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November 3, 2005
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Pandemic Concern Increases: Fighting a Virus that Could Hit One in Four Workers
Excerpt: "Companies have IT managers to protect them from attack by computer viruses. It will be up to the people managers to protect them from viruses that may sicken as many as 25% to 30% of their workforce. Government officials around the world are warning of the danger of a pandemic, which occurs when a new influenza virus appears in the human population and then spreads across populations." (Employee Benefit News)
Overview: The 2006 HSA, Transportation Benefit and Other Limits (PDF)
2 pages. Excerpt: "The IRS has released its inflation-adjusted limits for 2006, which include new limits for qualified parking expenses, health savings accounts, medical savings accounts, adoption assistance programs and long-term care premiums." (Buck Consultants)
3rd Circuit Court of Appeals Decides that HHS Did Not Violate Constitution or HIPAA
Excerpt: "Citizens for Health, a coalition of organizations and individual health care providers and/or patients, had challenged HIPAA's privacy rules, as amended in 2002. Thompson reports that the group's members claimed that, by allowing 'routine uses' of protected health information (PHI) without consent, HHS violated their constitutional rights to privacy and free speech." (PLANSPONSOR.com: one-time registration required)
Kaiser Daily Health Policy Report Highlights News Coverage of Employer Health Developments
Excerpt: "The [report] summarizes recent news of developments in employer-sponsored health benefits [at Boeing, General Motors, and the Southeastern Pennsylvania Transportation Authority]." (Kaiser Family Foundation)
Hospitalization Riders: CDH Movement Boon or Bane?
Excerpt: "As the consumer-driven health movement continues to find its market legs, some are concerned that poorly funded health savings accounts could retard growth. Insurance companies and some brokers believe hospitalization riders can do much to alleviate employees' concerns about going naked before they meet their deductible, but others say such policies confound the consumer mentality that HSAs and high-deductible health plans are designed to promote." (Employee Benefit News)
Small Businesses Turning to Section 105 Plans
Excerpt: "For many small companies, the choice in health care options is a high-deductible health plan or nothing at all. But some firms are turning to a provision in the Internal Revenue Code to pay claims below the high deductible with a tax-advantaged fund controlled by the employer. The desired result is lower deductibles and out-of-pocket costs for employees while the company sees savings in premiums." (Employee Benefit News)
Help Needed to Acclimate Foreign Workers to U.S. Health Care System
Excerpt: "Brokers and consultants may want to bone up on international cultures, because they will be needed to help benefits managers lead expatriate employees through the maze that is the U.S. benefits system." (The Adviser)
The Lure of Tax Reform -- What Might It Mean for Health Plans?
Excerpt: "Conservatives and liberals agree on very little, of course, but a consensus is emerging at both ends of the political spectrum that the American health care system is badly broken and that the nation's tax code is part of the problem." (Managed Care Magazine)
Links to Items on Executive Comp, Benefits in General
Managing Stock Option Overhang Levels and Burn Rates
Excerpt: "The high overhang rates are not just a cost for companies; they reduce the amount of shares outstanding to attract new investors. 'When you have overhang in the 40% to 50% level, that is not a compensation plan, that is a going private strategy over time,' said McGurn. 'Right now, investors are happy to see that shareholder transfer number going down.'" (PLANSPONSOR.com: one-time registration required)
Second Age Discrimination Class Action Lawsuit Brought Against 3M Company
Excerpt: "The lawsuit was brought under New Jersey's Law Against Discrimination, and charges of discrimination were filed with the federal Equal Employment Opportunity Commission (EEOC), according to a press release from the employees' attorneys at Sprenger & Lang." (PLANSPONSOR.com: one-time registration required)
Text of Rev. Proc. 2005-70: Various Inflation-Adjusted Internal Revenue Code Limits for 2006 (PDF)
19 pages; includes figures for the qualified transportation fringe benefit, adoption assistance programs, medical savings accounts and health savings accounts. (Internal Revenue Service)
Overview: 2006 Benefit Limits
Excerpt: "These adjustments are effective for the plan year that begins on or after January 1, 2006. Some of these increases in limitations result from the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 ('EGTRRA'). Other increases reflect cost-of-living adjustments." (Kilpatrick Stockton LLP)
Trucker Huss Benefits Report, October 2005 (PDF)
6 pages. This edition covers two issues: Impact of Code Section 409A and the Newly Proposed Regulations on Equity Compensation Arrangements andPension Plan Limitations for 2006. (Trucker Huss)
Section 409A Can Really Hurt -- Do You Have Clients at Risk from Penalties on Deferred Comp Plans?
Excerpt: "Let's begin with a word of caution: The IRS is still clarifying these rules, so it's important to stay abreast of current regulations. For now, here is the basic information you need to know: What is a nonqualified deferred compensation plan? This is any agreement including plans called NQDC plans, supplemental executive retirement plans (SERPs), 457(f) plans, and all other arrangements under which an employee (or individual contractor) earns compensation for services performed ...." (Financial Advisor)
Overview: Tax Reform Panel's Recommendations (PDF)
2 pages. Excerpt: "Earlier this year, President Bush appointed members to the President's Advisory Panel on Federal Tax Reform, which he tasked with analyzing the current tax system and making recommendations for reform in a revenue neutral manner. The panel presented its recommendations to Treasury Secretary Snow today." (Groom Law Group)
Benefit Advisers Look to New Technology to Educate Executives
Excerpt: "At least two companies have launched podcasts to inform executives of ways to save money and educate employees. The Burchfield Group, a pharmacy benefit consulting firm based in St. Paul, Minn., is offering a podcast series, available for free as individual downloads or as a free online subscription at http://www.burchfieldgroup.com/, designed to help executives with approaches to reducing corporate spending on pharmacy benefits." (The Adviser)
Overview: IRS Relief for Employee Benefit Plans and Participants Affected by Hurricane Katrina (PDF)
2 pages. Excerpt: "A plan participant, beneficiary, qualified beneficiary, or claimant is 'affected by Hurricane Katrina' if he or she resided, lived, or worked in one of the disaster areas at the time of Hurricane Katrina, or if the employee benefit plan providing the individual's coverage was directly affected." (Employee Benefit Plan Review via Gardner Carton & Douglas LLP)
Newly Posted Press Releases
Life Insurance Industry Responds To Advisory Panel's Federal Tax Reform Options
(American Council of Life Insurers)
CPI Adds to Spanish Materials with the Introduction of a Spanish Web Site
(CPI Qualified Plan Consultants, Inc.)
California School Employees Association Selects Healthyroads to Administer Voluntary Weight Loss Program
(American Specialty Health (ASH))
Newly Posted or Renewed Job Openings
Plan Support Representative - Institutional Plan Services
for Great-West Financial Services
in CO
Project Manager
for Computer Horizons Corporation
in ANY STATE
Pension Benefits Assistant
for Writers Guild Pension Plan
in CA
Traditional Plan Administrator - Benefit Services
for Larson Allen
in MN
Defined Benefit Team Leader
for Mercer HR Services
in MA, RI
Handy Links:
- View Today's Active Message Threads
- Search BenefitsLink
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
Copyright 2005 BenefitsLink.com, Inc.; except that you may reprint this newsletter in full (including this sentence) without obtaining our permission.
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