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| February 4, 2008 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
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| Complete Benefits Law Guidance from Law Journal Press |
| The nation's workforce and health care system are constantly evolving and so are the legal issues. Law Journal Press helps you handle any benefits law question with up-to-date, authoritative books on all aspects of the field. Get legal and practical advice from leading experts on everything from COBRA to ERISA, "contingent" employees to family and medical leave, and more. Browse our product listings for detailed information and special offers. |
[Guidance Overview] Family Leave for Employees with Family Members Who Are Members of the Armed Forces (PDF)
4 pages. Excerpt: "Under the new law, the maximum amount of leave in a 12 month period for all FMLA purposes is now 26 weeks, but an employee taking 26 weeks in a leave year will not affect the right to take up to 12 weeks in another leave year. Leave for the two new types of leave may be taken intermittently or on a reduced leave schedule, and the substitution of paid leave rules now in effect for other types of FMLA leave will also apply." (Seyfarth Shaw LLP)
[Guidance Overview] Court Permits ERISA Claim for Employee Fired for Violating Company's No Smoking Policy
Excerpt: "[A] federal district court in Massachusetts refused to dismiss an ERISA claim brought by an employee who was terminated for violating the company's 'nicotine-free policy.' The company's policy apparently prohibited employees from smoking tobacco products at any time regardless of whether they were in the workplace." (HR Policy Association)
[Guidance Overview] Fifth Circuit Holds That Health Insurance Policy Purchased on Employee Is Not Covered by ERISA
Excerpt: "Shearer v. Southwest Service Life Ins. Co. presented the question of whether an insurance policy purchased on an employee was covered by ERISA. The Fifth Circuit held that, because the employer did no more than pay the premiums on the policy, the plaintiff's claims were not preempted by ERISA, and the district court lacked jurisdiction over the case." (Health Plan Law blog by Attorney Roy F. Harmon III)
[Guidance Overview] FMLA Now Covers Families of Servicemembers
Excerpt: "New entitlement. Notably, the FMLA is amended to include a fifth entitlement to leave. Employees are entitled to 12 workweeks of leave because of any 'qualifying exigency' arising out of the fact that the employee's spouse, child, or parent is on active duty (or has been notified of an impending call or order to active duty) in the Armed Forces in support of a 'contingency operation.'" (Faegre & Benson LLP)
[Guidance Overview] FMLA Amended to Add Two New Types of Leave for Relatives of Servicemembers
Excerpt: "EBIA Comment: The new leave requirements are generally effective as of January 28, 2008, so employers should start preparing now to handle related leave requests. A DOL website provides additional information on the two new types of leave, as well as a marked copy of the FMLA showing all of the changes made by the new law (see http://www.dol.gov/esa/whd/fmla/NDAA_fmla.htm)." (Employee Benefits Institute of America)
Massachusetts' Subsidized Care Plan's Cost to Double
Excerpt: "State projections obtained by the Globe show the program reaching 342,000 people and $1.35 billion in annual expenses by June 2011. Those figures would far outstrip the original plans for the Commonwealth Care program, largely because state officials underestimated the number of uninsured residents." (The Boston Globe)
Michigan Lawmakers Study High-Risk Pools for Health Coverage
Excerpt: "As Michigan explores new ways to cover consumers who have lost their health coverage, the Legislature is looking to 34 states that have created high-risk health insurance pools as a possible blueprint." (Detroit Free Press)
Healthy Employees, Including Executives, Have a Direct Impact on the Bottom Line
Excerpt: "Companies face serious financial risks stemming from many executives' 'time-poor and highly stressed lifestyles,' says Stefan Wisbauer, CEO of iHealth. In addition, unhealthy executives may violate the terms of company-funded life insurance policies, Wisbauer claims." (CFO.com)
Encouraging a Healthy Lifestyle in the Workplace
Excerpt: "A proven wellness program within the workplace is America On the Move (AOM), a national program developed at the University of Colorado-Denver's Center for Human Nutrition. AOM offers a downloadable worksite toolkit to get companies started at www.americaonthemove.org. The kit provides information on getting started and tracking progress, and offers suggestions for motivation incentives." (Denver Business Journal via bizjournals.com; free registration required)
The Revived Debate on Managed Competition
Excerpt: "When the Committee for Economic Development, whose members include IBM, Coca-Cola and MetLife, recently called for an end to employer-based health care, they revived a policy proposal that looked like it had died with the failed health care reforms of the early Clinton administration. The approach that's getting a fresh look is called managed competition. And despite similar names, it is not the same thing as managed care, a term more familiar to employers." (Workforce Management; free registration required)
