BenefitsLink
Health & Welfare Plans
Newsletter
February 12, 2009
Here are the Web's best new links about compliance and cost
aspects of plan operation, design and policy.
Today's sponsor is International Foundation of Employee Benefit Plans
(Click on company name or banner to learn more.)
Smart is not a permanent state of being. What's your maintenance plan? Take advantage of the education and information available through the International Foundation of Employee Benefit Plans, a nonprofit educational association, and find out why over 35,000 industry professionals like Ken Bradshaw, CEBS rely on the Foundation to stay informed and educated. Make sure you have the most comprehensive information on health, pension and compensation issues. Be smart by association.
American Recovery and Reinvestment Act: Summary of Health and Income Support Provisions in Conference Agreement (PDF)
3 pages. Includes information on Health insurance assistance and health information technology. (American Benefits Council)
[Guidance Overview]
Highlights of FMLA Revised Regulations (PDF)
7 pages. Excerpt: "The regulations add to the types of information an employer must include in the various notices. Forms of all required notices may be found on the U.S. Department of Labor's website. Employers must post a general notice regarding the FMLA and may be able to satisfy the requirement through electronic posting. In addition, the employer must distribute to employees a copy of the general notice either in any employee handbook or by providing a copy to an employee upon hire. (Form WH-1420)" (Dow Lohnes PLLC)
Congress Reaches Deal on Stimulus Plan
Excerpt: "Many Democrats would have preferred a larger bill, but agreed to pare back, including cuts to favored education and health programs, to win three crucial Republican votes in the Senate. 'Legislation is the art of compromise, consensus building, and that's what we did,' the Senate majority leader, Harry Reid of Nevada, said in announcing the accord. The House was poised for a final vote as early as Friday, with the Senate to follow, clearing the way for President Obama to sign the bill by Monday." (The New York Times; free registration required)
Rep. Shadegg Leads Protest of Federal Health Board in 'Stimulus'
Excerpt: "Rep. John Shadegg (R-AZ) is leading the congressional fight against the federal health board created in the economic 'stimulus' package. Townhall's Amanda Carpenter reports: 'Shadegg issued a letter to House Speaker Nancy Pelosi asking language be stripped from the economic stimulus bill to eliminate the creation of a $1.1 billion government agency he says could deny lifesaving medical treatment to Americans under a nationalized health care system.' The agency in question is the Federal Coordinating Council for Comparative Clinical Effectiveness Research, which the stimulus bill creates, authorizing the president to appoint 15 federal employees to the council." (Galen Institute)
A Preliminary Analysis of Health Savings Account Balances, Contributions and Withdrawals, 2007 and January-June 2008 (PDF)
10 pages. Excerpt: "The average balance for all HSA accounts open as of June 2008 was $1,449.3 Average balances ranged from $747 for accounts opened in the first six months of 2008 to $1,080 for accounts opened in 2007, $1,736 for accounts opened in 2006, $1,766 for accounts opened in 2005, and $3,125 for accounts opened in 2004 or earlier (including rollovers from Archer Medical Savings Accounts)." (America's Health Insurance Plans)
Ideas that Could Save NYC Money Include Health Insurance Cuts
Excerpt: "Establishing a four-day, 36-hour workweek for some 40,000 New York City employees could save $32.6 million next year. Deferring health insurance coverage for new employees until they have worked for three months would save $45 million each year. And reducing the Medicare Part B reimbursements for city retirees to 50 percent from 100 percent would save the city $93.5 million in 2011. Those are the biggest of 18 new cost-saving measures evaluated in a report, 'Budget Options for New York City,' an annual document that the city's Independent Budget Office has published each year since 2002." (The New York Times; free registration required)
State Health Care Reform Update
Excerpt: "For the last few years, states have been leading the way toward more comprehensive health care coverage to ensure that more people have or can obtain health insurance. Because of the potential impact of this ongoing activity on employer-provided health insurance benefits, Spencer's Benefits Reports provides regular updates about state health care reform." (Wolters Kluwer)
GM Cuts Retiree Benefits as Some Salaried Workers Lose Coverage
Excerpt: "General Motors Corp. is reducing life insurance benefits for most of its white-collar retirees and cutting back on company-provided health care for some retired salaried workers younger than 65 years old. . . . A GM employee compensation document obtained by the Free Press shows that GM is cutting company-provided health care coverage to retired salaried workers who are younger than 65 and eligible for Medicare." (Detroit Free Press)
Health Plans Take Steps to Keep Concierge Practices from Double-Dipping Their Members
Excerpt: "Physicians say it's a way to provide higher-quality, personalized medical care to their patients. Critics say it's health care for the rich. Whatever it is, concierge medicine, in which physicians limit the number of patients they see and charge an upfront annual retainer, continues to be a controversial topic." (AISHealth.com)
[Opinion]
Business Industry Groups' Letter to Conferees Regarding COBRA Provisions in Stimulus Bill (PDF)
1 page. Excerpt: "We strongly urge House-Senate conferees on H.R. 1, the 'American Recovery and Reinvestment Act' to reject provisions from the House-passed legislation, which would allow an indefinite period of COBRA coverage for those who lose employment and are COBRA-eligible and are 55-years or older, or who have ten or more years of service with their employer. Eligibility for expanded COBRA coverage would extend until the individual reaches Medicare eligibility. PricewaterhouseCoopers estimates that this provision would add between $39-65 billion over ten years to the already high cost of employer-sponsored coverage." (American Benefits Council)
The Savvy Self-Funding Healthcare Conference & Expo (Sponsor)
(Click on company name or banner to learn more.)
