| BenefitsLink Welfare Plans Newsletter |   |
November 14, 2005
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New Day Dawning for Benefits Packages -- End Result Likely to Be Greater Uncertainty
Excerpt: "In what was described as the biggest concession the United Auto Workers have made to General Motors since the 1980s, the union last month accepted cuts in health care benefits for active and retired members. Although the new co-pays and fees are modest by most American worker standards, experts say the concessions mark a new era in employee benefits packages for all workers." (Pittsburgh Business Times via bizjournals.com; one-time registration required)
Union Membership Vote Accepts Cuts in Benefits at General Motors
Excerpt: "By accepting the deal, the union has opened the door for future concessions by workers at the Ford Motor Company and DaimlerChrysler, which both share similar high labor costs and are looking for savings. The new health care plan still requires a federal judge's approval as a legal formality because it covers retirees who were not eligible to vote." (The New York Times; one-time registration required)
UAW Members OK General Motors Health Care Proposal
Excerpt: "The United Auto Workers said [November 11] that its members had agreed to a tentative proposal to make retirees and hourly workers pay more for their health care." (AP via The New York Times; one-time registration required)
Pres.cription Drugs: Accountability and Efforts to Enforce the Prohibitions on Personal Importation
76 pages. Excerpt: "This report addresses (1) available data about the volume and safety of personal pres.cription drug imports, (2) the procedures and practices used to inspect and interdict pres.cription drugs unapproved for import, (3) factors affecting federal efforts to enforce the laws governing pres.cription drugs imported for personal use, and (4) efforts federal agencies have taken to coordinate enforcement efforts. [Highlights are at http://www.gao.gov/highlights/d05372high.pdf.]" (U.S. Government Accountability Office)
OPM Offers New Flexible Spending Option for Some Federal Employees
Excerpt: "Some federal employees will have a new avenue to pay for dental and vision care, the Office of Personnel Management announced [November 10]. Employees who enroll in high-deductible health plans -- which offer lower premiums but leave participants paying more out of pocket when medical needs arise - will be able to enroll in flexible spending accounts for dental and vision care." (GovExec.com)
First Circuit Rejects ERISA Preemption Challenge to Maine Law Regulating Pharmacy Benefit Managers
Excerpt: "A key part of the court's analysis was its conclusion that the Maine law did not cause PBMs to function as ERISA fiduciaries." (Employee Benefits Institute of America Inc.)
Court Allows for Extended Definition of Parent under FMLA
Excerpt: "The US District Court for the District of Maryland has ruled that an employee may use evidence that her grandmother acted as her parent to convince a jury to decide if her leave to care for her grandmother falls under the Family and Medical Leave Act (FMLA)." (PLANSPONSOR.com: one-time registration required)
Confusion about Termination of Employment Date Caused Dispute about Timeliness of COBRA Notice
Excerpt: "Establishing the termination of employment date is particularly important because, when the termination is a qualifying event, certain COBRA deadlines and time periods often are measured from that date (including the date for providing the election notice and the duration of the maximum COBRA coverage period)." (Employee Benefits Institute of America Inc.)
The Cost of Health Ins. Administration in Calif.: Estimates for Insurers, Physicians, & Hospitals
11 pages. Excerpt: "Administrative costs account for 25 percent of health care spending, but little is known about the portion attributable to billing and insurance-related (BIR) functions. [The authors] estimated BIR for hospital and physician care in California. Data for physician practices came from a mail survey and interviews; for hospitals, from regulatory reporting; and for private insurers, from a consulting company." (Health Affairs)
Government Awards $18.6 Million for Research on How to Share Health Information
Excerpt: "On [November 10], the U.S. Department of Health and Human Services awarded four contracts to consortia that will figure out how doctors at different health care sites can share medical information. The four consortia are made of technology vendors and local healthcare groups." (CIO Insight)
Wall Street Journal Examines Increased Use of Telemedicine to Help Reduce Health Care Costs
Excerpt: "The Wall Street Journal on [November 10] examined how telemedicine has begun to move 'into the policy mainstream' as governments and technology companies are 'investing heavily to tap its potential for sharply reducing health care costs for a growing elderly population.'" (Kaiser Family Foundation)
Managed Consumerism in Health Care
12 pages. Excerpt: "[The article] explores a potential direction for the health care system that blends the patient-centered focus of consumer-driven care with the provider-centered focus of managed competition." (Health Affairs)
Why Should Your Employer Pay for Your Health Care?
