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[Guidance Overview]
IRS's Significant New COLI Guidance on Revenue Code Sections 101(j) and 6039I (PDF)
7 pages. Excerpt: "Notice 2009-48 provides new guidance in the form of seventeen questions and answers, which are divided into five separate categories. Each category and question are addressed separately below, with the numbered paragraphs below corresponding to the questions and answers that appear in the notice." (Association for Advanced Life Underwriting)


[Guidance Overview]
IRS Mandate of New Reporting and Notice Obligations for Employer-Owned Life Insurance
Excerpt: "If a life insurance contract is owned by a business, or a person engaged in a trade or business, if the owner is a beneficiary of the life insurance contract (directly or indirectly), and if the individual whose life is insured is an employee (or officer, director, or independent contractor) of the owner (or of a related business) at the time the policy is issued, the contract is potentially subject to the new rules." (Littler Mendelson P.C.)


[Guidance Overview]
Steps for Ending a Health Plan or Health Benefit Option
Excerpt: "Faced with shrinking workforces, business shutdowns, cash-flow problems or other challenges, some employers are considering trimming health and welfare benefit offerings or terminating a plan altogether. This Update provides a checklist of steps to take when discontinuing a health plan or benefit option for active employees. The checklist focuses on common compliance activities but does not cover every scenario." (Mercer LLC)


[Guidance Overview]
One-Time Election of Retiree Health Benefits or Increased Pay is Not Constructive Receipt
Excerpt: "The Internal Revenue Service ruled that an employee's one-time irrevocable election to waive future retiree medical benefits in favor of increased pay did not cause the employee to be in constructive receipt of income under Internal Revenue Code § 451. IRS Private Letter Ruling 200914018 (Released 4/3/2009)." (Deloitte via BenefitsLink.com)


[Guidance Overview]
Health Savings Accounts: Inflation-Adjusted Limits Are Released for 2010
Excerpt: "Under the HOPE Act, the following other changes were also made to the HSA rules: Larger Contributions for Non-Highly Compensated Employees . . . . One-Time Rollover from FSA or HRA . . . . Maximum Contribution if Eligible During the Last Month . . . . One-Time Rollover from IRA . . . ." (Deloitte via BenefitsLink.com)


Study Says Uninsured Are Costly for All
Excerpt: "The average family with health insurance shells out an extra $1,000 a year in premiums to pay for health care for the uninsured, a new report finds. And the average individual with private coverage pays an extra $370 a year because of the cost-shifting, which happens when someone without medical insurance gets care at an emergency room or elsewhere and then doesn't pay. The report was being released Thursday by advocacy group Families USA, which said the findings -- which it calls a ''hidden tax'' -- support its goal of extending coverage to all the 50 million Americans who are now uninsured. Congress and the Obama administration are working on a plan to do that." (AP via The New York Times; free registration required)


New York Employers Brace for COBRA Law to Strike
Excerpt: "New York employers are likely to see a spike in health costs courtesy of the new state and federal COBRA extension regulations. . . . [And] New York state officials have taken several steps to extend COBRA to small businesses. In March, Gov. David Paterson signed into law a 'mini-COBRA' bill that would help New Yorkers who lost their jobs at small businesses with fewer than 20 workers take advantage of a new COBRA subsidy made available under the federal stimulus bill." (Workforce Management; free registration required)


IRS Releases Notice on Treatment of Employer-Owned Life Insurance
Excerpt: "The U.S. Internal Revenue Service (IRS) has issued Notice 2009-48 which provides guidance concerning the treatment of employer-owned life insurance contracts under Sections 101(j) and 6039I of the Internal Revenue Code in a question and answer format. These sections were added to the Code by Section 863 of the Pension Protection Act of 2006 (PPA)." (International Foundation of Employee Benefit Plans)


The Budgetary Treatment of Proposals to Change the Nation's Health Insurance System
Excerpt: "The Congress is currently considering various approaches for instituting major changes in the nation's system of health insurance. Some of those proposals would significantly expand the federal government's role in that system, thus raising the question of how such changes might be reflected in the federal budget. This brief describes the approach that the Congressional Budget Office (CBO) will take in judging the appropriate budgetary treatment. [Target page links to the 7-page PDF and to the Blog posting.]" (U.S. Congressional Budget Office)


