| BenefitsLink Welfare Plans Newsletter |   |
February 15, 2007
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IRS Notice 2007-22: Rollovers from FSAs or HRAs into Health Savings Accounts (PDF)
14 pages. Excerpt: "[T]he new rules provide, in limited circumstances, for certain amounts in a health FSA or HRA to be rolled over into an HSA and for the rollover to receive favorable tax treatment. . . . By plan year end, [t]he plan must be amended, [t]he employee must elect the rollover, [t]he year-end balance must be frozen [and the] funds must be transferred by the employer within two and a half months after the end of the plan year and result in a zero balance in the health FSA or HRA." (Internal Revenue Service)
Senate Panel Passes Mental Health Parity Bill
Excerpt: "A Senate committee [yesterday] overwhelmingly approved legislation mandating parity for mental health benefits in group health care plans. The legislation, which cleared the Health, Education, Labor and Pensions Committee on an 18-3 vote, would require plans to provide the same cost-sharing requirements for mental health expenses as they impose for other medical expenses." (Business Insurance)
Bipartisan Group of Senators Offers President Bush a Blueprint for Increasing Health Care Coverage
Excerpt: "A bipartisan group of senators on [February 13] asked President Bush to work with them on a proposal to expand health insurance to all U.S. residents, the AP/San Francisco Chronicle reports." (Kaiser Family Foundation)
Promises of Coverage to Employees - What Happens When the Coverage Falls Through? Part 2
Excerpt: "To put this article in context, this discussion follows the previous review of a companion case, Hopper v. Standard Ins. Co., Slip Copy, 2007 WL 433366 (D.N.H.) (February 07, 2007), in which an new hire sought assurance of insurance coverage, received it, became disabled and sued the employer, the insurance broker and the LTD carrier." (Health Plan Law blog by Attorney Roy F. Harmon III)
Attorney Not Liable for Plan Fiduciary Misconduct
Excerpt: "A federal judge has dismissed legal malpractice and breach of fiduciary duty claims brought by health plan trustees against an attorney who represented them in an Employee Retirement Income Security Act (ERISA) suit." (PLANSPONSOR.com; free registration required)
Article on Health Plan Fee Increases for Federal Workers and Retirees, Followed by an Opinion
Excerpt: "The FEHBP program perpetuates inequitable access to health benefits, inequitable funding of health care, profound administrative waste, and, in so doing, takes away choice of health care providers, limiting access to the insurers' network providers. And now the FEHBP program is increasing the financial burden of those who do need health care, limiting access because of the lack of affordability." (The Sacramento Bee and Physicians for a National Health Program)
Kaiser Permanente to Study Complex Roots of Disease
Excerpt: "The health care company Kaiser Permanente announced Wednesday that its researchers had begun a study into the complex interplay of genetics, environmental factors and lifestyles that cause many common diseases." (The New York Times; free registration required)
A Conversation with David J. Brailer on Health Information Technology
Excerpt: "The first U.S. national health care information technology (IT) coordinator estimates that if the current rate of interoperable electronic health record (EHR) adoption is sustained through 2014, it would create a launchpad for quality gain and health care spending reduction in excess of 50 percent in the subsequent decade." (Health Affairs)
Sen. Kerry Eyes Federal Pool for Sickest Workers
Excerpt: "With an eye towards making it more attractive for small businesses to provide health insurance benefits, Sen. John Kerry plans to introduce a bill to create a federal reinsurance pool to help employers pay for the care of seriously ill employees." (CFO.com)
Opinion: A Health Care Plan So Simple, Even Stephen Colbert Couldn't Simplify It
Excerpt: "In his State of the Union address, President Bush proposed tax cuts to make health insurance more affordable for the uninsured. The next day, Stephen Colbert had this to say on his show on Comedy Central: 'It's so simple. Most people who can't afford health insurance also are too poor to owe taxes. But if you give them a deduction from the taxes they don't owe, they can use the money they're not getting back from what they haven't given to buy the health care they can't afford.'" (The New York Times; free registration required)
Congress May Prohibit Genetic Testing for Jobs or Health Coverage
Excerpt: "The Democratic-controlled Congress, with the backing of President George W. Bush, may soon pass the first U.S. legislation preventing the use of genetic testing by employers and insurers." (Bloomberg)
Senate Committee Approves Mental Health Parity Bill
Excerpt: "The Senate Health, Education, Labor and Pensions Committee [yesterday] approved by an 18-3 vote a bill mandating parity for mental health benefits in group health care plans." (PLANSPONSOR.com; free registration required)
Hewitt Federal Legislation Quick Guide Updated February 13, 2007, for Health and Welfare Plans (PDF)
8 pages. This 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. (Hewitt Associates)
Links to Items on Executive Comp, Benefits in General
Rev. Rul. 2007-12: Liability of Accrual Basis Employer for Payroll Taxes on Deferred Compensation (PDF)
6 pages. Excerpt: "If the all events test and recurring item exception of § 461 are otherwise met, an accrual basis taxpayer may treat its payroll tax liability as incurred in Year 1, regardless of whether the compensation to which the liability relates is deferred compensation that is deductible under § 404 in Year 2." (Internal Revenue Service)
Overview: IRS's Section 409A Compliance Program for Discounted Stock Options (PDF)
5 pages. Excerpt: "The Program also provides certain reporting relief for employers, but it does not affect either the employer's obligation to report on Form W-2 the employee's compensation income from exercising the stock right or the employee's obligation to report and pay income tax on that compensation income." (Sutherland Asbill & Brennan LLP)
