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October 11, 2004
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Overview: Working Families Tax Relief Act Extends Mental Health Parity Provisions and Archer MSAs
Excerpt: "On October 4, 2004, President Bush signed into law the Working Families Tax Relief Act of 2004 (WFTRA), which makes numerous changes to the Code. Below we summarize the most significant changes that fall within the scope of our reference manuals." (Employee Benefits Institute of America)
Provisions of the Working Families Tax Relief Act of 2004 (HR 1308)
Excerpt: "President Bush signed the Working Families Tax Relief Act of 2004 (HR1308), Monday, October 4, ... which extends several provisions that expired at the end of 2003 or were scheduled to expire at the end of 2004. It also contains some new provisions and technical corrections. Archer Medical Savings Accounts ... may continue to be established through 2005, or until the statutory limit for the number of accounts is met, whichever is earlier." (H&R Block)
Employment-Based Health Care Expenses Spur Employers to Look at Cost Cuts
Excerpt: "Many U.S. employers plan to cut salaries and training programs, reduce their hiring and increase outsourcing and downsizing to offset the rising cost of employee health care coverage, a survey shows. The survey, conducted last month by the Alexandria, Va.-based Society for Human Resource Management, asked 375 HR practitioners selected at random to report the likelihood that their organizations may make adjustments in several areas because of the cost of providing health benefits." (Business Insurance)
Overview: COBRA Notice Language Prevents Summary Judgment on Life Insurance Benefits Claim
Excerpt: "A terminally ill employee became ineligible for benefits under her employer's welfare benefits plan after she began working reduced hours. .... The COBRA election notice outlined the benefits that the employee could elect to continue, including not only medical, dental, and vision benefits but also life insurance.' [Murphy v. Board of Social Ministry, 2004 U.S. Dist. LEXIS 12593 (D. Minn. 2004)] (Employee Benefits Institute of America)
Overview: Second Circuit Holds State Medical Malpractice Claim against HMO Is Preempted by ERISA
Excerpt: A state-law medical malpractice claim brought against an HMO for denying treatment that the HMO characterized as experimental is preempted by ERISA, the Second Circuit has held.' '[Cicio v. Does, 2004 U.S. App. LEXIS 20049 (2d Cir. 2004)] (Employee Benefits Institute of America)
A Welcoming Workplace; Smart Companies Use Perks to Improve Employee Attitudes and Productivity
Excerpt: "The wave of pink slips, changes in health care and general economic malaise have left many people ... with the feeling that companies just don't care about their workers anymore. But ... that's not true. In fact, I would say the majority of companies out there are still doing what they can to keep employees content, inspired and excited to come into work every day." (The Washington Post; one-time registration required)
On the Issues: Health Care Costs –- South Dakota Employer Seeks Right Pres.cription for Rising Costs
Excerpt: "Rising medical bills touch every U.S. family and firm, affecting wages and profits, not to mention health. Since 2000, health insurance premiums have risen 59 percent while pay grew 12.3 percent, according to the nonprofit Kaiser Family Foundation." (The Washington Post; one-time registration required)
The Health Care Clash Moves to the Next Aisle -- Grocery That Is
Excerpt: "Unionized supermarket chains have been paying 100 percent of most workers' health care premiums for decades, and Steven A. Burd, the chairman and chief executive of Safeway, says they have 'become a runaway cost, not just for us, but for industry in general.' The days when supermarkets could tolerate the costs ended with the arrival of nonunion competitors, especially Wal-Mart, he added." (The New York Times; one-time registration required)
Snapshot of California's SB 2: Effects on Employers and Employees
Excerpt: "This snapshot report provides an overview of the market and demographic context surrounding SB 2, including: current characteristics and coverage practices of private sector employers in California; workers and their dependents who will be affected; and how the measure is likely to change workers' health insurance status. Both private and public sector workers and dependents are included in the analysis." (California Healthcare Foundation)
Editorial: the Choice on Health Care: Comparing the Bush and Kerry Reform Proposals
Excerpt: "At the moment, the precise numbers and costs of the health care reforms proposed by President Bush and Sen. John F. Kerry are the subject of angry campaign rhetoric. But the principles of the reforms are not in dispute, nor is there much doubt that the proposals are very different." (The Washington Post; one-time registration required)
Partisan Arguing and Fine Print Seen As Hindering Implementation of New Medicare Law
Excerpt: "When he signed it into law, President Bush hailed the Medicare Modernization Act of 2003 ... The overhaul of the program, including the addition of pres.cription drug benefits, was seen as his biggest accomplishment in domestic policy and a major asset to his re-election campaign. But over the last 10 months, the Bush administration's efforts to carry out the first phase of that law, providing drug discount cards to the elderly, have been plagued with difficulties." (The New York Times; one-time registration required)
Health Care for All Is Possible –- and Would Cost Less, Minnesota Report Says
Excerpt: "All Americans could have health insurance –- while actually spending less than we do now –- if the nation reforms the pharmaceutical industry and switches to a single-payer insurance system similar to Medicare, a new report says. Minnesota could do even better: It could cover all adults and all children if just one of those reforms happened, according to the report 'Waste Not, Want Not,' released locally by the Minnesota Universal Health Care Action Network." (Union Advocate via Workday Minnesota)
