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April 23, 2007
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Court Reinstates Terminated Disability Benefits for Procedural Violation
Excerpt: "EBIA Comment: The full and fair review requirement calls for a meaningful dialogue between ERISA plan administrators and their beneficiaries. In this case, the insurer's fatal flaw was switching the basis for its determination without affording the participant an opportunity to respond to the new and determinative reason." (Employee Benefits Institute of America Inc.)
Failure to Enroll Dependent Fiduciary Breach: ERISA Provides No Remedy for Affected Plan Participant
Excerpt: "EBIA Comment: Although this employer prevailed on the remedies issue, the case nevertheless illustrates the potential exposure for enrollment mistakes, especially under insured plans where insurance contracts typically make the employer responsible for enrollment and limit the insurer's liability for benefits if the employer fails to act properly." (Employee Benefits Institute of America Inc.)
Massachusetts Health Law Confuses Businesses
Excerpt: "[Chip Kerby of McDermott, Will & Emery LLP] said the new law doesn't clearly define how contractors . . . can count what is part-time or full-time, or how they comply with the law's nondiscrimination clause that requires employers of 11 or more people to offer the same insurance to all employee groups." (Boston Business Journal via bizjournals.com; free registration required)
First-Time Generic Approvals: Corzide, Cipro XR, Cortef
Excerpt: "The US Food and Drug Administration (FDA) has approved first-time generic formulations for nadolol plus bendroflumethiazide 40-mg/5-mg and 80-mg/5-mg tablets in the management of hypertension, ciprofloxacin 500- and 1000-mg extended-release tablets for the treatment of urinary tract infection, and hydrocortisone 5- and 10-mg tablets for the management of approved indications." (Medscape; free registration required)
Overview: Congress Considering Mental Health Parity Legislation
Excerpt: "The House and Senate are considering bills that would expand the mental health parity requirements in current law. The existing Mental Health Parity Act of 1996 prevents group health plans from imposing lower annual or lifetime dollar limits on mental health benefits than on medical/surgical benefits.' (Watson Wyatt Worldwide)
Opinion: Should We Really Be Focusing Specifically on Covering the Uninsured?
Excerpt: "Would it improve health? Perhaps. But according to health economists Helen Levy of the University of Michigan's Economic Research Initiative on the Uninsured and David Meltzer of the University of Chicago there is 'no evidence' that expanding coverage is a cost-effective way to do so. That is, there are other approaches that could purchase more health for the money spent." (TCSdaily.com via Cato Institute)
Single-Payer Health Plan Idea Gets Chilly Response in Wisconsin
Excerpt: "[Wisconsin] State Sen. Mark Miller (D-Monona) said he introduced the Wisconsin Health Security Act in February to save employers money on health care, create a better business environment and expand care for the nearly 500,000 uninsured in Wisconsin. However, the Wisconsin Hospital Association, Wisconsin Medical Society and insurance industry officials do not see the bill as a cure for the state's health care cost woes." (The Business Journal of Milwaukee via bizjournals.com; free registration required)
Overview: IRS Announces That 2005 and 2006 Are Not Cutoff Years for Archer MSA Program
Excerpt: "EBIA Comment: As we expected, the number of Archer MSAs continues to remain well below the statutory cutoff limit of 750,000. Part of the reason for the low numbers, particularly in 2006, may be that the program previously terminated at the end of 2005 and was not retroactively reinstated until December 2006." (Employee Benefits Institute of America Inc.)
Sixth Circuit Holds Cash Balance Plan Benefit Calculations Violate ERISA; 502(a)(1)(B) Relief Broadened?
Excerpt: "This case involves an application of the futility doctrine that merits consideration as well as an analysis of ERISA ? 502(a)(3) and ERISA ? 502(a)(1)(B). As the subjects arise in the context of cash balance pension plans, however, some background may be helpful for context. In the final analysis, the case arguably broadens the reach of ERISA ? 502(a)(1)(B)." (Health Plan Law blog by Attorney Roy F. Harmon III)
Links to Items on Executive Comp, Benefits in General
Looking Into the FASB's Crystal Ball: What's Ahead for Liability Measurement?
