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April 18, 2005
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Court Holds that Perreira is Preempted by ERISA and Not Saved under ERISA's 'Savings Clause'
Excerpt: "The United States Court of Appeals for the Third Circuit decided Levine v. United Healthcare Corporation, et al., Nos. 04-1224 and 04-1225, 2005 U.S. App. LEXIS 4318 (3d Cir. Mar. 16, 2005), on March 16, 2005. The two major issues in Levine were: (1) whether Perreira v. Rediger – case law in New Jersey that outlawed subrogation with regard to fully insured plans – was saved from preemption by ERISA's 'Savings Clause' and, (2) whether the members' claims against the health plans ...." (Benefit Recovery, Inc.)
Overview: Companies Face September 2005 Deadline to Apply for Medicare Pres.cription Drug Subsidy
Excerpt: "Employers that intend to apply for the government subsidy for providing pres.cription drug coverage to participants in their retiree medical plans should be making preparations now to submit their application forms to the Centers for Medicare and Medicaid Services (CMS). The filing deadline is September 30 for companies that expect to begin offering the new Medicare Part D benefit when it becomes available on January 1, 2006." (Towers Perrin)
Credibility Ratemaking Using Collateral Information (PDF)
14 pages. Excerpt: "Credibility ratemaking is a technique used in pricing health care, property and casualty, workers' compensation, and group life coverages. It has been a part of actuarial practice since the time of Mowbray's (1914) contribution." (Scandinavian Actuarial Journal via Milliman)
Overview: EEOC Stopped from Implementing Exemption Concerning Retiree Health Coverage
Excerpt: "A federal trial court in Pennsylvania has prevented the Equal Employment Opportunity Commission (EEOC) from publishing or otherwise implementing a regulation that would allow sponsors of group health plans to provide different or less health coverage to Medicare-eligible retirees than the coverage provided to younger retirees, without violating the Age Discrimination in Employment Act (ADEA)." (The Segal Company)
Background and Survey: The Cost and Characteristics of Family and Medical Leave (PDF)
5 pages. Excerpt: "There has been a limited number of studies on the prevalence and cost of paid unscheduled absences showing that they had increased 26.3 percent between 2003 and 2004. However, there is no similar recent data for unpaid unscheduled absences which is how FMLA leave is typically classified. To fill this void ..., EPF surveyed employers about the characteristics of their FMLA leave." (Employment Policy Foundation)
Flexible Work Benefits Allow Shifting Away from 9 to 5 Schedules
Excerpt: "Workplace flexibility has come a long way in the 20 years since comedies like Baby Boom, Mr. Mom and Nine to Five showcased the desire for adaptable schedules and the difficulties in juggling work and personal life. To glean insights on how today's workers view work and flex benefits, EBN Associate Editor Leah Carlson interviewed Irasema Garza, director of the women's rights department at the American Federation of State, County and Municipal Employees, a labor union ...." (Employee Benefit News)
Where Relocation Is Headed Now: Some Companies Offering Several Tiers of Assistance
Excerpt: "Weichert Relocation Resources Inc. reports in a new study that the most significant relocation issues through the end of 2005 will be risk management and increased corporate governance; the conflict between global mobility and increased cross-border security; and the influence of procurement departments on human resources." (Workforce Management; one-time registration required)
State of the Sector: Relocation Services
Excerpt: "Employee transfers are on the rise as companies see hopeful signs in the economy and ramp up global expansion. And relocation firms are eager to meet employers' demands not just for the basics, but for a host of new services--from pet boarding to immigration law to readjustment counseling." (Workforce Management; one-time registration required)
On-Site Medical Clinics: New Take on an Old Model
Excerpt: "On-site clinics have long been used to provide occupational health services to employees, but now their mission - and influence - is broadening. Historically focused on issues such as OSHA compliance and drug testing, many clinics are undergoing an evolution to more comprehensive care as employers seek to exert control over high medical costs. And beyond the traditional manufacturing facility, these on-site medical centers also are finding their way into other industries, ...." (Employee Benefit News)
Overview: Taxpayer May Not Deduct Cost of Drugs Imported from Can.ada
