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November 19, 2004
Today's sponsor: William J. Stecker, CPA
(Click on company name or banner to learn more.)
A Practical Guide To Substantially Equal Periodic Payments And Internal Revenue Code §72(t) New 4th edition by William J. Stecker, CPA with all of the updates needed to reflect the issuance of Revenue Ruling 2002-62 in October, 2002 as well as all Private Letter Rulings issued subsequently. This text is a must read for anyone under age 60 who is contemplating early retirement and has substantial 401(k) or IRA assets. This text will teach the reader everything they need to know about avoiding the 10% surtax on early withdrawals as defined in IRC 72(t). All computational methods are covered and how to plan and properly execute substantially equal periodic payments. This is the definitive text on IRS 72(t) including more than 190 footnotes citing all of the relevant legal authorities. Click above to purchase and download now
(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
UnumProvident Settles Lawsuits for $127 Million: Will Reassess Claims of Those Denied Benefits
Excerpt: "UnumProvident Corporation ... announced that it has reached a 'multistate' settlement of a number of lawsuits and regulator claims - with the total cost to the Chattanooga-based firm put at $127 million. .... A number of lawsuits had been filed by holders of disability policies who claimed they had been unfairly cut off from benefits they were entitled to. .... 'For full examination report and regulatory settlement agreement, please visit www.unumprovident.com/commitment. (The Chattanoogan.com)
Notice Ends Concern Over Domestic Partner Health Coverage
Excerpt: "The IRS today issued Notice 2004-79, stating that it did not consider the amended definition of 'dependent' provided by the Working Families Tax Relief Act of 2004, Public Law No. 108-311 to apply to health plans. This is good news for health plans that cover domestic partners or same-sex spouses of employees, and employees whose domestic partners or same-sex spouses are covered by such plans." (Calhoun Law Group, P.C.)
Supplement to the Report of the American Academy of Actuaries' LTC Risk Based Capital Work Group (PDF)
40 pages. Excerpt: "Attached are proposed changes to the Life RBC Formula and Instructions and the Health RBC Formula and Instructions to implement new factors for Long-Term Care Insurance consistent with the June 2004 Report. The proposed changes allow for four aspects that were not part of the Academy's June recommendations ....' The June report is at http://www.actuary.org/pdf/health/ltc_rbc_june04.pdf. (American Academy of Actuaries)
W. Va. Legislators Propose Bills to Protect Retired Miners' Health-Care Benefits During Bankrup.tcy
Excerpt: "Retired coal miners whose health-care benefits were slashed in federal bankrup.tcy court would be protected from such actions under bills proposed by two West Virginia congressmen. Sen. Jay Rockefeller and Rep. Nick Rahall ... introduced measures in the Senate and House yesterday to bar coal companies from evading their obligations under the 1992 Coal Act to finance health care for retired miners. It's the first blow ... to bar employers from using bankrup.tcy to evade employee ...." (AP via The Courier-Journal)
The Family Medical Leave Act: Compliance Reminders
Excerpt: "This article reviews some compliance reminders for the Family and Medical Leave Act (FMLA) and discusses a recent US DOL Opinion letter on the FMLA and contingent workers." (Gallagher, Callahan & Gartrell)
Garamendi Recommends 2.2% Rate Cut in California Workers' Compensation Insurance Premiums
Excerpt: "Insurance Commissioner John Garamendi ... on Wednesday recommended that workers' compensation insurance carriers reduce their premium rates by an average of 2.2% for policies issued or renewed beginning in January, the San Francisco Chronicle reports .... Garamendi's recommendation conflicts with a September recommendation by the Workers' Compensation Insurance Rating Bureau that workers' compensation insurance premium rates increase by 3.5% for policies issued or renewed ...." (California Healthcare Foundation)
Employees Do Not Think They Can Control Health Care Costs Survey Results Show
Excerpt: "Employees are willing to take more control of their health care decisions, but are not quite sure how to do so, a Hewitt Associates poll of 39,000 employees shows. Among the consulting firm's findings: More than 80% of employees don't estimate their health care expenses each year. Nearly as many (79%) don't think they can do anything to control health care costs. More than half (57%) have never researched provider costs or quality." (BenefitNews Connect via BenefitNews.com)
Updates: Consumer Guides for Health Insurance in Every State and the District of Columbia
Excerpt: "The Georgetown University Health Policy Institute has written 'A Consumer Guide For Getting And Keeping Health Insurance' for each state and the District of Columbia – fifty-one in all. These Consumer Guides are available at this web site and will be updated periodically as changes in federal and state policy warrant.' Recently updated are the following guides: California, Colorado, Kansas, Louisiana, Maryland, Missouri, Tennessee, and Washington. (Georgetown University)
