Benefits December 28, 2006

Americans Cite Health Care in Retirement as Top Concern

December 28, 2006 (PLANSPONSOR.com) - Echoing the findings of other similar polls, a new survey from Edward Jones found that nearly one-third of Americans are most concerned about not having enough to pay for their health care needs in retirement.
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An Edward Jones news release said the number of respondents expressing the health care concern significantly eclipsed the number who cited other issues such as having to work during one’s later years. Not surprisingly, nearly half of those respondents nearest to retirement age (55 to 64 years old) were much more likely to be concerned about health care costs than their younger counterparts (43% vs.10%).

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“In many ways, Americans are saying they are concerned that health and medical costs are likely to take the biggest chunk out of their nest eggs,” said Lindsey Wilkins, a partner and retirement planning expert at Edward Jones, in the news release.

The study, conducted by Kelton Research on behalf of the St. Louis-based financial services firm, also found that one in five respondents said they would have to rely on others to support them after they stopped working. Baby boomers were more positive about the future than others, with only 11% of boomers saying they expect to rely on others financially in their retirement.

Retirement concerns were also not confined to those households with lower incomes. In fact, the reverse is true as those with an income of more than $75,000 were much more concerned about paying for their health care later in life (33%) than those with an income of $25,000 (16%).

More information about Edward Jones is here .

Compliance December 27, 2006

FMLA Service Requirement Need Not Be Continuous

December 27, 2006 (PLANSPONSOR.com) - A federal appellate court has ruled that a worker does not have to be employed for 12 continuous months to be eligible for Family and Medical Leave Act benefits.
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The 1 st  US Circuit Court of Appeals threw out a lower court ruling that car salesman Kenneth Rucker did not qualify for FMLA leave because his years of service with Auburn, Maine-based Lee Auto Malls was not continuous.

Citing the position of the US Department of Labor (DoL) as stated in a legal brief filed in the appellate case, the 1 st  Circuit judges ruled that the FMLA law was “ambiguous” about whether the 12-month service requirement had to be continuous.

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The appellate court asserted: “We hold that … regulations promulgated by the United States Department of Labor (DOL), as interpreted by the DOL, establish that previous periods of employment do count.”

The 1 st  Circuit Judges sent the case back to US District JudgeGeorge Singal of the US District Court for the District of Mainefor additional hearings.

According to the appellate court, Rucker worked at Lee Auto Malls for five years, left, and returned five years later. Seven months after that, he took medical leave. He was fired two months later and filed the FMLA suit.

 

The case is Kenneth Rucker vs. Lee Holding Co., dba Lee Auto Malls The ruling is  here .

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