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Federal Rule Allows Employers To Cut Health Care Benefits For Older Retirees The U.S. Equal Opportunity Commission (EEOC) issued a final rule on December 26, 2007 that would allow employers to continue what it calls the longstanding and common practice of providing more generous health care benefits to younger retirees than to retirees 65 and older who qualify for Medicare, without violating the Age Discrimination in Employment Act (ADEA). Cafeteria Plans Provide Tax Savings And Flexibility Section 125 “cafeteria plans” can help business owners and employees alike trim considerable sums from their tax bills. Under Section 125 of the Internal Revenue Code, workers are permitted to withhold a portion of their pre-tax salaries to pay for premium contributions to employer-sponsored insurance plans and to cover qualifying unreimbursed medical and dependent care expenses. Because Section 125 benefits are not subject to FICA or income taxes, cafeteria plans can help employees lower their taxable income, while reducing the payroll and workers compensation tax liabilities of their employers. 401(k) Reform Needed To Boost Retirement Savings An examination of the experiences of other countries, especially Australia, may prove useful for U.S. policymakers as they consider ways to improve retirement savings rates among American workers, a white paper released by the nonprofit Retirement Solutions Foundation has suggested. |
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