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June 14, 2011 Get Retirement News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

[Guidance Overview]
HIPAA's Revised Electronic Transaction Rules Effective Soon
"Covered entities, including group health plans, generally will need to comply with HIPAA 's latest electronic data interchange (EDI) rules by Jan. 1, 2012; small plans will have an extra year to comply with certain rules." (Mercer Select)


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.


Insurer And TPA Fees Will Fund Temporary Reinsurance Program Starting in 2014
"The fees will provide funding to make payments offsetting the costs of insurers issuing non grandfathered policies to higher-risk individuals entering the market. Though the new assessment will not apply to employers, they could feel the effects if vendors increase their charges to cover these fees." (Mercer Select)

Benefits in General; Executive Compensation

[Guidance Overview]
'Cheap Stock' and Section 409A Considerations for Pre-IPO Companies (PDF)
Excerpt: 'If a company makes grants of equity awards prior to going public at share prices that are much lower than the initial public offering price, this could lead to accounting charges for the company. But, perhaps more significantly, this could also highlight tax compliance issues under Section 409A." (Pillsbury)

[Guidance Overview]
Despite Winning on Summary Judgment, ERISA Fiduciaries Not Entitled to Attorneys Fees
"[A]n association of former unionized worker retirees sued two former association directors alleging that they had breached their fiduciary duty to the association and members by buying and maintaining a health insurance policy with expensive premiums that outweighed benefits received. The district court granted summary judgment [but later] denied a motion by the directors for [an award against the plaintiffs reimbursing the directors' attorneys fees." (JD Supra, authored by Constangy, Brooks & Smith, LLP)

[Guidance Overview]
Designing Deferred Compensation Plans for Governmental Employers and Tax-Exempt Organizations (PDF)
At page 3 of target newsletter. Excerpt: '[T]he inclusion of an amount into income under Section 457(f) can be structured so that it is treated as a payment for purposes of the short-term deferral exemption, even if the amount continues to be set aside and credited with earnings. In addition, the prospect of stricter regulations under Section 457(f) may make it more advantageous for companies to correct their 457(f) plans now, to the extent that they contain provisions that run afoul of 409A, than after the new guidance is issued." (Pillsbury)

GAO Report: Little Information Available on Qualified Supplemental Executive Retirement Plans
"[Some defined benefit retirement] plan sponsors have designed ways to indirectly transfer . . . nontax-qualified supplemental executive benefits into their existing tax-qualified DB plans . . . by increasing the benefits under the qualified plan, with an offsetting reduction in the benefits under the nonqualified plan . . . . These arrangements, commonly referred to as Qualified Supplemental Executive Retirement Plans (QSERP), can provide HCEs with a higher qualified benefit amount, the tax advantages provided by a qualified plan, as well as the increased benefit security provided by the backing of qualified plan assets." (U.S. Government Accountability Office)

Corporate Volunteer Programs Dramatically Increase Job Satisfaction of 'Millennial' Employees
"56% of millennials -- employees aged 21-35 -- who frequently participate in a company's sponsored volunteer activities are likely to rate their corporate culture as very positive, compared with 28% of millennials who don't volunteer." (Employee Benefit News; free registration required)

[Opinion]
How Public Employees Get to Run Government
"Say you have a business in the private sector. Would you let your employees name their salary and benefit levels and oblige you to pass on the cost to your customers? Absent a captive market your customers will likely be gone and so would your business." (Burypensions Blog)

Press Releases

Webcasts and Conferences

"ERPA Test Review - Part I" - A 3-part Web Seminar
Nationwide on June 28, 2011 presented by SunGard Relius

"ERPA Test Review for Part II" - A 3-part Web Seminar
Nationwide on July 6, 2011 presented by SunGard Relius

"Form 5500-EZ: Soup to Nuts" Web Seminar
Nationwide on June 28, 2011 presented by SunGard Relius

"The New Form 8955-SSA: Who, What, When, and How" Web Seminar - An Encore Presentation
Nationwide on June 30, 2011 presented by SunGard Relius

401 (k) Rekon Advisor Symposium- San Diego
in California on July 12, 2011 presented by 401(k) Rekon

Trends and Hot Issues in Pharmacy Benefits
in Illinois on June 22, 2011 presented by Worldwide Employee Benefits Network (WEB)


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Jeanette Hull, News Editor
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager
Copyright 2011 BenefitsLink.com, Inc., but feel free to forward this newsletter in its entirety.

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