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June 14, 2004 - 8889 subscribers
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COBRA Final Rules Impose Additional Notice Requirements
Excerpt: "The final rules apply to COBRA notice obligations arising on or after the first day of the first plan year beginning on or after November 26, 2004. Thus, group health plans following a calendar year – comprising the majority of plans – must comply with these final rules beginning January 1, 2005." (Groom Law Group)

Overview: the Final COBRA Notice Rules (PDF)
2 pages. (The Segal Company)

Spitzer Inquiry Expands to Employee Benefits Insurers
Excerpt: "Three big insurance companies, Aetna, Cigna and MetLife, said yesterday that they had received subpoenas from the New York attorney general as an investigation widened into the field of employee benefits - health, disability and group life insurance." (New York Times; one-time registration required)

Working Caregivers Say Emotions Are Top Stressor
Excerpt: "In structuring work-life and employee assistance program benefits, firms should consider that almost half of working caregivers identify emotional issues as the main cause of stress." (BenefitNews.com)

Humana Unveils Rate-Cap Program On Health Premiums for Businesses
Excerpt: "This month the Louisville-based managed care company unveiled SmartAssurance, a program that caps any rate increase at 9.9% in the second year for customers in one of its plans called SmartSuite." (AP via Council for Affordable Health Insurance)

Businesses Embrace Four Cost-Saving Strategies for Healthcare
Excerpt: "The most common employer response has been to pare down health benefits or shift costs to employees through higher copays or coinsurance, benefits experts said. With copay, employees pay a fixed dollar amount per visit. Under coinsurance, they pay a percentage of the visit." (The [Minneapolis/St. Paul] Business Journal via bizjournals.com; one-time registration required)

Americans Seek Mental Health Care As Old Stigmas Subside
Excerpt: "Americans are opening their minds to the value of mental health treatment, according to new research. Findings suggest that employers, who lose upwards of $52 billion each year from depression-related absenteeism and reduced productivity, may reap the benefits of a healthier and more productive work force as people who need help actively seek it." (BenefitNews.com)

United Air Lines Wins Union Support for Retiree Health Benefit Cost Shifting
Excerpt: "UAL Corp. retirees will pay more for their health benefits under an agreement reached Thursday with a coalition representing more than 27,000 former employees of the airline." (Business Insurance)

Big Employers Join Forces in Effort to Negotiate Lower Drug Prices
Excerpt: "Hoping to slow the rising cost of providing health coverage, 50 of the country's largest employers are creating a buyers' club to bargain directly with drug makers on behalf of five million active and retired employees and their families." (New York Times; one-time registration required)

Medicare Pres.cription Drugs: Making the New Program Work
Executive summary; full text available for purchase at http://www.ebri.org/store/ebriib.htm (Employee Benefit Research Institute (EBRI))

Most Americans Say No to EEOC Benefits Rule
Excerpt: "A national survey released last month found that 73 percent of people age 50 and older disagreed with the April decision by the U.S. Equal Employment Opportunity Commission that allows employers to scratch health benefits for retirees at age 65 without violating age discrimination laws." (AARP)

America's Health Insurance Plans Launches Lobbying Campaign to 'Shape' Health Care Debate
Excerpt: "The recently formed lobbying group America's Health Insurance Plans last week launched the first of five print advertisements for 'inside-the Beltway' publications as part of an effort to 'shape the health care debate' in upcoming elections and next year's Congressional session, Roll Call reports." (KaiserNetwork.org)

Health Insurance Firms Block Mental Health Parity Bills
Excerpt: "Aided by House Speaker Dennis Hastert, insurance companies successfully have blocked legislation to make them provide equal coverage for mental and physical illnesses if their policies include both." (AP via Yahoo! News)

U.S. to Drop Benefit Cuts Linked to Drug Discounts
Excerpt: "The Bush administration said Saturday that it would rescind a federal policy that threatened to cut food stamp benefits for several million low-income elderly and disabled people who save money on their medicines by using the new Medicare drug discount cards." (New York Times; one-time registration required)

Cost of Health Insurance Is Top Problem For Small Firms; Workers' Comp Is Third
Health insurance and workers' compensation are, respectively, the first and third-ranked problems for small business owners in the U.S. Health care costs has been the top problem since 1986, but the number of respondents citing the issue as 'critical' skyrocketed from 47% in 2000 to two-thirds in 2004. Workers' compensation costs had the second highest proportion of respondents (one-third) ranking it as a 'critical' problem. (Spencer Benefits Reports)

Links to Items on Executive Comp, Benefits in General

N.Y. Court Says G.ay Marriage Ban Unconstitutional
Excerpt: "A New York state court on Thursday ruled in favor of same-sex marriage because denying g.ays the right to wed goes against equal protection measures in the state's constitution." (Reuters via Yahoo! News)

