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April 19, 2011 Get Retirement News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

[Guidance Overview]
High Earners Will Pay Additional Medicare Taxes Beginning in 2013
"How does the additional Medicare tax on wages work in terms of withholding? It works slightly differently than the standard Medicare withholding. The employer is obligated to withhold the additional 0.9 percent Medicare tax only on the individual's wages in excess of $200,000 (disregarding any wages received by the spouse)." (Deloitte via BenefitsLink.com)


Do plan changes confuse your employees? [Advert.]

Sponsored by BeneCom Associates, LLC

No matter how savvy your employees, today’s benefits world can confuse the most sophisticated consumer. That’s why more organizations use BeneCom for benefits communication. We know what employees need to make their benefits work for them – and you.


[Guidance Overview]
Wellness Program Satisfies ADA Despite Financial Penalty for Non-Participation
"Readers familiar with the EEOC's comments on wellness programs may be surprised to see no analysis of the ADA exception for voluntary medical examinations and inquiries." (Thomson Reuters/EBIA)

[Guidance Overview]
Court Again Considers Damages for Fiduciary Breach When PreAuthorized Gastric Bypass Surgery Benefits Were Denied
"As the court pointed out, the facts of this case are similar to those in the Kenseth case, which this same court recently decided. . . . Both cases involved an alleged breach of fiduciary duty for preauthorizing gastric surgery and then denying the claim for benefits once the surgery was performed." (Thomson Reuters/EBIA)

[Guidance Overview]
Correction: W-2 Guidance Does Require Reporting for On-Site Medical Clinics
"We're sorry for the error, but it does give us a chance to draw a little attention to a somewhat convoluted issue. Although coverage for on-site medical clinics is within the definition of excepted benefits and thus exempt from many HIPAA portability and health care reform requirements, this coverage is specifically included for purposes of W-2 and Cadillac tax requirements." (Thomson Reuters/EBIA)

[Guidance Overview]
California Retroactively Adopts Income Exclusion for Adult-Child Coverage
"While most states follow the Internal Revenue Code when it comes to defining "wages" and other forms of taxable income, unless the state's revenue code is drafted to automatically conform to changes made in the Internal Revenue Code, state legislative action is needed to maintain the conformity." (Deloitte via BenefitsLink.com)

[Guidance Overview]
How to Maintain 'Grandfathered' Status (PDF)
"Although we refer to grandfathered 'plans' in this document, please keep in mind that the determination of grandfathered status applies separately to each benefit package that you offer under a plan so that a plan may provide both grandfathered and non-grandfathered benefit packages." (McKenna Long & Aldridge LLP)

[Guidance Overview]
Developments for Employers that Sponsor Wellness Programs
"The ruling in Seff V. Broward County has helped to establish guidance as to what is permissible with respect to the design of wellness programs under the Americans With Disabilities Act (ADA). The U.S. District Court for the Southern District of Florida ruled that Broward County's wellness program fell within the ADA's safe harbor provision." (McDermott Will & Emery)

Work/Life Balance Key for Top Employers
"In an era of layoffs and budget cutbacks, the best workplaces aren't necessarily the ones with the best pay and benefits. Instead, Central Indiana's top employers are the ones offering more creative perks -- such as flexible scheduling and extra vacation days -- that help employees achieve better work/life balance." (www.indystar.com)

Rollback of Expanded Form 1099 Reporting under PPACA - and How Congress Paid for Repeal
"The second, less intelligible part of the Act's title ('Repayment of Exchange Subsidy Overpayments Act') explains how Congress decided to pay for the repeal." (E Is for ERISA)

Budget Bill Cuts into PPACA: Free Choice Vouchers to Be Eliminated
"The bill will repeal the 'free choice' voucher program that was championed by Senator Ron Wyden (D-OR) and set to become effective in 2014. Under the program, employers that offer coverage would have to provide a 'free choice' voucher to certain employees - that is, to employees whose household income is not more than 400 percent of the federal poverty level . . . and have to pay more than 8 percent but not more than 9.8 percent of their household income for the employer's coverage." (Deloitte via BenefitsLink.com)

Starting Wellness Programs Can Be Cheap, Incentives Unnecessary and HRAs Flawed and Can Be Dangerous
"Is your company thinking creatively about wellness? Can it be [inexpensive] and still be effective?" (Employee Benefit News; free registration required)

