| BenefitsLink Welfare Plans Newsletter |   |
January 27, 2005
Today's sponsor: William J. Stecker, CPA
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A Practical Guide To Substantially Equal Periodic Payments And Internal Revenue Code ยง72(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)
Health Savings Accounts Undermine Push to Allow Flexible Spending Account Rollovers
Excerpt: "It looks like efforts by the Senate Finance Committee to change the 'use-it-or-lose-it' rule governing flexible spending accounts may be stalled indefinitely because of competition from health spending accounts. HSAs, which the Bush administration introduced in 2004 and is energetically promoting, allow employees in high-deductible health plans to put aside pretax money to cover deductibles of several thousand dollars; whatever is not used by the end of the calendar year can be ...." (Workforce Management)
Coalition Letter Supporting Health Information Technology to Office of the National Coordinator
Excerpt: "The undersigned organizations, members of the Confidentiality Coalition, chaired by the Healthcare Leadership Council (HLC), appreciate the opportunity to comment on the Office of the National Coordinator for Health Information Technology's (ONCHIT) Request for Information regarding the development and adoption of a National Health Information Network, as published in the federal register on November 15, 2004." (The ERISA Industry Committee)
The Value of Health Care Information Exchange And Interoperability
Excerpt: "In this paper we assess the value of electronic health care information exchange and interoperability (HIEI) between providers (hospitals and medical group practices) and independent laboratories, radiology centers, pharmacies, payers, public health departments, and other providers. .... A compelling business case exists for national implementation of fully standardized HIEI." (Health Affairs)
Senate Hearing on Bipartisan Pres.cription Drug Reimportation Bill Possible Within 90 Days
Excerpt: "Senate Majority Leader Bill Frist (R-Tenn.) and Senate Health, Education, Labor and Pensions Committee Chair Michael Enzi (R-Wyo.) on Tuesday agreed to schedule within 90 days a hearing on a bipartisan bill (S 2328) that would legalize the reimportation of lower-cost pres.cription drugs from other nations, according to a joint statement issued by sponsors Sens. Byron Dorgan (D-N.D.) and Olympia Snowe (R-Maine), CongressDaily reports (Heil, CongressDaily, 1/26)." (Kaiser Family Foundation)
More Republicans Are Backing Drug Imports -- Urging Passage of a Drug Importation Bill
Excerpt: "Pfizer Inc., Merck & Co., and fellow drug makers thought Republican congressional majorities and President Bush's reelection created a firewall against legal pres.cription drug imports. The wall is starting to crack. Eight US representatives and senators, including five Republicans, yesterday unveiled a bill that would allow Americans to import cheaper drugs from Can.ada and other countries." (Bloomberg News via The Boston Globe)
America's Best Companies Focus on Keeping Employees Healthy with Wellness Programs
Excerpt: "Health screenings at work - work. Employees not only appreciate having their health evaluated on the job, but they are changing their lifestyle habits as a result and feeling the benefit in their pocketbook. In fact, 48 percent of U.S. workers believe they and their families benefit most financially from wellness programs offered through their employer, compared to their employer or insurance provider." (Principal Financial Group)
Fact Sheet on National Health Access -- Program from the Affordable Health Care Solutions Coalition (PDF)
3 pages. Excerpt: "National Health Access was developed to offer working Americans and their dependents who currently do not have access to employer-subsidized group health insurance an opportunity to purchasemore affordable and stable health insurance coverage. By pooling the eligible workers from many of the country's largest employers, the program can offer most participants a range of options that are less expensive and more comprehensive than what they could obtain on their own." (HR Policy Association)
Sixty Companies Plan to Sponsor Health Coverage for Uninsured Workers Usually Not Eligible
Excerpt: "In a novel attempt to extend health coverage to uninsured workers, 60 large employers are joining together to sponsor an array of low-cost health insurance options. The program, to begin in the fall, will be offered for at least two years and is intended to cover uninsured part-time and temporary workers, contractors, consultants and early retirees, who typically are not eligible for employer health plans." (The New York Times; one-time registration required)
