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=========================================================== BenefitsLink Welfare Plans Newsletter (Plain Text Format) December 3, 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_12_03_welfare> http://benefitslink.com/cgi/a_d.cgi?a_d=2004_12_03_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) ---------------------------------------------------------- Premium Only Plans Offer Additional Benefits with Little Cost to Employers <URL:http://www.advisortoday.com/200412/WebExclusiveArticles/webexart_enhance.html> http://www.advisortoday.com/200412/WebExclusiveArticles/webexart_enhance.html Excerpt: "Let's explore the simple idea of using a Section 125 premium-only plan (POP) in conjunction with a voluntary benefit plan .... Employers are always looking for ways to enhance their employee benefits package. However, they want to do so with as little cost as possible. Voluntary benefit plans enable an employer to add benefits that cost them only the administrative expenses of managing the payroll deductions from the employees' pay because the employee is paying the full premium." (AdvisorToday.com) ---------------------------------------------------------- Hewitt Associates Study Shows Holidays Will be Celebrated at Work this Year <URL:http://www.benefitnews.com/work/detail.cfm?id=6833> http://www.benefitnews.com/work/detail.cfm?id=6833 Excerpt: "About 75% of employers will host a holiday party this year, with the average party costing $20,000, .... Firms that offer holiday bonuses aim to show appreciation (54%), maintain tradition (24%), and improve staff morale (17%), the Hewitt study shows. However, 46% of firms have never offered a holiday bonus, and 16% have discontinued them. Firms that eliminated them cited cost (65%), entitlement issues (37%) and new pay-for-performance programs (28%)." (BenefitNews Connect) ---------------------------------------------------------- Health Care Administration Technology Is a Promise Unfinanced As Funding Dropped from Bill <URL:http://www.nytimes.com/2004/12/03/technology/03health.html?ex=1259816400&en=a73f79b081879485&ei=5090&partner=rssuserland> http://www.nytimes.com/2004/12/03/technology/03health.html?ex=1259816400&en=a73f79b081879485&ei=5090&partner=rssuserland Excerpt: "Bringing patient records and pres.criptions out of an era of ink and paper into the computer age, health experts agree, would make health care more efficient and reduce medical errors, saving lives and dollars. President Bush repeatedly sounded that theme this year, starting with his State of the Union address. 'By computerizing health records,' he said, 'we can avoid dangerous medical mistakes, reduce costs and improve care.'" (The New York Times; one-time registration required) ---------------------------------------------------------- Overview: Are There Answers in a Clinical Data Repository for Improved Health Care Delivery? <URL:http://www.healthleaders.com/news/feature60313.html> http://www.healthleaders.com/news/feature60313.html Excerpt: "According to a recent report by the Oakland, Calif.-based California HealthCare Foundation, chronic disease accounts for about 75 percent of healthcare spending in the United States, and as chronic disease becomes more prevalent, health plans and medical groups are becoming increasingly challenged by the vast array of data they must acquire in order to manage populations, provide care, improve delivery processes and manage the business of healthcare." (HealthLeaders News) ---------------------------------------------------------- New Financial Model Sees Higher Payment, Retooled Family Physician Practices <URL:http://www.medscape.com/viewarticle/495242> http://www.medscape.com/viewarticle/495242 Excerpt: "A new financial model that would increase payments to family physicians for preventive, chronic, and acute care services under the current fee-for-service system could increase annual compensation by 26% (from $167,457 to $210,288), according to a new analysis published in the November/December issue of the Annals of Family Medicine. And if family physicians choose to manage their patients' chronic diseases, provide medical advice via e-mail, and demonstrate clinical skills that ...." (Medscape Medical News) ---------------------------------------------------------- Report: Tracking Health Care Costs: Spending Growth Slowdown Stalls in First Half of 2004 (PDF) <URL:http://www.ebri.org/EBRI_Notes_12-2004.pdf> http://www.ebri.org/EBRI_Notes_12-2004.pdf 8 pages. Excerpt: "• The recent slowdown in health care spending growth stalled in the first half of 2004 as health care costs per privately insured American increased 7.5 percent during the first six months of 2004--virtually the same rate of increase as in 2003. Private-sector spending on health care constitutes more than half of all