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Author: Site Staff

Posted on October 29, 1999July 10, 2018

Can An Employer Force Employees To Use Comp Time

Background: The Fair Labor Standards Act (FLSA) allows the use of compensatory time off, or “comp time,” in lieu of overtime compensation for employees of a state, political subdivision of a state, or an interstate government agency. Comp time must be issued at a rate of not less than one and one-half hours for each hour of overtime worked. Employees who have accrued comp time must be allowed to use it within a reasonable period of time, unless to do so would unduly disrupt the employer’s business operations.


Issue: What if employees fail to use their comp time? Can a public employer compel employees to use the comp time after a certain number of hours have been accumulated?


Answer: “Yes,” says the federal appeals court in San Francisco. Employers and employees should reach agreements concerning the use and preservation of comp time, the legislative history and interpretive regulations suggest. However, where there has been no agreement, nothing in the FLSA prohibits public employers from requiring employees to use comp time after they have accumulated a certain number of compensatory hours.


The FLSA does not grant employees absolute discretion over the use of accrued comp time; nothing in the legislative history of the FLSA indicates that comp time is a property right, noted the court. Therefore, a public employer was not violating the FLSA when it compelled employees to use their comp time.


SOURCE: Collins v. Lobdell (9thCir 1999) 139 LC 33,937; Fair Labor Standards Act, Section 7.


Source: CCH Incorporated is a leading provider of information and software for human resources, legal, accounting, health-care and small-business professionals. CCH offers human resource management, payroll, employment, benefits, and worker-safety products and publications in print, CD, online and via the Internet. For more information and other updates on the latest HR news, check our Web site at http://hr.cch.com.


The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.


Posted on October 27, 1999July 10, 2018

Give Job Hunters As Much Information in Your Ads as Possible

When posting jobs online, try to provide a good deal of information, rather than one sentence and a phone number.


In a recent survey of nearly 400 people who have sought a job online in the past year, the features they most desire were “job listings containing detailed information” (93%) and “providing relevant results to my job search” (92%).


If you provide enough solid information for seekers, you’ll screen out those who aren’t interested; screen out the unqualified; and have a better chance to “sell” your company (even if the seeker isn’t interested, they’re still a consumer).


SOURCE: Survey conducted by Cyber Dialogue and sponsored by CareerMosaic, New York, October 4, 1999.

Posted on October 26, 1999July 10, 2018

Pay Attention If You’re Considering Conversion to Cash Balance

Is your organization among the growing number of those considering conversion of a traditional defined benefit pension plan to a cash balance pension plan? If so, be advised that political pressures against these plans continue to build.


Agencies increase scrutiny.
Increasing concern about the fairness of cash balance plans has prompted both the Internal Revenue Service (IRS) and the Equal Employment Opportunity Commission (EEOC) to take a closer look at whether such plans violate tax and age discrimination laws. Several bills are pending in Congress to regulate cash balance plans, and both sides of the controversy expressed their views at a September 21 hearing before the Senate Health, Education, Labor and Pensions Committee.


IRS: Specific cash balance plans may fail to qualify.
The IRS instructed division chiefs on September 15 to request technical advice for any open determination or examination cases regarding the effect on the plan’s qualified status of conversion of a traditional defined benefit plan formula to a cash balance formula. To date, the IRS has made no specific statements indicating that cash balance plans as a whole violate the law. However, in at least two cases the IRS has expressed the view that specific cash balance plans may fail to qualify for tax purposes.


EEOC: Do cash balance plans result in age bias?
Meanwhile EEOC’s Ida L. Castro announced on September 20 the creation of a national EEOC team of experts to focus on the legality of employer conversions to cash balance pension plans. “Whether or not cash-balance pension plans discriminate against employees covered by the Age Discrimination in Employment Act (ADEA) is a question that I am determined to explore fully,” said Ms. Castro.


Why the concern?
The crux of the debate is whether older workers, who are closer to retirement, are unlawfully discriminated against when employers convert from traditional defined benefit pension plans to cash balance pension plans. Experts estimate that in a conversion an employee who is five to ten years away from retirement may lose 20 to 50 percent of the expected age 65 benefit.