Benefits in General; Executive Compensation

[Guidance Overview]
Truncated SSNs Allowed on Some 2011-2012 IRS Forms, Including Form 1099
"Partial social security numbers (SSN) may be used on certain paper payee statements for 2011 and 2012 calendar years despite form instructions stating a 2009 pilot program expired." (Mercer LLC)

Employee Ownership Update for April 18, 2011
On March 29, Congressman Ron Kind introduced the pro-ESOP 'Promotion and Expansion of Private Employee Ownership Act of 2011.' IPOs have declined, and secondary markets for private company shares have arisen; now the SEC is considering changing the 500-shareholder de facto public company rule. You can nominate a company for the 2011 'Principal 10 Best Companies for Employee Financial Security' award. Corey Rosen has become the NCEO's senior staff member; Loren Rodgers is the new director. (National Center for Employee Ownership (NCEO))

[Opinion]
Career Advice for the New(er) ERISA Lawyer
April 28, 2010, publication. 'What should the new ERISA attorneys do to advance their careers? Here are some tips: Stay current. . . . Network. . . . Master a Hot Topic. . . . Never publish anything only once." (Posted by the late Nell Hennessy, Esq.; Bureau of National Affairs, Inc.)

[Opinion]
Reforming Tax Expenditures Can Reduce Deficits While Making the Tax Code More Efficient and Equitable
"In addition, in some cases, such tax credits would be more efficient if the maximum tax credit amount were capped, so that more of our limited resources could be channeled into effective incentives for homeownership, retirement saving, and college education, and fewer resources used to subsidize more lavish homes or more generous health insurance." (Center on Budget and Policy Priorities)

Press Releases

Washington Post Supports PBGC Premium Authority
(Pension Benefit Guaranty Corporation (PBGC))

Still River Introduces Consulting Service
(Still River Retirement Planning Software, Inc.)

US Labor Department Sues Stevensville, Mich.-based Metal Processors and Owner to Restore More than $16,000 to Company’s 401(k) Plan
(U.S. Department of Labor, Employee Benefits Security Administration (EBSA))

CPI Hosts Chicago Retirement Academy Conference
(CPI Qualified Plan Consultants, Inc.)

The Employee Benefits Security Administration is presenting a Free HIPAA and Other Health Benefits Laws: Compliance Assistance Seminar -- June 7-8, 2011 in Dover, DE.

Pre-registration is required and seats are allocated based on a first-come basis.

Presented by DOL, EBSA [Advert.]

Employee Benefits Jobs

Senior Pension Plan Administrator
for The Huntting Company in CA

Compliance Specialist - Retirement Plans
for General Board of Pension and Health Benefits / Wespath Investment Management in IL

Operations Manager
for Benetech, Inc. in TX

Administrator - DC Plans
for Benetech, Inc. in TX

Manager National Acct Consultants
for The Standard in OR

Retirement Consultant - IRC26229
for Lincoln Financial Group in LA

Sr. Relationship Manager
for MassMutual Financial Group in NJ, NY

Senior DC/DB Plan Administrator
for Pen-Cal Administrators in CA

Lead Manager - Retirement Plan Services Compliance Services
for T. Rowe Price in MD

Pension Administrator in Northern New Jersey
for TPA Firm in Northern New Jersey in NJ

Post Your Job on EmployeeBenefitsJobs.com

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Webcasts and Conferences

"401(k) Plan Current Issues Workshop" - St Louis
in Missouri on May 20, 2011 presented by SunGard Relius

"Form 5500/EFAST 2 Workshop" - St Louis
in Missouri on May 19, 2011 presented by SunGard Relius

401(k)Rekon Advisor Symposium- Costa Mesa
in California on May 17, 2011 presented by 401(k) Rekon

Benefits Buzz for Innovative Employers
in Florida on April 27, 2011 presented by AGIS-FL Agency Inc

HIPAA and Other Health Benefits Laws: Compliance Assistance Seminar
in Delaware on June 7, 2011 presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

HIPAA and Other Health Benefits Laws: Compliance Assistance Seminar
in North Carolina on June 28, 2011 presented by U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

The ABCs of Pension Law
in California on May 4, 2011 presented by Western Pension & Benefits Conference - Orange County Chapter


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David Rhett Baker, J.D., Editor and Publisher
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