Health & Welfare Plans Newsletter

April 20, 2015

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Employee Benefits Jobs

Account Manager
Cammack Retirement Group
in NY

Business Analyst - Pension
Towers Watson
in CO, IL, MI, MN, PA

Junior Plan Consultant
The Pension Studio
in ANY STATE

Plan Administrator
United Retirement Plan Consultants
in NJ

Retirement Plan Administrator
Benetrends, Inc.
in PA

Employee Benefits Associate
Drinker Biddle & Reath
in CA, IL

Employee Benefits Associate
Drinker Biddle & Reath LLP
in IL, NY, PA

Defined Contribution Investment Analyst -- CHICAGO
Pavilion Advisory Group Inc.
in IL

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Webcasts and Conferences

Understanding the New Investment Advice Rules for IRAs and Qualified Plans
April 23, 2015 WEBCAST
(Convergent Retirement Plan Solutions, LLC)

DOL Fiduciary Regulations
April 23, 2015 WEBCAST
(Convergent Retirement Plan Solutions, LLC)

457(b) Plans for Tax-Exempt Entities - Learn how these “Top Hat” plans work!
April 23, 2015 WEBCAST
(ASC Institute)

Spring 15 Retirement, Annuity, and Life Insurance Benefit Planning
May 6, 2015 in NY
(New York State Bar Association)

The Five Most Dangerous Trends in Employee Wellness And What You Can Do to Avoid Them
May 13, 2015 WEBCAST
(Thompson Information Services)

EEOC Proposed Wellness Program Regulation
May 13, 2015 WEBCAST
(HR Policy Association)

IRA Institute
May 13, 2015 in AZ
(Retirement Industry Trust Association)

Beyond the Basics of Affiliate Service Groups and Controlled Groups
May 19, 2015 WEBCAST
(ASPPA [American Society of Pension Professionals & Actuaries])

Spring Conference
May 19, 2015 in NC
(ASPPA Benefits Council [ABC] of Carolinas)

Business Structures and Social Security Claiming
May 20, 2015 in MA
(ASPPA Benefits Council [ABC] of New England)

Retirement Plans for Nonprofits: What All Plan Sponsors Need to Know
May 28, 2015 in NY
(Nixon Peabody LLP)

Mid-Sized Retirement & Healthcare Plan Management Conference
June 7, 2015 in IL
(University Conference Services)

2015 Health Meeting
June 15, 2015 in GA
(Society of Actuaries)

View All Webcasts and Conferences



[Official Guidance]

Text of CMS Notice: Transitional Adjustment for 2014 Risk Corridors Program (PDF)
"A QHP issuer will input its state-specific adjustment percentages, indicated in [a table in this notice], in its Medical Loss Ratio (MLR) and Risk Corridors Reporting Form for 2014. All QHP issuers in a state will receive the same transitional adjustment, regardless of the issuer's transitional enrollment, if any. For issuers in states that did not apply the transitional adjustment, the risk corridors calculation will be based on a profit floor of 3 percent and allowable administrative costs ceiling of 20 percent (that is, the transitional adjustment will be 0 percent)." [This unnumbered document is dated Apr. 17, 2015.] (Centers for Medicare & Medicaid Services [CMS], U.S. Department of Health and Human Services [HHS])  


[Advert.]

2015 SALGBA National Conference - May 3-6 in Bonita Springs, FL

Sponsored by State and Local Government Benefits Association [SALGBA]

SALGBA is the premier organization providing educational and collaborative support for public sector employee benefits professionals, such as national and regional conferences, member directory, and more. For a complete list visit www.salgba.com.



[Guidance Overview]

EEOC Proposed Wellness Program Regs May Affect Employer 'Affordability' Calculation
"[A] refusal to permit the full tobacco cessation incentive might tip an employee over the ACA's 9.5 percent threshold for 'affordability,' possibly resulting in assessable payments under the shared employer responsibility provisions.... [T]he proposed rule requests comments on whether it would be appropriate for the EEOC to provide that it would be deemed coercive and involuntary to require an individual to answer disability-related inquiries or submit to medical examinations connected to a wellness program with incentives that exceed the ACA's 9.5 percent affordability rate. It is also of great significance that the EEOC takes the position that the measure of affordability and the impact of a 30 percent reward or penalty are based on self-only coverage." (Epstein Becker Green)  

[Guidance Overview]

