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June 23, 2004
Today's sponsor: DATAIR Employee Benefit Systems, Inc.

(Click on company name or banner to learn more.)

DATAIR Pension & Benefits Software Sale
License one DATAIR system and receive another one of equal or lower
price without license fee!*
Regardless if you're just starting out in the business or looking to
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DC/401(k) System            Retirement Plan Documents
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Cafeteria Administration    Cafeteria Plan Documents
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Contact sales@datair.com or call 1-888-328-2474.
(*Restrictions apply; see website for details.)

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Text of Notice 2004-43 Providing Transition Relief for HSAs in States with Mandated Health Benefits (PDF)
2 pages. Excerpt: "For months before January 1, 2006, a health plan which would otherwise qualify as [a high deductible health plan] under section 223(c)(2), except that it complies with state law requirements that certain benefits be provided without a deductible or below the minimum annual deductible of section 223(c)(2)(A)(i), will be treated as an HDHP for purposes of section 223(c)(2), if the disqualifying benefits are required by state law in effect on January 1, 2004." (Internal Revenue Service)

DOL Corrects Recently Issued Final COBRA Notice Regulations (PDF)
4 pages. Excerpt: "The term 'covered employer' in [a particular] sentence is an inadvertent error and should instead be 'covered employee.' ... The term 'covered employee' [on one page of the model COBRA continuation coverage] notice is an inadvertent error and should be changed [to read] 'qualified beneficiary.'" (Employee Benefit Security Administration, U.S. Department of Labor)

Overview: Healthcare Continuation Coverage (COBRA) Notice Requirements (PDF)
Excerpt: "Group health plan sponsors must establish new procedures, update their healthcare continuation ('COBRA') notices, summary plan descriptions (SPDs), and other communications, and provide new notices in certain circumstances, under the Department of Labor's (DOL) final rules for COBRA notices. The new rules only apply to notice obligations in plan years beginning on or after Nov. 26, 2004 (i.e., Jan. 1, 2005 for a calendar-year plan)." (Milliman USA)

HMOs Welcome ERISA Preemption Ruling by Supreme Court
Excerpt: "A Supreme Court ruling ... limiting the right of patients to sue managed-care companies for malpractice was a major victory for the firms, but industry spokespeople said it will benefit patients, too." (Washington Post; one-time registration required)

Overview: IRS Ruling Confirms Tax-Planning Opportunities for LTD Plans
Excerpt: "The Internal Revenue Service ('Service') recently issued Revenue Ruling 2004-55, which clarifies the tax treatment of disability benefits under plans that give employees a choice of whether or not to include employer-paid premiums in income. The ruling formalizes a helpful and surprisingly favorable position IRS has taken in a series of private letter rulings over the past few years." (Groom Law Group)

Patient Rights Bill Said Going Nowhere
Excerpt: "Leading Republicans said Tuesday that Congress is unlikely to pass patient rights legislation this year, despite lawmakers' pledges to revive it following a Supreme Court ruling limiting lawsuits against HMOs." (AP via Yahoo! News)

At Whole Foods Market Inc., Workers Feel Sting of Medical Costs
Excerpt: "The 159-store grocery chain last year adopted a health plan that encourages its 30,000 or so workers to feel a bit of the pain every time a doctor sends out a bill. The new 'consumer driven' medical coverage gives employees more of a financial stake in what they pay for medical care in hopes of slowing the growth in medical costs." (Wall Street Journal via SFGate.com)

Links to Items on Executive Comp, Benefits in General

Compensation Committee Structure, Function and Best Practices (PDF)
35 pages. Excerpt: "This article is intended to assist compensation committees in the discharge of their responsibilities by providing (1) an overview of the new NYSE and Nasdaq requirements, (2) a brief summary of the legal duties and responsibilities of compensation committee members and (3) a synthesis of key aspects of the various 'best practice' guidelines for compensation committees." (Richard E. Wood of Kirkpatrick & Lockhart LLP)

Constitutional Amendment Defining Marriage Backed by Massachusetts Governor
Excerpt: "Massachusetts Gov. Mitt Romney, a Republican, told the Senate Judiciary Committee yesterday that a federal marriage amendment is needed because his state is forcing same-sex 'marriage' on everyone else.... Although supporters and opponents of the measure acknowledge that meeting the 67-vote threshold to pass the amendment is unlikely, pro-amendment forces still hope to muster the 60 votes needed to stop debate and put senators on the record on the amendment's merits." (Washington Times)

Experts Argue Outsourcing Could Hurt Employee Benefit Plans
Excerpt: "The loss of jobs may not be the only impact of offshore outsourcing on the U.S. workforce. It could also hurt the employee benefits of U.S. workers, according to Stephen W. Skonieczny, a partner in the employee benefits and executive compensation group of law firm Dechert LLP." (IndUS Business Journal)

Newly Posted Events

Administering The New COBRA Notice Requirements Webcast
Nationwide on July 15, 2004
presented by HRTrainingCenter.com

Complete COBRA Compliance Under The New Notification Rules
Nationwide on July 14, 2004
presented by Alexander Hamilton Institute

In-Person COBRA seminars
Nationwide on June 23, 2004
presented by HRTrainingCenter.com

The Top Ten Things You Need To Know To Survive Your Next OSHA Inspection
Nationwide on July 15, 2004
presented by HRTrainingCenter.com

Treatment of Same Sex Spouses and Domestic Partners for COBRA, HIPAA, FMLA, and Cafeteria Plans
Nationwide on July 29, 2004
presented by HRTrainingCenter.com
Newly Posted Press Releases

Patients Rights Legislation Would Create a "Health Litigation Tax" for Working Families
(ERIC (ERISA Industry Committee))

Towers Perrin Launches Stock Option Valuation Service Using Lattice Model Recommended under Proposed FASB Guidance
(Towers Perrin)

ICC Plan Solutions Aggressively Enters the Retirement Plan Enrollment Kit Business
(Metrics Partners)

Supreme Court ruling deals serious blow to patients
(American Medical Association (AMA))

Workplace Financial Education Expands At American Express
(American Express Retirement Services)

Benchmark Financial Forms Center for Investment Management Investigations (CIMI)
(Benchmark Financial Services, Inc.)
Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel
(Post Yours!)

JD Carlson (Plan Design Consultants, Inc.)

Lisa Pickens (CalMed Billing and Collection Services, Inc.)
Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Retirement Services District Manager
for ADP Retirement Services
in NY

Pension Sales Associate
for American Express Tax & Business Services
in AZ

Actuarial Analyst/Consultant
for The Epler Company
in CA

Defined Contribution Senior Plan Administrator
for Stanley Benefit Services
in NC

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