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| July 25, 2007 |
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2007 SHPS Health Practices Study: What Every Self-Insured Employer Should Know (PDF)
28 pages. Excerpt: "The 2007 SHPS Health Practices Study substantiates that traditional financially based cost management methods are simply not enough to battle rising healthcare costs. Companies with the lowest healthcare costs focus on optimizing employee health and managing clinical risk, rather than manipulating the health benefit." (SHPS)
I.B.M. Plan Ties Employee Training and Savings Accounts
Excerpt: "I.B.M., at a conference in Washington today, is announcing that it will begin offering its employees in the United States specialized savings accounts for training and education. The 'learning accounts' will be modeled on 401(k) retirement accounts, which began in the late 1970s. Workers will put up to $1,000 a year into the accounts, and I.B.M. will contribute 50 cents for every dollar put in by the employee." (The New York Times; free registration required)
Overview: Healthcare Reform, Massachusetts Style-- Its Impact on Employers (PDF)
9 pages. Excerpt: "This advisory provides an overview of the Massachusetts health care reform law and its impact on employers with employees working in Massachusetts. Included with the advisory is a helpful chart to assist in navigating the cafeteria plan requirement imposed by the Massachusetts law. Note: The law also includes mandates on insurers that may indirectly impact employers who fully insure benefits provided to their employees in Massachusetts; however, this article is limited to those provisions of the law that directly impact employers." (Alston + Bird LLP)
Colorado State Leaders Re-Think Employers' Health Care Coverage Role
Excerpt: "Relieving employers of what some believe is their 'obligation' to provide health insurance might be one way to cure Colorado's debilitated health care system. Proponents on both sides of the political aisle, including influential Colorado House Speaker Andrew Romanoff, D-Denver, say it may be time to re-think businesses' long-standing role in providing coverage for employees." (The Denver Business Journal via bizjournals.com; free registration required)
Health Care Costs Top Employer Concerns, According to Study
Excerpt: "American employers still see escalating health care costs as a key priority, according to a new study from Tennessee-based Unum, an insurance provider, and Connecticut-based LIMRA International, an insurance marketing group." (Employee Benefit News; free registration required)
A Discussion on Part-Time Work for Parents
Excerpt: "Judith Warner, in a New York Times op-ed piece, discusses the availability of part-time work for mothers (and fathers to a lesser extent). She makes some interesting points and notes current efforts by Sen. Kennedy and Rep. Maloney to enact a workplace flexibility law . . . ." (Workplace Prof Blog)
Opinion: Wall Street, Cancer, and the FDA: A Cautionary Tale
Excerpt: "Only in America do physicians who evaluate new drugs need bodyguards." (The Century Foundation)
Subrogation Remedy Inadequate To Preserve Plan's Reimbursement Claim
Excerpt: "In the continuing saga of permissible relief under ERISA Section 502(a)(3), the Mills case adds another short, but likely misleading, chapter. The plan's actions to preserve its reimbursement claims fell short of decisive. Furthermore, the actions that were taken did not advance claims cognizable under Section 502(a)(3) in the view of the court." (Health Plan Law blog by Attorney Roy F. Harmon III)
Health Insurer Mergers Threaten Health Care System
Excerpt: "[F]rom Spencer's Benefits Reports: Consolidation in the health insurance market over the last five years threatens competition and the stability of the health care system, the American Medical Association (AMA) indicates in a recent report, Competition in the Health Insurance Market -- A Comprehensive Study of U.S. Markets -- 2007 Update." (Wolters Kluwer Law & Business)
Doctors Rated but Inaccurate Data About Physicians' Performance Can Harm Reputations
Excerpt: "Physicians who have been profiled, including those with top ratings, say that the data often contain errors and that doctors often lack the ability to correct them. The effort is more about cutting costs than raising quality, some say, adding that doctors could begin to 'cherry pick' healthier patients whose problems are less costly to treat. Such systems fail to capture the intangibles of quality, such as a doctor who visits a dying patient at home, critics say." (The Washington Post; free registration required)
Southern California Grocery Workers Get New Health Contract
Excerpt: "Grocery store workers in Southern California have ratified a new contract that includes some novel health-care provisions. The region's major supermarkets hope the plan will help to rein in workers' health care costs, without compromising care." (Day to Day via National Public Radio)
$58 Billion Shortfall for New Jersey Public Retiree Health Care
Excerpt: "In 1994, New Jersey decided to stop setting aside money in a fund to pay for health care for its retired public workers. The savings paved the way for a big tax cut. Meanwhile, hundreds of thousands of public workers were being told that as long as they worked 25 years, the system would provide virtually free health care for them when they retired, often when they were as young as 55. No one added up the cost -- until now." (The New York Times; free registration required)
NFL and Union Join to Help Retired Players
Excerpt: "NFL commissioner Roger Goodell and players' union head Gene Upshaw met with nearly a dozen former players Tuesday to discuss a new joint effort to look into disability pay and health care for retirees." (AP via The New York Times; free registration required)
