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| February 24, 2009 |
| Here are the Web's best new links about compliance and cost aspects of plan operation, design and policy. |
Today's sponsor is International Foundation of Employee Benefit Plans
(Click on company name or banner to learn more.)
| Be Smart by Association with the International Foundation |
| Smart is not a permanent state of being. What's your maintenance plan? Take advantage of the education and information available through the International Foundation of Employee Benefit Plans, a nonprofit educational association, and find out why over 35,000 industry professionals like Ken Bradshaw, CEBS rely on the Foundation to stay informed and educated. Make sure you have the most comprehensive information on health, pension and compensation issues. Be smart by association. |
[Official Guidance]
DOL Web Page: COBRA Continuation Coverage Assistance Under The American Recovery and Reinvestment Act of 2009
The site includes links to the full text of the COBRA provisions in ARRA, as well as a Joint Explanatory Statement of the Committee of Conference on the COBRA Premium Reduction Provision. Additional guidance on COBRA premiums will be posted on this page. (U.S. Employee Benefits Security Administration)
[Guidance Overview]
New Federal COBRA Subsidy Law Requires Prompt Employer Action (PDF)
Excerpt: "[I]f an employer chooses to pay for all or a portion of an AEI's COBRA premium, the employer should ensure that the documentation is clear as to whether the payment of the premium will delay the commencement of the COBRA period (which may be possible if the employer is paying at least as much of the premium as it pays for active employees), or whether the COBRA period will not be extended (which would serve to reduce some or all of the Subsidy that might otherwise be available). But it is important to note that it may not be best for an employer, from a financial point of view, to agree to delay the start of the COBRA period to the end of the period of post-employment employer-paid coverage." (Patterson Belknap Webb & Tyler LLP)
[Guidance Overview]
The Health Information Technology for Economic and Clinical Health Act: Implications for the Adoption of Health Information Technology, HIPAA, and Privacy and Security Issues
Excerpt: "The HITECH Act of the American Recovery and Reinvestment Act imposes more stringent regulatory requirements under the security and privacy rules of HIPAA, increases civil penalties for a violation of HIPAA, provides funding for hospitals and physicians for the adoption of health information technology, and requires notification to patients of a security breach. These broad new requirements will necessitate compliance by covered entities, business associates and related vendors in the health care industry." (Nixon Peabody)
[Guidance Overview]
Employer Obligations under FMLA
Excerpt: "[This column on the Family and Medical Leave Act addresses] an employee's right to have the same job after returning from FMLA leave as well as some of the complexities dealing with intermittent leave." (Human Resource Executive Online)
[Guidance Overview]
Equivalent Pay and Bonuses Under the FMLA
Excerpt: "An employee returning from FMLA leave is entitled to return to the same position he or she held when leave commenced or to an equivalent position with equivalent benefits, pay and other terms and conditions of employment. This means, upon reinstatement, an employee is entitled to any unconditional pay increases that occurred during the FMLA leave period, such as cost of living increases. Pay increases conditioned upon seniority, length of service or work performed must also be granted in accordance with the employer's policy or practice with respect to other employees on an equivalent leave status for a reason that does not qualify as FMLA leave." (Faegre & Benson)
[Guidance Overview]
The COBRA Premium Subsidy Law: Understanding Your Compliance Obligations
Excerpt: "The subsidy applies not only to federal COBRA coverage, but also to state-law programs that provide comparable continuation coverage. Therefore, it is important for all group health plan sponsors to learn these new rules and understand their new obligations." (McDermott Will & Emery)
[Guidance Overview]
All Employers' Severance Plans and Agreements Affected by ARRA
Excerpt: "The key provision that may benefit both employees and employers is as follows: Individuals who have or will become eligible for COBRA due to an involuntary termination of employment during the period from September 1, 2008 through December 31, 2009, are generally eligible to receive a COBRA subsidy for up to nine months, under which they are only required to pay 35 percent of the COBRA premium. The employer subsidizes the other 65 percent of the premium, which the employer then may recoup by claiming a credit against its required payroll taxes. The subsidy is subject to phase-outs and recapture for individuals above certain income thresholds. An employer that already subsidized COBRA coverage to some employees under a severance benefit plan or other negotiated severance can shift the cost of this subsidy to the government. An employer that does not provide a subsidy for COBRA coverage now has an opportunity to do something very positive for its employees/former employees without increasing its costs." (Michael S. Melbinger via Winston & Strawn LLP)
Health Care Reform in the United States
Excerpt: "This paper focuses on two factors that contribute to [the] discrepancy between health outcomes and health expenditures in the United States: inequitable access to medical services and subsidized private insurance policies; and inefficiencies in public health insurance. It then suggests two sets of reforms likely to improve the US health-care system. The first is a package of reforms to achieve close to universal health insurance coverage. The second set of reforms relates to payment methods and coverage decisions within the Medicare programme to realign incentives and increase the extent of economic evaluation of different medical procedures." (Organisation for Economic Co-operation and Development via Physicians for a National Health Program)
