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(a) New Guidance Documents

Final EEOC Regs on Retiree Health Benefits Under the Age Discrimination in Employment Act (ADEA) (PDF)
8 pages; effective December 26, 2007. Excerpt: "The Equal Employment Opportunity Commission is publishing this final rule so that employers may create, adopt, and maintain a wide range of retiree health plan designs, such as Medicare bridge plans and Medicare wrap-around plans, without violating the Age Discrimination in Employment Act of 1967 (ADEA). To address concerns that the ADEA may be construed to create an incentive for employers to eliminate or reduce retiree health benefits, EEOC is creating a narrow exemption from the prohibitions of the ADEA for the practice of coordinating employer-sponsored retiree health benefits with eligibility for Medicare or a comparable State health benefits program." (U.S. Equal Employment Opportunity Commission)

(b) News

U.S. Ruling Backs Benefit Cut at 65 in Employer Retiree Plans
Excerpt: "The Equal Employment Opportunity Commission said [yesterday] that employers could reduce or eliminate health benefits for retirees when they turn 65 and become eligible for Medicare." (The New York Times; free registration required)

Federal Judge Rules Against San Francisco on Health Care Plan
Excerpt: "A federal judge scaled back San Francisco's groundbreaking health insurance law [yesterday], overturning a requirement that employers cover their workers or pay a fee - the key to the city's plans to provide coverage to all 82,000 uninsured adult residents next week." (San Francisco Chronicle)

Judge Says San Francisco Employers Don't Have to Pay for Health Care
Excerpt: "A federal judge [yesterday] struck down a key provision of a new city program providing basic health care to uninsured residents, ruling that employers cannot be required to subsidize the ambitious plan." (KTVU)

(c) Summaries of Guidance; Filed Comments

Overview: EEOC's Final ADEA Exemption Rules for Retiree Medical Benefits
Excerpt: "[The new rules are published in today's Federal Register.] I guess the only thing left now to see is if the Supreme Court grants cert." (Workplace Prof Blog)

Overview: Mental Health Parity Law Extended One Year
Excerpt: "The one-year extension of the law, which was set to expire on December 31, 2007, buys time so federal lawmakers can decide whether to expand the parity law to make other plan designs discriminatory. Congress gave final approval to the one-year extension . . . ." (Workforce Management; free registration required)

Overview: DOL Announces Availability of 2007 Form M-1, Including Health Care Self-Compliance Tool; Both Virtually Unchanged from 2006
Excerpt: "EBIA Comment: The self-compliance checklists included as part of the Form M-1 package provide a useful list of ERISA Part 7 compliance issues not only for MEWAs, but also for group health plans, plan sponsors, plan administrators, and health insurers." (Employee Benefits Institute of America)

(d) Trends, Surveys, Research

Best Practices for Employers Offering Personal Health Records
Excerpt: "While a number of companies already offer PHRs, consumer concerns about privacy safeguards and regulatory uncertainty persist. To address these issues directly, the Health Privacy Project, together with CHCF and IBM, convened an Employers' Working Group on PHRs. Through a collaborative process, they developed Best Practices for Employers Offering Personal Health Records." (California HealthCare Foundation)

Highmark to Present Pennsylvania's Newest Residents with Healthcare Gift Cards
Excerpt: "Highmark Inc., the Pittsburgh-based health insurer, announced today that it plans to present the year's first newborns with Prepaid Healthcare Visa(R) Gift Cards, Highmark's newly announced product that provides recipients with a convenient way to cover the many costs associated with, among other life events, the arrival of a new child. Parents of babies born in Pittsburgh, Harrisburg, Erie and Johnstown will be among the fortunate card recipients." (Blue Cross and Blue Shield Association)

'Permission' for Work/Life Balance Must Come from the Top
Excerpt: "That is why Ms. Benko would encourage all corporate leaders to be compulsively transparent in 2008. Rather than pretending that work is always first priority, 'the boss should be the first to say, 'I'm not going to make that meeting because my newest grandchild is in town,'' she said." (The New York Times; free registration required)

Ever-Popular Company Holiday Parties Ring Up Camaraderie, Morale
Excerpt: "Company-wide holiday parties are still popular this year despite a downturn in the economy. Two-thirds of employers will sponsor a holiday event, tying the record set in 2006, according to a survey by business information company BNA." (The Des Moines Register)

5 Massachusetts Workplaces in Worchester Area Ranked Best for Commuters
Excerpt: "EMC is one of five area companies the federal Environmental Protection Agency named to its fifth annual list of 'New England's Best Workplaces for Commuters.' Among 153 companies representing almost 230,000 employees that made the New England list, other Central Massachusetts regional operations were Hewlett-Packard in Marlboro, Intel Corp. in Hudson, Verizon in Marlboro and Genzyme Corp. in Westboro." (Worcester Telegram & Gazette Corp.)