health care spending, and both the private and public sectors are subject to similar cost pressures." (Employee Benefit Research Institute) ---------------------------------------------------------- Consumer Reports to Launch Pres.cription Drug Comparison Resource <URL:http://www.ihealthbeat.org/index.cfm?Action=dspItem&itemID=107743> http://www.ihealthbeat.org/index.cfm?Action=dspItem&itemID=107743 Excerpt: "Consumer Reports next week will launch a Web site that compares the effectiveness and cost of several popular pres.cription drugs, the AP/Miami Herald reports. The site will make drug comparisons available to low-income consumers, such as senior citizens and those whose insurance does not include pres.cription drugs. Unlike Consumer Reports' other sites, the new site is free of charge (AP/Miami Herald, 12/1)." (California Healthcare Foundation) ---------------------------------------------------------- Estimate: New Medicare Pres.cription Drug Benefit Cost Will Be Greater than the Current National Debt <URL:http://www.usatoday.com/news/opinion/columnist/shapiro/2004-12-02-hype_x.htm> http://www.usatoday.com/news/opinion/columnist/shapiro/2004-12-02-hype_x.htm Excerpt: "[A]ccording to government estimates, the ultimate drain from the new Medicare pres.cription-drug benefit will be greater than the current national debt. That's right. All prior unbalanced federal budgets will someday be topped by a single pre-election program for Medicare recipients. Like most governmental numbers, this one requires a little explanation. The figure is based on a 75-year projection by the actuaries who scrutinize the Medicare program." (USA TODAY) ---------------------------------------------------------- Report Says Americans Relying More on Pres.cription Drugs <URL:http://www.nytimes.com/2004/12/03/politics/03drug.html?ex=1259730000&en=205287795a5ecf6b&ei=5090&partner=rssuserland> http://www.nytimes.com/2004/12/03/politics/03drug.html?ex=1259730000&en=205287795a5ecf6b&ei=5090&partner=rssuserland Excerpt: "More than 40 percent of Americans take at least one pres.cription drug, and 17 percent take three or more, the government said Thursday in a comprehensive report on the nation's health. The report documented the growing use of medications in the last decade, a trend that it attributed to the growth of insurance coverage for drugs, the discovery and marketing of new products, and clinical guidelines that recommend greater use of drugs to treat high cholesterol, high blood ...." (The New York Times; one-time registration required) ---------------------------------------------------------- Watson Wyatt Survey Finds Satisfaction with Health Benefits Despite Rising Costs <URL:http://www.businessinsurance.com/cgi-bin/news.pl?newsId=4730> http://www.businessinsurance.com/cgi-bin/news.pl?newsId=4730 Excerpt: "Despite escalating health care benefit costs, most employees remain satisfied with their employer-sponsored health plans, a new survey finds. Conducted by Watson Wyatt Worldwide in Washington, the survey of nearly 13,000 employees from a broad range of U.S. companies revealed that 61% of workers in 2004 are satisfied with their health plans. In 2002, that percentage was 64%. Just 17% of workers this year reported dissatisfaction, with the remainder indicating mixed feelings." (Business Insurance) ---------------------------------------------------------- Tax Reform May Include Eliminating the Tax Deduction for Employer-Based Health Insurance <URL:http://www.washingtonpost.com/wp-dyn/articles/A29878-2004Dec2.html> http://www.washingtonpost.com/wp-dyn/articles/A29878-2004Dec2.html Excerpt: "If you want to understand why the Bush administration is pondering eliminating the tax deduction for employer-provided health insurance, consider this year's Economic Report of the President. There, White House economists assert that the deduction unfairly subsidizes employees of some companies while encouraging overly generous health policies that focus on routine medical care." (The Washington Post; one-time registration required) ---------------------------------------------------------- Audio: Health Savings Accounts Increasingly Popular on NPR's Morning Edition, December 2, 2004 <URL:http://www.npr.org/rundowns/segment.php?wfId=4196577> http://www.npr.org/rundowns/segment.php?wfId=4196577 Excerpt: "Businesses are embracing a new trend in health insurance, offering so-called health savings accounts to replace traditional insurance and HMO plans. Generally, premiums are lower and savings higher, but it's costly for those who need healthcare the most. NPR's Julie Rovner reports." (National Public Radio) ---------------------------------------------------------- Foreign Firms May Avoid Fully Funding UK Pension Plans <URL:http://www.reuters.com/advisorToolkit/newsArticle.jhtml?type=fundsNews&storyID=6981245> http://www.reuters.com/advisorToolkit/newsArticle.jhtml?type=fundsNews&storyID=6981245 