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April 4, 2005
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Ending Use-It-or-Lose-It Could Be Risky Business for Flexible Spending Accounts
Excerpt: " Lobbyists, now resigned to the fact that the Treasury Department has successfully punted the flexible spending account ball, have their sights set on Congress to end the use-it-or-lose-it provisions governing FSAs. There is broad support for ending the requirement that employees use their FSA contributions or forfeit them to their employer. But while supporters say reform would likely expand the ranks of FSA enrollees, some experts believe it will also corrupt the balanced risk ...." (Employee Benefit News)
Health Plans Examine Their Own in New Battle Against Obesity
Excerpt: "Ten major California health-care organizations, including Blue Cross of California, Health Net, PacifiCare and hospital giant Sutter Health, are joining forces to battle obesity in their own workplaces as well as among their patient populations." (San Francisco Business Times via bizjournals.com; one-time registration required)
New Disability Product May Disable Employer Concerns on Offering the Benefit
Excerpt: "A new disability product from Assurant Employee Benefits is designed to overcome longstanding employer objections that disability products are too complex and costly. Early word from plan sponsors is that it may do just that." (Employee Benefit News)
Nevada Assembly Panel Supports Health Insurance Program for Workers at Small Companies, Others
Excerpt: "A bill to use existing tax revenue to fund health insurance policies for low-income pregnant women and employees of small companies won unanimous committee approval Wednesday. The Assembly Commerce and Labor Committee backed Assembly Bill 493, which allocates money for health insurance policies for 2,500 pregnant women and provides $100-a-month subsidies on policies for 2,000 employees who work for companies with fewer than 50 workers." (Las Vegas Review-Journal)
Overview: Court Orders Release of Patient Information for Use in Employment Termination Case
Excerpt: "Recently there has been a spate of court decisions on the disclosure of medical information in employment-related judicial and administrative proceedings. .... These cases reflect the uncertainty and confusion caused by the shift from the pre-HIPAA rules, which were generally limited to state law, to the post-HIPAA era, in which the HIPAA privacy rule must also be considered." (Employee Benefits Institute of America Inc. (EBIA))
Overview: Notice Explains Complaint Process for HIPAA Administrative Simplification Violations
Excerpt: "These complaint procedures are very similar to the procedures that HHS' Office for Civil Rights adopted for complaints alleging violations of HIPAA's privacy standards." (Employee Benefits Institute of America Inc. (EBIA))
To Keep Health Coverage, More Workers Are Cutting Back on Food, Heat and Other Necessities
Excerpt: "[S]acrifices for health insurance are far from rare. As employees continue to absorb more of their healthcare costs, an increasing number of people -- even healthy ones -- are drastically altering their lives simply to hold on to their insurance. They are delaying homeownership, putting off saving for their children's education, or otherwise sacrificing their financial security to guard against a catastrophic medical bill." (Los Angeles Times; one-time registration required)
Focusing on Stress Allows Employers to Identify Health Costs
Excerpt: "Medical researchers have long theorized that stress is a major factor in all sorts of diseases and medical conditions, from heart attacks to strokes to back pain. But until recently, a theory is all it has been. Now, scientific analysis is bolstering that hypothesis, lending credence to the idea that lower stress leads to healthier people, which in turn results in lower health care costs and higher productivity." (Employee Benefit News)
The Former AOL Chairman's Latest Gig: A Daring Bet on Hospitality, Wellness, and Health Care
Excerpt: "[C]ase has unveiled to BusinessWeek the details of his new company, Revolution, which he will officially launch on Apr. 4. Revolution is a private holding company that Case is funding with $500 million of his estimated $825 million fortune and that will invest in health care, wellness, and resorts." (BusinessWeek)
Links to Items on Executive Comp, Benefits in General
FEI Summary: Proposed FASB Staff Position EITF 00-19-a
Excerpt: "The scope of the proposed FSP is 'intended to apply to those instruments issued in share-based payment transactions with employees accounted for under Statement 123(R), FASB Statement No. 123, Accounting for Stock-Based Compensation, or APB Opinion No. 25, Accounting for Stock Issued to Employees, and to instruments issued in a business combination in exchange for share-based payment awards of the acquired business that are held by employees of that business.'" (Financial Executives International)
Opinion: Are Employers Ready for the New Old Workforce?
