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| October 25, 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
IBM to Pay for Obesity Prevention Efforts for Children of Employees
Excerpt: "IBM plans to launch a program that will offer employees monetary incentive to have their children participate in obesity education, the Wall Street Journal reports." (Kaiser Family Foundation)
NFL Owners Add $10 Million for Needy Ex-Players
Excerpt: "N.F.L. owners voted unanimously [yesterday] to commit $10 million to a program that will help pay for joint replacements, cardiovascular screenings and assisted living care for retired players in financial need." (The New York Times; free registration required)
Orange County Sheriff's Deputies Will See Wage Hike and New Option on Health Care Benefits
Excerpt: "[The union agreed] to begin the transition to defined-contribution accounts for retirees' health care. County officials said the move to a 401(k)-style model will create a $140 million reduction in the unfunded liability the county now faces on paying for retirees' health care." (The Orange County Register)
(c) Summaries of Guidance; Filed Comments
Contractual Agreements to Provide Benefits Escape ERISA Preemption
Excerpt: "From a complicated set of facts involving two bankrup.tcy proceedings, a principle emerges from a recent New York case that provides an interesting perspective on when ERISA should preempt claims based upon contractual obligations to obtain insurance coverage." (Health Plan Law blog by Attorney Roy F. Harmon III)
FMLA Waivers on Their Way to Supreme Court?
Excerpt: "The case, Progress Energy, Inc. v. Taylor, arises out of a lawsuit brought by Barbara Taylor against Progress Energy, the parent company of her former employer, Carolina Power & Light Company, alleging violations of the FMLA. Two years earlier, however, Taylor released all of her claims under federal law, including the FMLA, in exchange for monetary compensation in a severance agreement." (Workplace Prof Blog)
Overview: IRS Issues Guidance on Single Employer 419 Plans (PDF)
5 pages. Excerpt: "On October 17, 2007, the IRS issued three pieces of guidance warning taxpayers that certain welfare benefit arrangements referred to as 'single employer plans' or '419(e) plans' that utilize cash value life insurance may not provide the tax benefits purported by promoters. It also identified some of the arrangements as listed transactions. At the same time the guidance acknowledged that welfare benefit plans that operate within the intent of IRC §§ 419 and 419A and that provide 'meaningful medical and life benefits to retirees on a nondiscriminatory basis' are deductible and outside the guidance." (Prudential Financial)
Overview: IRS Delay of Effective Date of Guidance on Using Smartcards or Debit Cards for Mass Transit Benefits
Excerpt: "Notice 2007-76 delays the Rev. Rul. 2006-57 effective date until January 1, 2009. However, employers and employees can rely on the revenue ruling with respect to transactions occurring before that date." (Deloitte via BenefitsLink.com)
(d) Trends, Surveys, Research
Rewarding Physicians for Providing Less Care: Physicians Cite Reasons Incentives Are Onerous
This item contains an excerpt from a Memphis Daily News article followed by comments from Don McCanne, MD. (Physicians for a National Health Program)
Critics Give Grim Prognosis for Consumer-Driven Health Plans
Excerpt: "Consumer-driven health care is either just getting started or is already on its way out. Both perspectives were presented recently at the National Consumer Driven Healthcare Summit in Washington, ruffling more than a few feathers. Unlike many health insurance industry events that generally preach to the choir, the summit featured presentations from two Washington-based groups that have been highly critical of the consumer-driven health movement: the New York-based Commonwealth Fund and the Yonkers, New York-based Consumers Union." (Workforce Management; free registration required)
Employer-Provided 'Quality-of-Life' Benefits for Workers in Private Industry, 2007
Excerpt: "Chart 1 shows the percent of workers with access to a variety of quality-of-life benefits for all workers in private industry. Long-term care insurance, childcare assistance, and adoption assistance are more than twice as likely to be available than are subsidized commuting, flexible workplace, and employer-provided home personal computer (PC) benefits." (U.S. Bureau of Labor Statistics)
Worksite Combo Coverage Policies: Can Two Insurance Plans Coverage Be Better Than One?
Excerpt: "Some experts believe employees do not have to settle for just one of the three insurance products. Instead they are exploring the possibility of providing a combination of two types of coverage as a possible alternative. The most likely worksite combo coverage is LTCi with CII or LTCi with DI." (InsuranceNewsNet, Inc.)
