EBSA issues proposed regs and proposed PT class exemption on abandoned plans

  The Employee Benefits Security Administration (EBSA) has issued proposed regulations permitting bankruptcy trustees to use the Labor Department’s Abandoned Plan Program to terminate and wind up the plans of sponsors in liquidation under chapter 7 of the U.S. Bankruptcy Code. In conjunction with the proposed regulations, EBSA has issued a proposed amendment to PT […]

Majority Of Americans Live In States Where Health Insurance Premiums Are 20 Percent Or More Of Median Income

The majority (80 percent) of working-age Americans live in states where premiums are 20 percent or more of median income, according to a recent report from the Commonwealth Fund. The report, State Trends in Premiums and Deductibles, 2003–2011: Eroding Protection and Rising Costs Underscore Need for Action, also found that average premiums for employer-sponsored family […]

Governmental plans participating in group trusts may need to be amended, IRS notes

  Certain governmental plans may need to be amended to satisfy the “exclusive benefit” requirements of Rev. Rul. 2011-1, according to the latest edition of the IRS Employee Plans News. Rev. Rul. 2011-1 requires each group trust retiree benefit plan that adopts the group trust to expressly state in its governing document that no part […]

IRS seeks volunteers to test Pay.gov

The IRS’s Employee Plans Determination Letter Program will be testing Pay.gov for paying determination letter application user fees. Pay.gov is a secure government-wide portal for payments to federal government agencies. The IRS is seeking volunteers to pay their user fees using Pay.gov. Those interested in volunteering are asked to email Joanna.h.weber@irs.gov. After the annual user […]

Spencer’s Benefits Reports NewNews – December 21, 2012

  About this Newsletter The Spencer’s Benefits Reports is a summary of the week’s news items posted in the WHAT’S NEW pages of Spencer’s Benefits Reports Online. For questions regarding this email service, contact Customer Service at (800)449-9525. NetNews Subscription Want to receive these Newsletters via E-mail? Sign Up / Unsubscribe hr.cch.com Resources Online Store […]

Prevention Is Key To Reducing Health Care Costs For All Employees, Even Those With Chronic Conditions

  Cost savings associated with health risk reduction begin accumulating in as little as one year, particularly for those with chronic conditions, according to a recent study from StayWell Health Management and Towers Watson. Furthermore, the study, Association Between Changes in Health Risk Status and Changes in Future Health Care Costs: A Multiemployer Study, found […]

2012 Form 5500 annual return/report series issued

The Employee Benefits Security Administration (EBSA), the IRS, and the Pension Benefit Guaranty Corporation (PBGC) have issued advance informational copies of the 2012 Form 5500 annual return/report, related instructions and schedules, and 2012 Form 5500-SF and instructions. The advance copies cannot be used to file a 2012 form. Modifications to Forms 5500 and 5500-SF include […]

Use of CBA’s alternate method for calculating contributions OK when employer fails to provide records

When an employer fails to provide to multiemployer plan funds the necessary records to calculate employer contributions, the funds may utilize an alternative calculation method contained in the collective bargaining agreement without running afoul of the requirement that damage awards be calculated with “reasonable certainty,” the U.S. Court of Appeals in New York City (CA-2) […]

Consumers Saw Nearly $1.5 Billion Financial Benefit From ACA’s Medical Loss Ratio Requirement In 2011

Consumers saw nearly $1.5 billion in insurer rebates and overhead cost savings in 2011, due to the Patient Protection and Affordable Care Act’s (ACA) medical loss ratio provision requiring health insurers to spend at least 80 percent of premium dollars on health care or quality improvement activities or pay a rebate to their customers, according […]

Majority Of U.S. Employers Likely To Provide Health Coverage In 2014

A majority of U.S. employers—84 percent—are very likely or definitely will continue to provide employer-sponsored health insurance for all full-time employees when the Patient Protection and Affordable Care Act (ACA)-mandated exchanges open in 2014, according to the International Foundation of Employee Benefit Plans’ 2012 Post-Election Survey. “With President Obama’s re-election confirming that the ACA will […]