Health & Welfare Plans Newsletter |
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| August 18, 2009 \ Compliance \ Costs \ Administration \ Design \ Policy | ||
International Foundation of Employee Benefit Plans (Advert.)
What Rick Wellner, CEBS, says about International Foundation membership: "We became members of the Foundation because of our commitment to the Foundation’s educational content. We leverage our membership in many ways: We use the library for research, the Certificate Series for training, CEBS classes to credential our folks and E-learning courses to get our associates up and running quickly. If there is any kind of article or research in the employee benefits field, we know where to go to get it. You really need to be part of the Foundation if you're in the employee benefit market." |
[Guidance Overview]
Employers Should Be Prepared for the Expected Resurgence of H1N1 (PDF)
2 pages. Excerpt: "If your organization does not have a pandemic plan in place, now is the time to act. Following are suggestions of steps you can take to prepare your business." (Thompson Hine LLP)
[Guidance Overview]
Seventh Circuit Rejects 'Multi-Factored' Approach in Evaluating Conflict in Vesting Dispute
Excerpt: "This recent opinion out of the Seventh Circuit answers a question over the termination of disability benefits through plan amendment in the context of a larger question over what deference should be paid to the plan interpretation of a conflicted fiduciary." (Roy Harmon III via Health Plan Law)
[Guidance Overview]
Insurer Improperly Denied Claim for LTD Benefits Based on Plan's Preexisting Condition Exclusion
Excerpt: "An insurance company improperly applied the preexisting condition exclusion in a long term disability plan in denying a participant's claim for benefits. This was the decision of the Sixth Circuit U.S. Court of Appeals in Bloom v. Hartford Life and Accident Insurance Company (No. 07-6374)." (Wolters Kluwer)
[Guidance Overview]
Judge in Visteon Case to Rule on Cutting Retiree Benefits
Excerpt: "A Delaware bankrup.tcy judge is weighing whether auto parts supplier Visteon Corp. can terminate retiree health care and life insurance benefits for thousands of current and former workers. After a two-day hearing, Judge Christopher Sontchi told attorneys Friday he would consider the evidence and arguments. He gave no indication when he would rule. 'I feel that the record is sufficiently complex and the law is sufficiently complex to require the court to thoroughly review the record,' said Sontchi, whose ruling could affect some 6,600 retirees and their families, and about 1,000 future retirees." (Associated Press)
[Guidance Overview]
Ohio Mandates Cafeteria Plan Offer; Delays for Federal Approval
Excerpt: "Ohio employers with 10 or more employees will be required to offer uninsured employees the opportunity to purchase coverage on a pre-tax basis through a section 125 cafeteria plan under a new law (HB 1). The mandate will take effect incrementally, beginning Jan. 1, 2011, for employers with 500 or more employees; July 1, 2011, for employers with 150-500 employees; and Jan. 1, 2012, for employers with fewer employees, but these effective dates will be delayed if regulations aren't issued by July 1, 2010." (Mercer LLC)
The Implications of Declining Retiree Health Insurance
Excerpt: "Using data from the Health and Retirement Study, this paper examines the potential consequences of eliminating RHI for both pre-Medicare and Medicare-eligible retirees. For younger retirees the likely primary response is to work longer, and we find that number of workers age 55 to 64 would increase by 7 percent, as some of those who have their access to RHI eliminated would work rather than retire. Of those who still choose to retire, most lack any employer-sponsored health insurance option and would need to find an alternative source of coverage or go uninsured. For Medicare beneficiaries over 65, we estimate that about three quarters would replace RHI with another form of supplemental coverage. This shift would slightly reduce total spending and utilization for individuals who choose basic Medicare or a Medicare HMO as opposed to a Medigap plan, but health outcomes would probably be unaffected no matter which supplemental option is chosen." (Center for Retirement Research at Boston College)
More Unemployed Workers Sign Up for COBRA Now
Excerpt: "In the past, the vast majority of laid-off workers were unable to afford COBRA, says Ron Pollack, executive director of Families USA, a health care advocacy group. Without the subsidy, the average COBRA family premium consumes 84% of the average jobless worker's unemployment benefits, according to Families USA. Employers also are seeing an increase in the number of dependents covered by COBRA, says Patricia Friedman, a senior consultant at Watson Wyatt, a human resources consulting firm. Some employers have raised concerns that higher COBRA enrollments will increase their health care costs. Individuals who sign up for COBRA tend to file more claims than other workers, according to Edward Kaplan, national health practice leader at Segal, a human resources consulting firm, because they want to get as much medical treatment as possible before their coverage expires." (USA Today)
Exempt Workers Enjoy an Average 9.2 Vacation Days, According to Survey
Excerpt: "A new survey finds exempt employees are typically granted 9.2 vacation days while those who are not exempt get 8.2 days. A news release from Compdata Surveys, a Kansas City-based compensation and benefits data provider, said exempt workers get an average 10.9 days after their first year. Those with five to nine years of service earn 14.8 days. In addition to vacation time, the news release said, exempt and non-exempt employees get three personal days and nine holidays a year." (PLANSPONSOR.com; free registration required)
ALM (Advert.)