How Non-Group Health Coverage Varies With Income
Excerpt: "With some federal and state policy makers considering ways to encourage more people to purchase non-group, or individual, health care coverage, this new analysis by Kaiser Family Foundation researchers examines how often people at different income levels buy such coverage when they do not have access to employer coverage or do not obtain public coverage." (Kaiser Family Foundation)
Hewitt Federal Legislation Quick Guide Updated January 30, 2007, for Health and Welfare Plans (PDF)
11 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans. (Hewitt Associates)
The Pain of Playing Football
Excerpt: "[Former football player Dave] Pear's desperation has driven him to join forces with a group of severely injured and financially struggling NFL retirees pressing their case to the media and Congress, all of them furious with the NFL Players Association, which represents active players and which the retirees believe has been complicit with the NFL in denying them their full disability rights." (The Washington Post; free registration required)
Reward/Penalty Plans for Wellness: Coming Soon to an Office Near You? (PDF)
8 pages. Excerpt: "[S]ome reward/penalty plans might actually make it harder for you to visit the doctor. For example, if your employer has created a plan in which you are charged higher premiums as a penalty for not meeting a particular wellness goal, your health insurance could become unaffordable. The result may be that you could no longer get the health care you need because of the high cost. Furthermore, when people have to pay more for health care, they are more likely to forgo services that they need." (Families USA)
Consumer-Driven Marketplace Continues to Grow
Excerpt: "From Spencer's Benefits Reports: Sixty-two percent of financial institutions offer health savings accounts (HSAs), according to a recent Wolters Kluwer Financial Services survey." (Wolters Kluwer Financial Services)
2008 Presidential Candidate Health Care Proposals Side-by-Side Summary
Excerpt: "This side-by-side comparison of the candidates' positions on health care was prepared by the Kaiser Family Foundation with the assistance of Health Policy Alternatives, Inc. and is based on information appearing on the candidates' websites as supplemented by information from candidate speeches, the campaign debates and news reports. The sources of information are identified for each candidate's summary (with links to the Internet). The comparison highlights information on the candidates' positions related to access to health care coverage, cost containment, improving the quality of care and financing. Information will be updated regularly as the campaign unfolds." (Kaiser Family Foundation)
Candidates Over the Weekend
Excerpt: "In a day dominated by familiar stump speeches, Hillary Clinton made news by saying she might allow workers' wages to be garnisheed if they refuse to buy health insurance. She has criticized Obama for pushing a health plan that she says would not require universal coverage." (The Washington Post; free registration required)
Expanded COBRA Continuation Coverage for Small Firm Employees, 2007
Excerpt: "Updated information on continuation and conversion coverage offered to employees of small firms is now available for all states. Information on states that offer expanded COBRA continuation coverage to employees who are not currently covered by COBRA under federal law has been added and includes information on maximum duration amounts and rating restrictions. Updated information on conversion coverage rights for people leaving small firms that offer fully insured group health plans is also available for all states." (Kaiser Family Foundation)
Chart - State Definition of Dependency by Age, 2007
Excerpt: "New information on age limits or other requirements for dependent coverage under employer sponsored insurance or individual health insurance policies have been added [to statehealthfacts.org] and are available for all states and the nation." (Kaiser Family Foundation)
Retiree Benefits for Public Employees Could Cripple Contra Costa County, California
Excerpt: "Contra Costa County has a double dose of bad news for its residents and employees. The public can expect at least $32 million of reduced services this summer, while at the same time current and retired government workers will have to pay substantially higher health care premiums, County Administrator John Cullen said in a memo to employees this week. The budget cuts come in part from decades of poor planning for how to pay a ballooning bill for retired workers' medical costs that now stands at $2.6 billion over the next 30 years." (Inside Bay Area)
[Opinion] A Critical Evaluation of the Principles and Recommendations of the Minnesota Health Care Transformation Task Force (PDF)
11 pages. Excerpt: "On behalf of all the citizens of Minnesota who care about access to individualized patient care, Citizens' Council on Health Care is providing . . . dissenting comments on the Task Force's recommendations under each of the six 'transformation principles' established by the members of the committee." (Citizens' Council on Health Care)
[Opinion] VEBAs - The Answer to Health Care Benefits Costs for Retirees?
The Editor interviews Steven J. Sacher of Jones Day. (The Metropolitan Corporate Counsel, Inc.)
