[Guidance Overview] 2010 Minimums and Maximums for Health Savings Accounts Plans and High-Deductible Health Plans Excerpt: "On May 14, 2009, the Internal Revenue Service (IRS) released Revenue Procedure 2009-29,1 which announced various inflation-adjusted amounts for 2010 for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). The IRS calculates the annual adjustments using the 12-month period ending March 31." (The Segal Group, Inc.) [Guidance Overview] Recent FMLA Case as Reminder to Employers About Importance of FMLA Policy Excerpt: "In the Illinois case, based on the fact that the employer had fewer than 50 employees within 75 miles of the employee's worksite, the employer moved to dismiss the FMLA claim. The court denied the claim, focusing on two things. First, the court focused on the section of the company's employee handbook which discussed eligibility for FMLA leave. It provided only that, 'Employees who satisfy all of the following requirements are eligible for FMLA leave: The employee has actively worked for the company for at least 12 months as of the first day of FMLA Leave. The 12 months need not be consecutive;' and 'The employee has worked at least 1,250 hours...during the 12 month period immediately preceding the first day of FMLA leave.' The handbook did not include a reference to the '50/75' rule. In addition, representatives of the employer told the employee that she could have FMLA leave for the birth of her child." (Poyner Spruill LLP) [Guidance Overview] Issues for Employers Implementing the New COBRA Subsidy (PDF) 8 pages. Excerpt: "An entity that fails to comply with the subsidy provisions is subject to the regular COBRA penalties of $100 per day, per violation. Further, any mistakes in subsidy administration may result in payroll tax penalties. If an entity claims a subsidy for someone and the IRS later determines that the person was not eligible or the amount was incorrect, the entity will have underpaid its payroll tax liability." (Miller Chevalier Chartered) [Guidance Overview] New Obama Administration Tax Proposals Adversely Impact Corporate Owned Life Insurance (PDF) 2 pages. Excerpt: "On May 11, 2009, the Obama Administration proposed a change in the tax law which would adversely affect the use of corporate owned life insurance by businesses. The Administration has proposed this change as one of a number of tax proposals used to fund health insurance reform." (Groom Law Group) [Guidance Overview] COBRA Notice Was Sufficient Despite Employee's Claim That He Never Received It Excerpt: "EBIA Comment: As this court points out, COBRA does not require actual receipt of notification by the qualified beneficiary. In this regard, the decision follows the majority of courts, which have held that to demonstrate compliance with COBRA's notice requirements, a plan administrator need only prove that the election notice was sent to the qualified beneficiary by a method that is reasonably calculated to reach the qualified beneficiary. This standard is consistent with the DOL's general disclosure regulations." (Employee Benefits Institute of America) [Guidance Overview] ERISA Applies to Tribal Disability Plan Covering Casino Employees Excerpt: "EBIA Comment: We found this case interesting because there has been little comment from the courts on the difference between 'essential government functions' and 'commercial activities.' We also note that the court rejected the employee's argument that because the plan failed to file annual Form 5500s, it was not subject to ERISA." (Employee Benefits Institute of America) DOL Will Seek Public Comment on Draft Request Form for COBRA Subsidy Denial Reviews Excerpt: "The Department of Labor (DOL) and CMS have prepared draft application forms for individuals to request federal review of COBRA premium subsidy denials. Certain people electing COBRA due to a recent involuntary job loss are eligible for the premium subsidy and can seek federal review if denied the subsidy. The DOL must finish its review within 15 days of receiving a completed form. Official publication of the draft forms is expected in late May and will include a public comment period." (Mercer LLC) Health Care Cost Inflation Appears to Slow, but Statistics Can Be Misleading Excerpt: "Health care actuarial firm Milliman reported Monday, May 18, in its annual medical index that health care costs would increase at 7.4 percent in 2009, marking the third straight year of declines in health care inflation. Good news, right? Take a closer look: The percentage growth may be the smallest in three years, but the total dollar increase for a family of four -- at $1,162 -- is the largest in that same period, thanks to the cumulative effects of all these annual health care cost increases. Year after year the cost being measured against grows, even if the percentage increases don't. Such is the fuzzy nature of health care costs." (Workforce Management; free registration required) Senators Offer Options to Finance Health Reform Excerpt: "If the route to healthcare reform