Excerpt: "The nation has made health insurance a tax-exempt form of compensation, so employees and employers will tend to prefer it to cash. The deduction, a form of which is also enjoyed by the self-employed, means that the government picks up a big chunk of health insurance costs. 'The exclusion for employer-provided health care is the largest preference in the tax code, with an estimated 2006 value of roughly $126 billion,' said the Tax Foundation, a nonprofit research group." (The New York Times; one-time registration required)
HSA Marketplace
Excerpt: "According to Milliman's 2005 Group Health Insurance Survey, 93% of organizations expect to offer a high-deductible health plan (HDHP) with a health reimbursement arrangement (HRA) or a health savings account (HSA) within the next year. Click here for the most recent product and partnership HSA news." (Spencer Benefits Reports)
Overview: DOL Issues Long-Awaited LM-10 Employer Reporting and Disclosure Guidance (PDF)
Excerpt: "[The Labor-Management Reporting Disclosure Act] requires employers to disclose to the DOL nearly all payments made, or benefits (including gifts, meals, lodging, paid travel, golf outings, tickets to sporting events, and access to educational conferences) provided to labor organizations, union officials and union employees." (Morgan Lewis)
Links to Items on Executive Comp, Benefits in General
FAS 123(R)-3: Transition Election Related to Accting for the Tax Effects of Share-Based Pymt Awards (PDF)
7 pages. Excerpt: "This [FASB Staff Position] provides a practical transition election related to accounting for the tax effects of share-based payment awards to employees." (Financial Accounting Standards Board)
More Companies Now Courting Older Workers
Excerpt: "Companies' growing awareness of the aging workforce recently prompted IBM Corp. to launch a consulting service to help businesses cope with the expected loss of knowledge and talent as boomers retire." (KNIGHT RIDDER NEWSPAPERS via The Pueblo Chieftain)
Rep. Frank Proposes Broad Executive Compensation Disclosure Mandates
Excerpt: "A prominent US House Democrat has waded into an always controversial topic in corporate governance circles with a new bill mandating additional executive compensation disclosure. Representative Barney Frank (D-Massachusetts) ... proposed the The Protection Against Executive Compensation Abuse Act that would give shareholders more information about management pay packages and empower shareholders to take action against management abuse and self-dealing, ...." (PLANSPONSOR.com: one-time registration required)
Hewitt Federal Legislation Quick Guide Updated as of November 8, 2005
Excerpt: "Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans, retirement plans, and human resources and employment law." (Hewitt Associates)
Overview of Form 5500 Issued for the 2005 Plan Year
Excerpt: "Three significant modifications have been made to Form 5500 (Annual Return/Report of Employee Benefit Plan) for the 2005 plan year: ...." (McKay Hochman Co., Inc.)
Overview: DOL Proposal of Mandatory Electronic Filing of Form 5500
Excerpt: "As part of its continuing effort to update and streamline the annual reporting process, the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has published a proposed regulation that would require plans to file the Form 5500 Series report electronically beginning with plan filings due in 2008, i.e. for plan years beginning on or after January 1, 2007." (McKay Hochman Co., Inc.)
GAO Reviewing DOL Unit on ERISA
Excerpt: "The Government Accountability Office is taking a look at ERISA enforcement procedures at the Employee Benefits Security Administration, a unit of the Department of Labor." (Defined Contribution & Savings Plan Alert)
Effective Marginal Tax Rates on Labor Income (PDF)
40 pages. Excerpt: "This paper examines the effective marginal tax rates that people face on income from labor -- federal and state individual income taxes as well as payroll taxes for Social Security and Medicare -- under current law." (U.S. Congressional Budget Office)
Newly Posted Events
401(k) Focus
in Massachusetts on June 27, 2006
presented by SunGard Corbel
Advanced Pension Conference - Chicago
in Illinois on September 6, 2006
presented by SunGard Corbel
Advanced Pension Conference - Orlando
in Florida on February 22, 2006
presented by SunGard Corbel
Advanced Pension Conference - Orlando
in Florida on February 12, 2007
presented by SunGard Corbel
National Tax Sheltered Accounts Association's 2006 National Conference
in California on February 3, 2006
presented by National Tax Sheltered Accounts Association
New America Foundation and Leading State Decision Makers Begin Debate on the Major Health Care Proposals For 2006
in California on November 15, 2005
presented by New America Foundation
Newly Posted Press Releases
PSCA Lauds Chairman Thomas For Action On EGTRRA Permanency
(Profit Sharing/401(k) Council of America (PSCA))
Gilsbar, Inc. Unveils myGilsbar.com - Health, Wellness & Benefit Portal
(Gilsbar, Inc.)
Employers' Amicus Brief In Cooper v. IBM Accepted by Appellate Court
(ERIC (ERISA Industry Committee))
Trustmark Mutual Holding Co., Charles Schwab and Alliance Benefit Group Unite To Bring Consumers More HSA Investment Options
(Alliance Benefit Group of Illinois)
CitiStreet Names West Coast Sales Directors for Broker/Dealer Channels
(CitiStreet)
Ftwilliam.com Introduces the ftwLink Feature
(ftwilliam.com)
Transamerica Affinity Services Enhances Insurance Program to Include a Part D Option and Early Retiree Benefits
(Transamerica Affinity Services, Inc.)
Newly Posted or Renewed Job Openings
Senior Account Manager
for Kelley & Swain Inc.
in CA
Defined Benefit Client Account Manager
for New York Life Investment Management LLC
in MA
Senior DC Plan Administrator - Signing Bonus!!
for Berlin Ramos & Company
in DC, MD, VA
Director of Insurance Services
for A business alliance for a group of hospitals with nearly 100,000 employees.
in KS
Employee Benefits Plan Specialist
for Union Bank of California
in CA
Plan Administrator for Retirement Plan & ERISA Specialists
for Small Chicago TPA & law firm
in IL
Manager, Retirement Services
for The Newport Group
in NC
Defined Contribution Administrator
for Milliman, Inc.
in CO
ERISA Attorney / Compliance Manager
for ABD Insurance and Financial Services
in CA
Associate Consultant
for SHPS, Inc.
in GA
Director of Sales
for InvestLink Technologies, LLC
in NY
Marketing Executive
for InvestLink Technologies, LLC
in NY
401K/Pension Administrator
for Pension Specialists, Inc.
in CA
Pension Administrator
for Pension Investors Corp. of Orlando
in FL
Benefits Administrator
for Ralcorp Holdings, Inc
in MO
401(k) DC/DB Contract Administrator
for Secured Retirement Incorporated
in CA
Individual (k) Product/Relationship Manager
for BISYS Retirement Services
in MN
DC Compliance & Relationship Specialist
for Matthews, Gold, Kennedy & Snow
in AZ
Pension Administrator
for Jordan & Andrews
in CA
Senior Retirement Program Specialist
for Providence Health System
in WA
Defined Contribution Plan Administrator
for Southern California Third Party Administrator
in CA
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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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