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BenefitsLink Health & Welfare Plans Newsletter
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Blue-Collar Workers Top Charts for Worst Employee Health
"blue-collar workers topped the charts when it comes to many health concerns: About 37% of transportation workers and 30.7% of manufacturing and production employees are obese; smoking was prevalent among 33% in mining and construction and 29.3% in installation and repair work.... [B]y improving employees' health, companies will see less turnover and lower health care costs."
(USA TODAY)
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Take the Hassle Out of Enrollment [Advert.]

BeneCom creates effective enrollment communications. And with our 20 years of experience behind you, communications is one less job you have to worry about so you can get back to what matters most ̶ your employees!
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Taming the 'Other Post-Employment Benefits' Beast for State and Local Government Plans
"In 2004, the Governmental Accounting Standards Board (GASB) announced that beginning in 2008 cities and states would be required to calculate and make public their [Other Post-Employment Benefits (OPEB)] liabilities. Now, one estimate puts unfunded state and local OPEB liabilities at more than $2 tril.lion, while a survey of 126 state and local pension plans (representing 85 percent of public-pension assets) found unfunded pension liabilities of roughly $700 bil.lion—and that was two years ago. While many of us would like to change the way public pensions work, those systems do deduct money from current employee salaries to fund at least a portion of future costs. OPEB expenses, on the other hand, are generally funded on a pay-as-you-go basis from operating budgets."
(Governing)
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How Do Consumer-Directed Health Care Plans Affect Medical Care?
"Key Findings: Families enrolling in consumer-directed health plans for the first time in 2005 spent 14 percent less than similar families enrolled in conventional plans. The benefit designs of consumer-directed health plans almost always affected vulnerable populations to the same extent as nonvulnerable populations. If the percentage of the nonelderly population who are enrolled through their employer in a consumer-directed health plan were to increase immediately from 12.4 percent to 50 percent, the savings in personal health care expenditures nationally—over a 10 year period—would total $57.1 bil.lion."
(Robert Wood Johnson Foundation)
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COBRA Notice Is Not Culprit in Claim That Termination Violated USERRA
"Sending a COBRA election notice shortly after an employee began military duty was not evidence that an employer fired the employee due to his military status in violation of the Uniformed Services Employment and Reemployment Rights Act, a federal district court in Arkansas held." [Dorris v. TXD Services, LP, 2012 WL 3149106 (E.D. Ark., Aug. 1, 2012)]
(Thompson SmartHR Manager)
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Health Reform Poses Biggest Challenges to Companies with the Most Part-Time and Low-Paid Employees
"[A] recent survey of 1,203 employers ... found that 60% expect some increase in cost; one-third of those expect an increase of 5% or more. The employers that will be hit hardest are those with large part-time populations—employers in retail and hospitality services. Nearly half of these employers (46%) expect PPACA will push up cost by at least 3% in 2014—and another third don't yet know what the impact will be."
(Mercer)
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Benefits in General; Executive Compensation
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[Guidance Overview]
IRS Clarifies Treatment of Performance-Based Restricted Stock and Restricted Stock Units (PDF)
"Revenue Ruling 2012-19... clarifies that, to be excludible from the $1 mil.lion deduction limit, the payment of dividends or dividend equivalents must be conditioned on meeting the requirements applicable to performance-based compensation under Section 162(m). Performance goals may be the same as, or differ from, the goals applicable to the underlying restricted stock or RSU awards. If dividends or dividend equivalents are payable whether or not their performance goals are met, the dividends or dividend equivalents must separately satisfy the requirements under Section 162(m) to be treated as performance-based compensation."
(Buck Consultants)
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[Guidance Overview]
IRS Finalizes Rule on Entertainment Use of Business Aircraft
"The final rules, which fall under tax Code Section 274, do the following: determine how much of the expense of running a corporate airplane can be deducted; affect how employers tabulate income inclusion for personal use of the company plane; and subject security-related travel to the Section 274 deduction disallowance."
(Thompson)
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Relative TSR Is the Top Metric for Performance-Based Equity Compensation
"According to new research ... nearly 600 US companies have adopted Relative [Total Shareholder Return, or 'TSR'] plans since 2005, including more than 140 new plans in the last two years. Under Relative TSR plans, final award payouts are typically tied to relative stock price returns against a peer group or a stock market index. These findings make Relative TSR the most prevalent performance metric for equity compensation programs today."
(Aon Hewitt)
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Police Pension Fund Sues Over CEO Pay Deal
"A Louisiana pension fund is suing Simon Property Group for not seeking shareholder approval when it raised chief executive David Simon's compensation last year. In a lawsuit filed with the Delaware Court of Chancery, Louisiana Municipal Police Employees Retirement System or LAMPERS, accused the company and its board of exceeded its authority by granting the CEO shares worth $120 mil.lion to stay on until 2019."
(The New York Times; free registration required)
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Recent Court Decisions Suggest Changes to Stock Plan Design to Reduce Litigation Risk
"[A] Delaware court decision from the last week of June, Seinfeld v. Slager, when added to some decisions before it, suggests that companies should seriously consider spinning-off a directors stock incentive plan from, or amending, the company's regular omnibus stock plan to protect officers, directors and the company against the costs and headaches of shareholder derivative litigation over executive compensation."
(Winston & Strawn LLP)
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Press Releases
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David Rhett Baker, J.D., Editor and Publisher
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