March 28, 2007 Sponsored by: The International Foundation of Employee Benefit Plans (Click on company name or banner to learn more.)
Plan that Pays Vacation Benefits from Employer's General Assets Is Not an ERISA Plan Excerpt: "EBIA Comment: Employers that wish to rely on ERISA's preemption provisions to avoid state law should take note: Creating a separate trust does not necessarily make a plan subject to ERISA." (Employee Benefits Institute of America Inc.) COBRA Presents Twists to Domestic Partner Benefits Excerpt: "If your health benefits insurance policy covers employees' same-sex domestic partners to the same extent as spouses, you'd think that those domestic partners would also be covered for all COBRA purposes. After all, it's the same insurance policy, right? Apparently, that's wrong." (Alexander Hamilton Institute) High-Deductible Plans Reduce Emergency Room Visits and Hospitalizations Excerpt: "from Spencer's Benefits Reports: Emergency room visits dropped significantly for patients with single-option high-deductible health plans (HDHPs), mainly for repeat visits for low- or indeterminate-severity care, according to a study recently conducted by the Harvard Medical School and Harvard Pilgrim Health Care." (Wolters Kluwer Law & Business) Lawmakers and Consumers Support Health IT, but Legislation Unlikely Excerpt: "Health IT continues to have widespread support on Capitol Hill, but passing health IT legislation has dropped to a low priority, according to congressional aides of both parties, Technology Daily reports." (California HealthCare Foundation; free registration may be required) Health Insurance Options Dwindle for Self-Employed: Group Plans Are Dropped or Become Unaffordable Excerpt: "Health plans offered by professional associations were once havens for millions of people who couldn't get coverage anywhere else. But as medical costs have soared, groups representing professions as varied as law and golf have been forced to stop offering the benefit or been dropped by insurers." (Los Angeles Times via California Nurses Association / National Nurses Organizing Committee) Health Insurance Industry Works to Avert Health Insurance Crisis Excerpt: "The health insurance industry's bad dreams about a single-payer, government-run health care system seem to be easing - at least for now. Instead, health insurers are getting behind a growing movement aimed at reducing the ranks of the nation's 47 million uninsured by improving the existing mix of public- and private-sector insurance options." (Business First of Columbus via bizjournals.com; free registration required) Fidelity Says Retirees Need $215,000 to Cover Health Care Costs Excerpt: "The average 65-year-old couple needs an estimated $215,000 to cover health care costs in retirement, which is $15,000 greater than the amount Fidelity Investments predicted they would need last year." (PLANSPONSOR.com; free registration required) CalPERS Calls on House Members to Preserve Access to Safe, Affordable Generics Excerpt: "Congress needs to introduce competition into the biopharma.ceutical marketplace by giving the Food and Drug Administration (FDA) authority to approve safe biogenerics, a trustee of the nation's third largest health care purchaser urged today." (CalPERS via PharmaLive.com) Overview: Civil Rights Law Doesn't Require Employers to Cover Contraceptives, 8th Circuit Rules Excerpt: "A group health plan that excludes coverage for all male and female contraceptives – except when medically necessary for a non-contraceptive purpose – does not violate the Pregnancy Discrimination Act (PDA), according to a recent decision by the Eighth Circuit Court of Appeals." (Deloitte via BenefitsLink.com) Hearing on Mental Health and Substance Abuse Parity, March 27, 2007 Excerpt: "The hearing [focused] on legislation and options to provide mental health and substance abuse treatment parity in private health insurance and in Medicare." (U.S. Committee on Ways and Means, Subcommittee on Health) Overview: IRS Guidance on Rollover from FSAs and HRAs to Health Savings Account (PDF) 2 pages. Excerpt: "HOPE provides for 'qualified HSA distributions' before January 1, 2012. A qualified HSA distribution is a direct distribution from an FSA or HRA to an HSA. The distribution cannot exceed the lesser of the balance in the health FSA or HRA on (1) September 21, 2006, or (ii) the date of the distribution." (Winston & Strawn LLP) Sponsored by: World Congress (Click on company name or banner to learn more.)
