| BenefitsLink Welfare Plans Newsletter |   |
August 22, 2005
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GASB Changes Could Trigger More Government Bond Sales
Excerpt: "The city of Gainesville, Florida is believed to be the first government agency in the US to sell bonds to fund an unfunded actuarial liability for a government retiree medical plan." (PLANSPONSOR.com: one-time registration required)
Disability Insurance Safety Net Did Not Catch Top Salesman of the Policies When She Fell Ill
Excerpt: "UnumProvident, whose policies the 50-year-old insurance agent had been selling, questioned whether Potter really was disabled and refused to pay her. Although the firm, based in Chattanooga, Tenn., relented a few weeks ago, the reversal took three years and did not come before the Potters had run through most of their savings, yanked one of their five children from college for lack of tuition and hired a lawyer." (Los Angeles Times; one-time registration required)
Union that Was Not Plan Administrator Did Not Have Duty to Provide COBRA Election Notice
Excerpt: "This case reminds us of two basic rules. First, the plan administrator is the party responsible for providing COBRA election notices (for a similar case in which the employee failed to name the appropriate party, .... Second, a group health plan is not required to provide COBRA coverage free of charge." (Employee Benefits Institute of America Inc.)
Beneficiary's COBRA Coverage Was Secondary and Coverage through Spouse's Employer Primary
Excerpt: "Neither the COBRA statute nor COBRA regulations provide rules regarding COB for individuals receiving COBRA coverage. Such matters are resolved on the basis of the COB provisions contained in the insurance contracts and plan documents that govern an individual's coverage, and state laws or regulations may require the application of certain COB rules to insurance coverage." (Employee Benefits Institute of America Inc.)
Health Care Premium and Cost Trends from Several Sources
Excerpt: "A set of charts showing how health care costs have changed since 2000." (Workforce Management; one-time registration required)
The Health Care Crisis-- Challenge to the Leaders of America's Pension and Health Funds (PDF)
24 pages. Presentation by the president of the coalition to the Council of Institutional Investors. (National Coalition on Health Care via International Foundation of Employee Benefit Plans)
Impacts of Health Care Reform-- Projections of Costs and Savings (PDF)
20 pages. The report was prepared by Kenneth Thorpe. (National Coalition on Health Care via International Foundation of Employee Benefit Plans)
Current Costly Health System Can't Continue in United States
Excerpt: "In spite of ongoing denials by politicians and the American public, the nation's health care delivery system is in crisis. The current method of providing health care services to Americans is dysfunctional and massively expensive, and does not meet the needs of many." (Cincinnati Business Courier via bizjournals.com; one-time registration required)
Expert Offers How-To's on Saving Health Care Costs for Employers
Excerpt: "Mark Roman, head health-care guru for Electronic Data Systems, the Dallas-based IT giant, has a number of suggestions for employers struggling to control escalating health-care costs, ...." (San Francisco Business Times via bizjournals.com; one-time registration required)
Opinion: Health Insurance in California Needs Intensive Care
Excerpt: "[S]pouses and kids of California workers are increasingly losing health insurance as companies cut back on the scope of coverage. This is California we're talking about -- the wealthiest state in the wealthiest nation on the planet. And our health care system is failing us. 'California's problems are the problems of the nation,' said Richard Brown, director of the UCLA center and co-author of the newly released study." (San Francisco Chronicle)
Overview: Employers Make Progress Preparing for Medicare Pres.cription Drug Benefit (PDF)
5 pages. Excerpt: "Employers sponsoring post-65 retiree medical programs are making progress in preparing their organizations to take advantage of the Medicare Part D pres.cription drug benefit that becomes available next year, but some plan sponsors are apparently missing opportunities that could bring significant cost savings. These are some of the key findings in a nationwide survey developed by Towers Perrin and conducted by [ISCEBS]." (Towers Perrin)
Part D Update: Plan Sponsors Compete with Consumer Pres.cription Drug Program Campaigns
Excerpt: "[T]he Wall Street Journal published an article entitled 'New Drug Plan Under Medicare to Get Ad Blitz' that reports [on] 'a coalition that includes health insurers, pharma.ceutical companies and drugstore chains' .... Unfortunately, the article does not mention that retirees also covered under an employer pres.cription drug plan should be wary of these ads, as joining a new plan is not only unnecessary, but could leave them stripped of all employer-provided retiree health benefits." (Chicago Consulting Actuaries, LLC)
HR Policy Association's Pharma.ceutical Purchasing Coalition of Large Employers Seeks Concessions
Excerpt: "A coalition of 52 large US employers is calling on pharmacy benefit managers (PBMs) to not only pass on to clients their pres.cription drug acquisition costs, but drug manufacturer rebates as well." (PLANSPONSOR.com: one-time registration required)
Traditional Health Plans Begin to Adopt Elements of Consumer-Driven Approach
