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| September 27, 2007 |
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(a) New Guidance Documents
(None today.)
(b) News
With New UAW Contract Agreement, General Motors Takes Step Toward Eliminating Much of Health Care Burden
Excerpt: "The contract's main feature -- a health care trust called a voluntary employee benefit association, or VEBA -- means that G.M. will no longer have to carry the debt it will owe for employee and retiree health care benefits on its books." (The New York Times; free registration required)
ALCOA 'Vested Rights' Lawsuit Could Include 13,000 Retirees
Excerpt: "A lawsuit against ALCOA Inc. filed by nearly 5,000 retirees because of changes to their retirement benefits was heard by Judge Thomas Phillips [yesterday] morning in federal court in downtown Knoxville." (The Daily Times)
For Some Federal Retirees, Health Insurance Is Tax-Free
Excerpt: "Since 2000, federal employees have been able to pay their health insurance premiums on a tax-free basis. The tax code does not extend this perk to federal retirees, to their dismay. But a little-noticed provision in 2006 Pension Protection Act has made an exception for retired 'public safety officers.' They can request that up to $3,000 from their annual pensions be deducted to pay for medical insurance and long-term-care insurance." (The Washington Post; free registration required)
(c) Summaries of Guidance; Filed Comments
Overview: The New Proposed Cafeteria Plan Rules: Essential Facts and Insights (PDF)
17 pages. Excerpt: "The administration of Section 125 plans will be significantly affected by new proposed cafeteria plan rules issued Aug. 6, 2007 by the IRS. The new rules, which apply to a variety of benefits that cafeteria plans can offer, will require changes to some current administrative practices. Cafeteria plan sponsors, participants and third-party administrators may rely on the rules for guidance immediately while the IRS finalizes them." (Thompson Publishing Group, Inc.)
Tenth Circuit Adopts Rule of Contra Proferentem on De Novo Review
Excerpt: "The Tenth Circuit Court of Appeals took the occasion of this appeal of an denial of long term disability benefits to state a cardinal rule of plan interpretation. Miller v. Monumental Life Ins. Co stands for the proposition that, in the Tenth Circuit, ambiguities in plan language will be interpreted against the plan drafter where the standard of review is de novo." (Health Plan Law blog by Attorney Roy F. Harmon III)
(d) Trends, Surveys, Research
What Might GM Trust Fund Mean for Workers Elsewhere?
Excerpt: "General Motors Corp.'s new trust fund for retiree health benefits has workers at other companies wondering what it might mean for them -- particularly on two important questions. Are retirees at GM and other companies that have set up minipension funds to pay for retiree health coverage more likely to continue receiving health benefits? And, will the funds keep retirees' share of benefit costs from rising substantially?" (The Wall Street Journal Online)
More Employers Turn to Disease Management
Excerpt: "According to the [Kaiser/HRET] annual report released September 10, some 35 percent of large employers (those with 200 or more employees) find disease management programs to be 'very effective,' with another 50 percent saying they are 'somewhat effective.' Small employers (three to 199 employees) are also turning to disease management, but in smaller numbers. Twenty-eight percent say it is 'very effective' in controlling costs, while 43 percent say it is 'somewhat effective.'" (Workforce Management; free registration required)
Total Rewards Issues: Developing Benefit and Reward Strategies in a Changing Environment (PDF)
Excerpt: "Change in employee benefits couldn't be more prevalent or more fundamental than it is today. And our research shows that change will continue -- at an accelerated pace -- over the next few years. Business trends driving benefit change include . . . ." (Towers Perrin)
New Products that Combine an HRA with an HMO Are Gaining Traction in California
Excerpt: "Since being launched in June, a product that pairs an HMO with a health reimbursement arrangement (HRA) has been gaining sales traction in California, according to Health Net of California, Inc. The managed care company's Optimizer HMO is among a growing number of products that combine the features of an HMO or point-of-service (POS) plan with a health account." (Inside Consumer-Directed Care via AISHealth.com)
Medical Society Turns the Tables and Asks Doctors to Rate Health Insurers
Excerpt: "Several health insurers offer tools that rank physicians, and now one Texas medical society has a response: a survey, to be released after Sept. 14, designed to allow doctors to rate health insurers." (Health Plan Week via AISHealth.com)
Changing Benefits Affect Nevada Cities, Counties
Excerpt: "Southern Nevada's local governments are worrying about a potential brain drain because of a looming change in taxpayer-funded retirement health benefits. Earlier this year, the Nevada Legislature voted to cut off access to the Public Employee Benefits Program to nonstate public retirees beginning in August 2008." (Las Vegas Review-Journal)
(e) Policy, Opinion, Advocacy
Opinion: The Presidential Candidates' Health Care Plans -- A First Look
Excerpt: "[The target article presents] just some of the elements of candidates' plans, and other proposals are likely to surface as the presidential campaign proceeds. This development is most welcome, and the ideas that have been advanced are worthy of consideration and debate. Many would form the building blocks for a high performance health system." (The Commonwealth Fund)
Opinion: Socialized Medicine's Front Door
Excerpt: "[This week, t]he Democratic Congress quickly passed a national health insurance bill, drafted in secret and protected from amendment, that constitutes the most important legislation of this session. While designed for a presidential veto, it is national health insurance -- through the front, not the back, door." (The Washington Post; free registration required)
Opinion: Wal-Mart Medical Plans -- Better, But Still Not Competitive
Excerpt: "It's easy to beat up on Wal-Mart from an 'employer of choice' perspective. They churn through employees, use as much part-time labor as possible to keep total costs down, and generally haven't offered much in the way of benefits for their workforce." (The hr capitalist)
Conference Videos: Business and National Health Care Reform
Excerpt: "The Luncheon Keynote speaker of the 'Business and National Health Care Reform' conference was Robert Galvin, M.D., Director, Global Health, General Electric Corporation. He was introduced by The Commonwealth president, Karen Davis. [Links to the keynote address and session videos are on the target page.]" (The Century Foundation)
White House Letters to Kennedy/Enzi Supporting Senate Mental Health Parity Legislation (PDF)
2 pages. (American Benefits Council)
Briefing Held September 21, 2007: Employer-Based Coverage: Shore It Up or Ship It Out?
