The Benefits InfoSource newsletter is designed to highlight various employee benefit matters of general interest to our readers.

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December 2003
SEC Proposed Rules on Mutual Fund Trading May Harm Participants.
FASB Requires New Pension Disclosures.
Congress Adjourns Without Addressing Pension Relief.
IRS Issues PEO guidance.
Medicare Bill Will Impact Employer-Sponsored Health Plans.
House and Senate Extend Mental Health Parity.
New Guidance About 2002 Trade Act Special COBRA Election.

November 2003
Mutual Fund Probe Affects Plan Fiduciaries.
Senate Reacts to IBM Cash Balance Plan Decision.
Ten Reasons to Identify Mistakes in Plan Operations.
In Brief…
                  IRS Changes Position on Vesting.
                  Form 5500 Relief for California Wildfires.
                  Big Decline in Pension Coverage.
FSA Reimbursement of OTC Drugs.
Importation of Drugs Raise Cost/Safety Issues.
In Brief…
                  Merger Forms Largest Health Plan.
                  California Bill would Prohibit Transfer of Medical Data.
                  IRS Allows Certification that Domestic Partner is a Dependent.
Where Do We Stand with Split-Dollar Plans?

October 2003 - Bulletin
IRS Cost of Living Adjustments for 2004.

October 2003
IBM Will Appeal Adverse Cash Balance Plan Ruling.
Update on Defined Benefit Funding Legislation.
NESTEG Act.
Final Catch-Up Regulations May Require Plan Amendment.
In Brief…
                  401(k) Investments Remain Stable.
                  Increase Investment Options, Lower Participation Rates.
                  401(k) Participants Still Heavily Invested in Company Stock.
DOL Announces Delay for COBRA Notice Rules.
Seventh Circuit Court Rejects Reverse Age Discrimination Suit.
Landmark Bill Would Mandate Employer Provided Health Insurance.
Employer-Based Insurance Coverage Declining.
EDI Contingency Plan for Medicare.
Pending Health and Welfare Legislation.
                  Long-Term Care.
                  COBRA.
                  Medicare Prescription Drugs.
                  Flexible Spending Accounts.
                  Mental Health Parity.
                  Domestic Partner Health Benefits.

September 2003
Competing Proposals Offer Relief for Defined Benefit Plans.
IRS Extends Filing Deadline for GUST Plan Amendments.
Portman-Cardin Legislation is Scaled Back.
Court Awards Benefits Due to Defective SPD.
In Brief…
                  New Pension Reporting Rules.
                  IRS Reverses Position on Excess Asset Transfers.
                  Bill Would Open Up Collective Trusts to Church Plans.
Over-The-Counter Drugs May be Covered by FSAs and HRAs.
Retirees Can Add New Dependents Under Special Enrollment Rules.
529 Plans – The Trick is in the Comparison.
In Brief…
                  Another Year of Sharp Increase in Medical Premiums.
                  IRS Reconsiders Debit Card Form 1099 Rule.
                  Long-term Care Insurance Highly Valued.
                  Possible HIPAA Claims Contingency Plan.

August 2003
New Proposed 401(k)/401(m) Regulations Make Some Significant Changes.
IRS Issues Final Regulations on Catch-up Contributions.
IRS Eliminates Advance Notice Requirement.
IRS Makes Significant Changes in Final 457 Regulations.
Some Relief for Retiree Health Benefits.
HIPAA: CMS Promises Leniency for Good Faith Compliance.
Business Reorganization Affects COBRA.
New Connecticut State Law Extends Group Health Benefits.
In Brief…
                  Bill Proposes LTC Insurance in Cafeteria Plans.
                  IRS Reaffirms Form 1099 Requirement for Debit Cards.
                  IRS Approves HRA Linking Reimbursements to W-4 Reporting.
                  DOL Issues Guidance on Medical Child Support Orders.

July 2003
IRS Cautions Against Imposing Expenses Only on Terminated Participants.
IRS Expands Compliance Correction Program.
Distributions from Retirement Plans to Pay Health Premiums are Taxable.
In Brief…
                  FASB Increases Pension Disclosure.
                  DOL Developing Fiduciary Education Resources.
                  IRS Gives Vesting Rules for Unfrozen Plans.
                  Interest Cap on Loans to Military Personnel.
House Passes Health Savings Account Legislation.
House and Senate Pass Medicare Prescription Drug Legislation.
IRS Rules Expenses Related to Obtaining an Egg Donor are Deductible.
House Approves Association Health Plans.
In Brief…
                  Health-Care Costs Show Signs of Moderating.
                  Health Plans May Disclose PHI for Drug Rebates.
                  IRS/Treasury Guidance Due on Flexible Benefit Issues.

