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December 10, 2003 - 8,712 subscribers
Today's sponsor: Thompson Publishing Group, Inc.

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Practical Tips & Strategies for Managing an Employee on FMLA Leave

An Interactive Audio Conference, December 17, 2003, 2:00 – 3:30 p.m. ET

A recent Society of HR Management survey found that half of all HR
managers have approved fraudulent leave requests. As an employer,
do you continue to struggle with regulations regarding employees
who have taken FMLA leave? Join us for this interactive presentation,
and learn how to quickly understand and comply with these complicated
and constantly evolving FMLA rules.  Plus, you'll get the chance to
ask your specific questions!

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
President Gives Federal Employees Extra Christmas Holiday
Excerpt: "President Bush on Tuesday ordered executive branch agencies to close on Friday, Dec. 26, giving most federal employees a four-day Christmas weekend." (GovExec.com)

The Bizarre New World of Health FSA Administration (PDF)
At pp. 6-9 of 15-page document. Excerpt: "Thanks to 2 revenue rulings issued by the [IRS] earlier this year, health FSA administrators are addressing, on a daily basis, new questions about what expenses may be reimbursed by health FSAs. What began as a simple reinterpretation of the law to permit health FSAs to reimburse employees for over-the-counter (OTC) medicines such as Cl*ritin and Pril*sec, which until recently were available only by pr*scription, has become an exercise in twisted logic." (Hay Benefits Advisor)

Federal Judge Permits Doctors To Seek Damages From HMOs for Violating RICO Act
Excerpt: "U.S. District Judge Federico Moreno of the Federal District Court in Miami on Monday ruled that plaintiffs' lawyers can seek damages against managed care companies in a long-running class-action lawsuit filed on behalf of 700,000 doctors, the New York Times reports." (KaiserNetwork.org)

New Hampshire Residents to Obtain Drugs via Canada
Excerpt: "Governor Craig Benson of New Hampshire will set up a program to import pr*scription drugs from Canada, declaring yesterday that he plans to reduce state pr*scription drug costs even if it means defying the Food and Drug Administration.... Importing drugs from Canada is illegal under US law. The FDA said it wants to talk to Benson about his program but does not plan to take any action before New Hampshire begins importing drugs." (The Boston Globe)

Importing Pr*scription Drugs from Canada: What Employers Need to Know
Excerpt: "Some Americans are saving large amounts of money by purchasing their pr*scription drugs from Canada. Although health plan sponsors may find the potential savings attractive, there are good reasons to steer clear ... 1) it is illegal in many cases, 2) it creates legitimate safety concerns and 3) its costs savings are limited. Instead, employers may want to pursue other alternatives to control their health benefit costs related to pr*scription drugs." (Watson Wyatt)

Health Insurance Payers Refine Cost-Sharing Techniques to Target Patient Behavior, Treatment Choices
Excerpt: "Researchers, insurance company executives and employee benefits consultants outlined five cost-sharing mechanism likely to be embraced by payers in 2004 and beyond. The experts spoke at 'Patient Cost Sharing: Promises and Pitfalls,' a conference last week sponsored by the Washington, D.C.-based Center for Studying Health System Change." (Managed Care Week via AISHealth.com)

Health Savings Accounts Offer Tax-Favored Remedy
Excerpt: "In addition to doctor's visits and medical treatment, the money can be used for pr*scription drugs, retiree health insurance, long-term care insurance, Cobra continuation coverage, health insurance for the unemployed, and other qualified medical expenses--including some dental and vision coverage." (Chicago Tribune; one-time registration required)

HMOs to Reap Benefits From Medicare Law
Excerpt: "Health maintenance organizations will receive higher payments under the new Medicare law beginning in March, well before most of the system's clients get significant help with their pharmacy bills." (AP via Las Vegas Sun)


Links to Items on Executive Comp, Benefits in General

2004 Reporting and Disclosure Calendar for Multiemployer Plans Online from the Segal Company
Excerpt: "The Segal Company's 2004 Reporting & Disclosure Calendar for Multiemployer Plans summarizes compliance requirements for qualified, single employer benefit plans. To see a brief description of each requirement and information about such details as the plan(s) affected, filing requirements and due dates, click on any underlined item below." (The Segal Company)

