BenefitsLink Health & Welfare Plans Newsletter for September 18, 2001

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The BenefitsLink Newsletter -
Welfare Plans Edition

September 18, 2001 - 6,306 subscribers

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ERISA Plan Found to Be Primary Payer on Participant's Medical Expenses May Not Enforce Reimbursement
Lasky v. State Farm Mut. Auto. Ins. Co. (W.D. Mich. 2001). Excerpt: "EBIA Comment: This opinion does not add much to the existing case law. Rather, it underscores the need to have clear plan language regarding coordination of benefits and subrogation/reimbursement. And it makes clear that a plan cannot save itself from inadequate subrogation/reimbursement language by requiring participants and beneficiaries to sign separate reimbursement agreements." (EBIA Weekly)

7th Circuit: Excessive Job Absences and Unreasonable Request For Accommodation Defeats ADA Claim
Excerpt: "A federal appeals court ruled that an employee suffering from AIDS could not sue his employer for violating the Americans With Disabilities Act by not honoring his request for unlimited sick days because he already had an excessive number of absences from work.... The case is Equal Employment Opportunity Commission v. Yellow Freight System, Inc. ... (7th Cir., June 12, 2001)." (Thompson Publishing Group)

Is Returning to Work a Struggle?
Excerpt: "Oppenheimer officials urged each of them to contact a crisis counselor Wednesday through its employee-assistance programs hotline and Web site. But most of them, now temporarily working from home, said they preferred to share their harrowing experiences with colleagues, according to Ms. Zimmerman. So the firm will hold 'reunion groups' at four New York area hotels in coming days." (CareerJournal.com)

In Time of Tragedy, Employee Assistance is Key
Excerpt: "When a national tragedy of such enormous magnitude occurs, what can employers and managers do to help their employees cope while continuing to operate a business? Experts unanimously agree that employees' well-being must always take priority. By focusing on their concerns, the second issue -- the business -- will take care of itself." (CareerJournal.com)

Insurance Costs Could Exceed $20 Billion In Wake of September 11 Terrorist Attacks
The September 11, 2001, destruction of the World Trade Towers in New York City and the attack on the Pentagon in Washington has resulted in the largest loss of life in a man-made disaster in the United States since the 1947 Texas City Disaster (see below), and the resulting health and life insurance claims will dwarf the Texas City claims. (Spencernet)

Advice for Calming Employees
Excerpt: "Littler Mendelson, an employer law firm based in New York and San Francisco, has offered the following advice to employers nationwide who find their employees still troubled by last week's attacks in New York and Washington." (HRNext.com)

HR Helps Employees Cope
Excerpt: "U.S. companies with employee assistance programs had a crucial head start in helping workers deal with the trauma of the Sept. 11 terrorism attacks. Whether they offered programs in-house or through a vendor, companies ranging from Quaker Oats in Chicago to KPMG Consultants in Virginia already had procedures in place for connecting employees to mental-health professionals." (HRNext.com)

Managed Care Reform Still on President's Agenda
Excerpt: "Reforms to America's managed care system remain an important item on President Bush's agenda, even as the country and the U.S. government focus attention on the last week's attacks and the U.S.'s newly-declared war on terrorism, the president's spokesman said Monday. White House press secretary Ari Fleischer said that the president wants his policy team to keep some focus on domestic issues, including reform legislation known as the Patients' Bill of Rights." (Reuters Health via Excite News)

Congressional Quarterly's Audio Report: Health Issues in Aftermath of Attack
Excerpt: "Few members of Congress predict that they will have any time or energy left to complete action any time soon on complex issues such as patients' rights, a Medicare drug benefit and program overhaul, or reducing the ranks of the uninsured." (KaiserNetwork.org)

Cutting Hours Turns Out to be a Career Plus
Excerpt: "Scaling back his work hours to spend more time with his family 'is the best thing that ever happened to my career.'That strong avowal--which sounds like an oxymoron--comes from E. Jeffrey Hill, of Orem, Utah, associate professor of marriage, family and human development at Brigham Young University in Provo, Utah." (Chicago Tribune)

(Following items are in both editions of the BenefitsLink Newsletter)

Welcome to new BenefitsLink advertiser Stellar Software Ltd.
Excerpt: "Payroll Café software is easy to use and easy to learn. It is highly comprehensive and is specifically designed to handle an unlimited number of benefits of all kinds and taxing structures. It is affordable and includes an integrated human resources package. Designed by a Certified Payroll Professional from the APA with credentials from Microsoft as a Certified Solution Developer and Certified Systems Engineer. Go to www.payrollcafe.com to get a demo and more information."