June 2003
DOL Offers More Flexibility on Allocation of Plan Expenses.
Legislative Update.
                  House Passes Boehner Bill.
                  President Signs Jobs and Growth Reconciliation Tax Act of 2003.
Bill Proposes Special Mortality Tables for Blue-Collar Workers.
In Brief…
                  SEC Wants More Pension Disclosure.
                  IRS Releases New Tax Withholding Tables.
                  IRS Proposes Deemed IRA Regulations.
FSA Debit Card Technology Provides New Possibilities.
DOL Proposes New Rules for COBRA Notices.
IRS Clarifies Deductibility of Certain Medical Expenses.
Another HIPAA Deadline Approaches.
In Brief…
                  Bill Would Allow LTC Insurance in Cafeteria Plans.
                  IRS Explains COBRA Tax Credit Procedures.

May 2003
Authors of EGTRRA Offer Major New Pension Reforms.
The DOL Addresses Sarbanes-Oxley Prohibition on Loans to Officers.
The IRS Issues Final Rules for 204(h) Notices.
What is the Difference between Investment Education and Investment Advice?
In Brief…
                  House Committee Approves Enron-Related Bill.
                  Post-Death QDRO is Enforceable.
                  PBGC Deficit Widens.
Supreme Court to Consider Reverse Age Discrimination Claim.
HIPAA Update…
                  HIPAA Enforcement Interim Rule Published.
                  HIPAA Privacy Rule Applies to FSAs.
                  Another Federal Court Upholds HIPAA Constitutionality.
The IRS Nixes Certain “Collectively Bargained” Welfare Benefit Funds.
In Brief…
                  Employers to Pay Bonuses to Good Doctors.
                  The IRS Looks at Mass Transit Debit Cards.
                  IRS Issues Ruling on Use of Debit Cards.

April 2003
What is Your Fiduciary Responsibility in Selecting Investments?
DOL Targets Late Deposit of 401(k) Deferrals.
New Approach to 401(k) Courts the Procrastinators.
HIPAA Roundup.
In Brief…
                  Compliance Assistance for Group Health Plans.
                  Supreme Court Upholds “Any Willing Provider” Law.
                  $250,000 Penalty for PHI Disclosure.
                  DOL Promotes Association Health Plan Legislation.

March 2003 - Bulletin
New IRS Initiative to Audit Nonqualified Deferred Compensation Plans.

March 2003
Increase Employee 401(k) Participation.
DOL Proposes Exemption for Fiduciary Settlements.
In Brief…
                  Bush Proposes Major SEC Budget Increase.
                  Court Rules Plan May Eliminate COLA.
                  PLR Allows Unused Sick Leave Swap for Contribution to DC Plan.
Are There Still Diversification Benefits from International Stocks?
Ambitious 2003 Legislative Health Agenda.
Final HIPAA Rules.
IRS Issues Proposed Guidance on Foreign Adoptions.
In Brief…
                  Ruling Says Patients Can Sue Health Plans for Malpractice.
                  Ruling Allows Fixed-Dollar Co-Pay to Exceed Cost of Prescriptions.
                  Significant Growth in Long Term Care Sold through Employers.

February 2003 - Bulletin
Bush Proposes Restructuring Retirement and Savings Plans.

February 2003
Renewed Attempts at Pension Reform.
New SEC Rules Curb Accountants and Lawyers.
Benefit Rights for Reservists Being Called to Active Duty.
In Brief…
                  QDRO Payments to a State Agency.
                  PBGC Announces 2003 Maximum Guarantee.
                  DOL Issues Final Rules on Blackout Notices.
                  DOL’s PWBA Has Name Change.
                  PBGC Announces Deficit.
CDH Plans Gain Acceptance.
Senate Considers Prescription Health Bill.
California Implements New Employment Laws for 2003.
In Brief…
                  IRS Releases 2003 Qualified Transportation Limits.
                  MHPA Extended for One Year.
                  Plan’s Infertility Exclusion Ruled Not Discriminatory.

January 2003
IRS Postpones New Required Minimum Distribution Rules for Defined Benefit Plans.
Final Loan Regulations Clarify Refinancing, Leaves of Absences and Multiple Loans.
IRS Issues New Regulations for Cash Balance Plans.
Insider Trading Prohibitions During Blackout Periods.
IRS/DOL Looking for Late Form 5500 Filers.
IRS Clarifies COBRA Notice Requirement in Divorce Situations.
Continuation of FSA Coverage for Transferred Employees in an Asset Sale.
HIPAA Privacy Rule Guidance Clarifies Some Issues.
Publication of HIPAA Security, Payer Identifier and Claims Rules Delayed.
IRS Rejects Double Dip Scheme.

Benefits InfoSource is not intended to interpret laws, regulations or to address specific client situations.
Such matters should be referred to your appropriate professional advisors.