Employee Benefits Institute of America Inc. (EBIA))

G.ay Couples Praise N.J. Domestic Partner Law But Want More
Excerpt: "G.ay activists say the fight for g.ay marriage will go on. 'I can't tell you what it means both emotionally and legally for my partner and me to be recognized in the eyes of the state,' said Steven Goldstein, the New Jersey campaign manager for g.ay rights group Lambda Legal Defense and Education Fund. 'But those who thought the domestic-partnership law would be enough to assuage the g.ay and les.bian community are gravely mistaken.'" (The Advocate)

Same-Sex Marriage Adds To Employers' Challenges Under New California Domestic Partner Laws
Excerpt: "Recent moves toward legal recognition of same-sex marriage in two Canadian provinces and Massachusetts, as well as the issuance of same-sex marriage licenses by the City and County of San Francisco, have confused the picture for employers trying to understand their legal obligations under California's broad new domestic partnership law." (Littler Mendelson)

Newly Posted Events

Benefits Conference for Public Employees
in District of Columbia on July 12, 2004
presented by International Foundation of Employee Benefit Plans

Certificate of Achievement in Public Plan Policy (CAPPP) - Health Part 1
in District of Columbia on July 10, 2004
presented by International Foundation of Employee Benefit Plans

Certificate Series - Basic Compensation Concepts
in Rhode Island on July 21, 2004
presented by International Foundation of Employee Benefit Plans

Certificate Series - Health Benefit Plan Basics
in Rhode Island on July 23, 2004
presented by International Foundation of Employee Benefit Plans

Certificate Series - Retirement Plan Basics
in Rhode Island on July 19, 2004
presented by International Foundation of Employee Benefit Plans

Employee Benefits in Bankruptcy Part I - The Basics
Nationwide on May 12, 2004
presented by ABA Joint Committee on Employee Benefits

Employee Benefits in Bankruptcy Part II- Emerging Splits Among the Courts
Nationwide on May 12, 2004
presented by ABA Joint Committee on Employee Benefits

Ethical Considerations in ERISA Litigation
Nationwide on May 27, 2004
presented by ABA Joint Committee on Employee Benefits

May Dinner Meeting
in Florida on May 26, 2004
presented by Florida West Coast Employee Benefits Council

Newly Posted Press Releases

Employee Stock Option Expert Offers Complimentary Client Analysis Using Its Industry-Leading StockOpter Insight Software
(Metrics Partners)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Sr. Staff Counsel – (Job Code: 25337)
for Northrop Grumman Corporation
in CA

Director of Health Care
for Ohio Public Employees Retirement System
in OH

Employee Benefits Trust Officer
for Regions Financial Corporation
in AL

Benefits Administrator
for Ogilvy & Mather
in NY

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