| The BenefitsLink Newsletter - Welfare Plans Edition |  |
July 3, 2001
Today's sponsor: The International Quality & Productivity Center (click)
The International Quality & Productivity Center presents a powerful conference on "Winning Strategies for Measuring & Improving Work/Life Initiatives," July 30-August 1, 2001 at the Hyatt Regency in San Francisco, CA. By attending, you will from over 12 leading organizations on how to improve your workforce and become an "employer of choice," including: Texas Instruments, Inc., Fannie Mae, Eddie Bauer, Inc., DuPont, Wachovia Bank, WFD Consulting, Boston College Center for Work & Family and many more! For more information, please call 1-800-882-8684 or visit: http://www.iqpc.com/G067worklife160701
Has the IRS Killed Split-Dollar?
Excerpt: "[S]plit-dollar plans have been a popular way to fund employee insurance benefits, deferred compensation, business succession and family wealth transfer. Earlier this year, however, the IRS issued Notice 2001-10. It indicates the IRS and the Treasury Department are reviewing the federal income tax treatment of split-dollar arrangements. The notice also 'clarifies' prior IRS rulings and provides taxpayers with 'interim' guidance they can follow until further guidance is published." (Journal of Accountancy, from the American Institute of Certified Public Accountants)
Hewlett Asks Employees to Take Pay or Vacation Cut
Excerpt: "Hewlett-Packard Co. said Friday it was asking employees, including Chief Executive Carly Fiorina, to either take a pay cut or use up accrued vacation days, as part of cost cutting efforts to help the computer and printer maker contend with a slowdown. 'It's a 10 percent pay cut, or eight paid vacation days,' said Hewlett spokesman Dave Berman." (Washington Post)
Roll Call Vote on Patients' Rights Bill
Vote results on S.1052 as amended. 59 YEAs, 36 NAYs, 5 not voting. Listed by senator. (U.S. Senate)
Motions Introduced to S. 1052, the Patients' Bill of Rights, and Their Disposition (PDF)
5 pages (www.americanbenefitscouncil.org) (American Benefits Council)
Pharmacy Benefits Companies Hone Strategies to Contain Costs and Improve Quality
Excerpt: "It is programs like Prescription Solutions' Generic Sampling, a six-month pilot garnering a 12 percent per member per month in savings, that earn pharmacy benefit managers (PBMs) their due. Once functioning solely as claims adjudicators and eligibility managers, PBMs have moved into the role of case managers, whose objectives are to cut costs and improve quality." (Medscape; free registration required)
Health Insurers Give Many Plan Sponsors Ultimatum On Costs
Excerpt: "Health insurers are giving Corporate America 'a take it or leave it' ultimatum in annual negotiations this year -- accept a sharp rise in costs or drop coverage for your employees. Facing surging drug and medical costs themselves, the Health Maintenance Organizations are prepared to pull out of deals altogether if companies will not swallow double-digit increases in premiums for 2002." (Reuters via Excite News)
Domestic Partner Benefits Taxable to Employee
Excerpt: "This is a tale of two relationships. Ezzon Corp. employs Jay and Pat. Jay has been married to Lisa for two years; Pat has lived with Chris for six years. CPAs who think they are familiar with the rules applicable to unmarried couples living together may be surprised to learn one more way in which the playing field is unequal." (Journal of Accountancy, from the American Institute of Certified Public Accountants)
Interim CEOs Receive Unusual Pay Packages
Excerpt: "Interim leaders are becoming part of the corporate landscape as more troubled companies look for fast help in the executive suite. And unusual circumstances can lead to unusual pay packages." (CareerJournal.com)
Benefits Implications of the Gramm-Leach-Bliley Act's Privacy Provisions
Excerpt: "In general, employee welfare and pension benefit plans do not appear to have an obligation to provide GLB 'privacy' notices to their participants and beneficiaries.... However, other vendors that provide services to the plans, such as insurers, HMOs, and third party administrators, might be obligated to provide plan participants with a notice of their privacy policies, and a right to opt out of information sharing." (The Segal Company)
Reps and Warranties Insurance: Shifting Risk in M&A Deals
Excerpt: "[A] relatively new insurance product-- representations and warranties insurance (also sometimes referred to as mergers and acquisitions insurance)-- is available to bridge seemingly irreconcilable gaps between buyers and sellers. Representations and warranties insurance ('RWI') can be an effective way to shift risks from buyers and sellers to insurers and resolve impasses over risk allocation issues. However, RWI is relatively expensive and not appropriate for every transaction." (Faegre & Benson LLP)
The Impact of Employee Stock Options on the Evolution of Compensation in the 1990s
Working paper available for downloading ($5 fee to NBER). (National Bureau of Economic Research)
Newly Posted or Renewed Job Openings (Post Yours!)
| 401k Compliance Testing Analyst | for Automatic Data Processing- Retirement Services in NJ |
| Compliance Manager | for Fidelity Investments in MA, NH |
| Manager, Pension Department | for MEBA Benefit Plans in MD |
| New York-Associate Benefit Consultant | for Buck Consultants in NY |
| 401(k) Administrator, Daily Valuation Plans | for CNA TRUST in CA |
Newly Posted Conferences (Post Yours!)
| Benefits Provisions of the New Tax Act | in ALL STATES on July 12, 2001 presented by ABA, American College of Employee Benefits Counsel and Society of Actuaries |
| Online Study Group for Course 1 | in ALL STATES on September 10, 2001 presented by IFEBP/Certified Employee Benefit Specialist (CEBS) Program; co-sponsor The Wharton School |
Subscribe to the Retirement Plans Edition, too (click)
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