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October 11, 2007

Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy.


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(a) New Guidance Documents

(None today.)

(b) News

DOL Releases Advance Copies of Revised Form 5500
Excerpt: "[Advance] copies of the 2007 Form 5500 Annual Return/Report of Employee Benefit Plans and related instructions were released [today] by the U.S. Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC)." (PLANSPONSOR.com; free registration required)

One Worker, One Retiree Bring Challenge to GM/UAW Health Care Trust Proposal
Excerpt: "A General Motors Corp. (GM) employee and a retiree are challenging a key aspect of a plan to allow the United Auto Workers (UAW) to take over responsibility for retiree health care." (PLANSPONSOR.com; free registration required)

UAW Contract with GM Would Create Health Care Reform Institute
Excerpt: "The tentative contract between United Auto Workers and General Motors that would establish a voluntary employees' beneficiary association also would create a health care reform research institute, the New York Times reports." (Kaiser Family Foundation)

California Gov Tweaks Health Reform Plan to Ease Cost to Business and Doctors
Excerpt: "Gov. Arnold Schwarzenegger released his healthcare reform plan in bill form for the first time [this week], boosting chances of action on the issue this year. The bill largely reflects aspects of the plan the governor had outlined in January, but softens provisions that require employers to pay into the new system and removes a requirement that would have forced doctors to pay as well." (Sacramento Business Journal via The Foundation for Taxpayer & Consumer Rights)

California Gov. Schwarzenegger Proposes Leasing State Lottery to Private Company To Help Fund Universal Health Coverage
Excerpt: "California Gov. Arnold Schwarzenegger (R) on Tuesday introduced a revised $14 billion proposal to require all state residents to obtain health insurance, financed in large part by leasing the California lottery to a private firm . . . ." (Kaiser Family Foundation)

New California Health Care Bill Reflects Change in Employer Assessment
Excerpt: "California Governor Arnold Schwarzenegger . . . announced a bill that largely follows the health care proposal he announced in January, but with a few changes. The Associated Press reports the bill still makes health care mandatory for Californians and requires employers and hospitals to contribute to help subsidize the poor. However, the bill changes the way employers are assessed, so firms with payrolls under $100,000 do not have to contribute." (PLANSPONSOR.com; free registration required)

DOL Creates Online DFVCP Penalty Calculator
From a DOL press release: 'The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) today launched an interactive calculator that makes it easier for employers and plan administrators who are delinquent in meeting annual reporting requirements under [ERISA] to accurately compute penalties owed under the agency's Delinquent Filer Voluntary Compliance Program (DFVCP)." (U.S. Department of Labor)

(c) Summaries of Guidance; Filed Comments

Other Post-Employment Benefit Liabilities Under GASB (PDF)
Pages 2-3 of 8 pages. Excerpt: "[A chart in the target article] compares Financial Accounting Standards Board (FASB) Statement of Accounting Standard (SFAS) 106 and GASB 45." (American Academy of Actuaries)

(d) Trends, Surveys, Research

Audio: Expert Talks on How Women's Perks Can Bring New Problems
Excerpt: "A new study by Working Mother magazine finds that professional women are redefining the workplace to be more flexible and family friendly. Alice Eagly, co-author of Through the Labyrinth: The Truth About How Women Become Leaders, cautions that such flexible work benefits may result in even greater segregation in the workplace." (Morning Edition via National Public Radio)

Audio: Top Firms Often Have Plenty of Family Perks
Excerpt: "Working Mother magazine gives some detail about top-tier companies." (Morning Edition via National Public Radio)

States in Action: A Bimonthly Look at Innovations in Health Policy, September/October 2007
The feature article is titled: Using Incentives to Promote Healthy Behavior in Public Programs. (The Commonwealth Fund)

Working Paper: The Impact of Health Status and Out-of-Pocket Medical Expenditures on Annuity Valuation
Excerpt: " Our results show that annuities become less attractive to people facing uncertain medical expenses. While full annuitization would still be optimal if annuity markets were truly complete and both life- and health-contingent, lacking this, annuity equivalent wealth values are much lower for those in poor health, as compared to persons in good health." (Pension Research Council; registration required to download fulltext of paper)

CCH Survey Finds Most Employees Call in 'Sick' For Reasons Other Than Illness
Excerpt: "Two-thirds of U.S. workers who call in sick at the last minute do so for reasons other than physical illness, according to the findings of the 17th annual CCH Unscheduled Absence Survey." (PR Newswire via Human Resource Executive Online; free registration required)

Effective Date Delayed for Use of Smartcards and Debit Cards to Provide Qualified Transportation Fringe Benefits
Excerpt: "The IRS has . . . concluded that some transportation systems need additional time to modify their technology for compatibility with the ruling's substantiation requirements. They are therefore postponing the effective date of the ruling from January 1, 2008 to January 1, 2009 (IRS Notice 2007-76)." (Wolters Kluwer Financial Services)

