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November 24, 2004
Today's sponsor: William J. Stecker, CPA
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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)
Text of ERIC Letters Urging Support of Technical Correction Legislation on Dependent Definition (PDF)
Excerpt: "As organizations representing those who either sponsor or administer health benefits provided to millions of Americans, we are writing you to urge your support for the approval of technical corrections legislation to address the unintended impact on different types of employee benefit plans caused by provisions of the Working Families Tax Relief Act of 2004 (the Act) which changed the definition of 'dependent' under Code section 152." (The ERISA Industry Committee)
Can Information Technology Save the Healthcare Industry?
Excerpt: "[S]ix health insurers ... measured the level of medical care doled out by 45,000 doctors, based on a set of performance measures. Ten percent of the rankings were based on whether physicians had installed electronic records systems in their practices and were using clinical decision-making tools when seeing patients. The results were telling: Physicians who spent the most on computer systems also scored highest in clinical and patient satisfaction." (PC Magazine via CIO Insight)
Death From Heart Attack In Car Accident Did Not Entitle Beneficiary To Death Benefits
Excerpt: "An insured's death from a heart attack at the time of an automobile accident was not the 'direct result' of an accident and, as a result, the insured's wife was not entitled to accidental death benefits. This was the ruling of the Eleventh Circuit U.S. Court of Appeals in Dixon v. Life Insurance Company of North America (No. 04-10273)." (Spencer Benefits Reports)
Some Pharmacy Benefit Managers Favor 90-Day Retail Drug Programs Over Mail Order
Excerpt: "While pharmacy benefit managers that own mail-order pharmacies report gains from their mandatory mail, two other PBMs, MedImpact Healthcare Systems, Inc. and Walgreens Health Initiatives (WHI), offer a different spin on the 90-day supply trend: incentive-based retail programs that have the potential to offer similar savings and drive generic-drug utilization. Mandatory mail programs, in which clients mandate or heavily incentivize members to obtain 90-day supplies of ...." (DRUG BENEFIT NEWS via AISHealth.com)
American Health Line Examines Medical Malpractice Developments in Eight States
Excerpt: "American Health Line features recent developments related to medical malpractice insurance in eight states [Arkansas, Florida, Maryland, Georgia, Massachusetts, Michigan, Ohio, and Oregon]." (The National Journal Group, Limited via BlueCross BlueShield Association)
WellPoint Health Networks Back Taxes Sought for California in Lawsuit
Excerpt: "A consumer advocacy group that alleges WellPoint Health Networks Inc. owes California up to $500 million in back taxes filed suit Monday to force state officials to collect. .... According to the lawsuit, filed in Los Angeles County Superior Court by the Foundation for Taxpayer and Consumer Rights, WellPoint improperly claimed an exemption for its Blue Cross of California subsidiary from the state's gross premiums tax on health insurers." (Los Angeles Times; one-time registration required via The Foundation for Taxpayer and Consumer Rights)
States Starting to Tackle Health Care and the Uninsured Through Medicaid Changes
Excerpt: "In Tennessee, nearly a half-million people are warned they could lose their government-supported health care. In Maine, the move is in the opposite direction -- the state is expanding its role and, with reliance on the private sector, aiming to provide affordable health insurance for all 138,000 residents now without it. The two dramatically divergent paths come together in one way: States are taking a deep breath and tackling the daunting problems of health care, from soaring ...." (AP via Yahoo! News)
Insurers Cite Drawbacks to More Affordable Health Plans to Reduce Number of Uninsured
Excerpt: "Responding to a call from Governor Mitt Romney to help reduce the number of uninsured residents, the state's insurers say they probably can develop more affordable healthcare plans that cost just $150 to $250 a month, but warn that these new plans would have drawbacks. Insurance executives said there are essentially two ways to do what the governor is asking without state subsidies: cut out standard benefits or require very high deductibles or both." (The Boston Globe)
