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February 2, 2007
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Senate Panel Passes Bill To Ban Genetic Discrimination
Excerpt: "The Senate Health, Education, Labor and Pensions Committee on Wednesday voted 19-2 to approve a bill (S 358) under which employers and health insurers could not discriminate against U.S. residents based on the results of genetic tests, CongressDaily reports . . . ." (Kaiser Family Foundation)
Judge Overrides Life Insurance Beneficiary Designation
Excerpt: "Even though a life insurance plan participant had designated his girlfriend as a beneficiary, a federal judge has ordered that benefits actually be paid to the participant's wife." (PLANSPONSOR.com; free registration required)
U.S. Trails Most Nations on Family-Oriented Workplace Policies, According to Study
Excerpt: "The United States lags far behind virtually all wealthy countries with regard to family-oriented workplace policies such as maternity leave, paid sick days and support for breast-feeding, a new study by Harvard and McGill University researchers says." (USA TODAY)
Economists Question Savings from Health IT
Excerpt: "The widespread adoption of electronic prescriptions and electronic health records may actually increase costs for health providers, according to economists Robert Reischauer, president of the Urban Institute, and Eugene Steuerle, a senior fellow from the institute, Health IT Strategist reports." (California HealthCare Foundation; free registration may be required)
Health IT: Early Efforts Initiated but Comprehensive Privacy Approach Needed for National Strategy
Excerpt: "GAO recommends that HHS define and implement an overall privacy approach that identifies milestones for integrating the outcomes of its initiatives, ensures that key privacy principles are fully addressed, and addresses challenges associated with the nationwide exchange of health information. [Highlights of the report are at http://www.gao.gov/highlights/d07238high.pdf.]" (U.S. Government Accountability Office)
Working Paper Abstract: Integrated Insurance Design in the Presence of Multiple Medical Technologies
Excerpt: "The classic theory of moral hazard concerns the insurance of a single good and predicts that co-insurance is larger when the elasticity of demand is higher and when small risks are insured. We extend this analysis to the insurance of multiple goods; for example, the simultaneous insurance of medical services and prescription drugs." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full-text)
Regulating Health Insurance Rates Could Become Hot Topic in Hawaii
Excerpt: "Lawmakers and state officials plan to revive health insurance rate regulation, which is likely to stir heated debate in the Legislature this session. Hawaii is one of only four states that does not regulate health insurance premiums for businesses. A law that provided for such regulation was not renewed by the Legislature last year." (Pacific Business News (Honolulu) via bizjournals.com; free registration required)
Health Plan Subrogation Dispute Remanded to State Court
Excerpt: "This case involves an interesting twist on the typical health plan subrogation and reimbursement case. Instead of a dispute between the health plan and a plan participant or beneficiary, the State Farm decision involved an automobile insurance company and a group health plan." (Health Plan Law blog by Attorney Roy F. Harmon III)
Research Could Inform Wellness Program Choices
Excerpt: "A new report detailing that diet and exercise are equally effective at achieving weight loss could help advisers and their clients make wellness program decisions." (The Adviser)
Opinion: How to Cure the Health Insurance Crisis
Excerpt: "The real question is: Would new forms of insurance spring up to meet a new demand for lower-premium policies? In a free market, there's no reason to believe they wouldn't." (The Post Chronicle)
The Principal 10 Best Companies for Employee Financial Security
Excerpt: "[Principal understands] a company's greatest responsibility is taking good care of its employees. That is why, for five years now, the Principal has searched nationwide for the 10 best companies for employee financial security. Selected by blue ribbon panel of judges, The Principal 10 Best Companies-2006 have consistently given their employees the edge they need in life." (Principal Financial Services, Inc.)
Opinion: Health Reform -- A New Conversation
Excerpt: "Mr. Bush would give families the opportunity to own health insurance that is portable from job to job, and he would free up some of their tax money to help them buy the coverage. The White House estimates his plan also would give a tax cut to 100 million working Americans, without any new long-term costs to the federal treasury." (Galen Institute)
Opinion: The President's Health Care Proposal Misses the Point
Excerpt: "The president's proposal would set annual limits for the level of spending subsidized, which is good. But this new proposal does nothing to address the second complaint -- that the subsidy is upside down to begin with." (Urban Institute)
Links to Items on Executive Comp, Benefits in General
S.E.C. Approves New Method for Companies to Value Stock Options
Excerpt: "Can an auction of a new type of security prove that stock options are not worth as much as financial models say they are -- and therefore allow companies to report higher profits while handing out options to employees and executives?" (The New York Times; free registration required)
Overview of Accounting Changes for Split Dollar Life Insurance Arrangements (PDF)
2 pages. Excerpt: "This change is applicable for calendar year companies in 2008, but earlier application is permitted. The change can be recognized as a cumulative-effect adjustment to retained earnings. If benefits are not fully vested at the time of adoption, further charges to earnings will be required as well. Companies will be required to discuss the impact of this recent accounting pronouncement in their upcoming annual reports." (The Cochlan Group, Inc.)