Mistakes to Avoid When Implementing Consumer-Driven Health Plans
Excerpt: "In a recent Workforce Management and Aon Consulting teleconference, Alexandra Jung, senior vice president of health and benefits for Aon Consulting, spoke about mistakes that employers should avoid when implementing a CDHP." (Wolters Kluwer Financial Services)

Some Get Tax Breaks for Using Mass Transit
Excerpt: "There's a way to help the environment and save on taxes every day that you work. The mechanism -- known variously as a commuter benefits program or a transit incentive program (TRIP) -- was created by Congress in the 1990s to encourage the use of mass transit and van pooling." (AP via The New York Times; free registration required)

Are VEBAs the Future of Employee Health Care?
Excerpt: "The contract agreement between the United Auto Workers and Detroit's Big Three automakers have brought health care trusts known as VEBAs -- voluntary employees' beneficiary associations -- to national attention. However, the tiny city of Post Falls, Idaho, may be able to teach the UAW a thing or two about running a VEBA." (Workforce Management; free registration required)

(e) Policy, Opinion, Advocacy

Overview: The 2008 Presidential Candidates on Health Care Reform, Updated Oct. 9, 2007 (PDF)
14 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)

Disability Insurance and ERISA Denials (PDF)
Excerpt: "Working Americans who have been provided with ERISA employer-sponsored Plans for disability are in need of information about how it all works. This issue is dedicated to ERISA claimants and the thousands of working middle class Americans who are denied benefits and are left unprotected by our laws and federal judges." (Disability Claims Solutions Client Newsletter, Special Edition -- ERISA)


Links to Items on Executive Comp, Benefits in General

Overview: Limited 409A Deadline Extension (PDF)
2 pages. Excerpt: "This Law Alert contains a summary of the actions that employers must take by December 31, 2007 to bring their nonqualified plans, severance agreements, and other similar arrangements into compliance with Section 409A. Failure to comply with Section 409A can result in current taxation, interest, and a 20 percent penalty." (Porter Wright Morris & Arthur LLP)

Overview: IRS and Treasury Provision of Limited 409A Relief
Excerpt: "In this article, we review the guidance issued by IRS and Treasury in Notice 2007-78, which provides limited transition relief with respect to compliance with Code Section 409A." (JPMorgan)

'Antagonistic Interests' Raise Questions About $42.5 Million ERISA Settlement
Excerpt: "A federal appeals court in Manhattan has ordered a trial judge to reconsider his certification of a class and his approval of a $42.5 million settlement agreement in an action brought under [ERISA]. A unanimous panel of the 2nd U.S. Circuit Court of Appeals, in Central States Southeast and Southwest Areas Health and Welfare Fund v. Merck-Medco Managed Care, 04-3330, remanded the case to Southern District of New York Judge Charles L. Brieant . . . ." (Law.com)

Employment Non-Discrimination Act (ENDA): Original Version Included Both Se.xual Orientation and Gender Identity
Excerpt: "[Rep.] Frank acknowledged that the new version no longer includes a provision that would have preserved the ability of state and local laws requiring that the domestic partners of g.ay employees receive the same benefits as the spouses of straight employees. A federal ERISA law (Employee Retirement Income Security Act) sets minimum standards for the pension and health plans of many private employers. But Frank noted that it also 'preempts all state efforts to mandate employee benefits' and is 'a deeply held principle for all of the employer organizations in America.'" (Bay Windows)

First Wave of Boomers Hits Social Security
Excerpt: "The first wave of 3.2 million baby boomers turns 62 next year -- 365 an hour. About 49% of the men and 53% of the women are projected to choose early retirement and begin drawing monthly Social Security checks representing 75% of the benefit they'd be entitled to receive if they waited four more years to retire. In 2011, they'll turn 65 and be eligible for Medicare. In 2012, those who didn't take early retirement benefits will turn 66 and qualify for their full share." (USA TODAY)

Modeling Equity Compensation (PDF)
Pages 4-5 of 8 pages. Excerpt: "Companies can value their equity compensation using the Black-Scholes model, a lattice (typically a binomial) model, or a simulation model. Each offers various advantages and disadvantages, and often a trade-off must be made between ease of use and flexibility." (American Academy of Actuaries)


Newly Posted Events

Educational Seminar on The Uniform Trust Code
in Oregon on November 20, 2007
presented by Durig Capital, LLC


Newly Posted Press Releases

U.S. Labor Department Offers Online Calculator to Help Employers and Benefit Plan Administrators Compute Penalties, File Overdue Reports
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Governor Schwarzenegger's Mandatory Purchase of Private Health Insurance Doesn't Add Up for the Middle-Class, Says FTCR
Foundation for Taxpayer and Consumer Rights

CitiStreet Enhances Participant Web
CitiStreet

Blaze SSI Corp. Announces the National Release of GTS
BLAZE SSI Corp.

eHealth Initiative Releases Blueprint Representing Consensus on an Action Plan for Transforming U.S. Healthcare Using Health IT
eHealth Initiative


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