Excerpt: "Last year, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) 158, bringing the first phase of the FASB's accounting reforms for pensions and other postretirement benefits to a close. . . . Many important issues were left for Phase Two, including the determination of expense, liability measurement and balance sheet consolidation." (Watson Wyatt Worldwide)
Overview of the New Requirements Now Effective for the Board Compensation Committee
Excerpt: "In 2002, Congress passed and the President signed into law, the Sarbanes-Oxley Act ('SOX'). The first requirements of SOX placed the corporate audit function in the fish bowl for public scrutiny. Now, following the issuance of more recent regulations by the Securities and Exchange Commission, it is the Compensation Committee's turn in the fish bowl." (Corporate Board Member Magazine; free registration required)
Review of Claim Denials: 10th Circuit Explains View on Appealing 'Remands' to Plan Administrators
Excerpt: "A series of recent appellate decisions address the administrative appeals process in claim denials as well as when district court orders are final so that they may be appealed. This article is one of a multi-part series. The [target page] addresses the finality of district court orders for purposes of appeal." (Health Plan Law blog by Attorney Roy F. Harmon III)
Peer Review: Pay Disclosures Reveal Some Strange Bedfellows
Excerpt: "Just when shareholders thought the Securities and Exchange Commission had given them the keys to understanding executive pay, a new proxy disclosure quandary has emerged: compensation and performance peer groups." (Financial Week; free registration required)
Some 2007 Proxy Statements Falling Short of New SEC Guidelines on Executive Compensation
Excerpt: "The SEC adopted new rules last year to give investors a clearer and more complete picture of executive compensation. Cox said the SEC is already seeing confusing and difficult-to-decipher executive compensation sections in 2007 proxy statements, some of which are 30 to 40 pages, which he attributed to 'over-lawyering.'" (Watson Wyatt Worldwide)
Overview: Final Regulations on Deferred Compensation Under Section 409A (PDF)
8 pages. Excerpt: "The final regulations do not address all open issues under Section 409A, such as the Form W-2 reporting requirements, the penalty provisions and the application of Section 409A to partnerships. It is not yet known when guidance will be issued in these areas." (LeBoeuf, Lamb, Greene & MacRae LLP)
House Passes Executive Compensation Bill
Excerpt: "Legislation giving shareholders of public companies an advisory vote on executive compensation plans was approved by the House of Representatives . . . by a vote of 269-134." (Investment News; free registration required)
An Investor Guide to the Stock Option Timing Scandal, Revised July 2006 (PDF)
Excerpt: "By mid-June [2006], more than 50 firms had disclosed criminal, regulatory, or internal investigations into whether they backdated or otherwise manipulated the timing of stock option grants to maximize compensation for senior executives. . . . To help investors understand the issues raised by option timing, ISS has prepared this guide, which details how this scandal developed and how shareholders and companies have responded." (Institutional Shareholder Services)
Newly Posted Events
Employee Benefits Conference
in Illinois on May 30, 2007
presented by Illinois CPA Society
ERISA Litigation
in Illinois on May 10, 2007
presented by ALI-ABA (American Law Institute-American Bar Association)
IRC Section 409A: The Final Regulations - Webcast
Nationwide on May 9, 2007
presented by Deloitte
Summarizing the Final 409A Regulations
Nationwide on May 15, 2007
presented by SunGard Relius
Newly Posted Press Releases
U.S. Labor Department Obtains Court Judgment Ordering Kalamazoo, Mich., Trustee To Restore More Than $658,000 To 401(k) Plan
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
ERIC Applauds Decision to Drop Deferred Compensation Provisions
ERIC (ERISA Industry Committee)
Workplace Options' National Survey of Working Adults Shows Strong Demand for Back-Up Child and Elder Care Support Programs
Workplace Options
TransitCenter, Inc. Offers a Simple Tax-Saving Tip: Drive Down Commuting Costs with Tax-Free Commuter Benefits
TransitCenter
Bankrate Poll: Early Retirement is not Expected
Bankrate, Inc.
Newly Posted or Renewed Job Openings
( Post a Job | View All Jobs )
401(k) Client Relationship Manager
for The Douglas Group
in CA, FL, GA, MA, NJ, NY, TX
Plan Consultant
for Diversified Investment Advisors
in NY
Team Manager
for Gundersen Partners
in CA
Client Relationship Manager
for Freedom One Financial Group
in MI
Retirement Service Analysts
for Constantin Control Associates
in NJ
Manager - Retirement Plan Implementation
for Sentinel Benefits Group, Inc.
in MA
Defined Contribution Plan Administrator
for Pension Planning Consultants, Inc.
in NM
Handy Links:
- View Today's Active Message Threads
- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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