Ruling Explains When Payroll Taxes On Divorce Transfers of Nonstatutory Options Are Triggered
Excerpt: "Companies should establish a system to keep track of divorce-related transfers of nonstatutory options and nonqualified deferred compensation by employees. The system could store appropriate information about the transferee including her address and social security number so that the employer will be a position to meet its reporting obligations under the above rules." (RIA Tax News)

House Export Subsidy Repeal Bill Would Restrict Tax Advantages of Nonqualified Plans
Excerpt: "The provisions contained in the American Jobs Creation Bill of 2004 (H.R. 4520), as introduced on June 4, 2004, are substantially similar to those included in the Jumpstart Our Business Strength (JOBS) Bill (S. 1637), which was approved by the Senate on May 11, 2004." (CCH News & Information Library)

Is Expensing the Y2K of Equity Compensation?
Barring unlikely Congressional action, in 2005, public companies will have to start showing an accounting expense for stock options. Many companies object to this, saying they will have to cut back on their plans to avoid a decline in their stock prices. However, the research indicates otherwise: expensing does not affect stock prices. Corporate leaders would be well-advised to base decisions on real, rather than perceived, costs and benefits. (National Center for Employee Ownership)

Newly Posted Events

COBRA: Conquering the New Regulations
Nationwide on July 1, 2004
presented by International Foundation of Employee Benefit Plans

Cross-Tested Plan Workshop - Explore the Possibilities
in Oregon on August 19, 2004
presented by SunGard Corbel

Cross-Tested Plan Workshop - Explore the Possibilities
in Colorado on August 19, 2004
presented by SunGard Corbel

Cross-Tested Plan Workshop - Explore the Possibilities
in California on August 19, 2004
presented by SunGard Corbel

Cross-Tested Plan Workshop - Explore the Possibilities
in New Mexico on August 25, 2004
presented by SunGard Corbel

Cross-Tested Plan Workshop - Explore the Possibilities
in Florida on August 26, 2004
presented by SunGard Corbel

Cross-Tested Plan Workshop - Explore the Possibilities
in California on August 26, 2004
presented by SunGard Corbel

Pension Seminar
in Ohio on June 24, 2004
presented by Employee Benefits Council of Northeast Ohio

Safe Harbor 401(k) Plan Workshop - Discover the Advantages
in Colorado on August 20, 2004
presented by SunGard Corbel

Safe Harbor 401(k) Plan Workshop - Discover the Advantages
in California on August 20, 2004
presented by SunGard Corbel

Safe Harbor 401(k) Plan Workshop - Discover the Advantages
in Oregon on August 20, 2004
presented by SunGard Corbel

Safe Harbor 401(k) Plan Workshop - Discover the Advantages
in New Mexico on August 26, 2004
presented by SunGard Corbel

Safe Harbor 401(k) Plan Workshop - Discover the Advantages
in Florida on August 27, 2004
presented by SunGard Corbel

Safe Harbor 401(k) Plan Workshop - Discover the Advantages
in California on August 27, 2004
presented by SunGard Corbel
Newly Posted Press Releases

Treasury and IRS Finalize Defined Benefit Plan and Annuity Distribution Rules
(U.S. Department of Treasury)

Hewitt Survey Shows Employers Making Efforts to Reduce 401(k) Costs
(Hewitt Associates LLC)

Financial Accounting Foundation Trustees Issue Statement Opposing Legislative Proposals to Curb FASB Independence
(Financial Accounting Standards Board (FASB))

American Bankers Association Joins SPARK Institute On Alternative To SEC’S “Hard 4:00 P.M.” Close
(Society of Professional Administrators and Recordkeepers (SPARK))

Launch of New Employee Benefit Statement Website by BusinessPlans, Incorporated
(BusinessPlans, Inc.)

Wachovia Insurance Services Chooses HR XCEL To Provide Benefits Administration Services For WIS Clients
(HR XCEL, Inc.)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Associate Attorney
for Shook Hardy & Bacon, LLP
in LA

Pension Consultant
for Small Plan Firm With DB Concentration
in IL

Business Analyst
for BISYS Retirement Services
in PA

Senior Account Service Associate
for H&R Block
in MO

Institutional Plan Conversion Manager - PA
for The Vanguard Group
in PA

Retirement Plan Administrator
for Professional South Puget Sound Retirement Plan Consulting Firm
in WA

Health Care Actuary
for Knight Ridder
in CA

Relationship Manager
for BISYS Retirement Services
in PA

Employee Benefits Associate
for Warner Norcross & Judd LLP
in MI

Benefits Analyst
for United Actuarial Services, Inc.
in IN

Cafeteria Plan Sales Consultant
for Hand Benefits & Trust, Inc.
in TX

Retirement Consultant N171-112522
for Microsoft Corporation
in WA

Account Executive Director - Retirement Services
for Principal Financial Group
in AZ

Director, Client Services - Participant Services
for BISYS Retirement Services
in MN

401(k) Retirement Plan Administrator
for Stephen Eldridge & Company, Inc.
in NH

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