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| December 3, 2007 |
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(a) New Guidance Documents
(None today.)
(b) News
Texas Retiree Healthcare's Unfunded Liability: $37 Billion
Excerpt: "[Texas'] estimated bill for retiree health care is being tallied, and as expected, it's a whopper. . . . The estimates -- $19.1 billion from the Teacher Retirement System and $17.7 billion from the Employees Retirement System -- were disclosed this month in response to a national accounting standard on the long-term costs of public-sector retiree benefits." (Austin American-Statesman)
(c) Summaries of Guidance; Filed Comments
IRS Releases Updated Model HSA Trust and Custodial Account Forms
Excerpt: "[T]hese updated model forms are likely to be appreciated by HSA trustees and custodians who can use them either to replace their current forms or to confirm that their latest forms are up-to-date." (Employee Benefits Institute of America (EBIA))
One-Cent Decrease in 2008 Mileage Rate for Transportation to Obtain Medical Care or as Part of Deductible Moving Expenses
Excerpt: "[T]he standard mileage rate for use of an automobile to obtain medical care (which may be deductible under Code Section 213 if it is primarily for, and essential to, medical care) will be 19 cents per mile for 2008 -- a one-cent decrease from 2007. The same decreased rate also will apply for use of an automobile as part of a move for which the expenses are deductible under Code Section 217." (Employee Benefits Institute of America (EBIA))
Paid Leave Was a Reduction of Hours Triggering COBRA Rights
Excerpt: "Relying on the definition of qualifying event in the IRS's COBRA regulations, which states that a reduction of hours occurs whenever there is a decrease in the hours that a covered employee is required to work or actually works, the court rejected the employee's argument that only an uncompensated absence from work constitutes a reduction of hours that triggers a qualifying event." (Employee Benefits Institute of America (EBIA))
(d) Trends, Surveys, Research
Employers Offering Concierge Services as Employee Benefit
Excerpt: "Perks such as this cropped up during the high-tech heyday in the 1990s, when companies were competing for the same talent, but dwindled when that bubble burst. Now these benefits are more commonly seen at Fortune 500 companies and places that angle for the 'employer of choice' label." (Washington Times)
Some Employers Encouraging Use of Meditation by Employees
Excerpt: "Employers find that meditation classes not only boost productivity, they save money by reducing employees' stress levels." (Seattle Times)
More Insured Workers Are Required to Meet a Deductible
Excerpt: "A growing number of U.S. private sector workers are covered by health plans that require them to meet a deductible before any benefits are paid by their insurer, according to the latest News and Numbers Statistical Brief from the Agency for Healthcare Research and Quality (AHRQ)." (International Foundation of Employee Benefit Plans (IFEBP))
Bosses See the Benefits of Pets at Work
Excerpt: "While working like a dog may not be ideal, working with one is, according to a 2006 study by the American Pet Products Manufacturers Association. The study by the Greenwich, Conn., trade group showed an increasing number of Americans favour workplaces adopting pet-friendly policies, with nearly one in five companies allowing pets at work." (Calgary Herald)
Some Workers Opting Out of Employer Coverage, Prefer Individual Policies
Excerpt: "It costs about $60 to $80 a month per child to buy health insurance through BlueCross BlueShield of Kansas City. For parents with one child, individual coverage can be less expensive than family coverage through an employer, especially if an employer offers a high-deductible health plan, says Jim Heckman, a broker in Kansas City." (Workforce Management)
Study Shows Healthcare Costs Are Looming Concern for Pre-Retirees
Excerpt: "Among pre-retirees, 63% are concerned about paying for long term care, and 69% are concerned about paying for adequate health care. But only 17% of pre-retirees and 28% of retirees who participated said they have bought LTC insurance, and only 23% of the pre-retirees and 9% of the retirees said they intend to buy LTC insurance in the future, researchers report." (National Underwriter)
IBM Designs 401(k)-Type Plan for Tuition Reimbursement Payments
Excerpt: "IBM's proposed 'learning accounts' would allow U.S.-based employees with five years of service to contribute up to $1,000 a year, with IBM matching 50 cents on the dollar. The program doesn't begin until next July, which will give IBM time to pursue another wrinkle: getting the government to pony up a tax break by making contributions exempt from income taxes . . . . " (CFO.com)
Some Companies Use VEBAs to Clear Retiree Healthcare Liabilities from Balance Sheets
