| BenefitsLink Welfare Plans Newsletter |   |
October 5, 2004
Today's sponsor: World Congress
(Click on company name or banner to learn more.)
The 2nd Annual WORLD HEALTH CARE CONGRESS January 30 – February 1, 2005 ~ Washington DC ~ Marriott Wardman Park Hotel The 2nd Annual 2005 World Health Care Congress is the most progressive forum to achieve an affordable, accountable U.S. health care system. Co-sponsored by the Wall Street Journal and CNBC, the 2004 executive conference initiated a dialog of national significance. The 2005 conference achieves significant strides in implementing actionable solutions as it will convene all stakeholders - over 1500 CEOs, senior executives and government officials from the nation’s largest employers, hospitals, health systems, health plans, pharmaceutical and leading government officials.
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Overview and Comment: IRS Cracks Down on Double-Dipping Employee Benefit Transportation Plans
Excerpt: "With Revenue Ruling 2004-98, the IRS intends to put an end to a particular type of double-dipping transportation plan that is being marketed to employers. The Ruling considers an arrangement for a hypothetical employer that decides to provide on-site parking to its employees through compensation reduction." (Employee Benefits Institute of America)
Full Text: First-Year Experiences under the HIPAA Privacy Rule
43 pages. Excerpt: "GAO recommends that HHS (1) require that patients be informed of mandatory disclosures to public health authorities in privacy notices and exempt such disclosures from the accounting requirement, and (2) conduct a public information campaign to improve patients' awareness of their rights." (U.S. Government Accountability Office)
Special Report: the Future of Health Care Information Technology
Excerpt: "What are the urgent, emerging issues in health care information technology? Take a look here to see an assembly of current articles on this issue." (eWEEK.com)
Health Coverage Tax Credit: Simplified, More Timely Enrollment Process Could Increase Participation
106 pages. Excerpt: "Congress enacted the health coverage tax credit (HCTC) in 2002 for certain displaced workers receiving income support through the Trade Adjustment Assistance (TAA) program and for certain retirees receiving pensions from the Pension Benefit Guaranty Corporation (PBGC). The HCTC equals 65 percent of the cost of qualified health coverage, which individuals can receive in advance ...' - Highlights at http://www.gao.gov/highlights/d041029high.pdf (U.S. Government Accountability Office)
Overview: Court Dismisses Participant's Claims against Insurer That "Reclaimed" Benefit Payments
Excerpt: "The participant in this case had surgery after his employer failed to pay its health plan premiums. The insurer 'reclaimed' the benefits that it had paid to the hospital for the surgery, asserting that the group health plan contract permitted it to terminate the contract as of the last day for which the employer had paid premiums." (Employee Benefits Institute of America)
Overview: Court Dismisses Employer's ERISA Claim against TPA That Was Not an ERISA Fiduciary
Excerpt: "An employer that sponsored a self-funded health plan approved certain medical treatments that its stop-loss insurer later refused to cover. The employer sued its TPA for breaching fiduciary duties under ERISA and under state law." (Employee Benefits Institute of America)
Ho Ho Ho: IRS Says Employer-Provided Holiday Gift Coupons are Taxable Income -- Overview
Excerpt: "An IRS Technical Advice Memorandum released earlier this month concludes that certain employer-provided gift coupons are taxable income to the employees receiving them, and therefore need to be taken into account in computing income and FICA tax withholding." (Faegre & Benson LLP)
Work and Family and Caregiving in North Carolina: Perspectives from Employers and Employees
Excerpt: "Many workers in North Carolina are dealing with the dual roles of caregiver and employee. In the first of these two AARP studies, employers in North Carolina were surveyed to assess what resources and information are available to employees caring for relatives. In the second, North Carolina employees were invited to provide their view of caregiving issues in the state." (AARP)
Bid to Improve Dental, Vision Benefits for Federal Employees and Retirees Gains Momentum on the Hill