Health Policy Impasse Threatens Expiration of Medicare Premium Program for Poor Seniors
Excerpt: "Funding for a program that helps low-income seniors pay their Medicare premiums is caught in an inter-chamber impasse that threatens an expiration of the program later this week. Late Tuesday, the Senate adopted legislation extending through September 2005 a Medicare savings program known as Qualifying Individual 1, or QI-1. Under the program, Medicaid pays for the Medicare premiums of seniors and individuals with disabilities who do not qualify for Medicaid coverage because ...." (The National Journal Group, Limited via BlueCross BlueShield Association)
Food and Drug Administration Scientist Testifies that the FDA System Is "Broken"
Excerpt: "A Food and Drug Administration scientist told a Senate committee Thursday that the FDA is 'virtually defenseless' against another 'terrible tragedy and a profound regulatory failure' like Vioxx, a drug pulled off the market over safety concerns. 'It is important that this committee and the American people understand that what happened with Vioxx is really a symptom of something far more dangerous to the safety of the American people,' David Graham, ..., told the Finance Committee." (USA TODAY via BlueCross BlueShield Association)
Links to Items on Executive Comp, Benefits in General
Actuarial Responsibilities for Communicating Sarbanes-Oxley Control -- Financial Reporter Article (PDF)
Pages 16-18 of 28 pages. Excerpt: "This article explores the concept of internal controls and what actuarial valuation processes are covered by SOX 404. It examines what is required of the actuary and what professional standards apply." (Society of Actuaries)
Actuarial Aspects of SOX 404 -- Article in December 2004 Issue of the Financial Reporter (PDF)
Pages 12-15, 19 of 28 pages. Excerpt: "As insurance companies move to implement the requirements of Section 404 of the Sarbanes-Oxley Act (SOX 404), it is clear that examination of actuarial processing is a significant piece of the assessment of the company's internal control over financial reporting (ICFR)." (Society of Actuaries)
Easy and Quick Returns on Investment Reported for Employee Self-Service Systems
Excerpt: "Employee self-service usually pays for itself within two years of deployment, finds the latest survey of workforce technologies (http://www.thecedargroup.com/SurveysWhitePapers/) by The Cedar Group, which has been tracking such implementations since 1997. Web self-service combined with some form of service center allows companies to serve at least 50 employees per human resource staff member, results show." (BenefitNews Connect via BenefitNews.com)
Overview: Rules Change for Nonqualified Deferred Compensation Plans
Excerpt: "Restricts the flexibility that executives currently enjoy in controlling the timing of distributions; The Act requires that a nonqualified deferred compensation plan comply with the new Section 409A of the Internal Revenue Code. The use of offshore rabbi trusts have been virtually eliminated. When an offshore trust is created to fund participant's benefits it will trigger a taxable transfer of property under Code Section 83. A taxable transfer under Code Section 83 also ...." (McKay Hochman Co.)
Means for Complying with American Jobs Creation Act's NQDC Plan Changes Are Still Unclear
Excerpt: "The newly-enacted American Jobs Creation Act of 2004 (P.L. 108-357) has left plan professionals with considerable uncertainty with regard to the Act's impact on nonqualified deferred compensation plans, .... Code Sec. 409A, effective beginning in 2005, provides for the first time specific rules for elections and distributions under nonqualified deferred compensation plans .... Treasury guidance on the Act will probably come in stages throughout 2005, ...." (CCH Pension & Benefits News)
Hewitt Federal Legislation Quick Guide Updated November 16, 2004
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates)
Newly Posted Events
403(b) Plans Intermediate
Nationwide on December 15, 2004
presented by McKay Hochman
Qualified Plan Training for Retirement Plan Professionals
in California on December 1, 2004
presented by San Diego County Chapter of NIPA
Newly Posted Press Releases
Hewitt Study Shows Employees Willing to Take on Greater Health Care Responsibility; Employees Need Support to Move Toward Greater Consumerism
(Hewitt Associates LLC)
Sentinel Benefits Introduces the SmartFlex® Prepaid Visa® Card to its Flexible Spending Account Clients
(Sentinel Benefits)
Multi-State, Federal Settlement Addresses Concerns Regarding UnumProvident Claims Handling
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))
Treasury and IRS Issue Indexed Amounts for Health Savings Accounts
(U.S. Department of the Treasury)
Federal Retirement Thrift Investment Board Announces Vendor Selection for Lifecycle Funds
(Federal Retirement Thrift Investment Board)
Newly Posted or Renewed Job Openings
Employee Benefit Team Leader
for The Trust Company of Knoxville, Inc.
in TN
Senior Plan Administrator
for RSM McGladrey
in IL
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