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. |
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]Governance and Compliance Advisory Update: August 2009
Excerpt: "In July, key decisions and rulings prompted significant activity in executive compensation, retirement, welfare and other benefits. [The update includes insights on the issues.]" (Towers Perrin)
[Guidance Overview]
FBAR's Application to Equity Awards Issued Under a Plan of a Foreign Multinational Company
Excerpt: "Employers should be aware . . . that the FBAR filing requirements also may apply to equity awards granted by a foreign multinational company to a 'U.S. person.' There has been limited guidance from the IRS on the FBAR as it relates to equity plans, so each situation should be analyzed to determine if there is an FBAR filing requirement. Failure to file an FBAR can result in severe civil and criminal penalties, and in certain situations, civil penalties can be as much as 50% of the amount in the account at the time of the violation (up to $100,000)." (Seyfarth Shaw LLP)
[Guidance Overview]
When Closing a Location, How Long Must Employers Retain Employee Benefit Records?
Excerpt: "Issue: Your company is shutting down one of its facilities, and all employees who work at that location will be terminated. You are wondering what to do with the employee benefits files, such as beneficiary forms, enrollment forms and short-term disability claim forms. Are there any legal requirements regarding maintenance and disposal of such files?" (Wolters Kluwer)
[Guidance Overview]
Enforcement of 'Red Flags' Identity Theft Rule Delayed (PDF)
2 pages. Excerpt: "The Federal Trade Commission has delayed until November 1, 2009 enforcement of a rule that requires 'financial institutions' and 'creditors' to implement written identity theft prevention programs. . . . [The FTC has clarified] that 401(k) plans and health flexible spending accounts are not covered by the new rule." (Buck Consultants)
[Guidance Overview]
Proposed Changes to Proxy Disclosure Regarding Executive Compensation and Corporate Governance
Excerpt: "The proposed amendments may significantly increase the amount of information companies are required to generate and disclose, which may place additional pressures on the companies' resources to be able to appropriately and efficiently respond to the proposed amendments. If adopted, the Commission has stated that compliance likely would be required beginning with the 2010 proxy season, which may not allow for a substantial amount of time for the information gathering and analysis background work that will be necessary after publication of the final amendments in the Federal Register. Although the proposed amendments have not been adopted and the level of analysis and restructuring of existing structures, processes, and reporting will vary among companies, companies should begin to consider commencement of this process as soon as possible." (Jones Day)
Supreme Court to Hear Case on Executive Pay
Excerpt: "The Supreme Court will hear the case this fall, as anger over huge bonuses paid to the executives of failing companies continues to grow. The case, Jones v. Harris Associates, may turn out to be the court's first significant statement on the corporate culture that helped lead to the Great Recession. The case arose from the enormous fees mutual funds pay to their investment advisers." (The New York Times; free registration required)
The Employee Ownership Update for August 17, 2009
NCEO Executive Director Corey Rosen discusses the ESOP Improvements Act, the results of the NCEO's new survey on employee stock purchase plans (ESPPs), and an important Ninth Circuit decision in the Johnson v. Couturier case concerning the role of ESOP fiduciaries in dealing with executive pay and the ability of companies to indemnify fiduciaries. (The National Center for Employee Ownership)
Webcasts and Conferences
Employer Forum Workshopin Massachusetts on September 15, 2009
presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
(Click to post your webcast or conference)
Employee Benefits Jobs
Pension Administratorfor Pension Administration Firm located in Westchester, NY
in NY
Actuarial Consultant
for Summit Retirement Plan Services, Inc.
in OH
Retirement Plan Administrator
for Doherty Employer Services
in MN
Retirement Plan Administrator
for Geller Group, LLC
in NY
Compliance Analyst
for The Newport Group
in FL
Defined Benefits Plan Manager--Sarasota
for Growing, progressive TPA
in FL
(Click to post your job opening | View all jobs |
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EmployeeBenefitsJobs.com (Sponsor)
(Click on banner to learn more.)
| Where the best employers find the best candidates! |
Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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