Excerpt: "With Congress planning to recess at week's end, a bipartisan group of Capitol Hill aides is pushing for legislation that would provide enhanced dental and vision benefits to federal employees and retirees. The aides said they hope to get the legislation on the Senate floor by Friday for a vote. Once the Senate has acted, House staff aides plan to line up the bill for approval in mid-November, ...." (The Washington Post; one-time registration required)
Companies Add Family Travel to List of Employee Incentives
Excerpt: "As companies revive incentive business travel after a long slump, they are finding that enabling family togetherness is an increasingly popular way to reward their top sales representatives." (The New York Times; one-time registration required)
Positive Results Put Insurers behind CDH, But Results Are Nothing New, Vendor Says
Excerpt: "CDH vendors Definity Health and Lumenos have long touted the positive effects that their plans have had on consumers. Now Aetna, Inc., and UnitedHealth Group -- two mega health insurers that once saw little value in the CDH concept -- are hyping the results their clients have had with the products. Recently compiled data, they say, verifies the belief that CDH can have a favorable effect on member behavior." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com)
Health Insurers and Employers Eye Spending Surge for Gastric-Bypass Surgery Weight-Loss Treatment
Excerpt: "Bariatric surgery is fast becoming a popular procedure for treatment of obesity. But costs -- as well as clinical safety questions -- are prompting some insurers to drop coverage. .... Both its $30,000 average price tag and mounting safety concerns about the procedure, which involves stapling shut a portion of the stomach, have payers on pins and needles as they await the federal government's next move." (Modern Healthcare; one-time registration required)
Employer Should Involve Employees in Selecting Health Insurance Plan
Excerpt: "Before choosing a plan, employers should find out what their employees want. 'Talk it over with your managers and employees, so you have a checklist of all the services you're looking for,' said Catherine Graham, director of membership and marketing for the Association of Health Insurance Advisors. 'This way, you're tailoring the plan to your needs.'" (Pacific Business News via bizjournals.com; one-time registration required)
Links to Items on Executive Comp, Benefits in General
US Airways to Cut Hundreds of Jobs and Benefits of Executives and Retirees
Excerpt: "US Airways Group Inc. plans to eliminate 'hundreds' of management and nonunion jobs and cut top executives' pay by between 5 and 10 percent, .... The carrier also is reducing the number of paid holiday days for executives by 20 percent and replacing sick and vacation leave with a paid time off system based on seniority. In addition, the airline is slashing its contribution to the managers' retirement plan to 3 percent from as much as 13 percent, ...." (The Washington Post; one-time registration required)
2004/2005 United States Benefit and Employment Guidelines Available for Purchase from Mercer
Excerpt: "The ... Guidelines contain extensive analyses and narrative reports on employment conditions, statutory employee benefits and typical employer benefit practice. .... The Statutory Benefits Reports detail the benefits and contributions required by law. With this information, executives are in a position to assess the full employment costs in each country. As a result of the significant changes that benefits regulations undergo, the report is completely updated each year." (Mercer Human Resource Consulting; one-time registration required)
Text: Nixon Peabody's September 2004 Benefits Briefs: Legal Developments for Employee Benefits (PDF)
7 pages. Articles include: What's discrimination in the design of ERISA plans?; Elect-it-yourself tax treatment for disability benefits; Insurance companies as plan fiduciaries; Retiree health benefits--Vested or not? (Nixon Peabody LLP)
Benefits for Domestic Partners, Part II: the Legal Basics Addressed
Excerpt: "This article is Part II in a series of two articles covering the basics of domestic partnership benefits. In the first article, we discussed the definitions and practical considerations of addressing the issue of domestic partnerships. In this one, we address the legal implications." (Business & Legal Reports)
Nonqualified Deferred Compensation (NQDC) Proposed Legislation Description of Johnson Amendment
Excerpt: "The amendment makes technical changes to the proposed legislation on NQDC. The amendments are consistent with eliminating abusive arrangements and provide bright-line rules on a going forward basis for NQDC.' The full text of the 11 page amendment is at http://www.eric.org/forms/uploadFiles/32AF00000007.filename.Johnson_Amendment.pdf (The ERISA Industry Committee)