The Uninsured in America -- Many Reachable Through Existing Public Programs
32 pages. Excerpt: "This report highlights how Blue Cross and Blue Shield has taken a leadership role ... to keep costs in line and increase opportunities for affordable coverage. The broad range of initiatives outlined here addresses the specific needs of the many millions of people who make up the uninsured in America. ....[W]e also set out a series of legislative proposals ... calling for the private sector and government to work hand-in-hand to reduce the number of the uninsured." (Blue Cross and Blue Shield Association)
Bush Promotes Health Savings Accounts: Plan Would Cut Costs and Increase Patient Responsibility
Excerpt: "President Bush laid out a plan yesterday for reducing the nation's spiraling health care costs, proposing tax credits to encourage expansion of health savings accounts and calling for allowing small businesses to pool together for health coverage across state lines." (The Washington Post; one-time registration required)
The Countdown to January 1, 2006: The Retiree Medical and Benefits Revolution (PDF)
13 pages. Excerpt: "Three Key Issues: Design -- Making the right choice; Administration -- Impeccable recordkeeping, Employer earns full Part D subsidy, Retirees get maximum Rx coverage; Behavior change -- Provide early and clear communication, Influence desired retiree behavior." (Hewitt Associates via The ERISA Industry Committee)
Archer Medical Savings Account Usage Well Below Program Cutoff Limits
Excerpt: "Because use of the Archer Medical Savings Account (MSA) has turned out to be far below the statutory ceiling set by federal law, the federal government is not cutting off the Archer MSA pilot project as of February 1, 2005. The Internal Revenue Service revealed in announcement 2005-12 that the applicable number of Archer MSA returns filed for 2003 is 60,832 and that the applicable number of Archer MSA returns projected to be filed for 2004 is 56,492 - well below the 750,000 annual...." (PLANSPONSOR.com; one-time registration required)
Text of Announcement 2005-12: 2004 Not a 'Cut-Off' Year for Archer Medical Savings Accounts (PDF)
2 pages. Excerpt: "[T]he applicable number of Archer MSA returns projected to be filed for 2004 is 56,492 ... Consequently, February 1, 2005, is not a 'cut-off' date and 2004 is not a 'cut-off' year for the Archer MSA pilot project." (Internal Revenue Service)
Links to Items on Executive Comp, Benefits in General
Opinion: Bush Plan Poses Tough 'Safety Net' Questions for Workers Who Become Disabled
Excerpt: "If individual investment accounts become an integral part of Social Security, as President Bush is proposing, what will happen to workers who become disabled before they retire?" (The New York Times; one-time registration required)
Pennsylvania to Address Taxation of Nonqualified Deferred Compensation
Excerpt: "The Pennsylvania Department of Revenue has recently withdrawn PIT Policy No. 112. This notice, which was issued by the Pennsylvania Department of Revenue last December, required employers to begin withholding on elective deferrals under nonqualified deferred compensation arrangements effective April 1, 2005." (Buchanan Ingersoll PC)
Hewitt Federal Legislation Quick Guide Updated January 25, 2005
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
HIPAA Portability for Beginners
Nationwide on January 13, 2005
presented by Employee Benefits Institute of America Inc. (EBIA)
Section 409A - New Rules for Executive and Deferred Compensation
Nationwide on February 3, 2005
presented by Ballard Spahr Andrews & Ingersoll, LLP
Newly Posted Press Releases
Plan Sponsor Forum 2005: Digging deeper with the right tools; A workshop for 401(k) Fiduciaries
(Caterpillar Investment Management Ltd.)
Newly Posted or Renewed Job Openings
Pension Administrator
for The Nolan Company
in KS
Internal Sales-Special Markets
for TRANSAMERICA
in CA
Payroll and Benefits Manager
for San Francisco Ballet
in CA
Internal Sales Associate
for American Express Tax & Business Services
in IL
Benefits Administrator
for Symetra Financial
in WA
Vice President of Consultant Relations
for CitiStreet - A State Street and Citigroup company
in FL, MA
Retirement Plan Administrator
for Locally owned Third Party Administration Firm
in OK
Benefits Service Representative
for Phelps Dodge Corporation
in AZ
Institutional Trust & Custody Relationship Manager
for U.S. Bank
in CA
Sr. Implementation Consultant
for AIG VALIC
in TX
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