Hard Times and Health Insurance: How Many Americans Will Be Uninsured by 2010?
Excerpt: "In earlier work we demonstrated that increases in the cost of health care accounted for the decline in insurance coverage from 1979 to 2002. Here we examine whether our model adequately accounts for observed changes in coverage though 2007, and we provide an estimate of the effects of the recession on the number of uninsured Americans through 2010. We project that the number will increase by at least 6.9 million. The estimate does not directly take into account the additional effects of job losses, which are likely to add millions more to the number of uninsured Americans." (Health Affairs)


CMS Announces 2010 Indexed Medicare Rx Amounts
Excerpt: "Recently announced 2010 limits for Medicare Part D prescription drug benefits reflect annual adjustments that affect employers' calculations when applying for the retiree drug subsidy (RDS). Upcoming changes to the RDS application process will require actuaries to register again with additional identifying information and revise how lists of covered retirees are submitted and processed. The latest update to the RDS User's Guide includes a chapter on the appeals process." (Mercer LLC)


Paid Sick Days Would Benefit Workers and Employers
Excerpt: "The Connecticut General Assembly is considering a measure that would grant most workers paid sick days. This proposal has clear public health benefits, but could also prove a boon to employers and the Connecticut economy. It's true that paid sick days are a direct expense for employers, but research shows that making employees come to work sick -- or firing them if they do not come to work -- costs employers more money than the cost of providing sick days." (Connecticut Post)

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Links to Items on Executive Comp, Benefits in General

[Guidance Overview]
Overview of Expanded Section 409A Correction Program Now Underway Per IRS Notice 2008-113 (PDF)
Excerpt: "In Notice 2008-113, the IRS provides an expanded correction program and supersedes Notice 2007-100. Although obsolete for tax years beginning January 1, 2009, Notice 2007-100 may be relied on for errors occurring in tax years prior to 2009. The new expanded correction program continues to exclude relief for documentary failures, although the IRS has requested comments on whether this type of program would be feasible or advisable." (Buck Consultants)


Getting it Right in Reductions in Force: How to Minimize Legal Risks (PDF)
8 pages. (Employee Benefit Plan Review via Jones Day)


ERISA Advisory Council Announces Upcoming Meeting
Excerpt: "The U.S. Advisory Council on Employee Welfare and Pension Benefit Plans (also known as the ERISA Advisory Council) has announced their upcoming meeting on June 11, 2009. The agenda includes an update on the activities of the Labor Department's Employee Benefits Security Administration (EBSA) and determination of topics to be addressed by the 2009 Advisory Council. The advisory council meeting is open to the public. Anyone wishing to submit a written statement should do so by June 4, 2009[.]" (International Foundation of Employee Benefit Plans)


City and County Government Benefits Comparison Tool
Excerpt: "This tool allows you to compare retiree benefit data of localities of similar size and location. You will find: Detailed health care and pension data on the typical benefits cities and counties offer their retirees. How they pay or plan to pay for these benefits. You can search by population size; state; geographic region; size of the general fund revenue." (Center for State and Local Government Excellence)


IRS Semiannual Regulatory Agenda Includes Filing Solution for Schedule SSA
Excerpt: "The IRS has released its semiannual regulatory agenda for Spring 2009, which includes pension and benefit regulations that are currently under development or review." (Wolters Kluwer)


Governor Signs Bill Recognizing Domestic Partners in Washington State
Excerpt: "Washington Governor Christine Gregoire signed into law S.B. 5688, which essentially makes state-registered domestic partnerships the equivalent of marriages. Under the bill, domestic partners in Washington have to be treated the same as married persons for all purposes under state law (see Domestic Partners in WA Would Have More Rights under New Bill). The bill requires state agencies to amend their rules so those in registered domestic partnerships are covered by all privileges, immunities, rights, benefits and responsibilities applicable to married people under state law." (PLANSPONSOR.com; free registration required)

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Webcasts and Conferences

Are Your Prepared for the Form 5500 Schedule C Changes? Webcast
Nationwide on June 4, 2009
presented by International Foundation of Employee Benefit Plans

Strategies for Managing Health Plans Through a Challenging Economy Webcast
Nationwide on July 9, 2009
presented by International Foundation of Employee Benefit Plans

( Click to post your webcast or conference )

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Press Releases

IBI Research Finds Employers Severely Underestimate the Prevalence and Lost Productivity Costs of Depression
Integrated Benefits Institute

"Retirement Resource Guide" Published
Retirement Learning Center

( Click to post your press release )

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Employee Benefits Jobs

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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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