Overview of New Rules to Maximize Tax-Effectiveness of COLI Purchases (PDF)
2 pages. Excerpt: "Tax-deferred asset growth and, ultimately, the tax-free cash inflows are the two major reasons why companies purchase life insurance to informally finance their nonqualified benefit plans. Recognizing the advantages and widespread use of utilizing corporate owned life insurance ('COLI'), the Internal Revenue Service ('IRS') has recently added new rules . . . ." (The Cochlan Group, Inc.)
Overview of Proxy Statements 2007: SEC Responds to Executive Compensation Disclosure Issues
Excerpt: "Those preparing 2007 proxy statements received welcome guidance from the Securities and Exchange Commission (SEC) on January 24, 2007, when the SEC updated its interpretations relating to Item 402 of Regulation S-K. This action follows the SEC's recent regulatory overhaul of its executive compensation disclosure requirements." (Paul, Hastings, Janofsky & Walker LLP)
Lawmakers Probably Will Change Non-Qualified Deferred Compensation Plan Provisions in H.R. 2
Excerpt: "The non-qualified deferred comp provisions that the Senate Finance Committee added to the minimum wage bill turned out to be broader than senators had expected, Sen. Ron Wyden, D-Ore., a Democratic committee member of the Senate Finance Committee, said Wednesday on CNBC." (National Underwriter Life & Health; free registration or paid subscription required)
Taxation of Stock Options and Restricted Stock: The Basics and Beyond (PDF)
Excerpt: "[I]t is important that executives fully understand the income tax treatment of options and restricted stock in order to maximize the after-tax value. This article presents the basic tax rules that apply to stock options and restricted stock, but also goes beyond the basics to discuss certain more complex issues and planning considerations." (Grant Thornton)
Overview: SEC Executive Compensation Disclosure Rules Effective for 2007 Proxy Season (PDF)
3 pages. Excerpt: "Included [in the target document] is a brief overview of the major components of the revised requirements and how the final rules in these areas differ from the rules as proposed, along with some practical considerations for those grappling with these enhanced requirements in the upcoming months." (The Cochlan Group, Inc.)
A 2007 Checklist for Transition Relief Under Section 409A (PDF)
1 page. Excerpt: "Generally, this transition relief moved certain deadlines to December 31, 2007. Final regulations will be effective January 1, 2008. In the meantime, use the checklist [on the target page] to assist you in this final transition period." (The Cochlan Group, Inc.)
Overview: Annual Information Statements for Incentive Stock Options & Employee Stock Purchase Plans
Excerpt: "The Internal Revenue Code requires companies to furnish, by January 31, 2007, annual information statements to any person who, during the 2006 calendar year, (1) exercised an incentive stock option (we refer to these options as 'ISOs') or (2) transferred a share of stock that such person previously purchased pursuant to a tax qualified employee stock purchase plan (we refer to these shares as 'ESPP Stock')." (Orrick, Herrington & Sutcliffe LLP)
Opinion: The Graying of the Boomers: Retirement Paradise Lost (and How to Regain It)
Excerpt: "The impending retirement of at least 82,826,479 baby boomers is expected to stress the federal budget as they collect Social Security and Medicare benefits. Social Security, Medicare and Medicaid, which cost $1 trillion in 2005, are expected to eat up 75% of the total federal budget by 2030. By 2050, people over 85 will rise to 19 million." (InsuranceNewsNet.com)
Compensation Costs in Private Industry Up 3.2 Percent in 2006
Excerpt: "The components of compensation differed in their rates of change. While increases in wages and salaries became greater, the sharp increases in benefit costs seen over the past several years slowed to a more moderate pace." (U.S. Bureau of Labor Statistics)
Newly Posted Events
First Quarter 2007 Update - Webcast
Nationwide on February 13, 2007
presented by McKay Hochman Co., Inc.
Form 5500 Update - 2007 - Webcast
Nationwide on April 3, 2007
presented by McKay Hochman Co., Inc.
Introduction to Retirement Plans - Webcast
Nationwide on April 17, 2007
presented by McKay Hochman Co., Inc.
Introduction to Retirement Plans - Webcast
Nationwide on April 24, 2007
presented by McKay Hochman Co., Inc.
Newly Posted Press Releases
Hewitt Associates Survey Reveals New Employer Trends in Retirement
Hewitt Associates LLC
Employee Benefits Security Administration Releases Field Assistance Bulletin on Investment Advice
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
U. S. Labor Department Obtains Judgment Restoring More Than $500,000 to Pay Health Benefits of Bankrupt Minneapolis Firm
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
New HSA Data Reveal Greater Use of the Bank Account when Employers Integrate their Health & Financial Solutions
UnitedHealth Group
Directors and Investors Back Majority Voting in Board Elections; Clear Links Between CEO Pay and Performance
National Association of Corporate Directors
New Website Educates Individuals on Value of Fixed Annuities in Strengthening Retirement Portfolios; Offers Access to Innovative Fixed Annuities
ELM Income Group, Inc
Newly Posted or Renewed Job Openings
401(k) Plan Administrator/Analyst
for The Pension Group, Inc.
in CA
Relationship Manager
for New York Life Investment Management - Retirement Plans Services
in MA
Senior Benefits Manager
for Hewitt Associates
in IL
Senior Budget Analyst
for University Of California, Office Of The President
in CA
Defined Benefit Department - Benefit Calculator
for The Angell Pension Group, Inc.
in ANY STATE
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