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September 21, 2012 Get Retirement News  |  Advertise  |  Unsubscribe  |  Past Issues  |  Search

Employee Benefits Jobs

Associate - Employee Benefits
for Perkins Coie LLP in WA

for Sullivan, Ward, Asher & Patton, P.C. in MI

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Webcasts and Conferences

Retirement Plan Insights Seminar
in Nevada on November 13, 2012 presented by McKay Hochman Co., Inc.

Retirement Plan Insights Seminar
in Maryland on November 19, 2012 presented by McKay Hochman Co., Inc.

Defined Contribution Allocations and Annual Additions Webcast
Nationwide on September 24, 2012 presented by American Society of Pension Professionals & Actuaries (ASPPA)

Benefit Consulting for the Tax Exempt Organization Webcast
Nationwide on October 4, 2012 presented by American Society of Pension Professionals & Actuaries (ASPPA)

Investments in Daily Valued Plans Webcast
Nationwide on October 5, 2012 presented by American Society of Pension Professionals & Actuaries (ASPPA)

ASPPA Annual Conference 2012
in District of Columbia on October 28, 2012 presented by American Society of Pension Professionals & Actuaries (ASPPA)

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Health Premiums for Federal Employees Will Increase 3.4 Percent in 2013
"Premiums for nonpostal enrollees in the Federal Employees Health Benefits Program will increase an average of 3.4 percent in 2013, the Office of Personnel Management announced Thursday. The average health care premium increase for U.S. Postal Service employees for 2013 will be 3.8 percent. Of that increase, government contributions will rise 3.3 percent, while participants will pay 3.7 percent more in 2013." (GovExec.com)


Retirement Income Solutions Summit: Chicago Oct. 9, NY Oct. 11

Sponsored by Pensions & Investments

Free registration for qualified plan sponsors. Sponsored by Pensions & Investments - learn how to develop a defined contribution plan that helps ensure your participants lifetime income.

Hospitals Billed Medicare at Least $1 Billion in Extra Fees for Emergency Room Visits
"Between 2001 and 2008, hospitals across the country dramatically increased their Medicare billing for emergency room care, adding more than $1 billion to the cost of the program to taxpayers, a Center investigation has found. The fees are based on a system of billing codes—so-called evaluation and management codes—that makes higher payments for treatments that require more time and resources." (The Center for Public Integrity)

The High Cost of Out-of-Pocket Expenses at the End of Life
"On average, people with Medicare coverage paid $38,688 for medical care in the last five years of life. There was enormous variation, with 25 percent of participants spending an average $101,791 out-of-pocket for medical services and 25 percent spending an average $5,163 during this period." (The New York Times)

Cedars-Sinai and UCLA Cut from Health Plan for Los Angeles City Employees
"The city opted for Anthem's plan because it will save $7.6 million in annual premiums next year by excluding physicians from the two institutions known for tending to the Southland's rich and famous. About 2,200 city workers and family members are expected to lose access to their doctors under the plan. This dramatic step shows that even some of the most-respected names in medicine can't get by on reputation alone at a time when the U.S. is grappling with a $2.6-trillion healthcare bill annually." (Los Angeles Times)

Administration Estimates Savings to Medicare Beneficiaries Due to ACA
"This issue brief provides estimates of savings to seniors and people living with disabilities enrolled in traditional Medicare from the provisions in the Affordable Care Act.... Average savings per Medicare beneficiary in traditional Medicare are estimated to be $160 in 2012, increasing to $812 in 2022 .... For a beneficiary with spending in the donut hole, total estimated annual savings increase from $735 in 2012 to $2,599 in 2022." (Assistant Secretary for Planning and Evaluation, U.S. Department of Health and Human Services)