Links to Items on Executive Comp, Benefits in General At the Energy Department, Benefits Are a Growing Liability Excerpt: "Costs and liabilities for pension and health-care benefits for contract employees are projected to grow at a rate 'that significantly exceeds likely increases in the department's budget,' the Energy Department reported in a Federal Register notice." (The Washington Post; free registration required) IRS Expected to Publish Final Regulations Under New Code Section 409A Soon (PDF) 1 page. Excerpt: "This will be a significant event for every employer in America, because: (a) these regulations can apply to employment and change in control agreements, severance plans and even equity compensation plans, in addition to deferred compensation plans, which were the original target of Congress, and (b) Employers will have until the December 31, 2007 deadline to take a series of required steps." (Winston & Strawn LLP) A Preview of the Final Section 409A Regulations Excerpt: "As 'A-Day' approaches (i.e., the release day for final section 409A regulations), this Legal Alert sets the stage for final regulations with -- (1) a list of what to look for in the final regulations, and (2) a brief review of interim guidance issued since the proposed regulations." (Kilpatrick Stockton LLP) IRS Study of Exempt Organization Executive Compensation Reveals Significant Reporting Issues Excerpt: "A three-year study of executive compensation compliance by the IRS Tax Exempt and Government Entities (TE/GE) Division revealed that significant reporting issues exist despite the good intentions displayed by exempt organizations to properly report executive compensation . . . ." (Wolters Kluwer Law & Business) Idaho Governor Vetoes Bill on State Worker Benefits Excerpt: "Gov. C.L. 'Butch' Otter announced another veto Tuesday, his fifth of the 2007 Legislature, saying a bill to boost state employee benefits violated Idaho's policy of concentrating on boosting wages." (The Times-News) Newly Posted Events Annual Spring Employee Benefits Law and Practice Update Nationwide on April 10, 2007 presented by ALI-ABA (American Law Institute-American Bar Association) Compliance University: Cafeteria Plan Administration Interactive Training calls 4/18/07 & 4/25/07 @ 2 p.m. EST Nationwide on April 18, 2007 presented by HRTrainingCenter.com Long-term Incentive Compensation: Are you a Trend-Follower or Trend-Setter? - Webcast Nationwide on April 10, 2007 presented by Human Capital Institute Washington Legislative Update in Ohio on April 17, 2007 presented by ASPPA Benefits Council of Cleveland Newly Posted Press Releases U.S. Labor Department Sues Trustee of Southfield, Mich., 401(k) and Pension Plans for Mismanagement U.S. Department of Labor, Employee Benefits Security Administration (EBSA) AHIP Partners with Health Literacy Innovations America’s Health Insurance Plans (AHIP) Pay for Performance 2007 Web Summit Healthcare Web Summit BenefitsCheckUp Can Help Battle Senior Hunger National Council on Aging (NCOA) Buck Consultants Marks 90th Anniversary with Focus on Clients and the Evolution of HR Buck Consultants, an ACS Company Consumers Deserve More Choice, Protection When It Comes to Health Care National Community Pharmacists Association (NCPA) Many U.S. Adults Are Satisfied With Use of Their Personal Health Information; Substantial Minority Still Withholds Information from Health Providers Due to Worries About Security of Medical Data Harris Interactive Newly Posted or Renewed Job Openings Retirement Plan Specialist for SYNERGY in IL TPA Relationship Manager - Central Region for Transamerica Retirement Services in IL Senior Retirement Plan Consultant for Standard Insurance Company in OR Sales Consultant for Diversified Investment Advisors in NC 401(k) Administrator for Beacon Benefits, Inc. in MA, ME, NH Sales Professional for Standard Insurance Company in OH Handy Links:
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