Judge Rules Employee Benefits Case Against CNA Financial Corporation Will to Go to Trial
Excerpt: "In an order issued [yesterday], July 24, 2007, Judge Holderman of the United States District Court for the Northern District of Illinois ruled that a case against CNA Financial Corporation should to go to trial on claims that the company illegally denied severance benefits to terminated employees." (Business Wire via Thomson Business Intelligence Service)
As Costs Rise, More CFOs Look to Shift Health Care Burden to Employees
Excerpt: "A new survey by the American Institute of Certified Public Accountants found that 91% of financial executives polled had concerns about rising health-care costs, and 81% reported employee health-care costs at their companies had increased anywhere from 5% to 20% in the past year." (Financial Week; free registration required)
U.S. Senate Introduces Bill to Increase Health Coverage Tax Credit
Excerpt: "Legislation introduced in the U.S. Senate would provide an 85% tax credit - up from the current 65% - that employees who lose their jobs due to foreign competition and pension plan participants age 55 to 64 whose pension plans fail could apply toward their health insurance premiums." (PLANSPONSOR.com; free registration required)
Links to Items on Executive Comp, Benefits in General
Overview: IRS to Publish Section 457 Guidance (PDF)
2 pages. Excerpt: "In general, this guidance project would apply certain concepts developed in the Section 409A regulations to counterpart provisions of Section 457. Any comments on the anticipated guidance or related issues are requested by October 15, 2007." (Sutherland Asbill & Brennan LLP)
Note: IRS Asks for Comments on Section 457 Guidance
Excerpt: "In Notice 2007-62 the Treasury Department and the Internal Revenue Service (IRS) announce the intent to issue guidance under section 457 . . . concerning the definitions of a bona fide severance pay plan under section 457(e)(11) and substantial risk of forfeiture under section 457(f)(1)(B)." (International Foundation of Employee Benefit Plans)
Incentive Stock Awards Could Lead to Unethical Behavior, According to a Recently Released Study
Excerpt: "In an article published in the May/June 2007 issue of Organization Science, the study's two authors -- Philip Bromiley and Jared Harris -- report that an analysis of financial restatements found that incentive stock offered to executives as a part of their compensation increased the risk of company officials misrepresenting financial outcomes to rig share prices." (Human Resource Executive Online; free registration required)
SEC Proposes Registration Exemption for Certain Issuers of Compensatory Employee Stock Options
Excerpt: "The Securities and Exchange Commission (SEC) is proposing to exempt private, non-reporting issuers of compensatory employee stock options from registration requirements." (Wolters Kluwer Law & Business)
Firms Move to Regional Customization of Global Long-Term Incentive Plans
Excerpt: "Many U.S. multinational companies are significantly decreasing the size of their equity awards to executives outside the U.S. in a shift from traditional policies granting the same award levels to U.S. and non-U.S. executives, according to new Towers Perrin research." (PLANSPONSOR.com; free registration required)
Newly Posted Events
Defined Contribution West Coast Conference - 10th Annual
in California on October 7, 2007
presented by Pensions & Investments
Health and Welfare Benefit Plans: Responding to Change
in Virginia on October 15, 2007
presented by ABA Joint Committee on Employee Benefits
Section 409A Deferred Compensation Plans: Problem Solving and Document Drafting
in Pennsylvania on August 30, 2007
presented by ALI-ABA (American Law Institute-American Bar Association)
Section 409A Deferred Compensation Plans: Problem Solving and Document Drafting - Webcast
Nationwide on August 30, 2007
presented by ALI-ABA (American Law Institute-American Bar Association)
The 5th Annual 412(i) Summit
in Illinois on August 1, 2007
presented by Executive Benefits Design Group
Understanding the Final 403(b) Regulations
Nationwide on August 2, 2007
presented by Convergent Retirement Plan Solutions, LLC
Newly Posted Press Releases
Employee Benefits Security Administration Releases Field Assistance Bulletin On Tax Sheltered Annuity Programs
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
ERIC and 11 Other Trade Associations Support Improved 401(k) Disclosure in Submission to Labor Department
ERIC (ERISA Industry Committee)
Twelve Trade Associations Support Improved 401(k) Disclosure in Submission to Labor Department
American Bankers Association
Fidelity's Annual 401(K) Report Shows Significant Impact Of Auto Solutions In Preparing Workers To Retire Successfully
Fidelity Investments
Synergy Software Technologies and the National Council on Aging Integrate SAMS and BenefitsCheckUp
National Council on Aging (NCOA)
Kenexa Research Institute Finds That When It Comes to Work/Life Balance, Men and Women Are Not Created Equal
Kenexa Corporation
Helping Boomers Realize Their Retirement Dreams: Announcing Baby Boomer Retirement Preparedness Week: August 6-10
Million Dollar Round Table (MDRT)
Newly Posted or Renewed Job Openings
(Post a Job | View All Jobs)
Pension Administrator
for Benefit Strategies, Inc.
in CA
OmniPlus Consultants
for Chesapeake Benefit Partners
in ANY STATE
Compliance Analyst
for The Newport Group
in FL
ERISA Attorney
for Growing two-attorney law firm in Dallas, TX
in TX
Retirement Plan Administrator I
for Law Offices of R. David Danziger, P.C.
in PA
401(k) Technical Services Specialist
for Innovative Pension
in CA
New Business Account Manager
for Standard Insurance Company
in PA
Writer - Policy Issues
for The ERISA Industry Committee
in DC
ERISA Attorney
for Medium Sized Employee Benefits Firm
in NY
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