| BenefitsLink Welfare Plans Newsletter |   |
September 26, 2005
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Utah State Agency Seeks Court Domestic Partner Benefit Decision
Excerpt: "The Public Employees Health Program (PEHP) said it will make the move to find out whether it can legally provide domestic partner benefits under an executive order signed this week by Salt Lake City Mayor Rocky Anderson, according to Business Insurance." (PLANSPONSOR.com: one-time registration required)
Overview: Using HRAs to Convert Unused Vacation and Other Leave Into Nontaxable Welfare Benefits
Excerpt: "In the employee benefits arena, employers and advisors are often looking for ways to convert taxable wages or benefits into nontaxable benefits. One method that the IRS has recently recognized involves an employer's adoption of a 'health reimbursement arrangement' (HRA) and then 'converting' what would otherwise be taxable vacation and other types of leave into nontaxable welfare benefits." (Chang, Ruthenberg & Long PC)
Standard Procedure for Mailing COBRA Election Notices Failure Led to Holding that Notice Not Sent
Excerpt: "While standard procedures for providing COBRA notices can be part of an effective strategy for documenting timely provision of COBRA notices, such procedures and supporting business records generally are not accepted as sufficient evidence of mailing unless: ...." (Employee Benefits Institute of America Inc.)
Overview: HHS Cautions Employers on Use of PHI to Terminate an Employee for Health Plan Fraud
Excerpt: "Although HHS cautioned against the use of PHI as a basis to terminate an employee for health plan fraud, non-PHI is not subject to the same restrictions. For example, enrollment information that is created and held by an employer is not PHI, and there is no HIPAA privacy rule that would bar an employer's use of that enrollment information as a basis to terminate an employee who has fraudulently enrolled individuals who are not eligible for health plan coverage." (Employee Benefits Institute of America Inc.)
Many Sears Retirees' Health Costs to Jump: If Under Age 65, They Will Pay Full Premium
Excerpt: "Beginning Jan. 1, thousands of Sears Holdings Corp. retirees under the age of 65 will be responsible for the full cost of their medical insurance coverage, as the retailer moves to reduce its own costs." (Chicago Tribune; one-time registration required)
Opinion: Health Savings Accounts-- The Ownership Society in Health Care
Excerpt: "When President George W. Bush, in his second inaugural address, described his vision of an 'ownership society,' he specified not only the ownership of homes, businesses, and retirement savings, but also that of health insurance. Today, the most visible embodiment of this goal in the health care sector is the health savings account (HSA), which reflects a philosophical shift in emphasis from collective to individual responsibility for the management and financing of care." (The New England Journal of Medicine)
Entrances and Exits: Health Insurance Churning, 1998-2000 (PDF)
12 pages. Excerpt: "Analysis of 1998-2000 health insurance data from the Medical Expenditure Panel Survey shows large numbers of people with unstable health insurance coverage. Young adults, Hispanics, people with low levels of education, those who transition into and out of poverty, and those with private non-group insurance are most likely to have unstable coverage." (The Commonwealth Fund)
Links to Items on Executive Comp, Benefits in General
Employee Plans News -- Fall 2005 -- With an Emphasis on Hurricane Katrina Relief (PDF)
15 pages. Excerpt: "In this time of extreme need, the IRS is doing all that it can to help out. An innovative way to help the victims of Hurricane Katrina is the 'Leave Donation Program.' Employees who want to help their fellow citizens can ask their employers to convert their unused vacation, sick or personal leave into a cash donation to tax-exempt organizations providing relief to the citizens of the Gulf Coast." (U.S. Internal Revenue Service)
Time Frames Extended under COBRA, HIPAA, & ERISA Claims Procedures for Hurricane Katrina Victims
Excerpt: "The DOL and IRS have announced additional relief for victims of Hurricane Katrina in the form of an extension of certain time frames that would otherwise apply under the HIPAA portability and COBRA provisions of ERISA and the Code, and under the ERISA claims procedure requirements." (Employee Benefits Institute of America Inc.)
