News You Can Use: IRS Guidances

IRS Issues Guidance on Cafeteria Plan Distributions to Reservists Called to Duty
This past week the Internal Revenue Service ("IRS") issued guidance on implementing provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 or "HEART," relating to health Flexible Spending Accounts (FSAs) in cafeteria plans. See IRS Notice 2008-82. The HEART legislation was passed overwhelmingly by the House and Senate in late May and signed into law by President Bush in June. This legislation provides tax relief to members of the armed forces, particularly reservists who are called to active duty and those who are killed in the line of duty. See the June 20, 2008, edition of CAB eNEWS for a complete discussion of the HEART Act.

Thanks to SMART for the heads up.

Employees deserve needs-based selling, too

During a recent online discussion of strategies for successful worksite enrollments, it became clear that a broker/adviser will frequently conduct a needs-based sale with the company's C-suite or other benefits decisionmakers but not with individual workers.

Once the venue shifts to the worksite and individual enrollments, the focus switches to product attributes. The consensus coming out of our online discussion was that individual employees need the needs-based pitch as well. Talking product intricacies when the worker doesn't understand the big picture benefits of a critical illness program or other type of voluntary benefit is a recipe for poor participation, according to our experts.

Check out the archive of our recent discussion and let us know your thoughts in the comments section. Do your employees get a detailed explanation of how the benefits offered at the worksite meet their needs? Or, is the presentation more focused on coverage limits and other product attributes?

Overheard At: What's What in the October Issue

In this month for sweets and scares, EBN Editor Kelley Butler brings you the best of the October issue -- including the sweet story of a maternity program that yielded not only a 2:1 ROI but a set of healthy triplets, and they scary tale of employers skimming $58 billion in unpaid payroll taxes. These and much more in EBN October.

Tip of the Day

Don't assume Gen Yers that leave your company are lost forever. They may "boomerang" back, if your company culture is right.

News You Can Use: Retiree medical and ERISA updates

Proskauer Rose LLP has issued two recent client briefings about new legal developments.

Click the links for more information:

• Ninth Circuit Concludes That San Francisco's "Pay or Play" Ordinance Is Not Preempted By ERISA
• MetLife v. Glenn: Supreme Court Struggles to Determine Judicial Standard of Review for Benefit Determinations Made by "Dual Role" Administrators

News You Can Use: Workers crave financial advice

Troubles in the nation's economy may mean more employers will start to offer a financial advice program as part of their work-life benefits, suggests a survey by Workplace Options, a provider of HR services.

Read more on our Web site.

Tip of the Day: Cost-Cutting measures for benefit plans

Want to know how to trim the fat from your benefit plan? Here are five easy suggestions.

1. Implement a premium surcharge for smokers or a premium discount for non-smokers.
   
2. Offer wellness screenings for employees, employer-subsidized gym memberships or premium discounts or incentives for participation in wellness programs (e.g., weight loss, blood pressure/cholesterol lowering, etc.).
3. Review vendor fee and service provider fee arrangements (e.g., HMO, claims administration, COBRA and FMLA administration, etc.), including actuarial, investment management and plan administration; and re­bid for vendors if necessary.
4. Freeze traditional defined benefit plan, and, going forward, offer a 401(k) plan with employer contributions.
5. Audit your retirement plans for operational compliance (voluntary correction of operational failures is less expensive than correction after discovery by the IRS).

Many thanks to Robert Flanagan, employee benefits and executive compensation partner at Seyfarth Shaw, LLP, for today's tip.