Excerpt: "If Americans must work longer than planned, employers need to deal with GOMP (grumpy old man phenomenon), and, you guessed it - GOWP. How can we engage older workers so that they don't become a productivity issue? By addressing their special needs.' (Employee Benefit News)
Aging to Take Toll on State Workforces
Excerpt: "More than 25 states will experience huge employee turnover in the next decade and beyond as aging public servants retire, a recent report found. The hardest hit will be the state of Washington, but Maine, Tennessee, Michigan and Pennsylvania are right behind." (Stateline.org)
Overview: IRS Issues Guidance on Deduction for Repatriated Foreign Earnings
Excerpt: "The American Jobs Creation Act ... created a temporary tax benefit for companies that repatriate earnings of foreign subsidiaries and use the funds for specified purposes. Specifically, employers may take a one-time 85 percent deduction for eligible dividends from foreign subsidiaries, as long as they use the dividends for specified domestic investments. The new guidance ... defines approved uses for the repatriated earnings, which include contributions to a qualified retirement plan." (Watson Wyatt Worldwide)
5th Circuit Appeals Court: Only 'Substantial' ERISA Compliance Needed
Excerpt: "A federal appeals court has ruled that only 'substantial' compliance with the Employee Retirement Income Security Act (ERISA) is needed in order to comply with the federal retirement plan law. With the ruling, the US 5th Circuit Court of Appeals agreed with seven other federal courts regarding the quality of a benefit denial notice given by UNUM Life Insurance Co. to a long-term disability participant. Although the notice was 'less than perfect,' according to the court, it was ...." (PLANSPONSOR.com; one-time registration required)
Proposed North Carolina State Tax Credits Seen As Boost to Health Insurance Coverage
Excerpt: "A proposed law that would grant tax credits to small businesses that provide health insurance coverage for their employees is winning the support of a diverse group of business and trade organizations." (Triangle Business Journal via bizjournals.com; one-time registration required)
G.ay Couples File Suit After Michigan Denies Domestic Partner Benefits
Excerpt: "Michigan is not the only state in which a battle over the rights of same-sex partners is under way. But it has become the focus of attention with the filing of a lawsuit by the American Civil Liberties Union in which 21 same-sex couples are asking the state courts to clarify whether the amendment's passage means the loss of their benefits." (The New York Times; one-time registration required)
Overview: 457(f) Plans Need Review, or Participants May Pay High Price
Excerpt: "Recently passed legislation requires amendments to many 457(f) plans by December 31, 2005. Meanwhile, the plans must be operated in good faith compliance with the new rules, or participants will owe income taxes on their 457(f) plan benefits, plus 20% penalties, plus interest." (Faegre & Benson LLP)
The New Executive Bonanza: Retirement
Excerpt: "Everyone knows that chief executives are paid huge amounts of money while they are working. Less known is just how much they make in retirement. At many of America's biggest corporations, it is not uncommon for retired executives who were paid tens or even hundreds of millions of dollars during their tenures to receive $1 million or more in pension benefits every year - for as long as they live." (The New York Times; one-time registration required)
An Early Advocate of Stock Options Debunks Himself
Excerpt: "Fifteen years ago, Michael C. Jensen, a professor at the Harvard Business School, wrote a paper with Kevin J. Murphy, then a professor at the University of Rochester, that trumpeted some pretty radical ideas for the time. .... Their suggestion was to make stock options a big component of top management's pay, ensuring that they do well only if shareholders do well." (The New York Times; one-time registration required)
This Year's Proxy Statements More Forthcoming on Executive Perquisites, but No Reduction Shown
Excerpt: "The amounts of money spent on executive perks - as tallied in the catch-all category labeled 'other compensation' - vary widely, and they rise and fall inexplicably. Most often, the cash goes to sweeten corporate officers' health care benefits and retirement accounts. But there are other popular perks that stretch beyond the office, like the annual bill for the chief executive's membership in some exclusive club." (The New York Times; one-time registration required)
Benefits Availability Drops, Satisfaction Rises, As Employees Worry About Financial Security
Excerpt: "From the first quarter of 2004 to the first quarter of 2005, the availability of defined contribution plans, life insurance, disability insurance, tuition reimbursement, and flextime has declined significantly among small and midsize firms, according to the Principal Financial. At the same time, employee satisfaction levels have increased for profit-sharing/bonus plans, defined benefit plans, defined contribution plans, life insurance, and health insurance." (Spencer Benefits Reports)
Information Resources on Incentive Stock Options and AMT
Excerpt: "Hunting for information about taxation issues pertaining to incentive stock options, such as AMT? Try Michael Gray's Incentive Stock Option Frequently Asked Questions. You can also access archives for his newsletter ... which he describes as '[a]n irregular newsletter for employees with tax issues relating to employee stock options.' [Access to other relevant Web sites and articles is also given on target page.]" (Attorney B. Janell Grenier via BenefitsBlog.com)
Newly Posted Events
Advanced Distribution Issues and Loans
Nationwide on June 2, 2005
presented by BISYS Retirement Services
Annual Legal and Regulatory Update
in Ohio on April 21, 2005
presented by WEB (Worldwide Employee Benefits Network) Cleveland Chapter
Individual(k) Plans
Nationwide on May 19, 2005
presented by BISYS Retirement Services
Introduction to 401(k) Plans
Nationwide on May 5, 2005
presented by BISYS Retirement Services
Introduction to Deferral Programs for Governmental and Tax-Exempt Employers
Nationwide on June 9, 2005
presented by BISYS Retirement Services
Introduction to Qualified Plans
Nationwide on May 3, 2005
presented by BISYS Retirement Services
Introduction to Qualified Retirement Plan Distributions
Nationwide on May 18, 2005
presented by BISYS Retirement Services
NEW Qualified Plan Seminars in North Carolina
in North Carolina on May 13, 2005
presented by ASC
Plan Design Trends I - Safe Harbor 401(k)
Nationwide on May 25, 2005
presented by BISYS Retirement Services
Plan Design Trends II - New Comparability and Age-Weighted Plans
Nationwide on June 1, 2005
presented by BISYS Retirement Services
Your Love/Hate Relationship with the Final 401(k) Regulations Webcast
Nationwide on April 27, 2005
presented by ASPPA (American Society of Pension Professionals & Actuaries)
Newly Posted Press Releases
PBGC To Protect Pensions At Liam Ventures
(Pension Benefit Guaranty Corporation (PBGC))
U.S. Labor Secretary Elaine L. Chao Visits Pittsburgh to Highlight President’s Plan for Retirement Security
(U.S. Department of Labor, Office of Public Affairs, Washington, D.C.)
Newly Posted or Renewed Job Openings
401(k) Senior Plan Administrator – Analyst
for J. D. Benefits, Inc.
in NC
Retirement Plan Consultant
for Ceridian
in WI
Communication Consultant
for Fidelity Investments
in MA
Technical Writer
for Fidelity Investments
in MA
Relationship Manager (Retirement Plans)
for Mutual of Omaha Insurance Co.
in ANY STATE
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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