This is because traditional defined benefit plans calculate an employee’s benefits by using the number of years of an employee’s service and the employee’s final average pay, giving workers a dramatic increase in the value of their benefits as they near retirement. But cash balance plans offer a more constant rate of return, making them attractive to younger, more mobile workers. In a conversion, some workers may experience “wear away” and receive no benefits for a number of years.


Industry association defends cash balance plans.
The ERISA Industry Committee (ERIC), a trade association representing large employers, says that cash balance plans don’t violate the ADEA just because benefits accrue more rapidly in a cash balance plan during an employee’s initial years of employment.


This “frontloading” of benefits is due to IRS rulings, they say, and not an intent to discriminate on the basis of age. They stress that each individual in a cash balance plan receives the same percentage of compensation pay credit (except for those plans that provide higher credits to older workers) and that the rate at which interest credits are calculated also is uniform.


“It’s interesting that for many years traditional final average pay defined benefit plans have been criticized for concentrating benefits among those employees who were able to remain with one employer for their entire working careers,” said ERIC President Mark Ugoretz.


What’s the solution?
One answer is to allow employees who are five to ten years away from retirement to receive the greater of what he or she will receive under the new cash balance plan or what he or she would have received under the traditional defined benefit plan.


Other ways to ease the effects of a conversion include enhancing the opening account balance of employees who are five to ten years away from retirement, or enhancing the annual pay credits or interest credits of those employees.


Legislative proposals.
Congress is also looking for solutions. Rep. Bernard Sanders (Ind-Vt) and Sen. Tom Harkin (D-Iowa) have both sponsored bills that would forbid wear away. The Sanders bill would also required increased disclosure and impose potentially heavy penalties on companies that do not allow their employees to remain in the old plan upon converting to a cash balance plan. The Clinton administration supports increased disclosure; it would require companies with 100 or more employees to notify their employees of plan changes and, upon request, provide details about how benefits will change.


Source: CCH Incorporated is a leading provider of information and software for human resources, legal, accounting, health care and small business professionals. CCH offers human resource management, payroll, employment, benefits, and worker safety products and publications in print, CD, online and via the Internet. For more information and other updates on the latest HR news, check our Web site at http://hr.cch.com.


The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.


Posted on October 26, 1999July 10, 2018

Table of Contents November 1999

Cover Story


Brand HR: Why and How to Market Your Image
By Shari Caudron
If you want HR to be perceived as more strategic, more valuable, more credible, more whatever, you need to start thinking like a business with a product and market your overall brand image.


Features


Goodbye Training, Hello Learning
By Eileen M. Garger
To retain key talent, remain competitive and ensure long-term profitability, organizations are making dramatic changes in the way they develop the knowledge and skills of their workforce.


Generation X and the Art of the Reward
By Scott Hays
A little freedom and quick feedback goes a long way to keeping Gen Xers satisfied. Maybe. Here’s the lowdown on how to motivate and reward these young employees.


Communicating in a Global Environment
By Charlene Marmer Solomon
Communication can be difficult with all the different cultures that compose a global organization. You need a strategy to make your message crystal clear to employees—no matter where in the world they are.


HR 101


Contingent Staffing
This monthly section offers everything you need to know about important HR topics. In this month’s issue, HR 101 covers a range of contingent staffing concerns—including best practices, legal compliance, budget implications, technology and policy.


Departments


Putting It Together
Cleveland R-O-C-K-S!


News Angle
Xerox Fires Employees For Internet Misuse


The Buzz
   Working Wounded: Handling Questions About Ex-Employees?
   On the Contrary: It’s Not What You Say …
   The Leading Edge: Leadership From the Inside Out


InfoWise
Getting Rid of the Paper Chase


Forté
Kinko’s Dials Into Automated Applicant Screening


Legal Insight
Looking Back on 100 Years of Employment Law


Money Matters
HR Finds New Ways to Cut Retiree Health-Care Costs


Crossfire
Does Genetic Testing Send the Wrong Message?

Posted on October 25, 1999July 10, 2018

Nine Criteria for Evaluating Your Selection System

Nine things to consider when evaluating your method ofselecting new employees:

·   Ease ofimplementation: if it is difficult to administer, you won’t use it.

·   Ease ofinterpreting outputs: if it is difficult to interpret results, it’s notuseful.

·   Breadth ofprofiles offered: how many titles and positions covered? Often, a fewprofiles are able to widely predict performance across many jobs.

