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March 9, 2005
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Use It or Lose It: Unclaimed Flex-Account Money Goes Back to Employer
Excerpt: "For many workers, the last chance to claim unspent money in a flex-spending account is coming up fast." (MarketWatch)
House Chairman Opposes Federal Retiree Pre-Tax Health Premium Bill
Excerpt: "Legislation that would allow federal retirees to pay their health insurance premiums with pre-tax dollars faces a powerful opponent in House Ways and Means Committee--Chairman Bill Thomas, R-Calif., according to several congressional observers and insiders." (GOVEXEC.com)
Overview: Final and Proposed Regulations for HIPAA
Excerpt: "[In January 2005], the U.S. Departments of Labor, Treasury, and Health and Human Services issued final and proposed regulations on the portability provisions of the Health Insurance Portability and Accountability Act (HIPAA). HIPAA's portability provisions generally apply to group health plans and issuers of group health plan coverage." (Watson Wyatt Worldwide)
Digital Hospitals Can Improve Patient Care and Lower Costs, According to PWC Report
Excerpt: "Hospitals with advanced technology have greater potential to improve patient care, cut medical errors and increase productivity, according to a report released on Wednesday by PricewaterhouseCoopers at the Health Information Technology Summit West in San Francisco." (California HealthCare Foundation)
States May Tax Employers to Expand Health Coverage
Excerpt: "Officials in several states are taking a hard look at the number of workers on public health insurance programs, arguing that states shouldn't have to subsidize the employee benefits of large companies that can afford to offer health insurance to more workers." (BenefitNews.com)
Links to Items on Executive Comp, Benefits in General
Overview: New Stock Option Accounting Must Be Applied Properly
Excerpt: "The new stock option accounting is probably the most controversial accounting change in years. This is because (i) some companies view stock options as an integral part of their compensation strategy, and are resisting the substantial income change, and (ii) the methods of valuing employee stock options are not well established or accepted. To avoid overstating the new stock option expense, companies will need to carefully consider how this new pronouncement is implemented." (Fulcrum Financial Inquiry)
Overview: FASB Finalizes Accounting Rules for Equity-Based Compensation (PDF)
3 pages. Excerpt: "After extended debate regarding whether and to what extent there should be a charge to earnings for stock option grants and other equity-based compensation, and despite strong opposition, in particular, from technology companies, the Financial Accounting Standards Board (FASB) adopted final revisions to Financial Accounting Statement (FAS) No. 123, now referred to as 'Share-Based Payment.'" (Seyfarth Shaw LLP)
Overview: Treasury Provides Initial Guidance on New Rules for Nonqualified Plans
Excerpt: "Companies now have a partial roadmap for implementing the changes made by new section 409A of the Internal Revenue Code, which was added by the American Jobs Creation Act of 2004. On January 10, 2005, the U.S. Department of the Treasury and the IRS issued Notice 2005-1 (Internal Revenue Bulletin 2005-2), the first part of the comprehensive guidance on the new law planned for 2005." (Watson Wyatt Worldwide)
Overview of Renewed Public and Regulatory Scrutiny of Executive Deferred Compensation Plans (PDF)
3 pages. Excerpt: "Disclosure on such perks is intended to bring to light the magnitude of executive deferred compensation plans as neither the Securities Exchange Commission (SEC) nor the Department of Labor (DOL) have a method for listing and tracking deferred executive benefits. ERISA actually affords the DOL such a disclosure method, but it has abdicated its rights in this area." (The Cochlan Group, Inc.)
Designing Benefits for Key Executives - Mistakes to Avoid (PDF)
2 pages. Excerpt: "ERISA Considerations. Since most nonqualified deferred compensation programs are considered 'top-hat' plans for a select group, minimum ERISA filing and disclosure requirements can be met with proper guidance from legal counsel. Department of Labor filings should be made timely and documented with care. It is also important to monitor the size of the top-hat class so that a particular program does not become too broad to continue qualification for ERISA exemptions." (The Cochlan Group, Inc.)
Fringes vs. Basics in Silicon Valley
Excerpt: "Electronic Arts, based in Redwood City, Calif., has become the focal point of a debate over whether technology companies are exploiting workers by demanding long hours and using on-campus fringe benefits while skimping on tangible benefits like overtime pay, and rewarding worker loyalty by sending jobs to cheaper labor overseas." (The New York Times; one-time registration required)
Making the Transition: A Pre-Retirement Checklist
Excerpt: "Although many recent retirees report that they are living the lifestyle that they had hoped in retirement, over half look back on the years before leaving the workplace and wish they had done more to prepare, according to a study by Fidelity Investments. Here is a checklist prepared by Fidelity Investments that should help those approaching retirement." (Fidelity Investments via 401khelpcenter.com, LLC)
Newly Posted Events
2005 Annual Conference
in Florida on September 17, 2005
presented by NAGDCA (National Association of Government Defined Contribution Administrators, Inc.)
How to Optimize Your Organization’s Cash Flow by Effective Denials Management
Nationwide on March 8, 2005
presented by Health Resources Online
Legislative Issues Focus of March 31st NAGDCAST
Nationwide on March 31, 2005
presented by NAGDCA (National Association of Government Defined Contribution Administrators, Inc.)
Legislative Update
Nationwide on March 31, 2005
presented by NAGDCA (National Association of Government Defined Contribution Administrators, Inc.)
Medicare Part D for Retiree Plan Sponsors
Nationwide on March 15, 2005
presented by Hay Group
Medicare Part D for Retiree Plan Sponsors
Nationwide on March 23, 2005
presented by Hay Group
Roth 401(k)s - Coming Soon to a Plan Near You
Nationwide on March 29, 2005
presented by SunGard Corbel
Same Sex Marriage and Domestic Partners
in Illinois on March 30, 2005
presented by WEB - Chicago Downtown
Newly Posted Press Releases
Legislative Issues Focus of March 31st NAGDCAST
(NAGDCA (National Association of Government Defined Contribution Administrators, Inc.))
Labor Department Testifies Before House Ways and Means Subcommittee On Administration’s Pension Reform Proposal
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))
Careful Review of Pension Reform Proposals Urged of House Ways & Means Select Revenue Measures Subcommittee
(American Benefits Council)
International Foundation Publishes New Glossary of Benefits and Compensation Terms
(International Foundation of Employee Benefit Plans)
Ftwilliam.com introduces the 55Autofill feature
(ftwilliam.com)
Lifetime Achievement Fund now available as a fund of funds investment option for employee sponsored retirement plans.
(Lifetime Achievement Fund, Inc.)
Newly Posted or Renewed Job Openings
Annual Plan Reporting Administrator
for The Vanguard Group
in PA
Defined Contribution Business Analyst
for SunGard Employee Benefit Systems
in AL
Retirement Benefits Analyst
for Stanford University
in CA
Retirement Consulting Actuary
for Blue Chip Performance Strategies, LLC
in NY
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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