Employer FMLA Frustrations May Rise with First Extension
Excerpt: "A bill that will soon be signed by President Bush enables spouses, children, parents or next of kin to wounded military service personnel to take 26 weeks of unpaid leave to care for their loved one." (Workforce Management; free registration required)

Two California Counties Handle Retiree Benefits Better Than Most
Excerpt: "Santa Clara County's unfunded liability of about $850 million over 30 years doesn't look so scary especially since it has already stashed $400 million in a trust fund for that purpose. And San Mateo County's projection that it will need an additional $170 million appears downright rosy. The counties will still have to make tough decisions to meet all their obligations to future retirees. But both cite unique circumstances in explaining why the new reporting requirements from the federal Government Accounting Standards Board haven't cast them into a panic." (The Mercury News)

Turning a New Page on Elder Care Issues in the Workplace
Excerpt: "[Texas Instruments] offers a series of free elder care referral services, online help and aid -- in a model that can be emulated by other firms. Employees can turn to the TI Intranet and access links to find a senior caregiver, home health care aids, cleaning services and social support. Moreover, an elder care e-mail group enables employees to discuss where to find the best caregivers and not feel so isolated. 'It's like a virtual water cooler,' . . . ." (Investor's Business Daily)

Despite Spate of Chronic Problems and Calls for Reform, Healthcare Initial Public Offerings Demonstrate Fiscal Health
Excerpt: "Reimbursement pressures, regulatory hassles and a looming presidential election did not slow the pace of healthcare-related initial public offerings in 2007, and the new year holds promise for more to come." (Modern Healthcare; free registration required)

Consumer-Driven Plans Growing More Popular, but Small Businesses Still See Price As Hurdle
Excerpt: "Faced with skyrocketing health insurance costs, Bobby Casey decided four years ago to eliminate companywide insurance for the 20 employees at Diamond Retail Services in Stokesdale. But Casey, the president and CEO of a company that assembles and installs equipment for retailers, still wanted to help his employees somehow with health costs. So today, he encourages them to purchase their own insurance by reimbursing 50 percent of the cost of their policies." (The Business Journal of the Greater Triad Area via bizjournals.com; free registration required)

Want a Job? You May Have to Quit Smoking As Companies Get Tough
Excerpt: "While the Florida Clean Indoor Act already has all but banished smoking from the immediate workplace, more and more employers are extending the ban to anywhere on their property while also aggressively promoting smoking-cessation programs." (Orlando Sentinel)

(e) Policy, Opinion, Advocacy

Hewitt Federal Legislation Quick Guide Updated December 19, 2007, for Health and Welfare Plans (PDF)
13 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding health and welfare benefit plans. (Hewitt Associates)

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Links to Items on Executive Comp, Benefits in General

Opinion: Some Workplace Trends for 2008
Excerpt: "What's ahead for the workplace next year? My crystal ball is only as good as the ones used by the experts, the so-called experts, and the John and Jane Does who communicate with me. Based on that entirely unscientific roundup, here are some sure and not-so-sure bets for 2008 . . . ." (The Kansas City Star; free registration required)

MetLife Mature Market Institute Takes First Look at the Baby Boomers Turning 62
Excerpt: "'This is the first time that the oldest baby boomers, including their lifestyles, perceptions and plans have been examined in such detail,' . . . . 'Despite the social and political turbulence of their youth, these leading edge boomers have established very traditional lifestyle characteristics." (Business Wire via InsuranceNewsNet.com)

Overview of Section 6039: IRS Interim Guidance on Information Returns to Be Filed with the IRS for ISOs and ESPPs
Excerpt: "The time and manner in which to file the information return to the IRS is to be set forth in regulations. However, the IRS has yet to issue regulations addressing this particular requirement. As a result, the IRS has temporarily waived the obligation to file an information return to the IRS for stock transfers covered under Section 6039. There is still, however, the existing requirement to furnish employees with a written statement containing certain specific information as provided in the current regulations." (Wilson Sonsini Goodrich & Rosati)

Working Paper: Health, Economic Resources and the Work Decisions of Older Men
Excerpt: "In this paper, we specify a dynamic programming model that addresses the interplay among health, financial resources, and the labor market behavior of men in the later part of their working lives. Unlike previous work which has typically used self reported health of disability status as a proxy for health status, we model health as a latent variable, using self reported disability status as an indicator of this latent construct." (National Bureau of Economic Research via Reish Luftman Reicher & Cohen)

working Paper: Net Worth and Housing Equity in Retirement
Excerpt: "This paper documents the trends in the life-cycle profiles of net worth and housing equity between 1983 and 2004. The net worth of older households significantly increased during the housing boom of recent years. However, net worth grew by more than housing equity, in part because other assets also appreciated at the same time." (National Bureau of Economic Research via Reish Luftman Reicher & Cohen)

Hewitt Federal Legislation Quick Guide for December 19, 2007, on Human Resources & Employment Law (PDF)
12 pages. This Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding human resources and employment law. (Hewitt Associates)

Overview: DOL Proposes Regulation on Service Provider Disclosures for 401(k) and Health & Welfare Plans
Excerpt: "EBIA Comment: The proposed regulation and PTE are part of a current DOL enforcement focus on service provider compensation, a longstanding investigative priority. . . . The DOL acknowledges that the new regulation would create significant compliance costs and burdens for certain plans and service providers. It also reminds plan fiduciaries that they must continue to satisfy their general ERISA fiduciary obligations in selecting and monitoring all service providers, whether subject to the new requirements or not." (Employee Benefits Institute of America)

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Newly Posted Press Releases

PBGC Moves To Protect Pensions At New York Racing Association Inc.
Pension Benefit Guaranty Corporation (PBGC)

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Newly Posted or Renewed Job Openings
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Pension Administrator
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Senior Retirement Plan Administrator
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in NJ

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Handy Links:

• View Today's Active Message Threads
• Using the Web for Employee Benefits Research (hypertext article)
• Employee Benefits Library

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