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April 6, 2005
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EEOC Seeks to Overturn Court Ruling on Retiree Health Benefits
Excerpt: "The Equal Employment Opportunity Commission will ask Justice Department lawyers to appeal a federal judge's ruling that prevented it from allowing companies to provide younger retirees with better health care benefits than they give to older ones who qualify for Medicare." (BenefitNews Connect)
Court Rules Against EEOC on Allowing Employers to Reduce Retiree Benefits on Medicare Eligibility (PDF)
2 pages. Excerpt: "On March 30, 2005, a U.S. District Court in Pennsylvania blocked the EEOC from issuing a rule that would allow employers to reduce or eliminate retiree health benefits on Medicare eligibility at age 65. The court found that the rule was contrary to the intent and language of ADEA and thus the EEOC did not have the authority to issue it." (Mellon Financial Corporation)
Nearly 20% of Workers Don't Know If Their Company Has an Employee Assistance Program
Excerpt: "Employers could do a better job of promoting their employee assistance programs, according to a survey of 1,190 workers conducted by the Hazelden Foundation, which provides drug and alcohol addiction treatments." (BenefitNews Connect)
Some Organizations Find HIPAA Security Rule Ambiguous
Excerpt: "The deadline for health care organizations to comply with the HIPAA security rule is April 20, but many information technology professionals involved with HIPAA say determining compliance remains confusing, Network World Fusion reports." (California HealthCare Foundation)
Overview: Compliance with the HIPAA Security Rule (PDF)
13 pages. Excerpt: "The purpose of the Security Rule is to provide national standards for safeguards to protect the confidentiality, integrity, and availability of 'electronic protected health information' ('EPHI'). Those standards generally require measures to be taken to secure EPHI both while it is being stored by covered entities as well as while it is being transmitted." (Utz & Miller, LLC)
Take Measures to Protect Electronic Health Information
Excerpt: "In the coming months, health plans, health-care clearinghouses and certain health-care providers - all categorized as covered entities under the Health Insurance Portability and Accountability Act of 1996 - and their business associates with whom protected health information is shared, will face new compliance challenges associated with the security standards." (Columbus Business First via bizjournals.com; one-time registration required)
AHRQ Report Offers State-by-State Care Comparison
Excerpt: "The Agency for Healthcare Research and Quality on Monday released its second annual report comparing the 50 states and the District of Columbia in 14 categories of health care quality, the AP/Long Island Newsday reports .... The Web-enabled report, which was mandated by Congress, examined 2003 data collected from hospitals, health plans, nursing homes, home health agencies and other sources." (California HealthCare Foundation)
In-Network or Outsource: Considerations in Picking a Disease Management Partner
Excerpt: "Should you outsource your disease management program directly to a vendor, or should you use your network provider's own offering? This is the question we receive most from employer members of the Disease Management Purchasing Consortium who are self-insured. (Obviously fully insured employers should simply use their health plan's own offering since the cost is included in the premium, unless it is so bad that it smells.)" (Employee Benefit News)
Maryland Legislature Passes Rules on Wal-Mart Insurance: Bill Obligates Firms on Health Spending
Excerpt: "Maryland lawmakers yesterday approved legislation that would effectively require Wal-Mart to boost spending on health care, a direct legislative thrust against a corporate giant that is already on the defensive on many fronts nationwide." (The Washington Post; one-time registration required)
On-Site Pharmacies Open New Doors for Rx Drug Plan Savings
Excerpt: "Cell phone technicians, chemists, autoworkers and casino employees are among the growing number of workers now able to fill pres.criptions at pharmacies where they work. Seeking new ways to hold down drug costs, companies such as Sprint, Eastman Chemical, Toyota and Caesars Entertainment have opened on-site pharmacies at some of their locations." (Employee Benefit News)
Companies Offer Healthier Variety of Snacks in Vending Machines to Stem Obesity
Excerpt: "Some employers have found a new way to fight obesity - vending machines. Ten California health care organizations are swapping out candy bars for healthy snacks in their vending machines to improve workers' eating habits." (BenefitNews Connect)
Smoking Policy Sparks Debate Over Wellness Programs
Excerpt: "Employers have demanded more programs that address smoking, weight loss and stress, notes Dr. James Woodburn, disease management medical director for Blue Cross. 'We are also seeing a lot of interest in chemical dependency issues, especially with alcohol use,' he says. While employers want expanded wellness and disease management options, most are not willing to use the punitive measures that Weyco employed, Woodburn observes." (Employee Benefit News)
Overview: AARP at Odds with EEOC over Retiree Medical Benefits (PDF)
2 pages. Excerpt: "A federal district court judge has blocked efforts by the Equal Employment Opportunity Commission ... to begin enforcing a rule that would have allowed employers to differentiate benefits for Medicare-eligible retirees without running afoul of the Age Discrimination in Employment Act .... On March 30, 2005, the U.S. District Court for the Eastern District of Pennsylvania (E.D. Pa.) granted summary judgment to the AARP in a case it had brought against EEOC earlier ...." (Seyfarth Shaw LLP)
Health Savings Accounts Basics Brochure (PDF)