Links to Items on Executive Comp, Benefits in General
[Guidance Overview] Federal Court Permits Dividend Deduction for Stock Redeemed from ESOP (PDF)
3 pages. Excerpt: "A corporation that is interested in claiming a tax deduction for costs associated with redeeming shares from an ESOP should consult with legal counsel with expertise in this area and proceed cautiously. The IRS has clearly stated its position as evidenced by its issuance of final regulations specifically disallowing the deduction after the General Mills ruling. This suggests that one district court decision will not, in itself, change the IRS's enforcement position or prevent disallowance of the deduction in other court jurisdictions." (Morgan, Lewis & Bockius LLP)
[Guidance Overview] Plan Insurers and Brokers Were Not Fiduciaries With Respect to Undisclosed Fees and Commissions Paid to Brokers
Excerpt: "EBIA Comment: This is one battle in a continuing war about insurance company payments to brokers that may lead to conflicts of interest. The DOL weighed in on the issue with Advisory Opinion 2005-02A, instructing that insurance company fees and commissions reportable on Schedule A include a wide range of payments, considerably more than simple 'sales commissions' on individual policies or contracts. Most recently, the DOL has proposed comprehensive regulations requiring disclosure of service provider fees, which would also apply to commissions and other payments made by insurers to brokers . . . ." (Employee Benefits Institute of America)
Strategic Issues in Executive Pay
Excerpt: "Because the compensation system is such a significant component of an organization's overall financial structure, almost by definition it is strategic in nature. Nowhere is the strategic nature of the compensation system more evident than in the design of executive long-term incentive (LTI) programs." (Hay Group)
Study Finds Employee Ownership Improves Performance of Newly Privatized Businesses
Excerpt: "The authors' conclusion? Privatization per se is not a 'magic bullet.' Where profits and sales efficiency increased for privatized firms, it was due in large part 'to successful training and development programs that were implemented and because employees and managers were urged to gain a more vested interest after gaining options to buy shares in their enterprises.'" (The Beyster Institute)
U.S. Judge Allows G.ay Couples to Register for Domestic Partnerships in Oregon
Excerpt: "A state law allowing Oregon's g.ay couples to register as domestic partners belatedly took effect after a federal judge ruled the state's process of disqualifying petition signatures was consistent enough to be valid. The state quickly announced Friday that the domestic partnership applications were available online, and jubilant g.ay-rights activists predicted hundreds of couples would line up on Monday morning at county offices to register." (PlanetOut Inc.)
Hewitt Federal Legislation Quick Guide for January 30, 2007, on Human Resources & Employment Law (PDF)
16 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding human resources and employment law. (Hewitt Associates)
Compensation Costs in Private Industry Up 3.0 Percent in 2007
Excerpt: "Wages and salaries for private industry workers increased 3.3 percent for the 12-month period ended December 2007. Benefit costs increased 2.4 percent." (U.S. Bureau of Labor Statistics)
Ohio Governor to Approve Law on School Benefits Changes
Excerpt: "Ohio Governor Ted Strickland is expected to sign legislation next week that would raise the retirement age for bus drivers, custodians, and attendance clerks - and would cut benefits for early retirees." (PLANSPONSOR.com; free registration required)
Newly Posted Events
Ask the Experts: Individual Mandates - Webcast
Nationwide on February 5, 2008
presented by KaiserNetwork.org
Executive Compensation Update: Challenges Ahead and Practical Realities
in Ohio on February 12, 2008
presented by ASPPA Benefits Council of Cleveland
Getting to Universal Health Insurance Coverage Conference - Webcast
Nationwide on February 5, 2008
presented by KaiserNetwork.org
New FMLA Rules: What Employers Should Know Now with Craig J. Davidson, CEBS
Nationwide on February 19, 2008
presented by Davidson Marketing Group -- FutureOffice Network
Take the Mystery out of the RFP Process
in District of Columbia on March 27, 2008
presented by Capital Chapter ISCEBS
Newly Posted Press Releases
Employee Benefits Security Administration Releases Field Assistance Bulletin on Collection of Delinquent Contributions
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Social Security Is Worth $225,000 for a Typical Retiree
National Academy of Social Insurance
Newport Group Appoints Alan Valenca as New Northeastern Regional Director
Newport Group, The
ERISA "Wrap" Plan Forms Now Available
Benefit Publications, LLC
Newly Posted or Renewed Job Openings
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Pension Attorney/Paralegal/Specialist
for J.P. Schlachter & Associates, Inc.
in OH
Compliance Testing Consultant
for Diversified Investment Advisors
in NY
401(k) Plan Administrator
for Pollard & Associates, Inc.
in MD
Assistant 401(k) Administrator
for Pollard & Associates, Inc.
in MD
401(K)/DC Plan Administrator
for Schloss & Company
in NY
409A Plan Administrator / 409A Senior Plan Administrator
for Pen-Cal Administrators
in CA
Benefits Administrator
for King County- Finance & Business Operations Division
in WA
Retirement Plan Consultant
for Freedom One Financial Group
in MI
Plan Administrator
for JRN Benefits, Inc.
in CA
Sr Analyst HR Benefits
for Philip Morris USA
in VA
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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