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January 10, 2011 Retirement Plans Newsletter  |  Advertise  |  Unsubscribe

[Guidance Overview]
IRS's Rule Change on Using Debit Cards for OTC Drugs – "IRS Notice 2011-5 . . . modifies previous IRS guidance that would have barred the use of certain debit cards to pay for expenses incurred for over-the-counter . . . medicines and drugs. The rule affects reimbursements under health flexible spending arrangements . . ., and health reimbursement arrangements . . . ." (McGuireWoods LLP)


Nat'l Health Benefits Conf & Expo (HBCE) Jan.31-Feb.1, Clearwater Bch, FL (advert.)

Sponsored by Health Benefits Conference & Expo (HBCE)

Best Value in Health Benefits Continuing Education (HBCE) - highest quality and modest registration: $275 - $345. SHRM and other CE credits. www.HBCE.com Phone 941-484-1430 or Email: info@HBCE.com


[Guidance Overview]
Ninth Circuit Holds Tight to ERISA Interpretation Rule That Courts Will 'Not Artificially Create Ambiguity Where None Exist' – "In late 2004, UNUM informed [the plaintiff] that regarding his 1997 LTD claim, it should have ceased payments in 1998 because [he] left [his employer] to take another job. At the new job, [the plaintiff] was earning approximately the same salary he had earned before the accident. The rationale for UNUM's decision was based upon the LTD policy which stated: Disability benefits will cease on the earliest of: The date the insured is no longer disabled; The date the insured dies; The end of the maximum benefit period; The date the insured's current earnings exceed 80% of his pre-disability earnings." (McKennon Schindler LLP)

[Guidance Overview]
District Court Permits Supplementation of Record But with Instruction on Law – "The factual dispute over cause of death involved two possible policy exclusions. The first involved different language in the policy versus the summary plan description. The carrier did not consider the SPD language which the court ruled was error." (Roy Harmon III via Health Plan Law)

[Guidance Overview]
The IRS 2010 Version of HSA Reporting Form 8889 and Instructions – "The absence of significant changes in the 2010 version of Form 8889 and its Instructions is what we expected, given that the rules governing HSAs have remained relatively stable for 2010 reporting. We expect more changes for 2011 reporting, when HSA-related health care reform changes become applicable." (Thomson Reuters/EBIA)

[Guidance Overview]
GINA Regulations Take Effect January 10, 2011 – "In connection with lawful medical information requests, the regulations provide a so-called 'safe harbor' for employers who 'inadvertently' receive genetic information. To use the FMLA medical certification process as an example, in order to take advantage of the safe harbor, the employer must include the following language on the medical certification form . . . ." (Warner Norcross & Judd LLP)

Cognitive Ability and Retiree Health Care Expenditure (PDF) – 37 pages. "Prior research indicates that retirees with less cognitive ability are at greater financial risk because they have lower incomes yet higher medical expenditures. Linking HRS data to administrative records, we evaluate two hypotheses about why this group spends more on health: (1) they are in worse health; (2) they receive more expensive or less effective care for the same conditions." (University of Michigan Retirement Research Center)

DOL, HHS, Treasury Answer More Questions on Health Reform and Mental Health Parity – "On December 22, the Department of Labor's Employee Benefit Security Administration . . ., the Department of Health and Human Services . . ., and the Treasury Department . . . released the fifth set of frequently asked questions about the Patient Protection and Affordable Care Act . . . . The FAQs also addressed some issues related to the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act . . . ." (Wolters Kluwer)

Vacation Benefit Program Allows Employers to Show Staff They're Serious About Stress-Reducing Vacation Time – "For an annual membership and monthly service fee (either employee-paid, employer-paid or employer-subsidized) Rovia puts together a wide variety of discounted vacation packages ranging from weekend getaways to luxury vacations hosted by a Rovia employee who coordinates activities on the trip." (Employee Benefit Adviser; one-time free registration required)

HHS Plans Full Regulatory Agenda As Reform Law Faces Political and Legal Challenges In 2011 – "The following news analysis . . . offers a look ahead to key policy developments expected in 2011, based on documents, sources and prior reporting by Inside Health Policy and its sister news site Inside Health Reform." (America's Health Insurance Plans)

