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| September 11, 2007 |
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Official Guidance; News
California Health Care Bill Passes Legislature, but Governor Says He'll Veto ItExcerpt: "The state Legislature approved an overhaul of California's health care system [yesterday], but even before the votes were tallied Gov. Arnold Schwarzenegger vowed to veto the bill and call lawmakers into a special session after the current session ends this week." (San Francisco Chronicle)
GM Option in UAW Talks Excludes Health Trust
Excerpt: "General Motors Corp . . . in its contract negotiations with the United Auto Workers union has proposed one option that excludes establishing a union-run healthcare trust but calls for deeper cuts in several areas, the Wall Street Journal reported in its online edition." (Reuters via The New York Times; free registration required)
Testimony with Request to Simplify the Massachusetts HIRD Form Rules
Excerpt: "The Division of Health Care, Finance, and Policy the 'Division') held public hearings on September 5. On behalf of clients, [George L. Chimento] testified and offered comments urging simplification. [The] written comments are at this link [http://www.theworkplace.biz/files/Final_testimony_A0540940_.pdf]." (Rackemann, Sawyer & Brewster)
Summary/Analysis of Official Guidance
An Employer's Guide to Employee Leave-Sharing ProgramsExcerpt: "A popular, and altruistic, employee benefit some employers provide is a leave-sharing program. An employer-sponsored leave-sharing program allows an employee to donate accrued hours of paid vacation, or personal and potentially sick leave for the benefit of other employees who are in need of taking more leave than they have available." (Littler Mendelson P.C.)
How to Terminate Responsibility for a Group Health Plan - And How Not To
Excerpt: "Coffin v. Bowater Inc. provides guidance on the steps necessary to effectively end responsibility for employee welfare benefit plan obligations. The plan administrator resorted to several arguments to support its position that the sale of a subsidiary terminated responsibility for its welfare plans. Neither the district court nor the First Circuit Court of Appeals found these arguments compelling." (Health Plan Law blog by Attorney Roy F. Harmon III)
EBSA Reasserts that Determination of Whether Arrangement Is MEWA Is Preempted by ERISA
Excerpt: "The determination of whether an arrangement is a multiple employer welfare arrangement (MEWA) is preempted by ERISA, and is, therefore, not determinable under state law, according to an EBSA opinion letter." (Wolters Kluwer Law & Business)
Court Says Sale of Subsidiary Does Not Mean Shedding Benefits Responsibilities
Excerpt: "The U.S. 1st Circuit Court of Appeals ruled that Bowater Inc. did not give up responsibility for the health plans of its subsidiary's retirees when it sold the unit to another company, but it did so later when it decided on a plan consolidation." (PLANSPONSOR.com; free registration required)
Trends; Surveys; Research
Experts Question Tough Health and Wellness TacticsExcerpt: "Indianapolis-based health care Clarian Health recently made headlines for their new aggressive stance in the wellness arena. The tactics have caused a buzz among advisers and employers alike, raising questions about the long term effectiveness of their approach." (Employee Benefit Advisor; free registration required)
Wide Variations Persist in Health Plan Performance in Value-Driven Health Benchmarks
Excerpt: "From Spencer's Benefits Reports: Although health care plans have made progress in many areas toward achieving the 'Four Cornerstone' goals of value-driven health care, there is wide variation in performance among plans and significant room for improvement, according to a new report from the National Business Group on Health (NBGH)." (Wolters Kluwer Law & Business)
2007 Kaiser/HRET Employer Health Benefits Survey
Excerpt: "This annual survey of employers provides a detailed look at trends in employer-sponsored health coverage, including changes in premiums, employee contributions, cost-sharing provisions, and other relevant information." (Kaiser Family Foundation)
Cost of Employer-Provided Insurance Rises 6 Percent, According to Survey Report
Excerpt: "The cost of employer-provided health insurance rose 6.1 percent this year, the smallest jump since 1999 but still well above the increase in wages and consumer prices, according to an annual survey released today by the Kaiser Family Foundation." (The Washington Post; free registration required)
Microsoft Adds to List of Perks with New Workspace
Excerpt: "Some of Microsoft's 36,000 employees in the region are about to get attractive new options of where to work and how to get there. The company confirmed Thursday it is leasing close to 170,000 square feet of space in three buildings on either end of downtown Seattle, enough room for about 700 employees." (The Seattle Times)
Don't Assume You're Not Affected by New HIPAA Rules
Excerpt: "When it comes to the new HIPAA rules, experts say the snare of assumption may ultimately snag more employers than the incentives rules. Because so much attention has been focused on the portion of the new rules covering wellness plans, many companies without wellness perks may assume they're in the clear. But, experts say, the bulk of the nondiscrimination rules apply to any company-sponsored health insurance plan." (The Business Journal of the Greater Triad Area via bizjournals.com; free registration required)
Companies Likely to Increase Health Plan Contributions for Employees with Unhealthy Habits after Federal Rules Finalized