·   Coverage ofcompetencies: if you can only test for three competencies, test forinterpersonal skills, problem solving and work ethic.

·   Time to hire:the process should only take one to two days tops, including evaluating andscoring.

·   Legaldefensibility: how would the results generated help or hinder you in court?

·   Price per hire:if two systems are equally valid, then you’d take the cheaper one.

·   Reliability andconsistency: will a hiring manager still use it correctly three years aftertheir initial training sessions have been completed?

·   Perceivedfairness of test: test takers are future customers. How will they feelabout your test later?

SOURCE: From a speech by MatthewO’Connell, co-founder of Select International, at a conference on Recruiting & Hiring in a Tight LaborMarket: New Practices in Recruitment & Selection, May 5-6, 1999.

Posted on October 22, 1999July 10, 2018

iWorkforce-i Editorial Guidelines

Whether you are a freelance writer, an HR practitioner, an attorney, aconsultant, or a PR person representing a company or product, please keep thefollowing guidelines in mind when you’ve got a story idea for Workforce magazineand Workforce online.


Reader Profile
    Workforce readers and users are human resources professionals who are movingbeyond their traditional roles as policy police and picnic planners. They areactively working to make their businesses better.


    They are college educated and have been in the human resources field anaverage of 12 years. Our community of readers and users works in all industries,and in organizations of all sizes; the average reader works in an organizationwith 1,200 employees.


Content Goals
    Workforce presents these HR professionals with the trends and tools they needto bring about important business results in their companies or non-profits.Both the magazine and the Web site establish context, raise awareness, and sighttrends. Both offer HR professionals the tools they need to take action, andpresent content that shows how HR achieves business results.


    HR’s business impact might be helping to achieve a specific business goal,such as opening a new market, remaking a hiring initiative, creating a trainingprogram that improves profitability, launching a new product, or completing anacquisition.


    Workforce recognizes that much of what HR addresses begins outside theorganization. HR is shaped (in part) by the economy, changes in society,legislation and legal decisions, and general business trends. HR doesn’t existin a vacuum. It doesn’t run programs for their own sake, but because they canhelp the organization achieve a business result. That result might be preventingcostly lawsuits, slashing administrative costs, or consistently hiring toptalent. HR’s impact also might be found in its contribution to higher profits,greater productivity, higher stock prices, or greater market share. Whateverform the impact might take, it must be specific and measurable.


Feature Packages
    To make HR trends and tools for business results as useable as possible forour audience, writers and editors create feature packages containing severalelements, as opposed to the more traditional 2,000-word-long narratives.Examples of these feature packages can be seen in our most recent issues (Dec.2000 and later).


    When we assign freelance writers to create story packages for us, we pay themat rates commensurate with their background and experience, and the story’scomplexity and length. Contributors who are HR professionals and others in thefield are compensated by the exposure they receive on the Web site and in themagazine. We ask you to sign an agreement to that effect.


    The feature packages we publish identify trends, provide readers with toolsthey can use in the course of their work, and give readers examples of thebusiness results that come about through steps taken by the companies and peoplewe write about.


    Here are some ways to think about presenting your story:

  • Trends: What’s happening in the world, socially, economically, andpolitically that affects HR and its work? How does the trend present itself? Arethere statistics, studies, company experiences, etc. that demonstrate that thisis an actual trend and not just an inconsequential blip on the business radar?

  • Tools: In a story about formalizing flextime (Feb. 2001 issue), the toolsincluded a sample flextime proposal from PricewaterhouseCoopers, seven tips fromexperts who have established workable flextime programs and a list of Webresources. These were all separate elements of the feature package.

  • Business results: These represent HR’s impact in the organization. How did HRhelp a company save money, increase profitability, retain key employees, etc.,as a result of the initiative being described? Case studies are an excellent wayto present these results. “Formalized Flextime” presented three casestudies of how companies approached flextime scheduling.

What Kinds of Stories Do We Want?
    You are probably a regular reader, but if not, we suggest getting two orthree recent copies of the magazine and reading through them. The most recentissues — December 2000 and thereafter — are a reflection of the kinds of storieswe’re looking for. You also can read recent stories on the Website. Although feature packages are presented a little differentlyon the Web, they still give you a good idea of how we’re presenting our content.(The top story on the homepage is usually something that also is featured inthat month’s magazine.)


