Compliance May 25, 2007

Minimum Wage Bill Passed

May 25, 2007 (PLANSPONSOR.com) - President Bush on Friday signed into law a bill that will provide the first boost to the minimum wage in 10 years, CNS News reports.
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Congress Thursday approved the measure that will increase the minimum wage from $5.15 an hour to $7.25 an hour over two years. The minimum wage increase was tacked onto the war funding bill.

According to HR News, t he wage increase will be done in three phases each raising the minimum wage 70 cents per hour. The bill calls for the first boost 60 days after the president signs the measure, and the other increases will follow a year apart to be completed by the summer of 2009.

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The legislation also included $4.84 billion in small business tax breaks over 10 years to help compensate for the wage hike, according to the news reports.

Several pension and retirement-related provisions were also attached to the bill which will increase funding to the Pension Benefit Guaranty Corporation and extend the deadline for U.S. airlines to comply with the funding requirements of the Pension Protection Act of 2006 (PPA). Sources told HR News some pension-related amendments were technical corrections to the PPA, including one that would change the dates that businesses could elect or be considered to be part of a multi-employer pension plan, and another that altered the wording on how excess pension assets could be transferred to retiree health accounts.

Benefits May 24, 2007

Workers Ready to Play Role in Health Cost Containment

May 24, 2007 (PLANSPONSOR.com) - Even as health care costs continue their upward spiral, most workers say they are ready to live healthier lives to help control their treatment bills and so they can enjoy a healthier retirement.
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A Watson Wyatt news release about its survey of nearly 2,100 U.S. workers said the poll found that more than half (51%) of respondents are highly concerned that they won’t be able to pay for health care coverage when they retire.

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More than one-third (35%) of respondents are concerned that a major medical expense would lead to their financial ruin. Many workers are also worried about the impact of rising costs in the near term. Two in three (68%) believe their deductibles and copayments will increase in the next two years; more than half are worried that their employer will reduce their health benefits coverage.

According to the survey, 12% of workers have reduced contributions to their retirement savings plans because of higher health care costs, while 18% have cut back on contributions to other savings. About one in four workers also reported higher stress levels due to rising health care costs.

The majority (61%) of workers say they see a connection between maintaining a healthy lifestyle and controlling cost increases. Moreover, many employees are willing to make changes in their lifestyle to improve their current health status – 31% are in the process of doing so, and 27% are considering making a change.

The survey found that six in ten employees have tried to take better care of themselves, with 37% getting an annual physical. In addition, 42% are attempting to control health expenditures by choosing a lower-cost drug option when available.

The Watson Wyatt survey, “Employee Perspectives on Health Care: Voice of the Consumer,” was conducted in January 2007. A total of 2,099 randomly selected workers participated in the survey. All respondents were full-time U.S. employees of large, nongovernmental companies who participate in their employer-sponsored health plan.




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