Overview: Compliance Resolution Program for 2006 Exercise of Backdated & Discounted Options & SARs (PDF)
3 pages. Excerpt: "The Internal Revenue Service issued Announcement 2007-18, which implements a compliance resolution program for employers whose employees exercised stock options or stock appreciation rights during 2006 that did not comply with the requirements of Section 409A of the Internal Revenue Code of 1986." (Pillsbury Winthrop Shaw Pittman LLP)
Overview: IRS February 28, 2007, Deadline for Employee Relief on Discounted Employee Options
Excerpt: "Any company that may have granted discounted options that were exercised in 2006 should carefully (and promptly) consider the new IRS program." (Orrick, Herrington & Sutcliffe LLP)
Overview: IRS Announcement 2007-18
Excerpt: "On February 8, the Internal Revenue Service (IRS) released Announcement 2007-18 that permits employers to pay the additional taxes incurred by certain covered individuals arising under Internal Revenue Code Section 409A due to the exercise of certain discounted stock options or stock appreciation rights (stock rights) in 2006." (J.P. Morgan Retirement Plan Services, LLC)
Hewitt Global Report -- Fourth Quarter 2006 Themes (PDF)
7 pages. Excerpt: "Antidiscrimination issues were a common theme in legislation passed or proposed during the third quarter of 2006. As governments try to cope with labor shortages exacerbated by aging populations, legislation abolishing the mandatory retirement age is becoming more common." (Hewitt Associates)
Court Denies Dismissal Motions in Shareholder Derivative Actions on Timing of Stock Option Grants
Excerpt: "On February 6, 2007, Chancellor Chandler of Delaware's Court of Chancery issued two important decisions relating to the purported manipulation of stock option grant dates. In both cases the court denied the defendants' motions to dismiss in large part. Given the prominence of Delaware's Court of Chancery in corporate matters, these decisions deserve careful analysis, and may provide useful lessons and insights in future stock option litigation." (Paul, Hastings, Janofsky & Walker LLP)
Hewitt Federal Legislation Quick Guide for February 13, 2007, on Human Resources & Employment Law (PDF)
6 pages. This 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 human resources and employment law. (Hewitt Associates)
2007 Top Five Total Rewards Priorities Survey (PDF)
9 pages. Excerpt: "Health care costs are still a pressing priority, but talent shortages represent a greater challenge. As we move forward in the 21st century, demographics and globalization trends outweigh other issues." (Deloitte Consulting LLP and the International Society of Certified Employee Benefit Specialists)
Newly Posted Events
401(k) Plans
in Washington on March 27, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
401(k) Plans
in Oregon on April 10, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Advanced Valuation: Special Topics
Nationwide on March 8, 2007
presented by National Center for Employee Ownership
Cafeteria Plans
in Washington on March 28, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Cafeteria Plans
in Oregon on April 11, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Washington on March 30, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
COBRA Compliance for Group Health Plans
in Oregon on April 13, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Washington on March 29, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
ERISA Compliance for Health & Welfare Plans
in Oregon on April 12, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Washington on March 30, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HIPAA Portability, Privacy & Security
in Oregon on April 13, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Washington on March 29, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
HSAs, HRAs, and Consumer-Driven Health Care
in Oregon on April 12, 2007
presented by Employee Benefits Institute of America Inc. (EBIA)
Newly Posted Press Releases
Meaningful Hiring, Orientation Programs Key to Long-Term Success, Watson Wyatt Finds
Watson Wyatt
Schwab's New '15-Minute IRA' Makes It Easier Than Ever to Open and Fund an Individual Retirement Account
Charles Schwab & Co., Inc.
U.S. Labor Department Announces New Rule for Distributions to Missing Non-spouse Beneficiaries
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Funding Status of U.S. Pension Plans Improved in January, According to Mellon Financial
Mellon Financial Corporation
Council Commends Mental Health Parity Bill Passed by Senate HELP Committee
American Benefits Council
Treasury, IRS Issue Guidance Helping Employees Transition To HSAs
U.S. Treasury Department and Internal Revenue Service
NCQA to Require Quality Measurement, Improvement of All Health Plans
NCQA
Travel Guard Comes to the Aid of Stranded Winter Travelers
AIG Travel Guard
Connecture Targets Small Health Plans
Connecture, Inc.
Newly Posted or Renewed Job Openings
Defined Benefit Software Customer Support
for DATAIR Employee Benefit Systems, Inc.
in IL
Defined Contribution Software Customer Support
for DATAIR Employee Benefit Systems, Inc.
in IL
401(k) Account Manager
for Great-West Retirement Services
in WI
Plan Administrator
for LPC
in CA
Retirement Plan Administrator
for PEN-CAL Administrators, Inc.
in CA
Plan Administrator
for The Newport Group
in NC
Regional Service Coordinator
for Standard Insurance Company
in TX
Communications Consultant, Retirement Services
for Fidelity Investments
in MA, NH
Business Development Associate
for World's Premier Provider of Account Administration Services
in CA
Compliance Analyst
for The Newport Group
in FL
Actuary
for Acuff & Associates, Inc.
in TN
Defined Contribution Client Management Specialist
for Prudential Retirement
in IA, PA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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