    If you have a story idea, it’s a good idea to first pitch it to the editorsvia e-mail. A pitch should be a succinct description of what the story would beabout, who you would talk to, what sidebars and “tool” material mightbe appropriate, etc. That way, we can see whether the idea interests us withoutyour going through the whole writing process only to discover it’s something wedid last year or something that’s not a good fit for our audience.


    For example, Workforce does not publish articles that just summarizepublished thought on a topic-say, a piece that deals in the abstract withstrikes or unions. Instead, in the November issue, we examined how a “neweconomy” strike at Verizon contained important lessons for all HRprofessionals. Once we had published a trend story on the graying workforce, wepresented a feature package of stories on how HR can go about hiring olderworkers, and making the most of their talents (Feb. 2001).


    Also, Workforce is not a research journal or an academic Web site. However,we are committed to keeping readers informed of new trends and developments, aswe did in a story about impairment testing as an alternative to drug testing.When writing about research, the focus must be on the implications of theresults, not on the methodology. These articles may summarize either currentpractice (e.g., how many employers use pre-employment testing and a discussionof whether the number is increasing or decreasing and why) or discuss a newtechnique or system. In the latter case, articles should include some evidencethat the idea has been tested in an actual organization.


General Advice

  • Be specific. Many stories are not of interest to us because they are toosuperficial. Remember that readers need details. For example, don’t merelyadvise readers to plan for retention, but instead find an interesting aspect ofthe retention challenge (see Nov. 2000’s story, “Retention on theBrink.”)

  • Get to the point. Choose a single point to be made by the piece and statethat point in the first two paragraphs. Although background informationoccasionally is helpful, several pages of introductory material should notprecede the discussion at hand.

  • Be original. If you already have a manuscript that you want us to consider,it must be original and previously unpublished.

  • Attribute information. Identify the sources of information cited. Forexample, rather than merely noting that “30 percent of American employersoffer child care benefits,” say, “Thirty percent of American employersoffer child care benefits, according to the US Department of Labor.”

Lead Time and Acknowledgments
    Workforce magazine is published monthly, and we assign stories approximatelythree months in advance (In early March, for example, we are assigning storiesfor the June issue). The lead time for the Web site is a little more flexible.


    Given the volume of material we receive, we do not acknowledge allsubmissions. However, if we decide to use your story, we’ll e-mail you to letyou know, and send you an agreement for your signature. If you send a manuscriptand want it returned, include a self-addressed stamped envelope. Publishingdecisions usually are made within six weeks of receipt. Once a manuscript hasbeen accepted, writers should allow as long as six months for publication.


Manuscript Specifications
    When preparing manuscripts, please observe the following:

  1. Let us know if you are simultaneously submitting your piece to more thanone publication .

  2. Submit manuscripts as attached files in Microsoft Word or as a plain text(ASCII) file. Use the subject line of your e-mail to indicate that you aresubmitting a manuscript for review. Within the e-mail, please include your fullname, e-mail address, street address, and telephone number. Direct yoursubmissions to Carroll Lachnit.

  3. Although electronic submissions are much preferred, we will considersometimes hard-copy manuscripts. Please do not submit manuscripts by fax. Ifsubmitting by mail, please send to: Ronda Lathion, content developmentadministrator, Workforce, PO Box 2440, Costa Mesa, CA 92628. If you aresubmitting hard-copy manuscripts, please send two copies. Please double-spacethe hard-copy manuscript and use standard margins. Include a stamped,self-addressed envelope if you want the material to be returned to you.

  4. The author’s name, title, organization, address, telephone and faxnumbers, and e-mail address should appear on the first page. Similar informationfor co-author(s) should be included as appropriate. Please indicate which authorshould receive correspondence.

  5. Please include a brief (two sentence) biography of the author(s).

  6. All illustrative material (charts, graphs, tables) should be referred toas figures and numbered consecutively as they appear in the text.

  7. Generally, Workforce retains all rights for re-use of the manuscript.Occasional exceptions are made.

  8. Please do not send anything that you need returned (such as your only copyof a graphics file).

Specialized Content
    We use more than just feature stories in the magazine and on our Web site.There are several ways in which users, readers and others may contributematerial.

