| BenefitsLink Welfare Plans Newsletter |   |
December 22, 2005
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Federal Employees Health Benefits Program: Early Experience with a Consumer-Directed Health Plan
Excerpt: "GAO was asked to study the first FEHBP CDHP, offered by the American Postal Workers Union (APWU). GAO compared the number, characteristics, and satisfaction of APWU enrollees to those of FEHBP enrollees in other recently introduced (new) non-CDHP plans, and national preferred provider organization (PPO) plans. GAO also compared the APWU CDHP provider networks and discounts to those of other FEHBP plans. [Highlights of the report are at http://www.gao.gov/highlights/d06143high.pdf.]" (U.S. Government Accountability Office)
Senate Passes Bill to Extend 1996 Mental Health Parity Law
Excerpt: "The Senate on Thursday by voice vote passed a bill (HR 4579) that would extend for one year a mental health parity law under which health insurers cannot place caps on annual or lifetime mental health benefits unless they place similar caps on medical and surgical benefits, ...." (Kaiser Family Foundation)
Insurers and Analysts See More Health Plan Consolidation in 2006
Excerpt: "Health insurers and analysts are predicting more mergers and acquisitions in the sector in 2006 -- but expectations are mixed on whether such deals will be limited to smaller regional firms, or if 2006 could bring more blockbusters like those seen in 2005." (MANAGED CARE WEEK via AISHealth.com)
New Accounting Rule Likely to Prompt U.S. Companies to Reduce Retiree Health Benefits
Excerpt: " Newhouse/Newark Star-Ledger on Tuesday examined how U.S companies have 'promised workers hundreds of billions of dollars' worth of retiree health care, while setting aside little money to pay these costs.'" (Kaiser Family Foundation)
Hearing Notice: Employer Comparable Contributions to Health Savings Accounts under Section 4980G (PDF)
1 page. Excerpt: "This document contains a notice of public hearing on proposed regulations providing guidance on employer comparable contributions to Health Savings Accounts (HSAs) under section 4980G. DATES: The public hearing is being held on February 23, 2006, ...." (Federal Register via BenefitsLink.com)
Links to Items on Executive Comp, Benefits in General
Employee Plans News, Winter 2006 Edition (PDF)
16 pages. This edition includes the following articles: New User Fee Schedule for 2006; Relief for Relative Value Disclosures; Amendments: When to Adopt; They're Here: The 2006 Dollar Limitations!; To Sum it All Up: The 2005 Cumulative List; 2006 EP Work Plan; and, the New 401(k) Resource Guide. (U.S. Internal Revenue Service)
Adapting to an Option Expensing Environment: Three Steps to Prepare Your Organization Immediately (PDF)
7 pages. Excerpt: "The call to treat employee stock options as an income statement expense is among the loudest and most contentious cry coming out of the public debate on corporate reform." (Buck Consultants)
AARP Report Says Hiring Older Workers Makes Financial Sense
Excerpt: "Hiring managers only have to shell out as much as 3% extra to attract key 50+-year-old employees, but are likely to get an unusually well-motivated worker in return. That was the conclusion of a new Towers Perrin research report prepared for AARP that set out to examine traditional fears that hiring older workers would be significantly more expensive than bringing on their younger counterparts, according to an AARP news release." (PLANSPONSOR.com; one-time registration required)
Topics in Aging: Income and Poverty Among Older Americans in 2004 (PDF)
23 pages. Excerpt: "Older persons receive income from a variety of sources, including earnings, pensions, personal savings, and public programs such as Social Security Supplemental Security Income. Using data from the March 2005 Current Population Survey, this report describes the number of elderly receiving income from each these sources and the extent to which income from each source is either concentrated at the high- or low-end of the income distribution or is evenly distributed." (Congressional Research Service)
Overview: Section 409A Can Catch the Unwary
Excerpt: "By now, many employers are aware that Internal Revenue Code Section 409A imposes new requirements with respect to deferred compensation. Although there is still considerable uncertainty as to what Section 409A requires, it is clear that arrangements that have not commonly been considered to be deferred compensation, such as certain severance agreements, employment agreements, change in control agreements, and bonus plans, may also be subject to Section 409A." (Faegre & Benson LLP)
'Twas the Night Before Christmas -- 409A Version
Excerpt:'Not long before Christmas when what should appear but a bearer of tidings of a busy new yearIn the form of new guidance relating to payWell, not everything but deferred comp anyway" (Faegre & Benson LLP)
NYC Transit Strike Stakes: Other Unions and Mgmt Teams Watch Wages and Benefits Negotiations
Excerpt: "It's a collision America is seeing more often: Management tries to have workers move back their retirement age and pay more for healthcare, while workers try to keep their benefits and make up for lost ground on wages." (The Christian Science Monitor)
Hewitt Federal Legislation Quick Guide Updated as of December 20, 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: President's Advisory Panel's Tax Reform Report (PDF)
7 pages. Excerpt: "The President's Advisory Panel on Federal Tax Reform has issued its report, Simple, Fair & Pro-Growth: Proposals to Fix America's Tax System. .... This For Your Information describes the panel's proposals, focusing on elements that would have a direct impact on employee benefits, compensation, and personal savings arrangements." (Buck Consultants)
Overview: Final Rules on Military Service for Employee Benefits -- USERRA
Excerpt: "On December 19, 2005, the Department of Labor (DOL) issued final rules amending the Uniformed Services Employment and Reemployment Rights Act (USERRA). These final rules adopt, with some changes, interim rules issued on March 10, 2005." (Ice Miller)
Fact Sheet: The IRS Settlement Initiative, FS-2005-17, October 2005
Excerpt: "The Internal Revenue Service ... announced a settlement initiative for taxpayers to resolve their tax disputes with the IRS over certain abusive tax avoidance transactions. The initiative is open until January 23, 2006. [Attached to this Fact Sheet are four related documents: Eligible Transactions; IR-2005-129, IRS Launches Abusive Transaction Settlement Initiative; Announcement 2005-80FAQs for Announcement 2005-80.]" (U.S. Internal Revenue Service)
Summary of Major U.S. Federal and State Labor and Employment Laws (PDF)
7 pages. Excerpt: "A summary of the major state and federal statutes governing the employment relationship [is provided in both English and German]." (Gardner Carton & Douglas)
Newly Posted Events
ERISA Stock Drop Litigation: Preparing Your Organization For A Surge In Claims
Nationwide on January 19, 2006
presented by Morgan Lewis & Bockius LLP
Newly Posted Press Releases
Latest PBGC Pension Report Uses Old Data; Misses New Pension Freezes
(Employee Benefit Research Institute (EBRI))
Retiree Drug Benefit Options Prove Successful In Helping Employers Continue Valuable Benefits
(American Benefits Council)
ACLI Praises Senate Passage Of Long-Term Care Partnership Provision
(American Council of Life Insurers)
Newly Posted or Renewed Job Openings
Retirement Plan Administration Specialist
for Consulting Actuaries Incorporated
in NJ
New Business Consultant
for New York Life Investment Management LLC
in MA
Manager, Cash Management/Financial Transactions
for ExpertPlan, Inc.
in NJ
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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