Text: Senator Baucus' Nonqualified Deferred Compensation Amendment (PDF)
24 pages. Excerpt: "Add Sections 671 and 672 from Senate-Passed H. 4520 With the Modifications As Follows: Sec. 671. Treatment of Nonqualified Deferred Compensation Plans. Sec. 672. Prohibition on Deferral of Gain from the Exercise of Stock Options and Restricted Stock Gains Through Deferred Compensation Arrangements." (The ERISA Industry Committee)
Highlights of 2004 Plan Year Form 5500 Which Has Been Issued With Minor Modifications
Excerpt: "The DOL, IRS, and Pension Benefit Guaranty Corporation have released copies of the Form 5500, Schedules, and Instructions to be used by employee benefit plans reporting on the 2004 plan year. According to the DOL press release, the 2004 Form 5500 and Form 5500-EZ are essentially unchanged from 2003." (Employee Benefits Institute of America)
Exec Summary: Global Compensation Practices: Survey by WorldatWork and Watson Wyatt Worldwide
Excerpt: "Compensation plays an important role in global, complex organizations. To that end, WorldatWork and Watson Wyatt Worldwide conducted a global compensation survey to establish a benchmark for U.S. multinationals in three key areas: global compensation structure and strategy, global tools and systems, and global compensation targets and vehicles. While the survey report results confirm several long-held assumptions ..., it also reveals some emerging trends and areas for investigation." (Watson Wyatt Worldwide)
Possible Strike Over Wages, Healthcare and Pensions Brewing at Disney
Excerpt: "The union representing half of Walt Disney World's 53,000 workers has asked members to vote against a contract proposal Friday. The Service Trades Council Union -- which represents hotel maids, parking ticket takers, character actors and others -- opposes the elimination of some overtime rights, increases in the cost of health care insurance and a plan to eliminate a pension plan for new workers." (The NewStandard)
Text: Nixon Peabody's August 2004 Benefits Briefs: Legal Developments for Employee Benefits (PDF)
6 pages. Articles include: Getting burned by ignoring people with 'colorable' claims to plan participation; Court holds that ERISA forbids a plan from recouping excess benefit payments in court; Anti-cutback rule KOs suspension of benefits amendment. (Nixon Peabody LLP)
Newly Posted Events
401(k) Plans
in Maryland on October 12, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Maryland on October 13, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Maryland on October 15, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Consumer-Driven Health Care & Fringe Benefits
in Maryland on October 14, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Maryland on October 14, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Workshop - 9 Dates/Locations Added
Nationwide on November 16, 2004
presented by SunGard Corbel
HIPAA Portability & Privacy
in Maryland on October 15, 2004
presented by Employee Benefits Institute of America Inc. (EBIA)
Newly Posted Press Releases
PBGC To Protect Fruehauf Trailer Corp. Pensions
(Pension Benefit Guaranty Corporation (PBGC))
New Web Site Helps EAPs Deliver Better, More Customized Services
(Workplace Options)
Newly Posted or Renewed Job Openings
401(k) Sr Plan Specialist
for BISYS Retirement Services
in PA
Retirement Services Implementation Specialist (So. California) Bi-lingual / Spanish
for ADP Retirement Services
in CA
Retirement Services Implementation Manager (Baltimore, Atlanta, Florida or No. Carolina areas)
for ADP Retirement Services
in FL, GA, MD, ND
Participant Support Representative
for Decimal, Inc. (www.theonline401k.com/schwab)
in CA
Institutional Services Communication Specialist I
for Branch Banking and Trust Company (BB&T)
in SC
Supervisor, Year End Services
for BISYS Retirement Services
in PA
Retirement Benefits Associate
for Premier Houston Healthcare Consulting Firm
in TX
WM YTR Project Manager X1
for Hewitt Associates
in IL
HM Design Consultant Entry
for Hewitt Associates
in CT
HM Design Consultant X1
for Hewitt Associates
in IL
HM Design Consultant Entry
for Hewitt Associates
in CA
Pension Specialist
for Hogan & Hartson, L.L.P.
in DC
Senior Pension Administrator
for Retirement Alliance, Inc.
in NH
Sales/Business Development
for Retirement Alliance, Inc.
in NH
Pension Benefits Manager
for Glatfelter Insurance Group
in PA
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