  • Mini case studies: Sum up in 300 or so words how your organization solved aproblem, found a new twist on an old strategy, or using an HR strength toimprove the organization. For example: UPS found a way to bring inner-cityworkers to its suburban facility, solving two serious workforce problems withone great idea-subsidized public transportation.

  • “Raw Data”: Do you have a company document that encapsulates agreat idea, presents an insightful mission statement or demonstrates how HR isdoing its job creatively? We’d like to see it. Some examples: Hewlett-Packard’soriginal mission statement; Ben & Jerry’s job description for a”guerilla marketing” ice-cream sampler; Time-Warner/AOL’s memo on howits benefits would be realigned in the wake of the merger.

  • Assessments: Do you have any self-assessments, quizzes, or other interactivetools that HR professionals can uses to make decisions on hiring, promotion,teams, organizational direction, or other areas? We would love to take a look atyour assessment tools, and possibly use them a sidebar or back-up material tosupport a feature article on the Web site or in the magazine. In all cases, thesource is credited.

  • Opinion: Editorials of 600-850 words about topics in news, sports,entertainment, culture, society, and business affecting workplaces appear in the”Work Views” section of the Web site. Keep your editorial to onetopic, and feel free to write about the stuff you talk about at the kitchentable — your passions.

  • Survey results: We welcome the results of surveys about the HR profession orabout issues of interest to HR professionals. This material may be used as asidebar to other material, as a graph to accompany other material, as back-upmaterial to support a feature article, or within an article. In all cases, thesource is credited.

  • Samples and resources: Because Workforce gives its users the tools they needto take action, we welcome samples of policies (such as a sexual harassmentpolicy, employee travel policy, and so on), employee communication material(material encouraging enrollment in a 401(k) plan, for example), forms (such asan application form) and other material that users can learn from.

  • Humor: Some of the strangest things happen at work. Even HR professionalscan’t be serious all the time, so we encourage submissions of anecdotes (storiesabout things that happened at work), examples (memorable gaffes on resumes, forexample), and other work-related humor. Please, keep it clean.

Questions
    If you have further questions about a manuscript or an idea for a featurepackage for Workforce magazine or Workforce online, please send e-mail toCarroll Lachnit, content managing editor, 714/751-1883ext. 224, or to Todd Raphael, online editor,714/751-1883, ext. 223.

Posted on October 22, 1999July 10, 2018

Paid Time Off Incentive Program Keeps Employees At Bat

Issue: It’s the same question asked over and over in today’s competitive job market: what benefit can employers offer to retain talented employees? Recently, David DeCapua, vice-president and partner at Dawson Personnel Systems in Columbus, Ohio, came up with a novel answer—and it hasn’t cost his company one cent.


Paid time off for productivity.
What DeCapua offers to his 65 full-time employees is extra paid time off if certain productivity goals are met. The program, implemented in 1998, has employees at the temporary staffing agency “knocking the cover off the ball,” DeCapua said recently. And, though the company retains the right to terminate the incentive program at any time, DeCapua has no plans to do so at this time.


Reduced hours for meeting goals.
Offered first to Dawson’s sales staff, the program allows a salesperson to work “bankers’ hours” for the rest of the month as soon as the monthly sales goal is met. This means, for example, that if an employee reaches his sales goal on the third day of the month, he can work from 8:30 a.m. to 2:00 p.m. for the rest of the month. In addition, if that sales person happens to be the first person to reach the goal that month, he also receives an additional two days off at the end of the month. And the results? “I had an employee tell me recently that she met her goal on the fourth day of the month,” DeCapua said. “Does that not show you the potential your employees have that you’re holding back if you don’t implement these types of plans?”


Setting goals.
Setting the goals for sales staff is easy, according to DeCapua. “Ask yourself: ‘in my business, what would be considered a really big month for a sales person?’ Then, raise the bar by 20 percent,” he suggested. But he admitted that setting goals and structuring the rewards for employees in his administrative and accounting departments was much harder. “I deferred to my department managers,” he said. In turn, the managers polled employees and asked how such a program could work for them.


How it works.
According to DeCapua, some employees asked for Mondays or Fridays off. “I told them that if you can get your work done in a four-day time frame, that’s fine,” he said. But DeCapua insists that a PTO incentive program must be offered to all employees—not just sales staff. “Sales staff may be making the money, but they couldn’t do it without the support of everyone back in the office,” he pointed out.