Excerpt: "Administrators of health FSAs, HRAs, and HSAs may be asked to reimburse the cost of pres.cription drugs that participants have imported from Can.ada. .... Although this Information Letter addresses the deductibility of such expenses, a very similar analysis applies in determining whether such expenses may be reimbursed by a health FSA, HRA, or HSA and leads to the conclusion that they generally are not reimbursable." (Employee Benefits Institute of America Inc. (EBIA))
Highlights of The Segal Company's 2004 Survey of Consumer-Driven Health Plans (PDF)
The target page reports highlights of the results of the 2004 Segal Survey of 27 employer responses. [A supplemental graph to the survey is at http://www.segalco.com/publications/surveysandstudies/spring05CDHPsupplement.pdf] (The Segal Company)
Overview: HSA Eligibility for Spouse Not Covered under Family HDHP Coverage
Excerpt: "One question that remains unanswered, however, is how the contribution limit of married individuals is to be calculated if each spouse has 'family' HDHP coverage that doesn't cover the other spouse. In other words, could each spouse contribute up to the full HSA contribution limit for family coverage, or would their combined contribution limit be capped at $5,250?" (Employee Benefits Institute of America Inc. (EBIA))
Voluntary Benefits? Health Care and Beyond
Excerpt: "[The article discusses] some of today's more popular non-healthcare-based voluntary benefits, with brief descriptions of both their typical product attributes for employees and their potential strategic applications for employers: ...." (Aon Consulting)
Links to Items on Executive Comp, Benefits in General
Overview: The Securities and Exchange Commission Delay of the Effective Date for Statement 123R (PDF)
3 pages. Excerpt: "The Securities and Exchange Commission ... voted unanimously to adopt a staff recommendation to delay the effective date of Financial Accounting Standards Board ... Statement No. 123(R) (Statement 123R) for many public companies. Specifically, the new rule states that public companies do not have to begin complying with Statement 123R until the first quarter of the first fiscal year beginning after June 15, 2005 (December 15, 2005 for 'small business issuers')...." (Frederic W. Cook & Co., Inc.)
American Bar Association Comments to IRS on Section 409A Regarding Funding Issues (PDF)
10 pages. (American Bar Association)
Banks Should Reassess their BOLI and Benefit Plans After New Interagency Statement and 409A Rules (PDF)
2 pages. Excerpt: "On December 7, 2004, the OCC, Federal Reserve, FDIC, and OTS issued a joint 'Interagency Statement on the Purchase and Risk Management of Life Insurance.' The Statement can be found in FDIC FIL-127-2004 (http://www.fdic.gov/news/news/financial/2004/fil12704.html#body)." (Powell Goldstein LLP)
Comments to IRS Regarding Distribution Restrictions of Section 409A of the Internal Revenue Code (PDF)
25 pages. (American Bar Association)
Top Hat Participant Loses Top-Hat Plan/Social Security Offset Legal Battle
Excerpt: "A retiring executive challenging how the administrator of his employer's top-hat plan calculated his Social Security offset lost a second legal battle when an appeals court upheld a lower court's decision denying his claims." (PLANSPONSOR.com; one-time registration required)
Stock Incentive Plans with Flexible Reserves Gain in Popularity
Excerpt: "Flexible share reserves can give companies a way to avoid having to commit to a specific type of stock award at the time they are adopting a plan. This may be particularly helpful as companies seek to revise their executive compensation practices by trimming their reliance on stock options in favor of restricted stock or performance shares in response to new accounting and governance requirements -- or just to stay competitive in a changing compensation market." (Towers Perrin)
Comments Sent to IRS on Section 409A Regarding its Impact on Business Transactions (PDF)
17 pages. (American Bar Association)
Newly Posted Events
Form 5500 Update and Troubleshooting Webcast
Nationwide on May 10, 2005
presented by ASPPA (American Society of Pension Professionals & Actuaries)
NAGDCAST #3 "Health Savings Accounts"
Nationwide on June 8, 2005
presented by NAGDCA (National Association of Government Defined Contribution Administrators, Inc.)
The Future of Roth 401(k) & LSAs, RSAs and ERSAs
Nationwide on May 19, 2005
presented by ASPPA (American Society of Pension Professionals & Actuaries)
Newly Posted Press Releases
Instant HR Answers™ Debuts – BLR’s New Human Resource Answer Site Uses “Revolutionary” Search Technology
(Business and Legal Reports, Inc.)
Treasury and IRS Provide Guidance on Pension Plan Amendments
(U.S. Treasury Department and Internal Revenue Service)
ARAG Offers Legal Insurance to State of Iowa Employees
(ARAG)
Newly Posted or Renewed Job Openings
Qualified Plans
for Fiserv Investment Support Services
in CO
DCS Research Analyst
for Hewitt Associates
in IL
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