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June 7, 2004 - 8864 subscribers
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New DOL Opinion Letter Gives Employers Recourse Against Employees Who Abuse FMLA Leave
Excerpt: "Recently, DOL's Wage and Hour Division issued an opinion letter to the Equal Employment Advisory Council clarifying that in certain circumstances employers may require employees to provide a new medical certification following a pattern of Friday/Monday absences because the pattern may constitute 'information that casts doubt on the employee's stated reason for leave,' an exception to the 30-day rule." (HR Policy Association)

Employers Look for Ways to Help New Mothers
Excerpt: "The result: A good number of highly skilled workers -- particularly mothers with young children -- are apparently saying 'no thanks' to telecommuting, flextime and company-sponsored child care. Instead, they're leaving the workforce entirely.... [A] number of corporations -- concerned about losing these highly skilled workers -- are now attempting to reach out to the 'leavers.'" (Human Resource Executive)

Higher Gas Prices Could Boost Demand For Transit Cards
Excerpt: "The steep rise in gas prices has squeezed workers and may force more of them to use public transportation. Transit benefits vendors say demand for their services is growing." (BenefitNews.com)

Overview: FASB Issues Guidance On Accounting For New Medicare Act (PDF)
Excerpt: "The Medicare Pres.cription Drug, Improvement and Modernization Act of 2003 should result in improved financial results for employers that provide pres.cription drug benefits for their Medicare-eligible retirees. The Financial Accounting Standards Board (FASB) has issued a staff position (FSP 106-2) on accounting for the effects of the new law. The staff position generally applies beginning in the first interim or annual period starting after June 15, 2004 ..." (Mellon's Human Resources & Investor Solutions)

Kerry Proposal Might Cut Health Insurance Premiums
Excerpt: "At the center of Kerry's ideas is his proposal to have the federal government reimburse employers 75 percent of medical bills over $50,000 that a worker runs up in a year. The reimbursement would, in effect, make the government a secondary insurer and ease costs for employers, workers and private insurers." (Washington Post; one-time registration required)

ERIC Publishes Text of Plaintiff's Petition for Certiorari in Nord v. Black & Decker Disability Case
Excerpt: "Did the Ninth Circuit err in requiring both evidence of a conflict of interest and evidence of actual bias in failing to invoke de novo review despite the presence of actual conflict of interest, i.e. where the plan administrator and sponsor pays for benefits it awards from its general assets?" (Via ERISA Industry Committee)

Links to Items on Executive Comp, Benefits in General

Overview of Provisions in Senate-Passed JOBS Bill Affecting Deferred Compensation (PDF)
2 pages. Excerpt: "Under the Jumpstart Our Business Strength Act of 2004 ('JOBS') which was passed by the Senate on May 11, deferred compensation will be taxable on a current basis, unless it meets certain requirements. If the deferred compensation is subject to vesting, it will not be taxable until the vesting requirements are satisfied. In addition to current tax, deferred compensation not satisfying the requirements would be subject to additional tax equal to ..." (Frederic W. Cook & Co., Inc.)

Overview: Stock Options and Deferred Compensation Rights Transferred in Divorce
Excerpt: "The new ruling addresses the FICA and FUTA tax consequences and adopts the proposed rules set forth in Notice 2002-31, 2002-1 CB 908, with some changes. Generally, compensation realized on the exercise of stock options by the nonemployee spouse and deferred compensation paid or made available to the nonemployee spouse remain subject to FICA and FUTA taxes as if they had been retained by the employee." (CCH News & Information Library)

Big Perks Put Seven CEOs in a Whole 'Other' Club
Excerpt: "Insurance, forgiven loans, corporate jet travel and 'gross-ups' are key features of their million-dollar packages." (Los Angeles Times; one-time registration required)

Rev. Rul. 2004-60 Describes Tax Consequences of Transfer of Nonqualified Stock Options In Divorce (PDF)
9 pages. Excerpt: "What is the effect upon taxation under the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the Collection of Income Tax at Source on Wages (income tax withholding) of a transfer of interests in a nonstatutory stock option and in nonqualified deferred compensation to a former spouse incident to a divorce? What is the appropriate reporting of income and/or wages recognized ... ?" (Internal Revenue Service)

Overview: Lattice-Based Option Valuation Methods (PDF)
3 pages. Excerpt: "The Financial Accounting Standard Board's (FASB) Exposure Draft on amendments to FASB Statement No. 123 states that a lattice-based option valuation model (e.g., binomial) is preferable to a closed-form model (e.g., Black-Scholes-Merton) ... This letter was written in a collaborative effort with Equity Methods (specialists in the field of employee stock option valuation) and is meant to provide a technical framework regarding lattice-based option valuation models." (Frederic W. Cook & Co., Inc.)

Newly Posted Events

CAPSA's Model Law Principles
Nationwide on June 17, 2004
presented by International Foundation of Employee Benefit Plans
Newly Posted Press Releases

Great-West Retirement Services Introduces Reality Investing -- A Participant Managed Account & Savings Solution
(Great-West Retirement Services)

New Study Links Workplace Gender Issues to Stress, Health Risks, and Rising Health Care Costs
(LLuminari)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

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

Manager of Benefits
for Diversified Entertainment Company In New York City
in NY

Sales Assistant
for Great-West Healthcare
in AZ, NJ, OH

Retirement Plan Administrator
for Wipfli LLP
in WI

401k Underwriter (plan review)
for ADP Retirement Services
in NJ

Defined Contribution Plan Analyst
for Coble Pension Group
in AZ

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