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INSURANCE / SOCIAL SECURITY
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As the U.S. economy struggles, value-based benefit designs and consumer engagement strategies are gaining in popularity, according to a nationwide survey of U.S. employers released on May 1 at the annual conference of the Midwest Business Group on Health (MBGH), a nonprofit coalition of more than 90 private and public employers that spend more than $2.5 billion on health care benefits annually. For details, see ¶2017P.
On May 1, 2008, the Connecticut state senate passed a bill (S.B. 217) mandating that Connecticut employers with 50 or more employees provide paid sick leave to their employees. The bill, which also applies to municipalities, passed by a vote of 20-16. The bill would allow employees to accrue paid sick time at the rate of one hour for every 40 hours worked, up to 52 hours. For more information, see ¶2017Q.
Oversight and Government Reform Committee Chairman Henry A. Waxman (D-CA) and Ways and Means Health Subcommittee Chairman Pete Stark (D-CA) have released a Government Accountability Office (GAO) report finding that Health Savings Accounts (HSAs) are used more often as a tax shelter by wealthy individuals rather than as a mechanism to help working families obtain needed health care. For more information, see ¶2017R.
Older workers without other health care insurance options are more likely to defer retirement to stay covered under their employer's plan, according to an analysis by Watson Wyatt Worldwide. Other factors, such as whether an employee has a pension, also contribute to decisions on when to retire. For details, see ¶2017S.
The IRS has announced that individuals who have payments made by direct deposit under the Economic Stimulus Act of 2008 to their IRAs, or certain other accounts afforded special tax benefits under the Code, may remove the payments without incurring any adverse tax consequences. For more information, please see ¶17,097T-27.
The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) will sponsor "Getting It Right -- Know Your Fiduciary Responsibilities," a free compliance assistance seminar, on June 10 in Denver, Colorado. For more information, please see ¶82H.
The Pension Benefit Guaranty Corporation (PBGC) has announced the appointment of Rebecca Anne Bates as inspector general. For more information, please see ¶82D.
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