Excerpt: "A small number of U.S. employers require employees with unhealthy habits to pay more for health insurance as part of an effort to reduce costs, but the practice likely will expand after the finalization of federal rules 'spelling out what's allowed by law,' AP/USA Today reports." (Kaiser Family Foundation)
New Health Insurer Policy: Trim the Fat to Cut the Fat
Excerpt: "Employers faced with chronically high health insurance costs have been wondering where they can find more savings. According to the nation's largest insurer, the fat is one place where it's at." (Kansas City Business Journal via bizjournals.com; free registration required)
Health Coaches Help Workers, Save Companies Cash
Excerpt: "Company-sponsored health coaches are on the upswing nationwide, benefits experts say, as businesses -- especially large ones -- search for new ways to slow the fast-rising cost of their employees' health insurance." (Orlando Sentinel)
Policy; Opinion; Advocacy
The 2008 Presidential Candidates on Health Care Reform - Updated September 10, 2007 (PDF)11 pages. Excerpt: "While it is still early in the campaign process and plan details are incomplete for most candidates, these summaries provide a snapshot of the candidates and their blueprint for reform. Our intent is to be thorough and accurate in compiling what they have said or indicated they want to do." (Council for Affordable Health Insurance)
Working Paper: Annuity Valuation, Long-Term Care, and Bequest Motives
Excerpt: "Financial security in retirement has traditionally meant having a steady flow of annuity income as long as one lives, a definition enshrined in the Social Security system. Our earlier research has stressed a more holistic approach, which focuses on the match between resources and spending needs. This formulation enables us to estimate annuity values given long term care concerns and bequest motives, where these estimated values are consistent with low observed demand for standard annuities." (Pension Research Council; registration required to download fulltext of paper)
Links to Items on Executive Comp, Benefits in General
Text of IRS Notice 2007-78: 2008 Transition Relief and Additional Guidance on the Application of § 409A to Nonqualified Deferred Comp Plans (PDF)
27 pages. Provides extension of deadline for document compliance (to December 31, 2008); guidance and additional relief addressing certain issues raised by the application of 409A to employment agreements and cashout features; an announcement that the IRS anticipates a limited voluntary compliance program for unintentional operational violations of 409A; and says no extension is provided to the December 31, 2007 deadline applicable to 'grace period assets' that are subject to 409A(b). (Internal Revenue Service)
IRS Extends Deadline for 409A Document Compliance
Excerpt: "The Treasury Department and the Internal Revenue Service (IRS) [yesterday] issued Notice 2007-78 giving plan sponsors until December 31, 2008 to bring documents into compliance with the final nonqualified deferred compensation regulations under section 409A of the Internal Revenue Code." (PLANSPONSOR.com; free registration required)
Overview: IRS Relief for Compliance with Written Plan Requirements of Final 409A Regulations
Excerpt: "Employers will now have until December 31, 2008, to bring plan documents into compliance with the regulations. Employers will have to operate their plans in compliance with the final regulations during 2008 and have their documents in place by December 31, 2008, in order to take advantage of this relief. The IRS has also released additional guidance on how the final regulations shall be applied." (CCH INCORPORATED)
Overview: Limited Extension of Section 409A Effective Date (PDF)
2 pages. Excerpt: "Employers should understand that the relief granted under the Notice is very limited, and generally does not apply to the operation of deferred compensation arrangements. Thus, under Section III of the Notice, the Treasury and IRS make it clear that they are not extending the good-faith standard that has applied under prior guidance from 2005 through the end of 2007, and plans must comply in operation with the section 409A rules in 2008." (Miller & Chevalier Chartered)
Majority of Americans Support Passage of Federal G.ay Job Protections
Excerpt: "Nearly two-thirds of all American adults believe it is unfair that federal law currently allows for an employer to fire someone because they are g.ay or les.bian according to a new poll." (365G.ay.com)
Newly Posted Press Releases
Health Insurance Premiums Rise 6.1 Percent In 2007, Less Rapidly Than In Recent Years But Still Faster Than Wages And Inflation
Kaiser Family Foundation
Treasury, IRS Extend Documentation Deadline for 409A Compliance
U.S. Treasury Department and Internal Revenue Service
MCOL Releases Managed Care Training Manual version 9.0 CD-ROM
Healthcare Web Summit
Pension Reform Prompts Charter School to Turn to Artificial Intelligence
Legend Advisory Corporation
Newly Posted or Renewed Job Openings
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Application Analyst OmniPlus
for Professional Computer Resources, Inc.
in NC
Retirement & 401(k) Plan Administrator
for BCL Financial Management Consultants, Inc.
in IL
Pension Administrator
for Sentinel Benefits Group
in MA, RI
Client Service Representative
for Sentinel Benefits Group
in MA, RI
ERISA Attorney
for Columbus, Ohio office of a national law firm
in OH
Plan Document Specialist
for Sentinel Benefits Group
in MA
Regional Director
for U.S. Department of Labor, Employee Benefits Security Administration
in GA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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