2004 Reporting and Disclosure Calendar for Single Employer Plans Online from the Segal Company
Excerpt: "The Segal Company's 2004 Reporting & Disclosure Calendar for Benefit Plans summarizes compliance requirements for qualified, single employer benefit plans. To see a brief description of each requirement and information about such details as the plan(s) affected, filing requirements and due dates, click on any underlined item below." (The Segal Company)

What Employers Need to Know About the California Domestic Partner Rights and Responsibilities Act
Excerpt: "In general, the statute provides various legal rights and obligations for individuals registered as domestic partners under state law on or after January 1, 2005. 1 These rights and obligations are intended to mirror those of married individuals under California law. Employers are also affected by this legislation as discussed below and have until January 1, 2005 to prepare.... AB 205 will have several important effects on employee benefits provided by employers...." (Hanson Bridgett Marcus Vlahos & Rudy, LLP)

Last Chance to Terminate or Convert Split Dollar Arrangements Before Expiration of Safe Harbor
Excerpt: "All pre-January 28, 2002 split dollar insurance agreements must be reviewed immediately and the income tax, gift tax and employment tax implications of those agreements ascertained in light of a safe harbor for terminating such agreements or converting to a loan by December 31, 2003." (Reish Luftman Reicher & Cohen)

Overview: December 31 Deadline Approaching for Split-Dollar Arrangements
Excerpt: "In determining the appropriate course of action for these arrangements, many factors need to be considered, such as the age of the insured, the amount of any equity build-up under the policy, and the specific terms of the arrangement regarding roll-out. The tax rules applicable to split-dollar arrangements are complex and appropriate decisions regarding them can vary greatly depending on the particular arrangements." (Hodgson Russ LLP)

Overview: Roundtable Issues New Guiding Principles For Executive Compensation (PDF)
1 page. Excerpt: "On November 17, 2003, the Business Roundtable issued new principles on executive compensation that would more closely link pay with performance and promote a greater role for independent compensation committees. The principles are meant to serve as best practices ..." (Frederic W. Cook & Co., Inc.)

Higher Executive Pay Doesn't Mean Fewer Jobs
Excerpt: "Research I have done doesn't support the notion that CEOs make their millions from stock options and free share awards on the backs of their workers. The research also shows that the longer a CEO has to wait for his compensation rewards, the more he'll concentrate on long- term performance -- as opposed to short-term fixes -- and that helps create more jobs." (Graef Crystal on Bloomberg.com)

Top Risk Issues for Modern Deferred Compensation Plans (PDF)
4 pages. Excerpt: "The IRS examiners seem to be focusing their review of nonqualified deferred compensation plans to the operational areas pertaining to tax withholding and deductions, the timing of deferral elections and distributions, security devices that may avoid substantial risks of forfeiture, and general principles of constructive receipt and the economic benefits doctrine. In light of this focus, here are the top audit issue areas employers should consider: ..." (The Law Office of Thomas C. Walker)

International Stock Ownership as a Benefits Strategy
Excerpt: "This overview discusses several issues arising in international stock ownership arrangements from the standpoint of a domestic U.S. employer." (Faegre & Benson LLP)


Newly Posted Events

The Ethics Evolution in Business -- Are You Ready?
Nationwide on December 8, 2003
presented by Thompson Publishing Group

The Ethics Evolution in Business -- Are You Ready?
Nationwide on January 8, 2004
presented by Thompson Publishing Group
Newly Posted Press Releases

Thomas Announces Request for Written Comments on H.R. 3654, the Technical Corrections Act of 2003
(U.S. House Ways and Means Committee)

Pension Funding Correction Delayed
(ERIC (ERISA Industry Committee))

Five Leading Investment Technology Companies Select Metrics Partners for Public Relations
(Metrics Partners)


Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Retirement Plan Administrator
for R.J.L. Pension Services, Inc.
in FL

Defined Benefits Administrator
for PennMont Benefit Services, Inc.
in PA


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