Excerpt: "Insurers are gambling on the notion that consumer-driven health plans will become a sizable source of health care delivery." (Workforce Management; one-time registration required)
Address to the Annual Meeting of the National Governors Association, July 17, 2005, on Health Care (PDF)
10 pages. Address by the president of the coalition to the governors. (National Coalition on Health Care via International Foundation of Employee Benefit Plans)
Building a Better Health Care System-- Specifications for Reform (PDF)
28 pages. Reference material from the coalition originally published in 2004. (National Coalition on Health Care via International Foundation of Employee Benefit Plans)
Some Workers at Profitable Firms Use New Jersey Health Coverage
Excerpt: "Some of New Jersey's most profitable businesses have the highest number of workers using the state's health insurance program intended for the working poor." (bizjournals.com; one-time registration required)
Major Employers Team Up To Pay 'True' Pres.cription Drug Costs
Excerpt: "The HR Policy Association recently unveiled its Pharma.ceutical Purchasing Coalition and its mission to buy pres.cription drugs for its members at 'true' costs. The coalition is comprised of 52 association member companies representing 5 million covered lives and drug costs of more that $3.7 billion in 2003." (Spencer Benefits Reports)
Links to Items on Executive Comp, Benefits in General
Stock Option Administration: FASB Rule Change Sets Off Quest for a Better Valuation Model
Excerpt: "Even in the midst of the pension funding crisis, the actuarial sciences have often seemed to be relegated to the nether reaches of developing workable solutions. However, recent directives on stock option expensing from the Financial Accounting Standards Board (FASB) may bring a new luster to that expertise. In a nutshell, FASB's March 2004 ruling said that all forms of share-based payments to employees would be treated the same as other forms of compensation by recognizing the ...." (PLANSPONSOR.com: one-time registration required)
Letter to the Editor of NYT: Executive Compensation and Pension Loses
Excerpt: "'Announcing an Award for Greed' (column, Aug. 14), by Nicholas D. Kristof, criticizes the Fog Cutter Capital Group's board for compensating its former chief executive, Andrew Wiederhorn, during his incarceration. In doing so, Mr. Kristof does not mention critical facts." (The New York Times; one-time registration required)
Commentary: Third Circuit ERISA Opinion -- In re: Schering-Plough Corporation ERISA Litigation
Excerpt: "In 2004, a district court in New Jersey held that certain plaintiffs could not recover damages for defendants' alleged breaches of fiduciary duty because such recovery was really for individual participants rather than the plan. In re Schering-Plough Corp. ERISA Litig., 2004 WL 1774760 at 6 (D.N.J. June 28, 2004). The Third Circuit has now reversed and remanded the case in a landmark decision which you can access [on the target page]." (Attorney B. Janell Grenier via Benefitsblog.com)
Access to Benefits at Small Businesses May Be Declining
Excerpt: "The cost of employee benefits and the wherewithal to offer them are sizable problems for all small businesses, according to a new survey by the Small Business Administration. That study laments that small businesses find themselves at a competitive disadvantage with larger companies that can offer broader benefits packages for less cost per employee." (SignOnSanDiego.com)
Editorial: A Salary-Benefits Package that Anyone Would Take
Excerpt: "So here's the package: Base salary, $81,050; fully paid health care plan with an annual premium of about $13,500; a $50,000 annual pension for those who retire in 2008 with 20 years service; a $39,800-a-year expense allowance to run the office and pay expenses; and $4,000 to cover constituent newsletters and other mailings. We're guessing you'd take that package if you could get it." (Williamsport Sun-Gazette)
Newly Posted Events
National Symposium on Self-Directed IRAs
in California on October 20, 2005
presented by PENSCO Trust Company
Network of Executive Women Leadership Summit
in Georgia on September 26, 2005
presented by Network of Executive Women
Newly Posted Press Releases
ASPPA President Rosen Cautions Internal Revenue Service on Proposed Section 415 Retirement Plan Regulations
(ASPPA (American Society of Pension Professionals & Actuaries))
Mark O. Sullivan Joins Stanton Group As Practice Leader
(Stanton Group)
Labor Department Finalizes Qualified Professional Asset Manager Exemption
(U.S. Department of Labor, Employee Benefits Security Administration)
New Report Details Costs Of Employee Benefits
(U.S. Small Business Administration (SBA))
Chicago Consulting Actuaries Aggressively Expands Offices, Expertise
(Chicago Consulting Actuaries, LLC)
Newly Posted or Renewed Job Openings
Account/Client Services Manager (Seattle)
for Zenith Administrators
in WA
Technical Manager
for Retirement Strategies, LLC
in NM
401(k) / Defined Contribution Administrator
for Retirement Plan Consultants, Inc.
in TN
Pension Plan Administrator
for Professional Business Consultants, Inc.
in IL
ERISA Associate
for Kraw & Kraw
in CA
Compensation Analyst - KLC Corporate, Portland
for Knowledge Learning Corporation
in OR
Employee Benefits Specialist - Third Party Retirement Plan Services
for Goodman & Company
in VA
Consultant
for High Point Consulting & Staffing, LLC.
in ANY STATE
401(k) Plan Administrator
for Pollard & Associates, Inc.
in MD
Assistant Plan Administrator
for Pollard & Associates, Inc.
in MD
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