Health & Welfare Plans Newsletter

August 5, 2015

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Employee Benefits Jobs


Webcasts and Conferences

Top 10 Health Plan Design Traps for 2016
August 7, 2015 WEBCAST
(Littler Mendelson)

Intermediate IRA Training Part 1
August 18, 2015 WEBCAST
(Wolters Kluwer)

Health Savings Account Training
August 19, 2015 WEBCAST
(Wolters Kluwer)

Coping with the Realities of GASB 67 and 68
September 9, 2015 WEBCAST
(ASPPA College of Pension Actuaries [ACOPA])

Certificate in Health and Welfare Plans
October 12, 2015 in NV
(International Foundation of Employee Benefit Plans [IFEBP])

West Coast Defined Contribution Conference
October 18, 2015 in CA
(Pensions & Investments)

View All Webcasts and Conferences


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[Official Guidance]

Updated Draft of IRS Publication 5164, Test Package for Electronic Filers of ACA Information Returns (PDF)
Version 2.1, dated July 2015, 19 pages. "[This publication] contains general and program specific testing information for use with ACA Assurance Testing System (AATS). AATS refers to both the process and the system used to test software and electronic transmissions prior to accepting Software Developers, Transmitters and Issuers into the [ACA Information Returns (AIR)] System. Software Developers are required annually to pass pre-defined AATS submissions and test scenarios for the forms that they will support. Transmitters and Issuers are required to pass communication tests for the forms they will file." (Internal Revenue Service [IRS])  


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[Guidance Overview]

The ACA's Reporting Requirements for Carriers and Employers: The Basics (Part 3 of 24)
"The purpose of IRS Form 1095-C is to furnish information to the IRS about an applicable large employer's compliance with the Affordable Care Act's (ACA) employer shared responsibility rules. The form also solicits information that the IRS will use to track both compliance by employees and their dependents with the Act's individual mandate and their eligibility for premium tax subsidies. Much of the required data is provided in responses to lines 14, 15 and 16 (Part II) of the form. An understanding of what is reported in these three lines and how they interact, therefore, is essential to an understanding of Internal Revenue Code section 6056, which Form 1095-C supports." (Mintz Levin)  

[Guidance Overview]

IRS Health Care Tax Tip 2015-46: What Employers Need to Know About the ACA
"The size and structure of a workforce -- small or large -- helps determine which parts of the law apply to which employers. Calculating the number of employees is especially important for employers that have close to 50 employees or whose work force fluctuates during the year." (Internal Revenue Service [IRS])  

[Guidance Overview]

New Laws Impact COBRA, HSAs, Expatriate Plans, ACA Reporting Penalties and the Employer Mandate
Topics include: [1] Increased penalties for ACA information reporting violations; [2] Reinstated Health Coverage Tax Credit [HCTC] may impact COBRA election notices; [3] Changes to the HCTC under the Trade Preferences Extension Act of 2015 (TPEA); [3] Expatriate health plans; and [4] Exemption for veterans In determining large employer status under the ACA's employer mandate. (Practical Law Company)  

[Guidance Overview]

Feeling Better? California Amends Its Paid Sick Leave Law (PDF)
"Most employees who satisfy the minimum in-state work threshold (even if headquartered elsewhere) will be entitled to paid sick time under the new law. AB 304 clarified that an employee must work in California for the same employer for 30 or more days within a year from beginning employment to be eligible to accrue sick leave with that employer." (Buck Consultants at Xerox)  


[Advert.]

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August 26 -- Attend this live webinar and make sure you are up to speed and fully compliant on the latest issues surrounding wellness plans. BenefitsLink discount.



Netflix Offers New Parents Up to a Year of Parental Leave
"New parents can be away from the office for as many days as they choose in the first 12 months after a child's birth or adoption ... The policy sets [Netflix] far apart from the vast majority of U.S. employers, even in the technology industry, which is famous for worker perks. At Facebook Inc., mothers and fathers get four months paid leave, plus $4,000 in 'baby cash,' while at Google Inc. it's up to 18 weeks." (Employee Benefit News)  

Grandfathered Plans Should Be Careful When Modifying Wellness Programs
"In order to maintain grandfathered status, your plan has to stay in place, the way it was on March 23, 2010. If you increase or decrease any employer contributions to deductibles, copays or coinsurance, you will lose your grandfathered status. Therefore, you have to be very careful when designing wellness programs that include incentives. If the incentive makes the employer contribution go up or down, you could lose your grandfathered status." (Wolters Kluwer Law & Business)  

Boeing Is Negotiating Directly with More Healthcare Providers
"Boeing is one of a few national employers that now negotiate directly with hospitals and medical groups to provide employee health benefits or specific services.... Early results from Boeing's first contract in the Puget Sound are not yet available, but the employer is eager to expand its use of direct contracts to exert more influence over the cost and quality of care[.]" (Modern Healthcare Online; free registration required)  

The Fiscal Benefits of Private Disability Income Protection Coverage to the SSDI Program: Current Situation and a Proposal for Expansion
24 pages. "This paper proposes extending group disability income protection to a greater proportion of working Americans by encouraging employers to adopt automatic enrollment, or 'opt out,' arrangements under employer-sponsored group disability plans. By increasing the number of employees with group disability coverage, more workers affected by a disability will benefit from the income protection and return-to-work elements of group disability coverage thereby reducing the number of workers receiving SSDI benefits." (Charles River Associates, for America's Health Insurance Plans [AHIP])  

Factoring Health Care Costs Into Your Retirement Plan (PDF)
"Health care spending is projected to grow 5.8% each year through 2022.... Only one-in-six large employers (considered 500 to 4,999 employees) offer health insurance coverage to retirees. This collision of soaring costs and shrinking employer coverage means that today, the average 65-year-old couple today can expect their out-of-pocket costs to reach $220,000 over 20 years in retirement. With retirement plan balances more inadequate in size, health care costs threaten the financial welfare of many future retirees." (National Association of Government Defined Contribution Administrators [NAGDCA])  

Benefits in General; Executive Compensation

Private Employer Costs for Pay and Benefits Rose from June 2014 to June 2015
"Private employer costs for pay and benefits increased 1.9 percent from June 2014 to June 2015. That was about the same as the increase from June 2013 to June 2014. Wages and salaries increased 2.2 percent from June 2014 to June 2015." (U.S. Bureau of Labor Statistics [BLS])  

CEO Pay Ratio Rule: SEC Votes Today on Requiring Companies to Disclose Compensation
"Noting that the pay ratio rule is 'controversial,' Chairman Mary Jo White says at today's session, 'It is the law, and we are required to carry it out.' She added that the rule gives companies discretion in how to interpret the measure. White also called the rule both reasonable and flexible. The commissioners will discuss the rule and then hold a vote. It's the last major piece of business for today's meeting." (National Public Radio)  

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