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=========================================================== BenefitsLink Welfare Plans Newsletter (Plain Text Format) November 19, 2004 =========================================================== We thank and invite your attention to today's sponsor: William J. Stecker, CPA =========================================================== A Practical Guide To Substantially Equal Periodic Payments and Internal Revenue Code §72(t) (Advert.) <URL:http://benefitslink.com/cgi/a_d.cgi?a_d=2004_11_19_welfare> http://benefitslink.com/cgi/a_d.cgi?a_d=2004_11_19_welfare (Click on above address, or copy and paste it into your web browser, to learn more.) New 4th edition by William J. Stecker, CPA with all of the updates needed to reflect the issuance of Revenue Ruling 2002-62 in October, 2002 as well as all Private Letter Rulings issued subsequently. This text is a must read for anyone under age 60 who is contemplating early retirement and has substantial 401(k) or IRA assets. This text will teach the reader everything they need to know about avoiding the 10% surtax on early withdrawals as defined in IRC 72(t). All computational methods are covered and how to plan and properly execute substantially equal periodic payments. This is the definitive text on IRS 72(t) including more than 190 footnotes citing all of the relevant legal authorities. Click above to purchase and download now! (Please visit our sponsors. We try to make sure their products and services will be of interest to you. Thanks! --Editor) ---------------------------------------------------------- UnumProvident Settles Lawsuits for $127 Million: Will Reassess Claims of Those Denied Benefits <URL:http://www.chattanoogan.com/articles/article_58842.asp> http://www.chattanoogan.com/articles/article_58842.asp Excerpt: "UnumProvident Corporation ... announced that it has reached a 'multistate' settlement of a number of lawsuits and regulator claims - with the total cost to the Chattanooga-based firm put at $127 million. .... A number of lawsuits had been filed by holders of disability policies who claimed they had been unfairly cut off from benefits they were entitled to. .... 'For full examination report and regulatory settlement agreement, please visit www.unumprovident.com/commitment. (The Chattanoogan.com) ---------------------------------------------------------- Notice Ends Concern Over Domestic Partner Health Coverage <URL:http://benefitsattorney.com/modules.php?name=News&file=article&sid=19> http://benefitsattorney.com/modules.php?name=News&file=article&sid=19 Excerpt: "The IRS today issued Notice 2004-79, stating that it did not consider the amended definition of 'dependent' provided by the Working Families Tax Relief Act of 2004, Public Law No. 108-311 to apply to health plans. This is good news for health plans that cover domestic partners or same-sex spouses of employees, and employees whose domestic partners or same-sex spouses are covered by such plans." (Calhoun Law Group, P.C.) ---------------------------------------------------------- Supplement to the Report of the American Academy of Actuaries' LTC Risk Based Capital Work Group (PDF) <URL:http://www.actuary.org/pdf/health/ltc_sept04.pdf> http://www.actuary.org/pdf/health/ltc_sept04.pdf 40 pages. Excerpt: "Attached are proposed changes to the Life RBC Formula and Instructions and the Health RBC Formula and Instructions to implement new factors for Long-Term Care Insurance consistent with the June 2004 Report. The proposed changes allow for four aspects that were not part of the Academy's June recommendations ....' The June report is at http://www.actuary.org/pdf/health/ltc_rbc_june04.pdf. (American Academy of Actuaries) ---------------------------------------------------------- W. Va. Legislators Propose Bills to Protect Retired Miners' Health-Care Benefits During Bankrup.tcy <URL:http://www.courier-journal.com/business/news2004/11/19/D6-miners19-4559.html> http://www.courier-journal.com/business/news2004/11/19/D6-miners19-4559.html Excerpt: "Retired coal miners whose health-care benefits were slashed in federal bankrup.tcy court would be protected from such actions under bills proposed by two West Virginia congressmen. Sen. Jay Rockefeller and Rep. Nick Rahall ... introduced measures in the Senate and House yesterday to bar coal companies from evading their obligations under the 1992 Coal Act to finance health care for retired miners. It's the first blow ... to bar employers from using bankrup.tcy to evade employee ...." (AP via The Courier-Journal) ---------------------------------------------------------- The Family Medical Leave Act: Compliance Reminders <URL:http://www.gcglaw.com/resources/employment/fmla.html> http://www.gcglaw.com/resources/employment/fmla.html Excerpt: "This article reviews some compliance reminders for the Family and Medical Leave Act (FMLA) and discusses a recent US DOL Opinion letter on the FMLA and contingent workers." (Gallagher, Callahan & Gartrell) ---------------------------------------------------------- Garamendi Recommends 2.2% Rate Cut in California