Excerpt: "VEBAs have existed in some form since 1928, but only recently have companies begun to shift not just a portion of their health-benefits expense but the entire obligation to trusts administered by unions. The appeal for a company is clear: it negotiates a lump-sum payment that allows it to clear a costly obligation off its books." (CFO.com)
(e) Policy, Opinion, Advocacy
Clinton, Obama Continue To Spar Over Healthcare Reform
Excerpt: "Leading Democratic presidential candidates continued to focus on health care issues and 'the question of how 'universal' a coverage plan must be,' the Los Angeles Times reports." (KaiserNetwork.org)
Policy Paper on Domestic Partner Benefits: Unequal Taxes on Equal Benefits
Excerpt: "[W]orkers who have an unmarried domestic partner are doubly burdened: Their employers typically do not provide coverage for domestic partners; and even when partners are covered, the partner's coverage is taxed as income to the employee. Employers who cover domestic partners are also penalized under current law, since employer payroll tax responsibilities increase along with employees' income and Social Security taxes. As a result, the taxation of domestic partner health care benefits sets up a two-tiered tax policy . . . . " (Center for American Progress)
Report from DOL: The Likelihood of Having Employer-Sponsored Health Insurance
Excerpt: "As hypothesized, the likelihood of health insurance coverage increased with age, but coverage decreased at older ages. Also, Hispanics; single parents; those with household income below $100,000; the self-employed; part-time workers; employees of small firms; those in service, construction, and production occupations; and those in farming, forestry, and fishing occupations were less likely to have employer-sponsored health insurance. Finally, union members were more likely to have health insurance than nonunion members." (Bureau of Labor Statistics, U.S. Department of Labor)
Links to Items on Executive Comp, Benefits in General
From the FTC: Summary of Comments on Private-sector Use of Social Security Numbers Summary of Comments on Private-sector Use of Social Security Numbers (PDF)
49 pages. Excerpt: "The expanded use of SSNs in the consumer identification and authentication processes . . . has a significant downside -- the increased risk that SSNs will be misappropriated by criminals to steal identities and obtain benefits in the victims' names. Indeed, the more widespread SSN usage by legitimate businesses has become, the more available and valuable SSNs are for identity thieves." (Federal Trade Commission)
Overview: Severance Arrangements Under Internal Revenue Code Section 409A
4 pages. Excerpt: "It is critical that employers continue to identify plans subject to Code section 409A and take steps to bring those plans into compliance. Employers must be aware that Code section 409A applies to many arrangements not traditionally considered 'deferred compensation.' This article reviews Code section 409A issues as they arise in severance arrangements." (von Briesen & Roper, s.c.)
Newly Posted Events
New Disclosure Requirements Under the Pension Protection Act Teleweb
Nationwide on December 13, 2007
presented by International Foundation of Employee Benefit Plans
Security in Numbers: SSNs and ID Theft
in District of Columbia on December 10, 2007
presented by Federal Trade Commission
Security in Numbers: SSNs and ID Theft - Webcast
Nationwide on December 10, 2007
presented by Federal Trade Commission
Newly Posted Press Releases
Survey Finds Many Employers Are Using Automatic Features in Defined Contribution Plans
International Foundation of Employee Benefit Plans
Prudential to Acquire Part of Union Bank of California Retirement Book
Prudential Financial, Inc.
HHS Names the Midwest Business Group on Health as Community Leader to Promote Health Care Transparency
Midwest Business Group on Health
BridgeHealth International (BHI) Announces Lead Investors and Executive Management Team to Direct Medical Tourism Operations
BridgeHealth International, Inc.
RPG Consultants To Add ETFs in 401ks
RPG Consultants
Newly Posted or Renewed Job Openings
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Defined Benefit Client Account Manager
for New York Life Retirement Plan Services
in NJ
Plan Administration Specialist
for Boston Financial Data Services
in MA
Pension Administrator
for Estate & Pension Advisory Board, Inc.
in PA
401(k) Administrator Quiz
for The Pension Group, Inc.
in CA
401(k) Distribution Specialist Trainee Quiz
for The Pension Group, Inc.
in CA
Associate Pension Administrator
for Alliance Pension Consultants
in IL
Sr. Compliance Representative
for The National Rural Electric Cooperative Association (NRECA)
in DC, VA
Relationship Manager
for Bank of Oklahoma
in OK
401(k) Plan Administrator
for Northeast Planning Services, Inc.
in MA
Fund Administrator
for Metropolitan Boston, MA Taft Hartley Benefit Funds
in MA
Account Manager - Retirement
for Lockton Companies, LLC.
in MO
Experienced Human Resources Benefits Analyst
for MTA New York City Transit (NYCT)
in NY
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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