Excerpt: "Firms based outside Britain may shun calls to fully fund the employee pension plans of their UK subsidiaries, although some will pick up the bill to avoid damaging publicity, a senior pension lawyer said on Thursday. The newly-passed UK Pensions Act gives a regulator powers to make British firms shoulder their pension responsibilities, but their foreign parent firms may be beyond its reach, Hugh Arthur, head of pensions at law firm Macfarlanes, said." (Reuters) ---------------------------------------------------------- Private Long-Term Care Insurance Policies -- AARP Publication Updated September 2004 <URL:http://research.aarp.org/health/fs7r_ltc.html> http://research.aarp.org/health/fs7r_ltc.html Excerpt: "This fact sheet briefly describes the characteristics and costs of private long-term care insurance policies and highlights some critical public policy issues. ... By the end of 2002, 9.16 million long-term care insurance policies were sold in the United States. About 6.4 million of these policies remain in force. Most policies sold today cover services received in nursing homes, in assisted living facilities, and at home." (AARP) ========================================================== Links To Items on Executive Comp, Benefits In General ---------------------------------------------------------- Implication of New Definition of Dependent for Employer-Sponsored Plans <URL:http://www.mwe.com/info/news/ots1204a.htm> http://www.mwe.com/info/news/ots1204a.htm Excerpt: "In the absence of any further guidance ..., it may be prudent to communicate the new definition of dependent to participants in dependent care spending account plans and permit those employees who planned to submit expenses for non-qualifying individuals to revoke and/or revise their elections so as to avoid any forfeitures. In addition, employers should review their hardship withdrawal procedures under 401(k) and 457 plans to determine whether any changes are required." (McDermott Will & Emery LLP) ---------------------------------------------------------- Overview: Provisions Affecting Deferred Compensation in the American Jobs Creation Act of 2004 (PDF) <URL:http://www.fwcook.com/alert_letters/12-2-04_Provisions_Affecting_Deferred_Compensation.pdf> http://www.fwcook.com/alert_letters/12-2-04_Provisions_Affecting_Deferred_Compensation.pdf Excerpt: "The Act makes vested nonqualified deferred compensation taxable on a current basis unless certain requirements, which are significantly different than the requirements currently in effect, are met. As a result of the broad coverage of what is considered to be 'nonqualified deferred compensation,' the Act has implications that affect traditional deferred compensation plans, as well as stock appreciation rights, restricted stock units and nonqualified retirement plans." (Frederic W. Cook & Co., Inc.) ---------------------------------------------------------- Pennsylvania Governor Rendell Vetoes Nonqualified Deferred Compensation Plan Legislation <URL:http://www.bipc.com/news.cfm?mode=article&article_id=1156> http://www.bipc.com/news.cfm?mode=article&article_id=1156 Excerpt: "In a major set back for Pennsylvania businesses and their employees, Governor Rendell has vetoed legislation that would have adopted the federal constructive receipt rule for purposes of applying Pennsylvania's personal income tax to nonqualified deferred compensation plans. While the governor's veto has likely put an end to any further developments on this matter for 2004, it very likely that Pennsylvania's General Assembly will revisit this issue when it reconvenes in 2005." (Buchanan Ingersoll PC) ---------------------------------------------------------- Bush Board Overrules M.B. Sturgis Rule Regarding Bargaining Units that Include Leased Employees <URL:http://www.littler.com/nwsltr/asap_12_LeasedEmployees.htm> http://www.littler.com/nwsltr/asap_12_LeasedEmployees.htm Excerpt: "In a 3-2 decision ..., the National Labor Relations Board ... overturned a controversial 2000 ruling that had shaken one of the foundations of the temporary employment industry. As a result of the decision, the NLRB has returned to the position that temporary agency employees who are jointly employed by supplier ... and user ... employers cannot be made part of a single bargaining unit without the consent of both employers. H.S. Care L.L.C. , 343 NLRB No. 76 (2004)." (Littler Mendelson) ---------------------------------------------------------- IRS Notice 2004-62 Providing Relief in Connection with Certain Employee Benefit Plans in Florida (PDF) <URL:http://www.irs.gov/pub/irs-drop/n-04-62.pdf> http://www.irs.gov/pub/irs-drop/n-04-62.pdf 3 pages. Excerpt: "The Internal Revenue Service, the Department of Labor's Employee Benefits Security Administration ... and the Pension Benefit Guaranty Corporation ... are providing relief in connection with certain employee benefit plans because of damage in Florida caused by Tropical Storm Bonnie, Hurricane Charley and Hurricane Frances ('Florida Storms'). The relief provided by this notice is in addition to the relief already provided by the Service to victims of the Florida Storms." (Internal Revenue Service) ========================================================== Newly Posted Events Current Health Care Trends – 2005 and Beyond Based on survey research Nationwide on December 16, 2004 presented by International Foundation of Employee Benefit Plans <URL:http://benefitslink.com/events/detail.php?id=38965> http://benefitslink.com/events/detail.php?id=38965 Estate and Income Tax Planning for Qualified Plans and IRAs in Pennsylvania on February 3, 2004 presented by SunGard Corbel <URL:http://benefitslink.com/events/detail.php?id=38960> http://benefitslink.com/events/detail.php?id=38960 Estate and Income Tax Planning for Qualified Plans and IRAs in Oregon on February 3, 2004 presented by SunGard Corbel <URL:http://benefitslink.com/events/detail.php?id=38961> http://benefitslink.com/events/detail.php?id=38961 Estate and Income Tax Planning for Qualified Plans and IRAs in Pennsylvania on February 3, 2005 presented by SunGard Corbel <URL:http://benefitslink.com/events/detail.php?id=38964> http://benefitslink.com/events/detail.php?id=38964 Estate and Income Tax Planning for Qualified Plans and IRAs in Oregon on February 3, 2005 presented by SunGard Corbel <URL:http://benefitslink.com/events/detail.php?id=38963> http://benefitslink.com/events/detail.php?id=38963 Estate and Income Tax Planning for Qualified Plans and IRAs in Massachusetts on February 4, 2005 presented by SunGard Corbel <URL:http://benefitslink.com/events/detail.php?id=38962> http://benefitslink.com/events/detail.php?id=38962 Post yours! http://benefitslink.com/events/eventmaint.php ========================================================== Newly Posted Press Releases Health Policy Fellowship - Don't Delay: Application Deadline January 10, 2005 (AcademyHealth) http://benefitslink.com/pr/detail.php?id=38492 Independent Fiduciaries Formalize Profession with Creation of the "ERISA Fiduciary Guild" (ERISA Fiduciary Guild) http://benefitslink.com/pr/detail.php?id=38493 Post yours! http://benefitslink.com/pr/maint.php ========================================================== Newly Posted or Renewed Job Openings Record Keeper/Tester for WySTAR Global Retirement Solutions in MN http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41137 Regulatory Oversight Consultant for Merrill Lynch in NJ http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41139 Consultant - New Business Manager for Benefit Systems, Inc. in CA, LA, OR, TX http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41140 Client Services Manager/Trust Associate for WySTAR Global Retirement Solutions in MN http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41141 Customer Service Representative for Emjay Corporation in WI http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41143 International Benefits Consultant for Apple Computer, Inc. in CA http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41144 Motivated Sales Representative for Primark Benefits in CA http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41145 Defined Contribution/401(k) Administrator for Professional Capital Services, LLC in PA http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41146 Association 401(k) Plan Consultant for Independent Insurance Agents and Brokers of America in DC, MD, VA http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41147 401(k) / Pension Administrator for NestEgg Consulting, Inc. (a subsidiary of INTRUST Financial Corporation) in KS http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41148 Contract Consultant for The Paragon Consulting Group, Inc. in ANY STATE http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41149 Marketing Communications Manager for ADP in GA http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41150 Defined Benefit Plan Administrator for EMJAY Retirement Services, A Great-West Company in WI http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41152 Principal Administrative Analyst for University of California, Office of the President in CA http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41153 Plan Consultant - Defined Contribution Services for Franklin Templeton Investments in FL http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41154 Daily Valuation Senior Conversion Specialist for Fiserv Investment Support Services in CO http://benefitslink.com/modperl/show_a_job.cgi?database_id=H41155 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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