Workers' Compensation Insurance Premiums <URL:http://www.californiahealthline.org/index.cfm?Action=dspItem&itemID=107509> http://www.californiahealthline.org/index.cfm?Action=dspItem&itemID=107509 Excerpt: "Insurance Commissioner John Garamendi ... on Wednesday recommended that workers' compensation insurance carriers reduce their premium rates by an average of 2.2% for policies issued or renewed beginning in January, the San Francisco Chronicle reports .... Garamendi's recommendation conflicts with a September recommendation by the Workers' Compensation Insurance Rating Bureau that workers' compensation insurance premium rates increase by 3.5% for policies issued or renewed ...." (California Healthcare Foundation) ---------------------------------------------------------- Employees Do Not Think They Can Control Health Care Costs Survey Results Show <URL:http://www.benefitnews.com/health/detail.cfm?id=6762> http://www.benefitnews.com/health/detail.cfm?id=6762 Excerpt: "Employees are willing to take more control of their health care decisions, but are not quite sure how to do so, a Hewitt Associates poll of 39,000 employees shows. Among the consulting firm's findings: More than 80% of employees don't estimate their health care expenses each year. Nearly as many (79%) don't think they can do anything to control health care costs. More than half (57%) have never researched provider costs or quality." (BenefitNews Connect via BenefitNews.com) ---------------------------------------------------------- Updates: Consumer Guides for Health Insurance in Every State and the District of Columbia <URL:http://www.healthinsuranceinfo.net/> http://www.healthinsuranceinfo.net/ Excerpt: "The Georgetown University Health Policy Institute has written 'A Consumer Guide For Getting And Keeping Health Insurance' for each state and the District of Columbia – fifty-one in all. These Consumer Guides are available at this web site and will be updated periodically as changes in federal and state policy warrant.' Recently updated are the following guides: California, Colorado, Kansas, Louisiana, Maryland, Missouri, Tennessee, and Washington. (Georgetown University) ---------------------------------------------------------- Health Policy Impasse Threatens Expiration of Medicare Premium Program for Poor Seniors <URL:http://bcbshealthissues.com/proactive/newsroom/release.vtml?id=137135&PROACTIVE_ID=cecec6ceccc7cac7cdc5cecfcfcfc5cececbccc7cbcbcfccc8c5cf> http://bcbshealthissues.com/proactive/newsroom/release.vtml?id=137135&PROACTIVE_ID=cecec6ceccc7cac7cdc5cecfcfcfc5cececbccc7cbcbcfccc8c5cf Excerpt: "Funding for a program that helps low-income seniors pay their Medicare premiums is caught in an inter-chamber impasse that threatens an expiration of the program later this week. Late Tuesday, the Senate adopted legislation extending through September 2005 a Medicare savings program known as Qualifying Individual 1, or QI-1. Under the program, Medicaid pays for the Medicare premiums of seniors and individuals with disabilities who do not qualify for Medicaid coverage because ...." (The National Journal Group, Limited via BlueCross BlueShield Association) ---------------------------------------------------------- Food and Drug Administration Scientist Testifies that the FDA System Is "Broken" <URL:http://bcbshealthissues.yellowbrix.com/pages/bcbshealthissues/Story.nsp?story_id=60454338&ID=bcbshealthissues> http://bcbshealthissues.yellowbrix.com/pages/bcbshealthissues/Story.nsp?story_id=60454338&ID=bcbshealthissues Excerpt: "A Food and Drug Administration scientist told a Senate committee Thursday that the FDA is 'virtually defenseless' against another 'terrible tragedy and a profound regulatory failure' like Vioxx, a drug pulled off the market over safety concerns. 'It is important that this committee and the American people understand that what happened with Vioxx is really a symptom of something far more dangerous to the safety of the American people,' David Graham, ..., told the Finance Committee." (USA TODAY via BlueCross BlueShield Association) ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- Actuarial Responsibilities for Communicating Sarbanes-Oxley Control -- Financial Reporter Article (PDF) <URL:http://library.soa.org/library-pdf/frn0412.pdf> http://library.soa.org/library-pdf/frn0412.pdf Pages 16-18 of 28 pages. Excerpt: "This article explores the concept of internal controls and what actuarial valuation processes are covered by SOX 404. It examines what is required of the actuary and what professional standards apply." (Society of Actuaries) ---------------------------------------------------------- Actuarial Aspects of SOX 404 -- Article in December 2004 Issue of the Financial Reporter (PDF) <URL:http://library.soa.org/library-pdf/frn0412.pdf> http://library.soa.org/library-pdf/frn0412.pdf Pages 12-15, 19 of 28 pages. Excerpt: "As insurance companies move to implement the requirements of Section 404 of the Sarbanes-Oxley Act (SOX 404), it is clear that examination of actuarial processing is a significant piece of the assessment of the company's internal control over financial