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October 12, 2012          Get Retirement News  |  Advertise  |  Unsubscribe
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Employee Benefits Jobs

Regional Pension Sales Manager
for Nationwide Insurance in WA

Recordkeeping Supervisor
for Verisight, Inc. in CA

Midwest Regional Sales Director
for Fringe Benefit Group in IA, IL, IN, KS, KY, MO, NE

Retirement Services Consultant
for CUNA Mutual Group in WI

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Webcasts and Conferences

Managing ERISA Pension Money — QPAM and INHAM 101 Webinar
Nationwide on October 23, 2012 presented by FTI Consulting


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Kodak Cuts Mean Crisis for Thousands of Retirees
"For Kodak's roughly 38,000 U.S. retirees dependent on the company for health care benefits, as well as an additional 18,000 disabled former workers and survivors, the benefit cuts will mean anything from a minor inconvenience to a major financial crisis. Retirees under the age of 65, and thus not eligible for Medicare, could end up spending as much as $1,000 a month out of pocket for coverage comparable to what they get now through Kodak[.]" (Democrat and Chronicle)


[Advert.]

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Details at www.BenefitsConf.com.


Open Enrollment Options for Younger Workers
"For young employees on a tight budget, rising costs can be especially tough to manage. In November of last year, 29 percent of adults ages 19 to 29 who had continuous coverage over the previous 12 months reported delaying or skipping needed tests or doctor's visits because of cost ... You don't want to forego the care you need. A better way to lower your costs is to look for new ways to save during this year's open enrollment period." (Chicago Tribune; free registration required)

Wal-Mart to Pay for Heart and Spine Surgery for U.S. Employees
"Wal-Mart Stores Inc is offering its U.S. employees and their families free heart and spine surgeries at six major health centers at no cost to the retailer's workers, as it tries to find better ways to cover costly, complicated procedures.... Wal-Mart says that it pays about 60 percent of total cost of healthcare for employees on its healthcare plans, including out-of-pocket and premium expenses. For workers, including those with low-paying jobs, costs will now be reduced as they will no longer pay for such procedures." (Reuters)

Safe Harbor for Determining Full-Time Employee Status Under ACA
"Although the safe harbors are complicated and technical, if followed correctly they will enable employers to determine, in advance, whether certain employees could potentially trigger a penalty under the pay-or-play mandate. The safe harbor rules apply differently with respect to full-time employees and part-time employees." (Proskauer Rose LLP)

PPACA: A Healthcare Law Guide for Employees
"The [ACA] will change your health insurance, healthcare, income, and job. You'll gain some benefits, but also a long list of burdens. BENEFITS: Your kids can stay on your policy until age 26.... Insurers won't be able to refuse to sell to you if you are ill.... Some employees will get subsidies.... Some employers get a temporary tax credit.... TAX BURDENS: You must buy health insurance or else pay a large tax.... You may have to pay a new tax on insurance.... You'll pay a new tax on brand-name drugs.... Flexible Spending Accounts are now limited to $2,500 per year." (National Federation of Independent Business)

2013 Open Enrollment Season Foreshadows Significant Structural Changes on 2014 and Beyond
"[A recent] survey found that 63 percent of employers expect little or no change to their health benefit plan design or employee premium subsidies for 2013. Yet 2014 promises to be a different story, with 42 percent of employers considering changes to plan options, and 31 percent considering reductions in subsidization of coverage for spouses or dependents." (Wolters Kluwer Law & Business)

[Opinion]

Text of Public Comments on DOL Technical Release 2012-02, Guidance on 90-Day Waiting Period Limitation Under the ACA
The target page contains links to text of 44 comments provided by trade organizations and others about the Technical Release, which was issued in August of 2012. (Employee Benefits Security Administration)

[Opinion]

Text of Public Comments on DOL Technical Release 2012-01, FAQs Regarding Automatic Enrollment, Employer Shared Responsibility, and Waiting Periods
The target page contains links to text of 40 comments provided by trade organizations and others about the Technical Release, which was issued in February of 2012. (Employee Benefits Security Administration)

Benefits in General; Executive Compensation

[Official Guidance]

Text of Chicago Stock Exchange Amended Proposed Rule to Establish Listing Standards for Compensation Committees (PDF)
"[Proposed Rule 19 was amended] to include a charter requirement for compensation committees and removes the definition of 'compensation committee' and 'functional equivalent' ... to narrow the scope of the passive business organizations exemption.... to include a phase-in period for foreign issuers who no longer qualify as such.... to solely refer to the smaller reporting companies exemption and includes a phase-in period for issuers that no longer qualify as such.... to reorganize the bright line tests for independent directors and to allow the inclusion of proposed paragraph (B), which outlines additional independent director requirements specific to compensation committee membership.... to remove a listed exemption for small business issuers. Finally, proposed paragraph .05(6) of the Interpretations and Policies of Rule 19 outlines an amended transition period for compliance with the proposed listing standards." (Chicago Stock Exchange)

Please Release Me, When I Let You Go -- 409A Corrections Required By December 31
"If the plan or agreement requires that the employee sign the release within a designated period following the triggering event such as 'no more than 90 days after termination,' the arrangement must be amended to provide for payment either on the last day of the period only or in the later tax year if the period begins in one tax year and ends in another. If the plan does not provide for payment within a period following the triggering event, the plan document must be corrected to provide for payment either on a fixed date 60 or 90 days after the payment event or during a specified period of not longer than 90 days after the payment event, provided that, if the period begins in one year and ends in a second year, payment will be made in the second year. In both cases, the employment-related action must occur during the applicable period and prior to payment." (Chang Ruthenberg & Long)

Proskauer ERISA Litigation Newsletter, October 2012
"[This issue discusses] the issues involved in whether and when arbitration may apply to ERISA claims and whether an employer or fiduciary may wish to require arbitration. [Recent court rulings] could permit plan sponsors to avoid defending class action ERISA claims in federal court by conditioning employment on arbitration agreements, as well as avoid classwide arbitration. However ... the recent case law applying the Supreme Court rulings in employment claims appears to suggest that some courts may look to find means to distinguish ERISA claims and thereby preclude the use of arbitration clauses in this manner." (Proskauer Rose LLP)

District Courts in the Fourth Circuit Run Full Speed Ahead with Equitable Estoppel Claims
"Following Amara and the Fourth Circuit decision in McCravy v. Metropolitan Life Ins. Co. ..., District Courts in the Fourth Circuit, in two recent decisions, permitted plan participant's claims to move forward past summary judgment, premised upon oral representations made by plan fiduciaries that were inconsistent with the written plan terms." [Israel v. Prudential Ins. Co., 2012 U.S. Dist. Lexis 106107 (D.S.C. July 31, 2012); and Strickland v. AT&T Umbrella Benefit Plan, 2012 U.S. Dist. LEXIS 14145 (W.D.N.C. Sept. 30, 2012)] (Wombyle Carlyle)

Employers Should Evaluate Refund Opportunities Following Sixth Circuit Ruling on FICA Taxes and Severance Payments
"Quality Stores now is the law in the Sixth Circuit (Michigan, Ohio, Tennessee, and Kentucky). Employers whose principal place of business is in those states should consider seeking refunds of FICA taxes they remitted for SUB payments since January 1, 2009. Also, Sixth Circuit employers should consider whether to withhold FICA taxes from SUB payments made since Quality Stores. Those employers should keep in mind that, if Quality Stores ultimately is overturned, they would owe back FICA taxes for all periods for which the statute of limitations for assessment is open" (Ballard Spahr)

Press Releases

ERISA Advisory Council to Hold Final 2012 Meeting Oct. 30-31
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)



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