will be determined by how much it costs and how to pay for it, the Senate Finance Committee may have issued the roadmap Monday. Finance Committee Chairman Max Baucus (D-Mont.) and ranking member Chuck Grassley (R-Iowa) posted a 41-page document on the panel's website detailing the policy options on the table for financing healthcare reform. Among other things, the document lays out the case for a variety of tax reforms that will give opponents of Democratic healthcare reform plenty of fodder." (The Hill) Pennsylvania Governor Set to Sign Dependent Health Care Coverage Measure Excerpt: "Pennsylvania Governor Edward Rendell is expected to sign a bill extending health care coverage under a parent's policy for dependent children up to age 30. . . . To qualify, dependents must be unmarried, have no dependents of their own, and be residents of Pennsylvania or full-time students. Dependents also cannot have other health insurance coverage nor be eligible for government-provided health benefits." (PLANSPONSOR.com; free registration required) Congress Has Little Appetite for Health Care Taxes Excerpt: "Health insurance provided by employers isn't taxable now, even though it's considered part of overall compensation. Senators are considering several options, including taxing health insurance benefits for individuals making more than $200,000 a year, or $400,000 for a couple. Another would limit the tax-free status of health insurance to the value of the standard plan available to federal employees. Potential revenue raisers also include doing away with flexible spending accounts, limiting the income tax deduction for out-of-pocket medical costs, and charging upper income seniors more for their Medicare drug plans." (AP via The Washington Post; free registration required) Though They Are Reimbursed, Firms Claim COBRA Cash-Flow Woes Excerpt: "Small business owners are smarting over a provision in the Obama administration's stimulus package that requires them to pay 65 percent of COBRA health care insurance benefits to laid-off former employees. While the requirement, announced in February, was meant to ease the financial burden on those who lost their jobs because of the recession, it has caused cash-flow problems -- and in one case a few more layoffs -- for businesses that were already struggling." (Philadelphia Business Journal via bizjournals.com; free registration required)
Links to Items on Executive Comp, Benefits in GeneralWashington Governor Signs Domestic Partner Rights LawExcerpt: "Gov. Chris Gregoire has approved a measure that gives same-sex domestic partners all the rights and benefits that Washington state offers married couples. Gregoire signed the bill Monday in Seattle. It will take effect at the end of July, unless opponents collect enough signatures to put a referendum on the ballot." (KREM-TV) Webcasts and ConferencesDGEM Training WebcastNationwide on May 20, 2009 presented by ASCi EFAST 2 - What You Should Know Nationwide on June 10, 2009 presented by ftwilliam.com Form 5500 Refresher Course Nationwide on May 27, 2009 presented by ftwilliam.com (Click to post your webcast or conference) Press ReleasesPBGC Assumes Lenox Group Inc. Pension PlansPension Benefit Guaranty Corporation (PBGC) U.S. Department of Labor Obtains Judgments Against Fiduciaries of Defunct North Carolina Testing Laboratory U.S. Department of Labor, Employee Benefits Security Administration (EBSA) Transcend Technologies Group Announces Real-Time Integration of benefitsCONNECT® with Unum© plane.biz Transcend Technologies Group, Inc. HealthSCOPE Benefits Implements Benefit Informatics Data Analysis and Reporting Technology Benefit Informatics Pew Report Examines How Cities Are Balancing Budgets Pew Charitable Trusts Parents Put Child’s College Plans Ahead of their Retirement COUNTRY Financial RelayHealth Online Connectivity Tools Offer Value during H1N1 Flu Outbreak RelayHealth McGraw Wentworth Mid-Market Group Benefits Survey Shows Health Care Costs Increasing at 6-Year Low of 5% McGraw Wentworth (Click to post your press release) Employee Benefits JobsTeam Leader, Retirement Plans Administrationfor The Standard in OR Retirement Counselor for University of Southern California in CA Retirement Plan Administrator for RSM McGladrey in IL Health & Welfare Consultants for Cammack LaRhette Consulting in MA, NY (Click to post your job opening | View all jobs | RSS feed of all jobs ) EmployeeBenefitsJobs.com (Sponsor) (Click on banner to learn more.)
Handy Links:
Subscribe to the BenefitsLink Retirement Plans Newsletter, Too! Sign-up form is at https://benefitslink.com/newsletter (free). This email has been published by:
David Rhett Baker, J.D., Editor Copyright 2009 BenefitsLink.com, Inc.; except that you can forward this email in full (including this boilerplate part) or otherwise reprint this email in full (including this boilerplate part) without obtaining our permission. Anyone can receive these emails; just have them sign up at this web page: https://benefitslink.com/newsletter/ Other useful links: |