Medicare Recipients Save $4.5 Billion on Prescriptions Under ACA
"'We're seeing consistent, steady savings for seniors thanks to the health care law,' said Jon Blum, director of the Center for Medicare. 'In just 2-1/2 years, seniors have seen billions in savings, and those savings will continue to grow as the doughnut hole is fully closed.' The announcement comes two days after the Congressional Budget Office found that about 2 million more people than expected would be paying an average $1,200 penalty for not purchasing insurance as required by the law beginning in 2014. The number affected is significantly higher than the 4 million the CBO had estimated would pay a penalty in 2010, shortly after the bill passed." (USA TODAY)

Group Health Insurance Premiums up 97% Since 2002
"The cost for workplace-based family health insurance rose by 4% in 2012, while wages climbed a mere 1.7%, according to a national survey of businesses released this week. The disparity between employer-sponsored coverage and salaries was even more dramatic when studied over a 10-year period ... Since 2002, premiums have leaped by 97%, far out-pacing the 33% growth in wages and the inflation rate of 38%." (FoxBusiness.com)

Oklahoma Attorney General Revises Lawsuit Over Mandatory Purchase of Health Insurance
"Oklahoma Attorney General Scott Pruitt, who initially filed a legal challenge to Obama's Patient Protection and Affordable Care Act in January 2011, asked in a revised complaint ... for a federal judge to rule that the part of the law mandating people purchase insurance or face a tax penalty is inoperative in his state. Oklahoma amended its constitution by popular vote in November 2010, eight months after Obama signed the health care law. The amendment prohibited any rule or law forcing a person, employer or health care provider to participate in a health care system." (Bloomberg)

Health Insurance Coverage Improved In 20 States During 2011
"The percentage of people without health insurance fell in 20 states last year with Oregon, Rhode Island and Vermont seeing the biggest declines, according to an analysis of data released ... by the Census Bureau. Two states had a statistically significant increase in the uninsured rate, Missouri and Montana. Missouri's uninsured rate jumped from 13.2 percent in 2010 to 13.7 percent last year, and Montana's rate went from 17.3 percent up to 18.3 percent," (Kaiser Health News)

Benefits in General; Executive Compensation

Year-End Deadline for Section 409A Document Compliance Correction (PDF)
"[R]eview your deferred compensation plans and agreements NOW to be sure they have the 'magic language' to be in compliance with Code Section 409A by year-end. Failure to make a simple document correction by December 31, 2012, could result in stiff tax penalties to unsuspecting employees." (Alston + Bird LLP)

Tax Planning for Nonqualified Deferred Compensation: Does Deferral Make Sense With Higher Tax Rates Ahead?
"Is it better to take the compensation now, pay current taxes at lower ordinary income rates than those expected in the future, reinvest the net amount, and then sell it later at capital gains rates? Or is it better to defer the income and taxes on it today and pay a greater total amount of taxes when it is distributed in the future? The answer depends on three factors: the calculation of current and future tax rates for both ordinary income and capital gains the investment return on the compensation deferred the growth of the alternative investment(s) for the after-tax amount of the compensation without deferral" (myStockOptions.com)

Sixth Circuit Splits from Federal Circuit, Decides Severance Payments Are Not Taxable as FICA Wages (PDF)
"Employers that have made severance payments meeting the requirements for [supplemental unemployment compenstation, or 'SUB'] payments as set forth in Internal Revenue Code Section 3402(o) should file claims for refund for FICA taxes paid with respect to these payments. The statute of limitations for filing claims for refund for timely filed 2009 Forms 941 will expire on April 15, 2013.... Employers that have already filed claims for refund and have received a notice of disallowance from the IRS (or have signed a Form 2297) should consider filing suit as soon as possible (or, alternatively, seek the IRS's agreement to extend the statute of limitations using Form 907).... It is particularly important for taxpayers in the Sixth Circuit (Kentucky, Michigan, Ohio, and Tennessee) to preserve their rights because of the favorable decision in Quality Stores." [United States v. Quality Stores, Inc., No. 10-1563 (6th Cir. 2012)] (Sutherland)

Press Releases

Pentegra Retirement CEO Announces Retirement
Pentegra Retirement Services

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