Colorado Senate Gives Initial OK to Same-Sex Benefits for State Workers
Excerpt: "The partners of g.ay and les.bian state workers would be able to get health insurance coverage under a bill given initial backing by the Senate on Monday. The measure (Senate Bill 88) would add domestic partners to the list of dependents eligible for coverage. Same-sex partners who have been in a committed partnership with a state employee for at least a year would qualify as a domestic partner. Sponsor Sen. Jennifer Veiga, D-Denver, said it was a 'fair and equitable' step that would help Colorado compete for employees with businesses and other states that offer such coverage. She also said 17 Colorado counties and cities already offer such benefits." (Washington Blade)
GM, Chrysler Could Seek to Mirror Ford/UAW Pact to Pay Retiree Health Care Fund with Stock.
Excerpt: "Ford Motor Co.'s tentative agreement Monday with the United Auto Workers to use company stock to fund up to half of its contributions to a union-run retiree health care fund could set the stage for similar deals with Detroit's other automakers. General Motors Corp. and Chrysler LLC must win substantial concessions from the UAW as well as their debt holders to show viability by March 31 under the terms of $17.4 billion in emergency loans they have received from the government." (The Detroit News)
Improving Our Nation's Health and Healthcare Through Information Technology (PDF)
23 pages. Excerpt: "The eHealth Initiative Blueprint: Building Consensus for Common Action represents multi-stakeholder consensus on a shared vision and a set of principles, strategies and actions for improving health and healthcare through information and information technology. Through a collaborative process led by eHI's multi-stakeholder leadership, development of the Blueprint involved nearly 200 organizations representing the many diverse stakeholders in healthcare, including clinicians, consumers, employers and healthcare purchasers, healthcare IT suppliers, health plans, hospitals and other providers, laboratories, pharma.ceutical and medical device manufacturers, pharmacists and pharmacies, public health agencies, and state and community-based organizations." (eHealth Initiative)
The HITECH Act: Funding for the Adoption of Health Care IT
Excerpt: "[$19] billion has been appropriated to fund the promotion of a national infrastructure for the electronic exchange of health information and the widespread adoption of electronic health record (EHR) technology. The $19 billion includes $2 billion appropriated under the Health Information Technology for Economic and Clinical Health (HITECH) Act. These funds are to be spent by the Department of Health and Human Services (HHS) to fund private and public/private initiatives to promote the adoption of health information technology. Congress has instructed HHS to expend these funds 'as quickly as possible consistent with prudent management.'" (Drinker Biddle & Reath LLP)
National Health Spending by Medical Condition, 1996-2005 (PDF)
10 pages. Excerpt: "This study responds to recent calls for information about how personal health expenditures from the National Health Expenditure Accounts are distributed across medical conditions. It provides annual estimates from 1996 through 2005 for thirty-two conditions mapped into thirteen all-inclusive diagnostic categories. Circulatory system spending was highest among the diagnostic categories, accounting for 17 percent of spending in 2005. The most costly conditions were mental disorders and heart conditions. Spending growth rates were lowest for lung cancer, chronic obstructive pulmonary disease, pneumonia, coronary heart disease, and stroke, perhaps reflecting benefits of preventive care." (Health Affairs)
UAW and Ford Reach Agreement of VEBA Modifications
Excerpt: "The United Auto Workers union and Ford Motor Company have reached a tentative agreement on modifications to the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust. Ford announced that the agreement provides it with the option to use Ford common stock in lieu of cash for up to 50% of the payments into the VEBA." (PLANSPONSOR.com; free registration required)
Employers Fear Cost of Health Insurance for Jobless Workers
Excerpt: "Employers, and the companies they hire to manage their COBRA programs, are scrambling to meet the March 1 deadline to notify employees, Dennett says. But an even greater concern for employers is how higher COBRA enrollment will affect their insurance costs. The most likely candidates to take advantage of the subsidy are individuals with health problems, says Tom Billet, senior benefits consultant at Watson Wyatt. Those individuals are also more likely to seek medical care for themselves and their families before their coverage expires, he says. 'That's always an issue with COBRA. ... You're paying for it, you only have a certain amount of time on it, so you want to use it.'" (USA TODAY)
[Opinion]
Vesting for Retiree Health Care
Excerpt: "The 6th U.S. Circuit Court of Appeals ruled that an expired union contract that guaranteed lifetime retiree-health benefits to employees as long as they remained active workers was invalid. Experts say companies should consider removing such provisions from current agreements. Ford's recent agreement to use stock to pay for retiree benefits offers another cautionary tale." (Human Resource Executive Online)
WorldatWork (Sponsor)
(Click on company name or banner to learn more.)