EEOC Rules on Wellness Programs Further Limit Employer Design Options
"[T]he EEOC's proposed rules rejected the clear safe harbor contained in the ADA for wellness programs established as a part of a bona fide benefit plan. Despite the significance of this shift, the EEOC limits its discussion of the ADA benefit plan safe harbor to a footnote. It simply says that wellness programs are 'medical examinations' and thus must be 'voluntary.' The EEOC, by so doing, appears to disregard the benefit plan safe harbor under the ADA." (Seyfarth Shaw LLP)  

[Guidance Overview]

Long Awaited EEOC Wellness Regs Released (PDF)
"The proposed regulations do not address how the 30% maximum incentive (based on the total cost of employee-only coverage) applies when an employee's family members also participate in the wellness program and are enrolled in the group health plan." (Buck Consultants at Xerox)  

[Guidance Overview]

Wellness Program Developments
"While wellness programs are not required to be accredited or evidence-based, the guidance was accompanied by the release of a study on workplace wellness programs by Rand Corporation and the FAQs referenced standards and practices on evidence based clinical standards in two government studies ... as methods of increasing the likelihood of wellness program success. These are references that may become more important as wellness programs are considered under other applicable laws because compliance with ACA is only one aspect of being a wellness program that is permissible." (Winstead PC)  


[Advert.]

Wellness Programs: EEOC Enforcement Actions and Complying with Federal and State Laws

Sponsored by Lorman and BenefitsLink

April 24 live webinar: HIPAA nondiscrimination regulations, case law, design and taxation of incentives, laws that prohibit discrimination based on health factors, and exceptions for certain wellness and supplemental plans. BenefitsLink discount.



New Retiree Medical Options Rein in Cost
"In the past, offering retiree medical benefits meant sponsoring, administering, communicating, and perhaps financing the plans. Most often employers self-funded retiree plans, exposing themselves to large claim risks. With the advent of prescription drug coverage for Medicare retirees in 2006 and the opening of public exchanges to pre-Medicare-eligible retirees in 2014, employers gained viable options for fully insured, guaranteed-issue individual coverage for their retirees, often at a lower cost for both parties.... Survey results suggest that all these options are adding up to cost savings for employers." (Mercer/Signal)  

Supreme Court Halts ACA Contraception Mandate in Pennsylvania Case
"[Justice] Alito's order halted a February ruling from the [Third Circuit] that decided the opt-out form didn't stop the nonprofits from exercising their religion.... Justices will consider a similar case during a conference next week, which concerns Catholic charities from Tennessee and Michigan ... Last month, the Supreme Court struck down a lower court's ruling requiring the University of Notre Dame to follow the birth control mandate." [Zubik v. Burwell, No. 14A106 (U.S. Apr. 15, 2015)] (Newsmax)  

Benefits in General; Executive Compensation

Gobeille v. Liberty Mutual: An Opportunity to Correct the Problems of ERISA Preemption
"Specifically, the Court should acknowledge the tension between Shaw v. Delta Air Lines, Inc. and the Court's subsequent decision in New York State Conference of Blue Cross & Blue Shield Plans v. Travelers Ins. Co. by reconsidering the statute afresh. As part of such reconsideration, the Court should construe ERISA Section 514(a) as creating a presumption for preemption.... Finally, the Court should jettison the notion that traditional areas of state law as defined by the Court are immune from ERISA's more expansive than usual preemption and should instead acknowledge what the statute says: Per Sections 514(b)(2)(A) and 514(b)(4), the areas immunized from ERISA's more stringent preemption are -- and are only -- state banking, securities, insurance, and criminal laws." [Gobeille v. Liberty Mutual Ins. Co., No. 14-181 (2d Cir. Feb. 4, 2014; cert. pet. filed Aug. 13, 2014)] (Prof. Edward A. Zelinsky, via SSRN)  

IRS and Treasury Department Issue Final Regs on Section 162(m)
"A company that is contemplating going public or that is considering granting full-value awards during its transition period should be mindful of the tax implications. In such circumstances, restricted stock may be more appealing than RSUs in order to maximize tax deductibility, particularly if the company expects to grant awards with long vesting schedules or anticipates a short transition period." (Meridian Compensation Partners, LLC)  

Shareholder Engagement on Executive Compensation: A Primer on the Why, When, Who and How (PDF)
"[P]roxy advisory firms and institutional investors are most receptive to meetings during the proxy off-season ... [In] case of a failed Say-on-Pay vote, either the Chair of the Compensation Committee or non-executive Chairman of the Board would normally lead the shareholder outreach (as management will be viewed as conflicted) ... [R]egular shareholder engagement is typically conducted by members of management ... [W]hile regular outreach can be efficiently done telephonically, recovering from a failed Say-on-Pay vote is better conducted in face-to-face and one-on-one meetings." (Frederic W. Cook & Co., Inc.)  

Press Releases

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