Three Employers Compare Consumer-Directed Health Plan Design Notes During Audioconference
Excerpt: "Although their plan designs are different, three benefits leaders who helped launch consumer-directed health (CDH) plans for their employers agree that their core reasons for implementing a CDH plan are the same: provide an incentive for employees to be better consumers of health care. Employee benefits leaders representing three CDH strategies -- from three different administrators -- discussed the design elements of their plans during a Nov. 10 audioconference sponsored by AIS." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com)
CDC Says Data on Deaths from Obesity Is Inflated; Will Submit Correction to JAMA
Excerpt: "The Centers for Disease Control and Prevention says that its widely publicized estimate that 400,000 Americans die each year from being too fat is wrong and that it will submit a new, lower figure to the medical journal that published its original estimate .... .... If obesity is a leading cause of death, more money should be spent to try to prevent it, and to treat it. Insurers should pay for diet programs or weight-loss surgery. If it is not so deadly, some fear, the impetus to ...." (The New York Times; one-time registration required)
Kaiser's New High-Deductible Plan Signals Switch for Group-Model HMOs
Excerpt: "With Kaiser Permanente's decision this month to enter the consumer-directed market with a high-deductible HMO product, the managed care organization (MCO) becomes a highly visible sign of the continuing transformation of staff- and group-model HMOs toward fee-based products. HMO-focused plans are moving toward such products in greater numbers in an effort to remain competitive with employers seeking lower-cost plans." (MANAGED CARE WEEK via AISHealth.com)
Links to Items on Executive Comp, Benefits in General
ERIC Submits Additional Recommendations to Treasury on Nonqualified Deferred Compensation (PDF)
November 23, 2004. Excerpt: "The ERISA Industry Committee ('ERIC') is pleased to submit the following recommendations for guidance under Internal Revenue Code § 409A, regarding nonqualified deferred compensation. Section 409A was added to the Internal Revenue Code by § 885 of the American Jobs Creation Act of 2004 (the 'AJCA'). Section 409A overhauls the federal income tax treatment of a wide variety of nonqualified deferred compensation arrangements." (The ERISA Industry Committee)
Committee Request for Written Comments on H.R. 5395 -- the Tax Technical Corrections Act of 2004
Excerpt: "Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, today announced that the Committee is requesting written public comments for the record from all parties interested on H.R. 5395, the 'Tax Technical Corrections Act of 2004.'" (U.S. House Committee on Ways and Means)
2004 Worldwide Benefits Management Survey: Multinationals' Biggest Challenges - Costs and Risks (PDF)
24 pages. Excerpt: "Our latest worldwide benefits management survey was conducted between March and July of 2004. A total of 134 organizations in a wide range of industries responded to the survey, with European companies making up slightly over half (53%) the sample and North American companies comprising 42%. The average company surveyed has almost 30,000 employees worldwide." (Towers Perrin)
Newly Posted Press Releases
2005 Supplement to Governmental Plans Answer Book Now Available
(Calhoun Law Group, P.C.)
Hay Group Announces Medicare Part D Employer Survey: December 5, 2004 Deadline
(Hay Group)
Newly Posted or Renewed Job Openings
Insurance – Operations Manager
for Zenith Administrators
in NV
Chief Compliance Officer - Employee Benefits
for CitiStreet
in FL, MA
Insurance – Claims Supervisor
for Zenith Administrators
in NV
CS Project Manager
for Hewitt Associates
in IL
Attorney - Employee Benefits Firm
for HaynesHitesman PC
in KS, MO
ERISA Consultant
for BISYS Retirement Services
in MN
Employee Benefits Position-Tax Senior
for Deloitte & Touche LLP
in MI
WM HR Specialist - Recruitment
for Hewitt Associates
in IL
Workforce Management HR Specialist
for Hewitt Associates
in IL
Executive Director Benefits Finance
for Time Warner
in NY
Pension Administration Project Manager
for Hewitt Associates
in IL
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