Deals and People March 8, 2011

Transamerica Retirement Announces New Sales Leader

March 8, 2011 (PLANSPONSOR.com) - Transamerica Retirement Services announced the promotion of Jim Kais to vice president and director of Institutional Sales and Special Markets.
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Kais will lead new sales, client development and strategy efforts for Transamerica’s Multiple Employer Plan and Taft-Hartley Plan business, as well as national and regional sales initiatives with institutional partners. He will report to Jason Crane, Transamerica’s senior vice president and national sales director.   

According to the announcement, Kais was promoted in December 2010 from the role of vice president of Special Markets. He has served with Transamerica since 2006 and has more than 15 years of experience in the retirement services and human resources outsourcing industries.   

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Kais received his Bachelor of Arts in Economics from Ursinus College in Pennsylvania. .   

Kais assumes a role previously held by Kelly Michel, former senior vice president of Institutional Sales and Business Development for Transamerica. Michel was promoted in December 2010 to serve as senior vice president for business development for Employer Solutions & Pensions.
Compliance March 8, 2011

CA Bill Makes Adult Children’s Health Costs Tax Exempt

March 8, 2011 (PLANSPONSOR.com) – The California state Assembly has unanimously approved a bill keeping the amount paid for health care insurance for an employee’s adult children from being considered taxable income.
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The Associated Press reported that AB36, would align state tax code with federal law and would mean the state would collect $40 million less a year in tax revenue if the measure passes the state Senate and is eventually signed into law. The federal health care reform law allows parents to keep children up to age 26 on the parents’ policies.

Assemblyman Henry Perea of Fresno, who authored the bill, said the health care changes confused employers, who were not sure how to calculate the amount of tax to withhold from their employees’ income (see How Is State Tax Applied to Coverage for Adult Children under the PPACA?), according to the Associated Press.

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Without this tax credit, parents may not insure their adult children because of the financial burden the state tax imposes on already cash strapped families, said Perea in a Web site statement.

According to a Business Insurance report, California law currently sets a five-part test, all of which must be satisfied for the coverage to be excluded from employees’ taxable income. Among other things, the child must be younger than 19, or 24 if a full-time student. As a result, if an employee added an adult child who did not satisfy the test, the portion of the health insurance premium attributed to the child would be considered taxable wages and subject to California taxes.

More about the issue of taxing adult children’s health care costs is here.

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