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March 7, 2005
Today's sponsor: International Foundation Bookstore

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Benefits and Compensation Glossary Just Published. Order Today!
Benefits and Compensation Glossary--the most indispensable
resource for employee benefit practitioners--has just been
updated. This practical, easy-to-use guide provides clear
meanings for over 3,000 employee benefits and compensation
terms and acronyms. Published by the International Foundation,
it draws from U.S. and Canadian sources and includes recent
compliance definitions. Visit www.ifebp.org/bookstore
or call (888) 334-3327, option 4.

(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
As Demands on Workers Grow, Groups Push for Paid Family and Sick Leave
Excerpt: "Take Back Your Time and its allies are seeking legislation in 21 states to give workers paid sick days or paid family leave to take care of infants or seriously ill family members. In Washington State recently, the group earned a preliminary victory when committees in the House and Senate passed a bill calling for five weeks' paid family leave for workers, which would be financed by having workers pay a tax of two cents per hour worked, about $40 a year." (The New York Times; one-time registration required)

Fashion Makeover: Call It Corporate Eye for the Slovenly Guy -- Workplace Attire Becomes Perk
Excerpt: "Fed up with employees coming to work dressed like the local lounge singer or the frat boy who never grew up, more companies are helping workers learn how to dress for the office. Many are adding clothing discount programs to the list of employee perks, and some are hiring wardrobe consultants to teach employees the fine art of putting themselves together in the morning. A few are even footing the bill for shopping sprees." (Employee Benefit News)

Newspapers Examine Developments in Employer-Sponsored Health Benefits
Excerpt: "Two newspapers recently examined issues related to employer-sponsored health benefits in Connecticut and Maryland. Summaries of the articles [with links are on the target page]." (Kaiser Family Foundation)

Kentucky House Passes Bill to Create Electronic Health Network
Excerpt: "The Kentucky House on Tuesday approved a bill (SB 2) that would make Kentucky the first state to launch an electronic health network, the Louisville Courier-Journal reports. The bill already won senate approval and has been sent to Gov. Ernie Fletcher (R), who is expected to sign the legislation." (California HealthCare Foundation)

Overview: CMS Issues Class Waivers for Employers' Medicare Part D Plans
Excerpt: "These six general waivers for employer or union-operated Medicare Part D pres.cription drug plans are class waivers available to any employer or union plans that otherwise meet the Part D rules. Plans are not required to file for the waiver or even inform CMS that the plan will be using the waiver. The waivers cover the following rules." (Deloitte)

The True Cost of Mental Healthcare: What You Don't Know May Be Hurting Your Bottom Line (PDF)
Pages 9-12 of 16 pages. Excerpt: "Most healthcare payers will claim that their behavioral carve-out spending has remained steady over the past ten years and maybe even decreased. Is it really true? On the surface, this claim appears to be accurate; however, upon further analysis, the same payers are surprised to find out how much their behavioral healthcare is really costing them." (Milliman)

Risk and Reward in Healthcare Pricing (PDF)
Pages 4-5 of 16 pages. Excerpt: "Companies require accurate information to function properly. This is certainly true with insurance companies and HMOs that use claims data to evaluate their experience and as the basis for predicting future costs. But data 'accuracy' and 'quality' are terms that can be classified in a variety of ways." (Milliman)

Health Care Premiums See Sixth-Straight Double-Digit Hike
Excerpt: "Company medical insurance 2005 premiums rose approximately 10% which represents the sixth straight year of double-digit rate increases, according to the Hay Benefits Report. In terms of payroll, employers now pay 9% towards health benefits, compared to 7.28% in 2000, according to the report on over 1,000 US companies. Effects of this rise are often the switching of costs to employees, as well as increased bargaining with insurance companies." (PLANSPONSOR.com; one-time registration required)

Overview: What is the Employer Role in Medicare Part D? (PDF)
Pages 1-3 of 16 pages. Excerpt: "Employers are beginning to determine what course of action they will take to address the benefits and challenges, associated with their retiree drug plans in light of MMA." (Milliman)

Automakers, and Other Companies, Test Drive E-Prescribing
Excerpt: "The top three Detroit automakers are revving up electronic prescribing technology to put the brakes on their drug cost trends. General Motors Corp., Ford Motor Co. and DaimlerChrysler AG have teamed up with pharmacy benefit manager Medco Health Solutions Inc. to encourage doctors to swap their pads for PDAs and e-prescribing software." (Employee Benefit News)

Defying Experts, Insurers Join Medicare Drug Plan
Excerpt: "The new Medicare drug benefit passed a major milestone in recent weeks as a substantial number of big insurance companies said they would offer pres.cription drug coverage to Medicare beneficiaries next year, defying the predictions of many industry experts." (The New York Times; one-time registration required)

CBO raises Medicare spending estimate with pres.cription drug benefit costing more than first assumed
Excerpt: "The Congressional Budget Office raised its estimate of Medicare spending on Friday and said the new pres.cription drug benefit would cost more than it assumed when Congress passed the legislation in 2003." (The New York Times; one-time registration required)