| WorldatWork publications in the BenefitsLink Bookstore |
| WorldatWork, a not-for-profit professional association, is a leading publisher of compensation, benefits and total rewards information. With a portfolio of books, reports, survey briefs, booklets and online learning programs, WorldatWork creates, markets and distributes publications that are critical to improved organizational performance. WorldatWork has contributed to the education and development of business professionals worldwide since 1955. |
Links to Items on Executive Comp, Benefits in General
Planning for Benefits During a Divestiture
Excerpt: "A divestiture can have a silver lining for the company shedding assets: an opportunity to re-examine an existing benefits program to renegotiate coverage for a newly downsized workforce or, in some cases, look for a different provider, according to the experts." (Workforce Management; free registration required)
Establishing an Investment Trust for OPEB Only Makes Sense with Accumulated Assets (PDF)
3 pages. This white paper is directed at government employers considering trusts for other post-employment benefits. (Milliman)
IRS Releases New Withholding Tables
Excerpt: "The IRS on Monday released withholding tables that reflect a new tax credit, dubbed the making work pay credit, created by the stimulus package. . . . The IRS emphasizes that employees do not have to fill out a new W-4 withholding form to have the making work pay credit reflected in their take-home pay; employers should automatically adjust their withholding, based on the new tables. The new withholding tables can be downloaded from the IRS at www.irs.gov/pub/irs-pdf/n1036.pdf." (Journal of Accountancy)
Newly Posted Events
2010 Business Management Conference
in Arizona on January 9, 2010
presented by National Institute of Pension Administrators
403(b) Myth Busting and the Latest IRS Guidance on the Coming Regulations - Webcast
Nationwide on March 3, 2009
presented by National Institute of Pension Administrators
Compensation: Client Consulting Regarding DC Plan Interim Amendments - What You Need to Know About the Treatment of Post-Severance Pay - Webcast
Nationwide on March 10, 2009
presented by National Institute of Pension Administrators
Effective Open Enrollment (60-Minute Power Series) Webcast
Nationwide on March 10, 2009
presented by International Foundation of Employee Benefit Plans
Form 5500 Update - Webcast
Nationwide on March 9, 2009
presented by National Institute of Pension Administrators
Impact of Same-Sex Marriages and Domestic Partnerships on Employee Benefit Plans - Webcast
Nationwide on February 26, 2009
presented by West LegalEdcenter
The Grand Irony of ERISA?: Intersectionality of ERISA Preemption and Remedial Issues Symposium
in New York on March 13, 2009
presented by Hofstra Labor & Employment Law Journal
The Latest on EGTRRA Restatements and Plan Termination Review - Webcast
Nationwide on March 18, 2009
presented by National Institute of Pension Administrators
Newly Posted Press Releases
Analysis Estimates Impact of Market Losses on 401(k) Account Balances
Employee Benefit Research Institute (EBRI)
Volatile Market Causes Investors to Make Changes in Their Retirement Plans
NAVA
EPIC Advisors, Inc. Partners with West Coast Firm to Support Business
EPIC Advisors, Inc.
Pension Analytix Inc. Announces The Integration Of Its Proprietary Plan Sponsor Database With Salesforce.com
Pension Analytix Inc.
Newly Posted or Renewed Job Openings
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