McDonnell Douglas Liable For ERISA Section 510 Violations in Connection With 1993 Plant Closure
Millsap v. McDonnell Douglas Corp. (N.D. Okla. 2001). Excerpt: "[T]he court concluded that the plant closure violated ERISA Section 510 because its purpose was to interfere with the terminated plant employees' benefits ... [C]ourts generally will defer to the business decisions made by companies regarding their employee benefit plans. However, the court's finding of 'a history of deception and bad faith by the company' led it to distinguish this case from the typical one." (EBIA Weekly)

When Does Partnering Turn Into Conflict of Interest? ? a Financial Perspective (PDF)
Excerpt: "A primary cause for this mounting concern is the growth of outsourcing and continuous mergers among service providers. Employee benefit plan fiduciaries are particularly interested in understanding and managing possible conflicts. Are conflicts of interest inevitable? Probably, but they can be managed. Consider these real examples of conflicts ..." (Curcio-Webb)

CCH Examines How Your Workplace Will Be Affected By Reservist Call-Up
Press release. Excerpt: "To help military reservists and their civilian employers understand and comply with employment laws when workers are called away from their jobs, CCH INCORPORATED (CCH) ... notes that now is the time for companies to review their military leave and reemployment rights policies. To assist you with this important review, here are some of the most common issues...." (PR Newswire via Yahoo! Finance)

IRS Provides Relief For Taxpayers Affected By Terrorist Attacks
The IRS has issued two notices detailing initial relief that will be provided to affected taxpayers in the wake of the September 11 terrorist attacks. And according to the ERISA Industry Committee (ERIC), the Pension and Welfare Benefit Administration (PWBA) will shortly issue regulatory relief from certain requirements under ERISA. (Spencernet)

Bush Calls Up Reserves, Says They Will Play ?essential Role'
Excerpt: "Bush said the Defense Department is in the process of calling up 35,000 reserve troops.... Bush thanked the employers of reserve troops for understanding that 'there is more to corporate life than just profit and loss.' Federal law requires that employers allow Guard and Reserve members to serve on active duty for up to five years and still return to their jobs at the same salary. The same rules apply to federal government employees in the reserve force." (GovExec.com)

Overview: Military Leave Protected Under USERRA
Excerpt: "The Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 prohibits employers from discriminating against any employee or prospective employee because of past, present, or future membership ... in a uniformed service. The law covers all public and private employers. USERRA requires that upon returning from service, members of the armed services and its reserve components be reinstated to their civilian jobs without loss of seniority or benefits ..." (HRNext.com)

Overview: Benefits While on Military Leave
Excerpt: "The law requires employers to offer those on military leave and their dependents the right to continue in the group health plan for up to 18 months of service (similar to the Consolidated Omnibus Budget Reconciliation Act (COBRA)).... For defined contribution [pension] plans [that] offer benefits only when the employee makes contributions, returning employees will have up to three times their length of service-- up to a maximum of five years-- to make [missed] contributions ..." (HRNext.com)

Employer Responsibilities to Employees on Military Leave
Excerpt: "In the wake of the recent national tragedy, many Americans may be leaving their regular employment to serve in the armed forces. Employers' responsibilities to such employees are governed by the Uniform Services Employment and Reemployment Rights Act ('USERRA'), a law which was established to encourage civilian service in the military by trying to eliminate the disadvantages employees may face due to such service." (Faegre & Benson LLP)

In Notice 2001-61 IRS Grants Additional Relief and Extensions for Persons in Federal Disaster Areas (PDF)
Excerpt: "Individuals located in the affected counties and other individuals who are 'affected taxpayers' ... that have extended the time for filing their tax year 2000 federal individual income tax return beyond September 10, 2001, will have a postponement to February 12, 2002 ... In addition, affected calendar year ... entities that are currently on a six-month extension of time to file their federal tax return ... will have an additional 120 days to file their returns ..." (Internal Revenue Service)

Individual Agreement To Pay Money and Provide Life Insurance After CFO Retires May Be An ERISA Plan
Nelson v. Jones & Brown, Inc. (W.D. Pa. 2001). Excerpt: "The chief financial officer (CFO) of the company involved in this case entered into a written agreement with his employer under which he would receive $75,000 annually, paid in monthly installments over a ten-year period, commencing 60 days 'after retirement or termination of employment.' The employer also promised that it would pay the premiums for an insurance policy [payable to the CFO's] beneficiaries." (EBIA Weekly)

Newly Posted or Renewed Job Openings (Post Yours!)

Account Executive

for CitiStreet
in FL

PENSION ADMINISTRATOR/CONSULTANT

for Gordon Fraser Pension Consultants
in CA

Manager of Qualified Retirement Plans

for Campbells Administration Inc.
in CA

401 (k) Consultant Position

for Mutual of Omaha
in NE

Director, Relationship Management

for CitiStreet
in FL

Project Director

for CitiStreet
in FL

Director of Client Services

for ArlenGroup
in CA

Human Resources - Benefits Coordinator

for Diagnostic Products Corporation
in CA

Newly Posted Conferences (Post Yours!)

Vendor Selection and Management

in IL on March 18, 2002
presented by WorldatWork

Vendor Selection and Management

in TX on October 14, 2002
presented by WorldatWork

Vendor Selection and Management

in CA on May 22, 2002
presented by WorldatWork

Vendor Selection and Management

in DC on June 12, 2002
presented by WorldatWork

Vendor Selection and Management

in GA on August 14, 2002
presented by WorldatWork

Vendor Selection and Management

in NY on October 28, 2002
presented by WorldatWork