Overview: Katrina Victims to Get Tax Breaks
Excerpt: "Victims of Hurricane Katrina are getting help from Congress. Congress approved and sent to President Bush last week a $6.1 billion package of tax breaks to help families recover. The president signed the bill into law last week." (The Dallas Morning News; one-time registration required)
Katrina Tax Relief Act in Plain English
Excerpt: "The 'Katrina Emergency Tax Relief Act of 2005' is aimed at helping residents in the hurricane-ravaged areas of Louisiana, Mississippi, and Alabama rebuild their homes and lives as quickly as possible. Here's a rundown of the major provisions: ...." (Fox News)
Transition Election Related to Accounting for the Tax Effects of Share-Based Payment Awards (PDF)
5 pages. Excerpt: "[Proposed FASB Staff Position No. FAS 123(R)-c] provides a practical transition election related to accounting for the tax effects of share-based payment awards to employees." (Financial Accounting Standards Board)
Overview: 10th Circuit Court Broadens Requirements for Waiving Age Discrimination Claims
Excerpt: "Employers seeking waivers of Age Discrimination in Employment Act (ADEA) claims in accordance with the Older Workers' Benefit Protection Act (OWBPA) now must clearly explain not only who has been selected for layoff, but why selections were made." (Littler Mendelson, P.C.)
The Rules Are About to Change for Executives Receiving 'Non-Qualified' Compensation
Excerpt: "Last October, President Bush signed the American Jobs Creation Act of 2004. The Act makes dramatic changes to the tax rules impacting virtually all so-called 'Non-Qualified Deferred Compensation' arrangements for all amounts deferred on or after Jan. 1, 2005." (Dallas Business Journal via bizjournals.com; one-time registration required)
GAO Report: Tax Expenditures Represent a Substantial Federal Commitment and Need to Be Reexamined (PDF)
135 pages. According to the report, the exclusion from income tax of employment-based health insurance benefits represents $102.3 billion, or 14%, of the 2004 'lost' revenues. (U.S. Government Accountability Office)
Newly Posted Events
Medicare Retiree Drug Subsidy: Countdown to October 31
Nationwide on September 29, 2005
presented by Chicago Consulting Actuaries, LLC
Newly Posted Press Releases
New Report: PBGC Deficit Overstated; Based On Inappropriate Assumptions, Investment Strategy
(American Benefits Council)
Invesmart Expands Operation in Louisville
(Invesmart, Inc.)
National Business Coalition on Health Brings Together Health Care Influencers
(National Business Coalition on Health)
Newly Posted or Renewed Job Openings
ERISA Consultant
for BISYS Retirement Services
in MN
Pension Administrator
for The Nolan Company
in KS, MO
Retirement Plan Administrator
for Independent Retirement Plan Administration Company
in FL
Installation Administrator
for Transamerica
in CA
Defined Contribution Business Analyst
for Veritude
in MA
Conversion Implementation Specialist
for BenefitStreet Inc.
in CA
Client Relationship Manager
for Great-West Retirement Services
in NY
Retirement Plan Operations Manager
for Charles Schwab
in AZ
Assistant Pension Administrator - College Graduate/Math
for Retirement System Group Inc.
in NY
Benefit Consultant
for Unified Trust Company, N.A.
in KY
Client Service Representative
for Charles Schwab
in AZ
Retirement Services Provider Consultant
for Deloitte Consulting LLP
in CT, NJ, NY
Client Service Representative
for Great-West Healthcare
in NJ, NY, TX, VA
Pension Administrator
for Kenneth F. Hackett & Associates Inc
in FL
Financial Benefits Program Manager
for Apple Computer
in CA
Health Insurance & Group Insurance Sales Executive
for Alliance Benefit Group of Kansas City, Inc.
in IA, KS, MN, MO
Pension Administrator
for Pension Benefit Consultants, Inc.
in CT
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