| BenefitsLink Welfare Plans Newsletter |   |
December 27, 2005
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Huge Rise Looms for Health Care in New York City's Budget
Excerpt: "[T]he cost of pensions may look paltry next to that of another benefit soon to hit New York and most other states and cities: the health care promised to retired teachers, judges, firefighters, bus drivers and other former employees, which must be figured under a new accounting formula." (The New York Times; one-time registration required)
Gulf Opportunity Zone Act Expands KETRA and Makes Technical Corrections that Affect DCAPs & HSAs
Excerpt: "The Gulf Opportunity Zone Act of 2005 was signed into law on December 21, 2005. This new law extends a variety of tax benefits to what it defines as the 'Gulf Opportunity Zone.' Included among them is an extension of KETRA's retirement-plan-related tax relief (enacted for victims of Hurricane Katrina) to the victims of Hurricanes Rita and Wilma." (Employee Benefits Institute of America Inc.)
Editorial: National Football League Players Have Great Difficulty Getting NFL Disability Benefits
Excerpt: "Ironically, a federal law intended to protect pensions, the Employee Retirement Income Security Act, has the unintended effect of making it more difficult for claimants such as Mr. Washington to get benefits. ERISA does not allow punitive damages when courts find that disability benefits have been wrongly withheld. The result is that there's no penalty for fighting or delaying claims." (The Hartford Courant; one-time registration required)
Not Just for MEWAs: DOL 2005 Form M-1 Instructions Include Revised ERISA Compliance Checklists
Excerpt: "The DOL's Employee Benefits Security Administration (EBSA) has issued the Year 2005 Form M-1 and accompanying Instructions, which include revised self-compliance checklists that are useful for all group health plans, not just Form M-1 filers." (Employee Benefits Institute of America Inc.)
Opinion: Health Costs Will Cause More Strikes
Excerpt: "'Employee benefits are a very big deal in labor issues,' said David Cutler, a professor of economics at Harvard University. 'Pensions and health are the main costs companies face, and they don't know what to do about them.'" (San Francisco Chronicle)
Michigan Companies Tout Dieting Incentives for Employees
Excerpt: "Losing weight is earning some Michigan workers more than a slimmer waistline. At the Clarkston-based Freedom One Financial Corp., employees who meet weight loss goals are earning tropical vacations." (AP via The Washington Post; one-time registration required)
Links to Items on Executive Comp, Benefits in General
Summary: Defined Contribution and Healthcare Provisions in HR 2830
Excerpt: "Defined Contribution, Long Term Care, and Flexible Spending Account Provisions in Managers Amendment to H.R. 2830 -- In addition to its sweeping reforms to defined benefit plans, the Pension Protection Act of 2005 (H.R. 2830) passed by the House on December 15 also contained several provisions related to defined contribution plans, long term care, and flexible spending accounts." (The ERISA Industry Committee)
SEC Rejects Cisco's Proposal to Value Options, but Encourages More Work on the Issue
Excerpt: "On September 9, the US Securities and Exchange Commission (SEC) put the kibosh on a Cisco proposal intended to value options according to their market worth -- and possibly ease the financial impact of new requirements to expense them. Cisco wanted to value options by creating a financial instrument that would mimic the terms and conditions of a stock option, but the agency said its design would not lead to a reasonable 'fair value' estimate." (PLANSPONSOR.com; one-time registration required)
Overview: Final USERRA Rights Posters Issued with Slight Revisions
Excerpt: "Employers were required to provide the prior USERRA notice effective March 10, 2005, and employers should post the new version of the notice on or before January 18, 2006 (notwithstanding the minor nature of the changes made)." (Employee Benefits Institute of America Inc.)
Overview: Year-End Action under Section 409A (PDF)
2 pages. Excerpt: "As year-end approaches, employers should assess whether they need to take any last-minute action to document their use of the nonqualified deferred compensation cancellation and termination transition rules of Notice 2005-1." (Sutherland Asbill & Brennan LLP)
Tax Corrections in Gulf Opportunity Zone Act: Nonqualified Deferred Comp and 'Definition of Child'
Excerpt: "The President on December 21, 2005 signed into law the Gulf Zone Opportunity Act of 2005 (H.R.4440) ('GOZA') providing hurricane reconstruction aid and relief. The Act also provided a number of tax technical corrections including, among other things, provisions affecting nonqualified deferred compensation ('NQDC') and revisions to the uniform definition of child (cf. Working Families Tax Relief Act of 2004)." (The ERISA Industry Committee)
News Scan, December 2005 -- Summaries of News in the Benefits Industry (PDF)
10 pages. This edition includes the following items: IRS Extends Effective Date for Proposed IRC 415(b) Grandfather Rule; Sixth Circuit Court Finds Kentucky Retirement Plans Not Age Discriminatory; NCPERS Health Care Bill Included in Pension Protection Act; and, NCTR Surveys Legal Characteristics of Statewide Retirement Systems. (Gabriel, Roeder, Smith & Company)
New 'International Benefits' Type Classification on BenefitsLink
We have revised our list of document 'types' to include those about 'international benefits.' So newly added documents about Canadian, European, Japanese or other benefit systems (welfare and well as retirement plans) will be categorized as an 'International benefits' type of document on our new What's New page. If you'd prefer not to see such listings, just leave the 'International benefits' box unchecked on your bookmarked, personalized What's New page. (BenefitsLink)
Overview: Department of Labor Issues USERRA Regulations
Excerpt: "More than 11 years after the enactment of the Uniformed Services Employment and Reemployment Rights Act of 1994 ('USERRA' or the 'Act') and more than a year after issuing proposed regulations, the Department of Labor (DOL) has issued regulations to guide employers and employees in navigating the rocky terrain of rights and responsibilities under the Act -- and not a moment too soon." (Seyfarth Shaw LLP)
Overview: Final USERRA Regulations Address Health Plans and 401(K) Plans
Excerpt: "[T]he guidance regarding cancellation of health coverage was added to help employers avoid paying premiums for employees who don't want continuation coverage but fail to advise employers of that fact. Many will appreciate the green light to streamline health plan administration by using COBRA-compliant procedures wherever possible." (Employee Benefits Institute of America Inc.)
Company's Options Program Not Governed by ERISA
Excerpt: "Because the employer's stock option plan was not an Employee Retirement Income Security Act (ERISA)-governed welfare or benefit program, an employee can't sue under ERISA over the company's refusal to allow him to exercise his options." (PLANSPONSOR.com; one-time registration required)
Newly Posted Press Releases
ASPPA's New Retirement Plan Fundamentals (RPF) Exams to Replace Pension Administrator (PA) Exams in 2006
(ASPPA (American Society of Pension Professionals & Actuaries))
FirstCarolinaCare Teams with ACS to Provide Health Savings Accounts
(FirstCarolinaCare, Inc)
Newly Posted or Renewed Job Openings
401(k) Client Relationship Manager
for The Douglas Group
in CA, CO, IL, NJ, NY, PA, TX
Enrolled Actuary Manager
for RSM McGladrey Inc.
in AZ
Defined Benefit Pension Administrator
for RSM McGladrey Inc.
in AZ
Defined Benefit Calculation Analyst
for Diversified Investment Advisors, Inc.
in MA
Pension Administrator
for Premier Recruiters & Associates
in DC, MD, VA
Retirement Plan Compliance Analyst
for Leggette Actuaries, Inc.
in TX
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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