Audio: Critical Condition: How Health Care in America Became Big Business -- and Bad Medicine
Excerpt: "Fresh Air, October 6, 2004. Investigative reporters Donald Barlett and James Steele's new book is Critical Condition: How Health Care in America Became Big Business, and Bad Medicine. Bartlett and Steel have worked together for 30 years, winning two Pulitzer Prizes. They are currently editors-at-large at Time magazine." (Fresh Air via National Public Radio)
Privacy Implementation Was Smoother Than Expected; GAO Recommends Accounting Rule Changes
'Health Information: First-Year Experiences under the Federal Privacy Rule' U.S. Government Accountability Office Report to the Chairman, Committee on Health, Education, Labor, and Pensions, U.S. Senate (GAO-04-965, Sept. 2004). For a copy: http://www.gao.gov/new.items/d04965.pdf. (Employee Benefits Institute of America)
Links to Items on Executive Comp, Benefits in General
SEC Guidance on PCAOB Auditing Standard No. 2
Excerpt: "Pursuant to Section 107(b) of the Sarbanes-Oxley Act of 2002 ... notice is hereby given that on September 16, 2004, the Public Company Accounting Oversight Board ... filed with the Securities and Exchange Commission ... the proposed rule described in Items I and II below, which items have been prepared by the Board and are presented here in the form submitted by the Board. The Commission is publishing this notice to solicit comments on the proposed rule from interested persons." (Securities and Exchange Commission)
PCAOB Staff Questions and Answers on Auditing Internal Control Over Financial Reporting (PDF)
10 pages. Excerpt: "The following staff questions and answers related to PCAOB Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements ('Auditing Standard No. 2'), were prepared by the Office of the Chief Auditor. The staff questions and answers related to Auditing Standard No. 2 are sequentially numbered upon issuance. Refer to the staff questions and answers dated June 23, 2004 for questions numbered 1-26." (Public Company Accounting Oversight Board)
The Principal Financial Well-Being Index: Executive Summary of Survey Findings - Third Quarter 2004
Excerpt: "The Principal Financial Group, the nation's 401(k) leader, commissioned Harris Interactive® to conduct online research with employees (ages 18+) of small and mid-sized U.S. businesses (firm size 10 - 1,000 employees) about their attitudes and perceptions regarding their financial well being. Harris Interactive conducted The Principal Financial Well-Being Index survey with over 1200 employees online from August 19 to September 2, 2004." (Principal Financial Group)
IRS Provides Information on Disaster Tax Relief, Including Extension of Form 5500 Filing Deadline
Excerpt: "Whenever plan administrators and other entities believe they are entitled to a Form 5500 extension due to a natural disaster, they should consult the IRS website or contact the IRS directly. Note that whatever postponement of the Form 5500 filing due date is permitted by the IRS for such events also will be permitted by the DOL and PBGC for similarly situated plan administrators and direct filing entities.' See http://www.irs.gov/newsroom/article/0,,id=129002,00.html. (Employee Benefits Institute of America)
IRS Announces Special Tax Relief for Floridians in the Disaster Area Struck by Hurricane Jeanne
Excerpt: "The [Presidential] disaster area consists of 41 counties: Alachua, Baker, Bradford, Brevard, Charlotte, Clay, Columbia, Dixie, Duval, Flagler, Gilchrist, Hamilton, Hardee, Hernando, Highlands, Hillsborough, Indian River, Jefferson, Lafayette, Lake, Madison, Marion, Martin, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, St. Johns, St. Lucie, Sarasota, Seminole, Sumter, Suwannee, Taylor, Union and Volusia." (Internal Revenue Service)
Executive Summary of Carolinas Employee Benefits Trends Survey Report of Findings (PDF)
Excerpt: "This survey of employers in the Carolinas gives us information against which to benchmark the trends in employee benefits. The survey's 84 respondents primarily represent organizations with less than 5,000 employees. Most were in North Carolina, with 40% from manufacturing and healthcare industries. The survey focused on four topic areas, which were healthcare, retirement, communication and outsourcing." (Aon Consulting)
Newly Posted Press Releases
U.S. Labor Department Extends Annual Reports Deadline After Hurricane Jeanne Hits Florida
(U.S. Department of Labor, Office of Public Affairs, Atlanta)
Transamerica Retirement Services Launches New Fund Offering; Target Retirement Funds Provide Straightforward Investment Management Solution for Retirement Plan Participants
(Transamerica Retirement Services)
Businesses Decrease Salaries, Hiring, and Other Benefits to Compensate for High Health Care Costs
(Society for Human Resource Management (SHRM))
Correction To Release 04-1848-NAT on Frances Hurricane Relief for North Carolina
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)
Newly Posted or Renewed Job Openings
Senior 401(k) Plan Specialist
for CitiStreet - A State Street and Citigroup company
in MA
Compliance Analyst
for EMJAY Retirement Services, A Great-West Company
in WI
Project/Process Consultant
for Hewitt Associates
in GA
Marketing Specialist (Proposal Writer)
for ICMA Retirement Corporation...a mutual fund organization
in DC
Advanced Consultant
for Hewitt Associates
in MN
Retirement Services - Implementation Consultant
for Administaff
in TX
HM Project Manager
for Hewitt Associates
in NJ
Relationship Manager
for Transamerica
in CA
Director Executive Benefits & Pensions
for CUNA Mutual Group - Credit Union Employee Solutions
in WI
Defined Contribution Plan Administrator
for Midwest Benefit Consultants, Ltd.
in IL
Junior DC Plan Administrator or Trust Accountant
for The Pension Group, Inc.
in CA
401k Compliance Analyst
for ADP Retirement Services
in NJ
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