How the Health Care Overhaul's Small Business Tax Credit Is Working – "Kansas Health Institute News explores how tax credits -- one existing at the state level and the new one put in place by the health law -- may be encouraging small business owners to provide health coverage to their employees." (Henry J. Kaiser Family Foundation)

Flex Work Time Flourishes in Accounting Industry – "Some firms allow employees to take off the entire summer to devote to their children; some let employees work just three days a week during nonpeak months. The big accounting firms generally give 12 weeks of paid maternity leave, with fathers often receiving six weeks -- and that is on top of the 12 weeks of unpaid leave provided to parents under federal law." (The New York Times; one-time registration required)

Pennsylvania County Hands Out $114,000 to Employees Who Elect to Forgo County-Sponsored Health Insurance – "Ninety of the county's 1,160 employees participated in the benefit buyout program last year, county spokeswoman Lynne Shedlock said. Workers have two options, she said. An employee who takes no health insurance coverage - medical, dental, prescription or vision - receives $1,500. A worker who elects to forgo medical benefits only gets $1,000." (The Scranton Times Tribune)

[Opinion]
Health Care Focus for Employers on PPACA Regulations in 2011, But Long-Term Uncertainty Grows – "For the time being, employers will have to focus on implementing regulations while struggling to model long-term alternatives against the backdrop of uncertainty because of legal challenges as well as possible changes that could result from the outcome of the 2012 presidential election." (HR Policy Association)


Complete Benefits Law Guidance from Law Journal Press (advert.)

Sponsored by ALM

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.


Benefits in General; Executive Compensation

[Guidance Overview]
Updated IRS Procedures for Issuing Letter Rulings, Determination Letters, and Other Employee Plan Guidance – "These revenue procedures are an important resource for anyone seeking plan-specific guidance from the IRS. Those new to employee benefits will welcome the practical tools offered in the procedures, including sample formats and checklists for letter ruling requests, definitions of basic terms, user fee schedules, and descriptions of how the 2011 procedures differ from their 2010 counterparts." (Thomson Reuters/EBIA)

Companies Not Sure How to Measure 'Say on Pay' Success – "Some 49 percent of companies don't know what level of shareholder support of executive compensation in say-on-pay votes will be considered a successful outcome by their boards of directors, according to a Towers Watson & Co. survey released Jan. 5." (Workplace Management: free registration required)

Executive Compensation: Dodd-Frank Implementation, Proxy Advisory Firms Continue Controlling Key Corporate Decisions – "While the focal point for executive compensation policy in 2011 will be the SEC, which must complete regulations implementing the new financial reform law, we also expect the Republican House to flex its oversight muscles and seek repeal or revision of the pay ratio and pay for performance disclosure mandates." (HR Policy Association)

Top Hat Plans: Potentially Risky Retirement Plans for Executives – "[P]lans that exclusively benefit executives and other highly paid employees -- called nonqualified or 'top hat' plans -- are unfunded. Participants in these plans avoid current taxation of deferred compensation by, in part, agreeing to accept a substantial risk of forfeiture. As a result, the benefits promised under top hat plans are at risk when the company is sold, as the Seventh Circuit reminded us in Feinberg v. RM Acquisition LLC, No. 10-1890 (7th Cir. 1/6/11)." (Tax Management Inc.)

Top 11 Regulatory Changes for Small Business in 2011 – "Payroll processor Paychex has released a list of the top 11 regulatory issues facing small businesses in 2011." (Employee Benefit Adviser; one-time free registration required)

Audio and Text: State Budgets and Public Employees – "Research suggests that compared to the private sector, some state and local workers do earn more, but critics argue targeting public employees' wage and benefit packages and their collective bargaining power is an easy way to side step more basic issues such as the need for economic growth. Join us for a discussion of state budgets and public sector employees." (WAMU 88.5 American University Radio)

Press Releases


Employee Benefits Jobs

Retirement Call Center Representative
for The Newport Group in NC

Document Specialist
for The Senex Group in CA


Webcasts and Conferences

401(k) Advisor Symposium- Portland
in Oregon on February 1, 2011 401(k) Rekon

Power of 3 Workshop
in South Carolina on April 6, 2011 Simoneaux & Stroud Consulting Services


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