January 7, 2008

EEOC ruling allows employers to factor Medicare into retirement benefits | Presidential election opener signals race will focus on HR-related issues

Legislation updates provided by Rob Smith, Ceridian manager of Government Relations

EEOC ruling allows employers to factor Medicare into retirement benefits
Presidential election opener signals race will focus on HR-related issues

EEOC ruling allows employers to factor Medicare into retirement benefits
A new ruling issued by the Equal Employment Opportunity Commission (EEOC) will allow employers to spend more on health benefits for retirees under the age of 65 than those over the age of 65 without facing age discrimination suits. The ruling was made in response to a 2000 court decision that held that the Age Discrimination in Employment Act requires employers to spend the same amount on health insurance benefits on Medicare-eligible retirees as those who are younger.

The commission cited a recent trend of businesses reducing retirement benefits for recent retirees or discontinuing them altogether, leaving a growing number of retirees who do not yet qualify for Medicare without health insurance coverage. In the ruling, the EEOC states that allowing employers to coordinate retiree benefits with Medicare will allow more employers to provide a "bridge" health benefit package to cover retirees until they become fully eligible for Medicare at age 65.

---

Presidential election opener signals race will focus on HR-related issues
Republican candidate Mike Huckabee and Democratic candidate Barack Obama came up big in the January 3 Iowa Caucuses, clinching victories in their respective parties by nearly 10 percentage points.

While the nominating process is far from over, the opening contest in Iowa and the early debates clearly show that the election will highlight issues that directly affect HR and payroll professionals.

Immigration, health care reform and tax reform have taken top billing as the candidates' chief domestic concerns. Tune in to the February issue of Ceridian Connection for an in-depth overview of the candidates' positions and plans regarding these issues and how the '08 elections could shape your future compliance responsibilities.