Today's sponsor is Employee Benefits Institute of America Inc. (EBIA) (Click on company name or banner to learn more.)
Note: No Newsletter Was Published Yesterday (Columbus Day, federal holiday) You should have been informed on Friday that no newsletter would be published on Monday. I apologize for the confusion! --Editor (a) New Guidance Documents (None today.) (b) News Oregon Will Join Eight Other States That Have Approved Spousal Rights in Some Form for G.ay Couples Excerpt: "Opponents of Oregon's new same-sex domestic partnership law failed to turn in enough valid signatures to block the measure, clearing the way for it to take effect next year, state elections officials said Monday." (Yahoo! News) UAW Sets Chrysler Strike Deadline: Pressure Mounts for New Contract on Wages and Benefits Excerpt: "The union set a deadline of 11 a.m. tomorrow for a strike against the smallest of the three Detroit automakers if the two sides have not reached a new labor contract for the company's 45,000 workers represented by the union. The UAW sent a notice to local union officials yesterday saying Chrysler has so far failed to make an offer that 'adequately addresses' wages, benefits and other issues." (The Washington Post; free registration required) AK Steel Agrees to Settle Retiree Suit by Funding VEBA Excerpt: "AK Steel Holding Corp. will contribute more than $660 million to a special trust to pay for retiree health care benefits to settle a lawsuit filed by retirees, the company announced . . . ." (Business Insurance) G.M. Pact Calls for a Push for Health Care Reform Excerpt: "In a labor agreement reached last week between the company and the union, G.M. has agreed to spend up to $15 million over the next few years to create a National Institute for Health Care Reform. The pledge is contained in contract language that creates a voluntary employee benefit association, or VEBA, a health care trust that would take responsibility for G.M.'s $55 billion liability for benefits covering G.M. employees, retirees and their families." (The New York Times; free registration required) 3 Bills Try to Bolster California's Family Leave Law Excerpt: "State legislators have sent several bills to Gov. Arnold Schwarzenegger that would expand the scope of California's family leave laws to cover siblings, in-laws and grandparents. A spokesman for the Republican governor said Thursday that he has not taken a position on the bills, which would give California the most far-reaching family leave policy in the country. He has until Oct. 14 to decide whether to sign them." (San Francisco Chronicle) UAW Contract with GM Reduces Health Plan Choices Excerpt: "The tentative contract between United Auto Workers and General Motors would reduce the number of health plans available to about 412,000 unionized workers, retirees and their families as GM tries to reduce the almost $5 billion spent last year on health care benefits for 1.1 million people, both union and nonunion, the Detroit Free Press reports." (Kaiser Family Foundation) Ford Likes the Look of Proposed Contract: Chairman Says Automaker Interested in Health Care Fund Excerpt: "Ford Motor Co. Executive Chairman Bill Ford indicated . . . that leaders at the company founded by his great-grandfather are generally satisfied with the tentative contract rival General Motors Corp. reached with the UAW. It is expected to serve as a pattern for the Ford deal." (Detroit Free Press) GM Shrinks Labor Cost Gap with Toyota: Retiree Health Swap, Other Moves Whittle Per-Vehicle Divide to $800 Excerpt: "Now that it has negotiated a new labor contract with the United Auto Workers, General Motors has shrunk its labor cost gap with Toyota down to $800 per vehicle. Just two years ago, that gap ran as high as $4,000 per vehicle, said Dave Cole, head of the Center for Automotive Research in Ann Arbor, Mich." (Financial Week; free registration required) (c) Summaries of Guidance; Filed Comments Multiple Health Coverage Options Constitute Only One ERISA Plan Excerpt: "EBIA Comment: This ruling does not resolve the claims against the insurance company, but it illustrates yet another reason why it is so important for employers to determine and document how many plans they intend to sponsor. In addition to the special issues involved here, various ERISA, COBRA, HIPAA, and QMCSO compliance issues are also affected by how many plans an employer is deemed to maintain." (Employee Benefits Institute of America) TPA That Canceled COBRA Coverage for Nonpayment Was Not an ERISA Fiduciary Excerpt: "EBIA Comment: In addition to shouldering potential liability for COBRA coverage and COBRA notice penalties, sponsors and administrators of health plans may face liability for breach of fiduciary duty, separate and apart from a claim for failure to follow COBRA's provisions. But as this case illustrates, to the extent a TPA is not the plan administrator and does not act with discretion, it should be protected from fiduciary liability." (Employee Benefits Institute of America) (d) Trends, Surveys, Research U.S. Cities and Counties Focus on Health Risks and Costs Excerpt: "Although rising health care costs are a primary concern among America's local governments, most jurisdictions do not offer preventive and disease management programs targeting their stated top health issues, according to a survey of local governments released today by ICMA, the premier local government leadership and management organization, and sponsored by leading employee benefits carrier, CIGNA." (eMaxHealth) Paid Time-Off Work Programs Excerpt: "The complications involved in setting up a paid-time-off program as well as whether unused sick pay must be paid at the conclusion of employment are discussed this month." (Human Resource Executive Online; free registration required) Paid Leave for Maternity Is the Norm -- Except in the U.S. Excerpt: "American women sometimes joke that they plan to move to Sweden or France before they become pregnant, to take advantage of the generous paid maternity leave those countries provide. In fact, would-be moms may not realize they have many more options than just those two: 170 countries offer some paid maternity leave, and 98 of them offer at least 14 weeks off with pay." (The New York Times; free registration required) (e) Policy, Opinion, Advocacy Editorial: G.M.'s Health Care Fix Excerpt: "The health insurance deal struck by leaders of General Motors and the United Automobile Workers union is a sensible compromise. Sadly, it will also add G.M. to the growing list of companies that are reducing employer-sponsored health coverage and transferring more risks and costs to their workers. This is a further sign of why there has to be a government-led effort to solve the country's health care problems." (The New York Times; free registration required) Can the UAW Take the Wheel and Steer Its Health Care Obligations to Workers and Retirees? Excerpt: "'The only way for this VEBA to work is for whoever is going to administer it to change the behavior of the workers,' . . . . 'If they don't do that, this absolutely won't work.'" (Workforce Management; free registration required) Sponsored by: World Congress (Click on company name or banner to learn more.)