Employer Coalition Extends Health Benefits to Uninsured Workers
Excerpt: "Beating government to the punch in thinning the ranks of the uninsured, a coalition of 60 large companies plans to offer voluntary health benefits to workers ineligible for employer-based coverage." (Employee Benefit News)

Medicare Regional PPO Market Not Hot, Yet
Excerpt: "With the March 23 filing deadline for a regional Medicare PPO looming, indicators are the new program is getting a lukewarm reception for now." (HealthLeaders News)

Links to Items on Executive Comp, Benefits in General

Perspective: Option Expensing Conundrum: Using the FAS 123(R) Value for Compensation Purposes
Excerpt: "Like so many of the issues already raised by FAS 123(R), this one is evolving. Most companies are still exploring the best methodology for valuing their awards; most are also implementing changes to their equity programs, often reducing reliance on stock options. If options become a minor component of executive pay, the significance of using consistent methodologies will decrease." (Mercer Human Resource Consulting; one-time registration required)

DOL Pulls USERRA Notice Poster; Compliant Poster to Be Available on March 10, 2005
Excerpt: "On Thursday, March 3, 2005, the United States Department of Labor, Veterans' Employment and Training Service ('VETS'), removed from its website a poster designed to satisfy new notice requirements under the federal statute dealing with military leave rights, the Uniformed Services Employment and Reemployment Rights Act ('USERRA'). VETS has given no reason why the poster was removed, but has stated that a revised poster will be ready for downloading by March 10, 2005.' (Littler Mendelson, P.C.)

Employer Improperly Refused To Honor Request For Benefits Information Made By Attorney
Excerpt: "An employee may proceed with her claim that her former employer violated ERISA by failing to provide her benefits information requested by her attorney. However, the employee could not proceed with a claim that the employer should have credited her service with a Canadian company in calculating the amount of her pension benefits. These were the conclusions of the Sixth Circuit U.S. Court of Appeals in Murphy v. ICI Paints (No. 03-4343)." (Spencer Benefits Reports)

Overview: Fee and Commission Information Insurers Must Provide to Plan Administrators for Form 5500
Excerpt: "This advisory opinion is noteworthy because of the helpful detail provided on the types of compensation to be disclosed on Schedule A. Insurers and similar entities are required to provide Schedule A information within 120 days of the end of the plan year." (Employee Benefits Institute of America Inc.)

Commentary: ERISA Lessons on Outsourcing from a Federal District Court Case
Excerpt: "While everyone knows that outsourcing is here to stay, and that there are legitimate business reasons and advantages to outsourcing, what I have tried to do here is simply to highlight some of the ERISA litigation that has grown out of this trend .... The reason I think it is important is that when employers contemplate outsourcing and hire advisers to help them through the process, many times they are not advised of the issues and risks that can arise in the benefits arena." (Attorney B. Janell Grenier via BenefitsBlog.com)

Newly Posted Events

401(k) Plan Workshop
in Illinois on April 21, 2005
presented by SunGard Corbel

401(k) Plan Workshop
in Wisconsin on April 21, 2005
presented by SunGard Corbel

401(k) Plan Workshop
in Michigan on April 22, 2005
presented by SunGard Corbel

401(k) Plan Workshop
in District of Columbia on April 22, 2005
presented by SunGard Corbel

401(k) Plan Workshop
in Massachusetts on April 29, 2005
presented by SunGard Corbel

401(k) Plan Workshop
in Illinois on April 29, 2005
presented by SunGard Corbel

COBRA Compliance Workshops
in Florida on April 6, 2005
presented by US Department of Labor/Employee Benefits Security Administration

Form 5500 Workshop
in Wisconsin on April 20, 2005
presented by SunGard Corbel

Form 5500 Workshop
in Illinois on April 20, 2005
presented by SunGard Corbel

Form 5500 Workshop
in Michigan on April 21, 2005
presented by SunGard Corbel

Form 5500 Workshop
in District of Columbia on April 21, 2005
presented by SunGard Corbel

Form 5500 Workshop
in Massachusetts on April 28, 2005
presented by SunGard Corbel

Form 5500 Workshop
in Illinois on April 28, 2005
presented by SunGard Corbel

Personal Accounts in Social Security: How Might Annuities Work for Married and Single Retirees?
in District of Columbia on March 11, 2005
presented by National Academy of Social Insurance

Social Security: Is It Really a Crisis? A Debate on this Critical and Controversial Issue
in New York on March 15, 2005
presented by The Century Foundation

Newly Posted Press Releases

New online compliance service for Insurers, Insurance Agencies, PEOs, TPAs and Benefits/HR Outsourcing Firms
(ComplianceAid, LLC)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

ERISA Tax Associate
for Groom Law Group, Chartered
in DC

ERISA Tax/Legislative Associate
for Groom Law Group, Chartered
in DC

ERISA Health Associate
for Groom Law Group, Chartered
in DC

Institutional Retirement Plan Sales & Support Manager
for UVEST Financial Services
in NC

Employee Benefits Associate
for Oppenheimer Wolff & Donnelly LLP
in MN

Daily Valuation Administrator
for TPA Firm
in TX

Product Development Leader
for Hewitt Associates
in IL

Health Management Project Manager
for Hewitt Associates
in IL

Education Account Executive
for Principal Financial
in IA



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