Saving on Health Costs Important to Business Values
Excerpt: "A news release reported that the survey by Mercer and Marsh said 'substantial' financial opportunities can be gained through a healthier workforce. The survey report pointed out that health benefit cost is about 16% of payroll while the cost of absence programs - incidental absence, STD, long-term disability (LTD) and workers' compensation - together is 4% of payroll." (PLANSPONSOR.com; free registration required)
Weight Management Leads List of Employee Health Concerns
Excerpt: "Nearly half of workers rank weight management as their greatest health concern, followed by fears about general health, according to a poll conducted by LifeCare, Inc." (PLANSPONSOR.com; free registration required)
Most Employees Would Undergo a Physical to Get Reduced Premiums, According to Survey
Excerpt: "Most Americans say they would be willing to take a physical to test for at-risk health behavior if it meant they could get reduced health premiums, according to survey underwritten by the Principal Financial Group." (PLANSPONSOR.com; free registration required)
Communications and Wellness Issues Prove Challenging for Human Resources
Excerpt: "As demographic shifts transform the nature of the U.S. workforce, and the benefits industry continues to adapt and innovate, employee communications and wellness have arrived front and center as top HR challenges." (Employee Benefit News; free registration required)
Individual Health Policies Using a Health Reimbursement Account and Premium Reimbursement Plan
Excerpt: "With the increase in individual plan offerings throughout the country, and the tacit approval in most states that they can be offered through employers, we wanted to share a mechanism for employers and employees to save money when utilizing these plans." (Kushner & Company)
(e) Policy, Opinion, Advocacy
Patient-Centered Healt Care: A Transaction Based on Trust
Excerpt: "Last week I spoke at the Massachusetts' Medical Society's Leadership Forum on the rising cost of care. In two earlier posts (here and here) I've described what other speakers had to say about how and why Massachusetts is running into trouble trying to fund its experiment in universal care. In my speech, I explained why I don't think that 'consumer-driven medicine' is the answer. I don't believe the 'consumer' can rein in healthcare spending. As an alternative, I proposed a 'patient-centered' model of health care which depends on patient and doctor, working together." (The Century Foundation)
End the Employer-Based Health Care System, Urges the Committee for Economic Development
Excerpt: "From Spencer's Benefits Reports: The Committee for Economic Development (CED) has released a set of recommendations calling for the end of the employer-based health insurance system and the establishment of a subsidized system of individual insurance based in part on the Federal Employees' Health Benefits Program (FEHBP)." (Wolters Kluwer Financial Services)
Working Paper: Employer Health Insurance Mandates and the Risk of Unemployment
Excerpt: "We find that 33 percent of uninsured workers earn within $3 of the minimum wage, putting them at risk of unemployment if their employers were required to offer insurance. Assuming an elasticity of employment with respect to minimum wage increase of -0.10, we estimate that 0.2 percent of all full-time workers and 1.4 percent of uninsured full-time workers would lose their jobs because of a health insurance mandate." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve fulltext)
Links to Items on Executive Comp, Benefits in General
Essays on the History of ERISA Preemption
Excerpt: "James Wooten (Buffalo) has just posted on SSRN two essays on the history of ERISA preemption. [They are 'A Legislative and Political History of ERISA Preemption, Part I' and 'A Legislative and Political History of ERISA Preemption, Part II.' Links to the essays are on the target page.]" (Workplace Prof Blog)
Overview: IRS Again Extends Section 409A Transition Period (PDF)
3 pages. Excerpt: "The [memo] summarizes the key portions of the new Notice and its impact on employers and employees. [It] also addresses another IRS Notice issued on October 23rd which grants relief from certain 409A reporting requirements on 2007 Forms W-2." (Groom Law Group)
State/Local Govt Retiree Benefits: Current Status of Benefit Structures, Protections, and Fiscal Outlook for Funding Future (PDF)
76 pages. Excerpt: "For this overview, GAO obtained data from various organizations, used our model that simulates the fiscal outlook for the state and local sector, and conducted site visits to three states that illustrate a range of benefit structures, protections, and fiscal outlooks.' (U.S. Government Accountability Office)
Newly Posted Press Releases
Still River Announces 403(b) Software Fully Compliant with IRS Final Regulations
Still River Retirement Planning Software, Inc.
U.S. Labor Department Testifies Before Senate Special Committee on Aging on 401(k) Fee Disclosure
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Work & Family Benefits, Inc. Names James F. McCann Vice President of Business Development
Work & Family Benefits Inc.
The SPARK Institute Commends DOL On Clarified QDIA Rules
SPARK -- Society of Professional Asset-Managers and Record Keepers
Newly Posted or Renewed Job Openings
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Health and Welfare Benefits Compliance Manager
for Publix Super Markets, Inc.
in FL
Accountant
for Transamerica Retirement Services
in CA
Retirement Plan Specialist
for New York Life Retirement Plan Services
in MA
401(k) Plan Administrator
for Plan Design Consultants, Inc.
in CA
Account Manager-Retirement Plans
for Standard Retirement Services, Inc.
in MA
Employee Benefit Specialist
for Principal Financial Group
in WA
Administrator
for BMI
in MO
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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