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May 20, 2005
Today's sponsor: IQPC/Healthcare IQ

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2nd CREATING, DESIGNING & MARKETING HEALTH SAVINGS ACCOUNTS

The 2nd CREATING, DESIGNING & MARKETING HEALTH SAVINGS ACCOUNTS
Practical Solutions for Reducing Healthcare Costs and Improving Enrollment in HSAs for Employers and Health Plans * * * * September 12 - 14, 2005 * Washington, DC

LEARN FROM: US Department of Treasury * IBM * Microsoft * Mid States Mechanical * Eddie Bauer * Bacou-Dalloz USA * Equitrac Corporation * Collier Pest Control * McNeil Consumer and Specialty Pharmaceuticals * National Federation of Independent Business * Mellon Bank * Lumenos * Fallon Community Health Plan * The Haelan Group * Health Savings Administrators * Caregain * Alston & Bird * eFlexGroup * Human Resources Consulting Group * Consumer Driven Market Report


(Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor)
Overview: 2-1/2 Month Grace Period Reduces Section 125 Use-It-or-Lose-It Risk
Excerpt: "Although this guidance comes out of an effort focused on health FSAs, the Notice is broader than that and applies to other cafeteria plan benefits, including dependent care FSAs." (Kilpatrick Stockton LLP)

Overview: IRS Extends Flexible Spending Account Forfeiture Deadline (PDF)
Excerpt: "IRS Notice 2005-42 allows employers the opportunity to extend the deadline by which a participant in a FSA must 'use or lose' their contributions for 2-1/2 months after the end of the Plan Year. To allow for the extended payment period, an Employer must amend their Cafeteria Plan prior to the end of the Plan Year." (Bullivant Houser Bailey PC)

DHL Fringe Benefits Tell Employees They Count
Excerpt: "When DHL consummated its deal for Airborne in 2003, the benefits and compensation workload was considerable - manage plans for 25,000 employees, redesign the programs from the ground up, launch an employee education portal, and oh, yeah, save some money while you're at it." (BenefitNews.com)

Preparing for Medicare Part D: Participants Who Enroll in Both a PDP and the Employer's Plan
Excerpt: "For some participants, a PDP will provide better benefits than the employer's plan, based on their individual situation. However, most employer plans do not allow participants to separately elect medical and pres.cription drug coverage. So, participants could potentially elect both the employer plan and the PDP in order to keep their medical coverage." (Chicago Consulting Actuaries)

Vermont Senate Approves Universal Health Coverage
Excerpt: "The Vermont Senate has approved health reform legislation that is slightly scaled back from a sweeping House version passed last month but still seeks universal coverage in the state by 2009." (Business Insurance)

Links to Items on Executive Comp, Benefits in General

Employee Benefit Provisions in Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005
Excerpt: "[T]he Bankrup.tcy Abuse Prevention and Consumer Protection Act of 2005 ... includes a number of provisions relating to employee benefit plans, IRAs, employee wages, retention bonuses, severance pay plans, and retiree health benefits. The following report ... discusses the most significant of these provisions and includes commentary on the new law's impact on employees, employers, and employee benefit plan administration." (Hewitt Associates)

New Law Affecting Non-Qualified Deferred Compensation
The American Jobs Creation Act added Sec. 409A to the Internal Revenue Code, establishing new rules, obligations and penalties for employers and others sponsoring non-qualified deferred compensation plans for employees, independent contractors and others. IRS issued initial guidance in Notice 2005-1; revised and published in IRB 2005-02. All covered plans should be reviewed for compliance before the end of calendar year 2005; actual plan amendments should wait until IRS issues further guidance. (Sanders, Schnabel & Brandenburg, P.C., Washington, D.C.)

Forgiven Executive Loans: Compensation Income With Some Unsavory Twists (PDF)
3 pages. Excerpt: "This article analyzes the federal tax treatment of a discharge of loans made by a corporation to executive officers of the corporation's wholly owned subsidiary. This issue remains important even though section 402(a) of the Sarbanes-Oxley Act of 2002 ('SOX') prohibits a public company from extending credit to an executive officer or director of the company on or after July 30, 2002." (Miller & Chevalier, Chartered)

Newly Posted Events

Los Angeles Benefits Conference
in California on January 27, 2006
presented by ASPPA, IRS, WP&BC and NIPA

The Future of Roth 401(k) Webcast
Nationwide on May 19, 2005
presented by ASPPA (American Society of Pension Professionals & Actuaries)

Newly Posted Press Releases

State Legislatures Balance Benefits, Costs of Prescription Drugs
(National Conference of State Legislatures (NCSL))

Best Practices in Pharmacy Benefit Management Can Help Reduce 2.3 Million Adverse Drug Reactions that Affect Older Americans Each Year
(Prescription Solutions)

Newly Posted or Renewed Job Openings
Post a Help Wanted Ad

Manager - Retirement/Recordkeeper Analyst
for WESPAC
in CA

Testing & Reporting Specialist II
for Fidelity Investments
in MA

Contribution Processor
for Beneco, Inc.
in AZ

Benefits Specialist
for JM Family Enterprises
in FL

Administrative Assistant
for 401(k) Advisors
in CA

Investment Coordinator
for 401(k) Advisors
in CA

Service Coordinator
for 401(k) Advisors
in CA

Associate Sales Director-Retirement Services
for Prudential
in MD

Trust Administrator Employee Benefits
for Hancock Bank
in MS

Research Consultant
for Hewitt Associates
in CT

Sales and Enrollment Specialist
for MetLife®
in NC

Change Solution Consultant
for Hewitt Associates
in IL

Hr Design Consultant
for Hewitt Associates
in GA



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