June 1-3, 2009 - The Savvy Self-Funding Healthcare Conference and Expo
.
Started as a community effort in 2005, the goal is to help educate employers and plan sponsors about self-insured plans. Solutions to rising healthcare costs are not always reducing benefits or raising premiums. Conference is a relaxed, comfortable environment. Vendor expo includes both carriers AND brokers. Contact Karrie Andes, SPHR , Conference Chairperson and Human Resources Director for Deffenbaugh Industries, Inc. & Affiliates, at 800-226-5205, karrie@savvyemployerconference.com and visit www.savvyemployerconference.com .
Started as a community effort in 2005, the goal is to help educate employers and plan sponsors about self-insured plans. Solutions to rising healthcare costs are not always reducing benefits or raising premiums. Conference is a relaxed, comfortable environment. Vendor expo includes both carriers AND brokers. Contact Karrie Andes, SPHR , Conference Chairperson and Human Resources Director for Deffenbaugh Industries, Inc. & Affiliates, at 800-226-5205, karrie@savvyemployerconference.com and visit www.savvyemployerconference.com .
Links to Items on Executive Comp, Benefits in General
[Guidance Overview]
Section 409A Correction Opportunities in 2009 (PDF)
3 pages. Excerpt: "As employers come to grips with the new inflexibility of fully implemented section 409A requirements, potential section 409A violations and resulting adverse tax consequences are becoming a reality. Even so, there are some tools available for addressing section 409A compliance failures that can limit, and in some cases eliminate, the adverse tax consequences associated with an inadvertent failure to follow the rules under section 409A. In Notice 2008-113, the IRS provided lengthy and detailed guidance for operational failures that are fixed within certain limited periods following the occurrence of the failure. It is important to note however, that Notice 2008-113 generally does not offer relief with respect to a failure to satisfy the documentary requirements of section 409A. In addition . . . a special opportunity for correction during 2009 is provided, but the opportunity requires action in 2009." (Morgan, Lewis & Bockius LLP)
[Guidance Overview]
Bringing Underwater Stock Options Back to the Surface (PDF)
4 pages. Excerpt: "Many companies saw their stock price significantly decline in 2008. As the result of these declines, employees of these companies may now hold stock options that are severely underwater -- that is, the exercise price of the stock option exceeds the fair market value of the underlying stock. . . . This update briefly describes underwater stock option exchanges as well as some of the hurdles that companies will face in implementing these exchanges." (Dechert LLP)
[Guidance Overview]
Rules of Conduct for the New World of Deferred Compensation
Excerpt: "The end of 2008 was also the end of the good faith reliance period for bringing deferred compensation plans into operational and documentary compliance with Code section 409A. It also ended the transitional guidance that permitted certain changes to existing plans without violating section 409A. This means that options are limited for correcting noncompliance, as well as for amending existing arrangements or designing new arrangements. This article offers some suggestions for operating under the new regime." (Chang, Ruthenberg & Long PC)
Milliman's Monthly Benefit News and Developments, February 2009 (PDF)
2 pages. The newsletter provides a summary of the previous month's legislative, regulatory, and judicial information on employee benefits. (Milliman)
IASB Moves Toward Immediate Recognition of Changes in Retirement Plan Funded Status
Excerpt: "The IASB tentatively decided to separate key proposals in its March 2008 discussion paper, Preliminary Views on Amendments to IAS 19 Employee Benefits, into two categories: (i) recognition and presentation and (ii) contribution-based promises. An exposure draft on the first category, expected to be issued by year-end, will require immediate recognition of changes in defined benefit (including retiree medical) plan funded status. Accounting for contribution-based promises will be on a slower track and may ultimately become part of a comprehensive review of pension accounting issues." (Mercer LLC)
Employees of Bankrupt Companies Have Employee Benefits Homework
Excerpt: "While unemployment can be stressful, employees laid off due to the bankrup.tcy of their employer's firm should be prepared for some additional homework. In particular, employees receiving pension or health benefits must investigate how those benefits may be affected. Most firms will either file a bankrup.tcy under Chapter 11 of the Bankrup.tcy Code (a 'reorganization' plan), or liquidation under Chapter 7, also referred to as 'straight bankruptcy'. In a Chapter 11 bankrup.tcy, an employee's health or pension plan may or may not be affected. In a Chapter 7 bankrup.tcy, both plans are likely to be terminated." (Credit.com)
New Book: Advanced Topics in Equity Compensation Accounting
The NCEO presents excerpts from its new book, Advanced Topics in Equity Compensation Accounting. The book presents a selective and detailed treatment of some of the most crucial topics in accounting for stock options and other equity compensation plans. The author is noted expert Takis Makridis. (National Center for Employee Ownership)
Newly Posted Press Releases
SouthWest Benefits Association Announces its 2009 Plan Administration Skills Workshops in Oklahoma and Texas
SouthWest Benefits Association
Reliance Trust Company Unveils New 401k Plan
Reliance Financial Corporation
Newly Posted or Renewed Job Openings
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Manager of Administrative Services
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Handy Links:
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- Using the Web for Employee Benefits Research (hypertext article)
- Employee Benefits Library
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