Links to Items on Executive Comp, Benefits in General Roth 457 Plans Get Fresh Boost in Senate Finance Committee Excerpt: "The Senate Finance Committee has included a Roth 457 provision as a revenue-raiser in a transportation bill the Committee approved Sept. 21 on a 16 to 5 vote. Under the proposal, 457 plans could include qualified Roth contribution programs. As a revenue raising proposal the bill's chances for passage rise significantly." (ICMA-RC) Backdating Employee Stock Options: Accounting and Legal Implications Excerpt: "The authors discuss the accounting treatment of stock options under Accounting Principles Board (APB) Opinion 25, 'Accounting for Stock Issued to Employees,' and SFAS 123(R), Share-Based Payment. Next, the authors examine Sarbanes-Oxley Act (SOX)–related problems that arise from backdated stock options. The article concludes by presenting the potential financial implications of backdating for investors." (The New York State Society of CPAs) Overview: IRS's Limited Extension of Section 409A Compliance Deadline (PDF) Excerpt: "Until further guidance is issued, the cash-out rules in the final regulations – that allow installment or annuity payments to be cashed out if the present value falls below a predetermined amount – may be applied only at the original payment date, and need not be applied throughout the stream of payments." (Drinker Biddle & Reath LLP) Newly Posted Events 401(k) Plans: Beyond the Basics Nationwide on October 18, 2007 presented by SunGard Relius 401(k) Plans: Beyond the Basics in Illinois on November 8, 2007 presented by SunGard Relius ERISA Workshop Nationwide on October 17, 2007 presented by SunGard Relius ERISA Workshop in Florida on October 30, 2007 presented by SunGard Relius ERISA Workshop in Texas on November 1, 2007 presented by SunGard Relius Health Law Seminar - Free in Minnesota on November 7, 2007 presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA) New Nondiscrimination Rules for Cafeteria Plans: A Wake-Up Call for Employers and Administrators Nationwide on September 20, 2007 presented by Employee Benefits Institute of America (EBIA)/Thomson Tax & Accounting New Proposed Cafeteria Plan Regs: IRS & Experts Analyze Changes - Webcast Nationwide on October 11, 2007 presented by ALI-ABA (American Law Institute-American Bar Association) The Prescription for Rx Plan Management Success in Washington on October 12, 2007 presented by International Society of CEBS - Pacific NW Chapter Newly Posted Press Releases NBCH Launches Community Health Value Collaborative to Prevent Diabetes and Improve Care for Patients with Diabetes National Business Coalition on Health Study Demonstrates Value of John Hancock Lifestyle Portfolios for 401(k) Plan Participants John Hancock Retirement Plan Services Steelworker Retirees Set to Receive New Health Care Benefit United Steelworkers Nation’s Disability Policy Makes it Hard to Save for Retirement Goodwill Industries Global Leadership Council Is Formed To Promote Fiduciary Excellence Investment Fiduciary Leadership Council (IFLC) Newly Posted or Renewed Job Openings (Post a Job | View All Jobs | RSS Feed ) Compliance Research Consultant for Diversified Investment Advisors in NY Retirement Plan Sales for National Financial Partners in ANY STATE Defined Contribution / 401(k) Plan Administrator for The Savitz Organization in PA ERISA Tax Associate for Holme Roberts & Owen in CO Client Services Project Leader for Mercer in TX Benefits Manager for Safeway in CA Labor Relations Sr. Manager for 1199 Benefit and Pension Funds in NY 401(k) Administrator for West Pension Solutions, LLC in MD Sr. Employee Benefit Specialist-Retire Secure for The Principal Financial Group in CA Producer for FBD Consulting, Inc. in KS Research Director for Milliman, Inc. in DC Benefits Specialist 5 - Req 07-1024051 for The Boeing Company in WA Outsourcing Team Manager for Trion in PA Retirement Plan Sales Executive for BenefitStreet, Inc. in KS Pension Attorney, Paralegal or Specialist for J.P. Schlachter & Associates, Inc. in OH Compliance Testing Consultant for Diversified Investment Advisors in NY Sr. Employee Benefit Specialist - Retire Secure for The Principal Financial Group in UT Account Manager for McGraw Wentworth in MI 401K) External Wholesaler for John Mulligan & Associates, Inc. in CA, IL Licensing and Commission Administrator for Transamerica Retirement Services in CA Manager - Benefits for 1199 Benefit & Pension Funds in NY Pension Calculation Sr. Manager for 1199 Benefit & Pension Funds in NY Internal Wholesaler for ING, US Financial Services in TN Participant Communication Consultant for Standard Insurance Company in OH ERISA/Employee Benefits Associate for Greensfelder, Hemker & Gale, P.C. in MO Assistant Director of Customer Service for $5 Billion not-for-profit Church Pension Fund in NY Handy Links:
Subscribe to the BenefitsLink Retirement Plans Newsletter, Too! Sign-up form is at https://benefitslink.com/newsletter (free). This newsletter is sent to you each workday except federal holidays. This email has been published by:
David Rhett Baker, J.D., Editor Copyright 2007 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission. Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/ Other useful links: |