December 1, 2005 Today's sponsor: ALM (Click on company name or banner to learn more.)
Overview: Further Guidance on the Cafeteria Plan Grace Period & Coordination with HSAs (PDF) 3 pages. Excerpt: "In Notice 2005-86, the Internal Revenue Service provided further guidance regarding implementation of the 2-1/2 month grace period for cafeteria plan flexible spending accounts ('FSA') allowed by Notice 2005-42." (Sutherland Asbill & Brennan LLP) Text of Rev. Rul. 2005-74: Sale of Home by Employee to an Employer Through Employer's Agent (PDF) 2 pages. Excerpt: "Issue: Whether the transactions in the following situations are, for federal tax purposes, a sale of a home by an employee to an employer through the employer's agent, a relocation management company, followed by a separate sale of that home by the employer to a third party buyer, or one sale of the home from the employee to the third party buyer facilitated by the employer through the relocation management company." (Internal Revenue Service) Opinion: How We Pay for Health Care and What We Pay For Excerpt: "Doctors at UCSF's Institute of Health Policy Studies confirmed this month that California's health-care system suffers from an acute case of clogged arteries. In a study of spending by physicians and hospitals, lead author James G. Kahn revealed that 21 percent of their costs go to billing and insurance-related expenses. What a waste -- a fifth of our state's health spending dedicated to sending bits of paper flying around to ensure that everyone gets paid what they should." (San Francisco Chronicle) Report: Blue Cross Influence Grows in Boston as State Revisits Reform Debates Excerpt: "In June 2005, a team of researchers visited Boston to study that community's health system, how it is changing and the effects of those changes on consumers." (Center for Studying Health System Change) Multiplier Effect: The Financial Consequences of Worker Absences Excerpt: "'Relative to a healthy person, an employee in poor health is more likely to be absent from work and less productive when he or she is at work,' .... A recent study suggests that these indirect costs of poor health may actually exceed direct medical costs. [To read the 22 page 'How to Present the Business Case for Healthcare Quality to Employers.' go to http://knowledge.wharton.upenn.edu/papers/1303.pdf.]" (Wharton School of the University of Pennsylvania) Unusual Health Care Plans Haven't Been Catching On Excerpt: "[Consumer-driven plans], heralded as an antidote for skyrocketing health costs when they arrived on the scene a few years ago, have not gained traction as expected. They do seem to save money, and big employers have embraced them, but they can be too expensive or confusing for some companies." (Philadelphia Inquirer via BlueCross BlueShield Association) Does Consumer-Directed Health Care Make Enrollees Good Consumers? Excerpt: "While consumer-directed health (CDH) plans receive high marks for inspiring enrollees to conserve HRA dollars once the deductible and out-of-pocket limit are met, the plans provide little incentive for enrollees to be good consumers of health care, according to Meredith Rosenthal, assistant professor of economics and policy at the Harvard School of Public Health." (INSIDE CONSUMER-DIRECTED CARE via AISHealth.com) New Workforce Study, 'Nonstandard Jobs, Substandard Benefits,' Points to Hidden Uninsured (PDF) 52 pages. Excerpt: "The number of uninsured Americans may be greater than the commonly reported figure of 46 million, ....... In a household survey of fringe benefits available to U.S. workers in part-time, temporary, contract and on-call positions, the authors found that medical discount cards were commonly mistaken for health insurance. It also found that such 'nonstandard' jobs provide few fringe benefits such as health insurance." (Iowa Policy Project via Center for a Changing Workforce) Links to Items on Executive Comp, Benefits in General Text of December 2005 Special Edition of IRS-Published 'Employee Plans News' (PDF) Excerpt: "This Special Edition contains a reminder that the Abusive Transaction Settlement Initiative is open until January 23, 2006. In addition, more relief for hurricane victims has been issued." (Internal Revenue Service) Overview: Application of New Deferred Compensation Rules to Equity Compensation Excerpt: "This article provides general guidelines to help you identify plans that may be exempt from the rules and plans that may need to be amended to comply with the rules. In the case of a plan that needs to be amended, this article highlights some alternatives to consider that would allow plan participants to continue to defer compensation amounts without current taxation." (Deloitte's Washington Bulletin via BenefitsLink.com) Overview: U.S. Supreme Court to Reconsider the Scope of Equitable Relief under ERISA (PDF) 2 pages. Excerpt: "The U.S. Supreme Court will again consider the scope of equitable relief under ERISA. The Supreme Court's decision could impact a wide variety of claims for fiduciary breach brought by participants under ERISA § 502(a)(3)." (Proskauer Rose LLP) Hewitt Federal Legislation Quick Guide Updated as of November 29, 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) Newly Posted Events Advanced IRA Distribution Training for Financial Advisors in California on May 5, 2006 presented by NF Communications, Inc. Consumerism in Health Care Survey Release Dec. 8 in District of Columbia on December 8, 2005 presented by Kaiser Family Foundation Distributions and Taxation in Ohio on January 13, 2006 presented by SunGard Corbel Distributions and Taxation Workshop in Ohio on January 13, 2005 presented by SunGard Corbel Distributions and Taxation Workshop in Ohio on January 13, 2005 presented by SunGard Corbel Distributions and Taxation Workshop in Colorado on January 12, 2006 presented by SunGard Corbel Distributions and Taxation Workshop in Ohio on January 12, 2006 presented by SunGard Corbel Distributions and Taxation Workshop in Tennessee on January 12, 2006 presented by SunGard Corbel Distributions and Taxation Workshop in Missouri on January 13, 2006 presented by SunGard Corbel Pension Plans and Retirement Security Nationwide on December 1, 2005 presented by Diane Rehm Show Plan Design Workshop in Wisconsin on February 8, 2006 presented by SunGard Corbel The Ultimate Marketing BootCamp for Financial Advisors in Texas on March 2, 2006 presented by NF Communications, Inc. Newly Posted Press Releases PBGC To Adopt Updated Mortality Table (Pension Benefit Guaranty Corporation (PBGC)) Alliance Benefit Group of Illinois Selects ICC Plan Solutions For H.S.A. Enrollment Materials (Metrics Partners) U. S. Labor Department Acts to Improve Access of Hurricane Victims To 401(k) Loans and Withdrawals (U.S. Department of Labor, Employee Benefits Security Administration) Movers and Shakers: Newly Posted Announcements of Promotions and New Personnel (Post Yours!) Mark Bennett (IndyMac Bank) Newly Posted or Renewed Job Openings Health Benefits Analyst for Segal is a leading employee benefits, compensation, and human resources consulting firm. in NY Client Services Team Coordinator for ICMA-RC in DC Client Services Senior Specialist for ICMA-RC in DC Pension Administrator for Truog-Ryding Company, Inc. in CA Field Sales Coordinator for Transamerica in CA External Wholesaler for Transamerica in CT Handy Links:
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