Excerpt: "Employer-sponsored coverage rates have been steadily falling, from 66 percent of non-elderly Americans in 2000 to slightly below 60 percent in 2006. Experts cite rising premium costs and workforce changes as factors driving the erosion in such coverage." (Alliance for Health Reform)
Links to Items on Executive Comp, Benefits in General
Hewitt Recommends Self-Correction Program for Certain 409A Operational Errors
Excerpt: "In a letter to the Acting Commissioner of the IRS, Hewitt asked the IRS to consider adopting a Section 409A Self-Correction Program that would be analogous to the Employee Plans Compliance Resolution System (EPCRS). The Program would allow plan administrators to make voluntary corrections in cases where there are certain operational errors in nonqualified plan administration. [The target page has a link to the letter.]" (Hewitt Associates)
Qualified Plan May Allocate Funds to Separate Retiree Health Benefit Account Maintained for Key Employees
Excerpt: "The mere allocation of funds to a separate retiree health benefit account under Code Sec. 401(h) for key employees subsequent to their retirement will not cause the plan to fail to satisfy Code Sec. 415(c), the IRS has privately ruled." (Wolters Kluwer Law & Business)
Overview: Partial Relief from Dec. 31, 2007, Amendment Deadline for Nonqualified Deferred Comp Plans
Excerpt: "[T]he extension does not cover all plan amendment requirements, and employers will still need to take action prior to January 1, 2008 in order to ensure that their nonqualified deferred compensation plans comply with the Final Regulations." (Bond, Schoeneck & King, PLLC)
Less Than 100 Days - That's How Much Time Left to Comply with Section 409A in Operation
Excerpt: "Nearly three years after the American Jobs Creation Act was signed into law, wary employers are rounding the last turn. Less than 100 days away lurks the January 1, 2008, deadline to have employment and change in control agreements and other deferred compensation plans operating in compliance with Section 409A and to have some critical terms reflected in plan documents." (Ogletree, Deakins, Nash, Smoak & Stewart, P.C.)
Newly Posted Events
401(k) Investment Fee Disclosure: Are You Protecting Yourself and Your Company? - Webcast
Nationwide on December 5, 2007
presented by Deloitte
401(k) Plans: Beyond the Basics
in Massachusetts on October 30, 2007
presented by SunGard Relius
COBRA/HIPAA & Claims Procedure Compliance Workshop - Free
in Oregon on October 24, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
New 409A Developments: What to Do Before Year End
Nationwide on October 17, 2007
presented by ABA Joint Committee on Employee Benefits
U.S. Department of Labor's ERISA Advisory Council Working Groups to Hold Teleconferences
Nationwide on October 16, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Voluntary Fiduciary Correction Program Workshop - Free
in Oregon on October 23, 2007
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Newly Posted Press Releases
U.S. Department of Labor Sues to Distribute 401(k) Assets to Workers of Bankrupt Iowa Business
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
ICMA-RC Implements Pension Protection Act Provisions for Its Plan Sponsors
ICMA-RC
Blue Cross And Blue Shield Association Nationally Recognized By BusinessWeek And AARP For Creating A Unique Workplace Environment For New And Mature Employees
Blue Cross and Blue Shield Association
Morningstar Revising Methodology for Rating and Ranking Group Variable Annuities
Morningstar, Inc.
Couple Indicted For Allegedly Stealing More Than $500,000 From Clients Of Their Investment Firm
State of New Jersey - Office of Attorney General
Newly Posted or Renewed Job Openings
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Vested Interest Account Manager
for PNC
in PA
401(k) Specialist
for Morris County financial planning firm
in NJ
Audit RFP
for Emeriti Retirement Health Solutions
in ANY STATE
Compliance Account Manager
for First Niagara Benefits and Consulting
in NY
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