2 pages. Summary of Health Savings Accounts features and advantages in the form of a tri-fold brochure. (U.S. Department of the Treasury)
Links to Items on Executive Comp, Benefits in General
Text of Restated Voluntary Fiduciary Correction Program (PDF)
33 pages. Excerpt: "[C]hanges to the Program are needed to further encourage utilization of the Program. These changes will improve administration of the Program by EBSA's Regional Offices by which the revised VFC Program will continue to be administered. To this end, EBSA is publishing in this Notice an updated and revised VFC Program ... EBSA is making the revised VFC Program effective on publication of this Notice ..." (Employee Benefits Security Administration, U.S. Department of Labor)
Text of Proposed Change in Voluntary Fiduciary Correction Program for Sale of Illiquid Asset (PDF)
4 pages. Excerpt: "[T]he additional eligible transaction generally includes the purchase of an asset by a plan where the asset has been determined to be illiquid as described in the revised VFC Program, and the sale of the illiquid asset by the plan to a party in interest." (Employee Benefits Security Administration, U.S. Department of Labor)
Supreme Court Opens Door for Age Discrimination Actions Under 'Disparate-Impact' Theory (PDF)
2 pages. Excerpt: "In a very important decision, the Supreme Court has ruled in Smith v. City of Jackson, Mississippi, that employees can sue their employers under ADEA when they can show that they were adversely affected because of their age. In other words, the court ruled that it is not necessary to show intentional discrimination to bring an action under ADEA." (Mellon Financial Corporation)
Domestic Partner Law Upheld in California : It Doesn't Violate Ban on Same-Sex Marriage, Court Says
Excerpt: "California's far-reaching domestic partner law, which gave thousands of same-sex couples many of the same rights as spouses, survived another court test Monday when a state appeals panel ruled that it did not violate the voter- approved ban on same-sex marriage." (San Francisco Chronicle)
Preparing for an IRS Executive Compensation Audit (PDF)
2 pages. Excerpt: "The Large and Mid-Size Business ('LMSB') division of the IRS announced late last year that it is incorporating the experience gained from its 2003-2004 executive compensation pilot program in its 'package audits.' Specifically, LMSB audits will routinely focus on executive compensation arrangements, including deferred compensation, stock-based compensation, fringe benefits and other issues involving executive compensation." (Miller & Chevalier)
8th Circuit Court of Appeals Rules that Former Employees' Claims of ERISA 510 Discrimination Fail (PDF)
3 pages. Excerpt: "Section 510 of ERISA makes it unlawful for an employer to discharge an employee for the purpose of interfering with the employee's attainment of any rights that she/he is entitled to, or may become entitled to, under an employee benefit plan. When an employer outsources some part of its workforce, outsourced employees may make a claim under ERISA § 510, alleging that it was done to prevent them receiving future benefits." (Gardner Carton & Douglas)
Benefit Cost Comparisons Between State and Local Governments and Private-Sector Employers (PDF)
Pages 1-5 of 12 pages. This April 2005 EBRI Notes article examines the data behind and causes of the differences in total compensation costs between state and local government employers and private-sector employers. (Employee Benefit Research Institute)
Hewitt Federal Legislation Quick Guide Updated as of April 5, 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)
Aon's April 2005 Forum Newsletter's Regulatory Developments (PDF)
12 pages. This issue of Regulatory Developments covers 15 developments dealing with new legislation, retirement plans, health and welfare plans, and human resources policies and practices that have occurred since the last issue in December 2004/January 2005. These regulatory developments of general employee benefit interest are on pages 9–12. (Aon Consulting)
Overview: Employment-Based Military Leave Policies and Employment Procedures (PDF)
6 pages. Excerpt: "New legislation and proposed regulations will require companies to review and update military leave policies and employment procedures. This GCD Client Memo highlights important aspects of the recently enacted Veteran's Benefits Improvement Act of 2004 and the long-awaited proposed USERRA regulations issued by the Department of Labor." (Gardner Carton & Douglas)
Newly Posted Events
5500 Pitfalls
in Massachusetts on May 5, 2005
presented by International Society of CEBS - Greater Boston Chapter
Employee Benefits Conference
in New York on May 17, 2005
presented by Foundation for Accounting Education
ERISA Reporting and Disclosure
in Florida on April 20, 2005
presented by International Society of Certified Employee Benefit Specialists - Orlando Chapter
Fall Forum
in Georgia on September 26, 2005
presented by BISYS Retirement Services
Fall Forum
in Minnesota on October 10, 2005
presented by BISYS Retirement Services
Fall Forum
in Massachusetts on October 24, 2005
presented by BISYS Retirement Services
Fall Forum
in California on November 14, 2005
presented by BISYS Retirement Services
Newly Posted or Renewed Job Openings
Defined Benefit and Defined Contribution Technical Sales Support Manager
for SEI Investments
in PA
401(k) Plan Administrator
for KB Pension Services, Inc. in Sarasota, FL
in FL
General Administrative Services Representative
for ING U. S. Financial Services
in MS
Pension Plan Associates
for Diversified Investment Advisors
in NY
Pension Admin Systems Analyst
for Hewitt Associates
in GA
HR Benefits and Compensation Assistant
for E! Networks
in CA
401(k) Plan Consultant
for 401(k) Advisors
in CA
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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