reporting (ICFR)." (Society of Actuaries) ---------------------------------------------------------- Easy and Quick Returns on Investment Reported for Employee Self-Service Systems <URL:http://www.benefitnews.com/tech/detail.cfm?id=6764> http://www.benefitnews.com/tech/detail.cfm?id=6764 Excerpt: "Employee self-service usually pays for itself within two years of deployment, finds the latest survey of workforce technologies (http://www.thecedargroup.com/SurveysWhitePapers/) by The Cedar Group, which has been tracking such implementations since 1997. Web self-service combined with some form of service center allows companies to serve at least 50 employees per human resource staff member, results show." (BenefitNews Connect via BenefitNews.com) ---------------------------------------------------------- Overview: Rules Change for Nonqualified Deferred Compensation Plans <URL:http://www.mhco.com/Commentary/2004/AJCA11404.htm> http://www.mhco.com/Commentary/2004/AJCA11404.htm Excerpt: "Restricts the flexibility that executives currently enjoy in controlling the timing of distributions; The Act requires that a nonqualified deferred compensation plan comply with the new Section 409A of the Internal Revenue Code. The use of offshore rabbi trusts have been virtually eliminated. When an offshore trust is created to fund participant's benefits it will trigger a taxable transfer of property under Code Section 83. A taxable transfer under Code Section 83 also ...." (McKay Hochman Co.) ---------------------------------------------------------- Means for Complying with American Jobs Creation Act's NQDC Plan Changes Are Still Unclear <URL:http://hr.cch.com/news/pen-ben/stories/111904a.asp> http://hr.cch.com/news/pen-ben/stories/111904a.asp Excerpt: "The newly-enacted American Jobs Creation Act of 2004 (P.L. 108-357) has left plan professionals with considerable uncertainty with regard to the Act's impact on nonqualified deferred compensation plans, .... Code Sec. 409A, effective beginning in 2005, provides for the first time specific rules for elections and distributions under nonqualified deferred compensation plans .... Treasury guidance on the Act will probably come in stages throughout 2005, ...." (CCH Pension & Benefits News) ---------------------------------------------------------- Hewitt Federal Legislation Quick Guide Updated November 16, 2004 <URL:http://was4.hewitt.com/hewitt/resource/legislative_updates/united_states/qg_index.htm> http://was4.hewitt.com/hewitt/resource/legislative_updates/united_states/qg_index.htm Excerpt: "Hewitt's 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, retirement plans, and human resources and employment law." (Hewitt Associates) ========================================================== Newly Posted Events 403(b) Plans Intermediate Nationwide on December 15, 2004 presented by McKay Hochman <URL:http://benefitslink.com/events/detail.php?id=38932> http://benefitslink.com/events/detail.php?id=38932 Qualified Plan Training for Retirement Plan Professionals in California on December 1, 2004 presented by San Diego County Chapter of NIPA <URL:http://benefitslink.com/events/detail.php?id=38933> http://benefitslink.com/events/detail.php?id=38933 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases Hewitt Study Shows Employees Willing to Take on Greater Health Care Responsibility; Employees Need Support to Move Toward Greater Consumerism (Hewitt Associates LLC) http://benefitslink.com/pr/detail.php?id=38469 Sentinel Benefits Introduces the SmartFlex® Prepaid Visa® Card to its Flexible Spending Account Clients (Sentinel Benefits) http://benefitslink.com/pr/detail.php?id=38465 Multi-State, Federal Settlement Addresses Concerns Regarding UnumProvident Claims Handling (U.S. Department of Labor, Employee Benefits Security Administration (EBSA)) http://benefitslink.com/pr/detail.php?id=38471 Treasury and IRS Issue Indexed Amounts for Health Savings Accounts (U.S. Department of Treasury) http://benefitslink.com/pr/detail.php?id=38473 Federal Retirement Thrift Investment Board Announces Vendor Selection for Lifecycle Funds (Federal Retirement Thrift Investment Board) http://benefitslink.com/pr/detail.php?id=38470 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Employee Benefit Team Leader for The Trust Company of Knoxville, Inc. in TN http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41051 Senior Plan Administrator for RSM McGladrey in IL http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41054 Post yours! http://benefitslink.com/jobs/post_help_wanted.html =========================================================== Subscribe to the BenefitsLink Retirement Plans Newsletter, Too Sign-up form is at: <URL:http://benefitslink.com/newsletter/> http://benefitslink.com/newsletter =========================================================== Copyright 2004 BenefitsLink.com, Inc.; except that you can forward this email in full (if you also include this boilerplate part) or otherwise reprint this email in full (if you include this boilerplate part) without obtaining our permission. 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