Customers’ reactions.
From the beginning, one of DeCapua’s big worries was how clients would react to an empty office on late afternoons. However, the staffing agency’s clients have been very supportive of the program and, in fact, sales have been way up since the program’s implementation. One explanation for continued customer satisfaction might be the fact that employees on bankers’ hours aren’t completely off the hook—DeCapua insists that they check in for messages during their time away from the office. “With cell phones and e-mail, it’s not that big of a deal,” DeCapua stresses. “In addition, we’re implementing a system here whereby employees will be able to check their e-mail by phone,” he explained.


Advice to employers.
DeCapua offers simple advice to employers wishing to implement a similar program. “Step up to the plate and make the changes,” he says. “If you don’t, the grass is going to be greener somewhere else. I guarantee it,” he advises.


Source: CCH Incorporated is a leading provider of information and software for human resources, legal, accounting, health care and small business professionals. CCH offers human resource management, payroll, employment, benefits, and worker safety products and publications in print, CD, online and via the Internet. For more information and other updates on the latest HR news, check our Web site at http://hr.cch.com.


The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.


Posted on October 21, 1999July 10, 2018

Top HR Book Titles That Never Got Published

Ten books we’re pretty darn sure you won’t find on the shelves anytime soon:


  1. Concealed Weapons, OSHA and You

  2. Temps and Asbestos Cleanup

  3. How to Improve Retention Through the Use of Barbed Wire

  4. Motivational Secrets, Methamphetamine-Style

  5. A Guide to Interoffice Dating

  6. Punish Them with Whips and Chains

  7. A 40-Hour Work Week and Other Fairy Tales

  8. Martha Stewart’s Hand-Me-Down Rewards

  9. Office Politics and the Return of the Gladiator Arena

  10. Creatively Finance Your Company into Chapter 11

Posted on October 21, 1999July 10, 2018

What’s a Good Boss

Do you tell employees what’s on your mind? Do you talk behind their backs? Do you listen to them and get to know them?


Communication is critical, at least according to a national telephone survey of 1,000 adults ages 18 and older. More than 37% said it takes “communication skills or interpersonal relationship skills” to be a good boss. Other results:


  • Nineteen percent said the “ability to understand employees’ needs and help them develop their skills” is the most important ingredient in a good boss.
  • The “ability to set clear goals and provide direction” was cited by another 19% of respondents.
  • The “ability to make good day-to-day decisions” was cited by about 18%.

The survey was conducted Sept. 24-26, 1999.


SOURCE: Personnel Decisions International (PDI), Minneapolis, commissioned Market Facts, Inc. to do the survey.

Posted on October 21, 1999July 10, 2018

Retiree Health Accounts Attractive for Concerned Employers

Issue: You’re an employer with a traditional retiree health care plan that is very expensive. Is there a less costly alternative for you?


Answer: Consider setting up retiree health care accounts. These accounts represent a shift away from a defined-benefit approach to a defined contribution approach in employer-provided retiree health benefits.


The IBM plan.
IBM “got a lot of splash” for setting up retiree health care accounts for its employees, according to Steve Coppock, a principal at Hewitt Associates’ Health Management Practice. Under IBM’s plan, IBM will establish a retiree health account for each employee who is age 40 or older and who has at least one year of service. The company will then credit this account with $2,500 each year for 10 years. IBM’s plan illustrates the defined contribution-type approach to retiree health care in which the employer is “on the hook” only for a specific dollar amount.


When the employee is age 55 and has completed 15 years of service, he or she can retire and have access to this account. Account balances are forfeited if employees leave before fulfilling the age and service requirements. Upon retirement, the employee can use the account balance to pay for health benefits offered by IBM.


Funding the retiree health accounts.
According to Mr. Coppock, most employers do not prefund retiree health care accounts with “actual hard assets dedicated to this purpose.” Instead, employers use an accounting entry to fund the benefits.


What are the tax implications for the employer?
If the employer uses “phantom” accounts that are not funded with hard assets, the employer “doesn’t get the tax deduction until money leaves its hands.” This means that the employer can take the tax deduction when it pays for benefits (or insurance premiums) or prefunds a trust fund to back up the account balances (subject to tax limitations).”


Cite: “Philosophical shift to DC approach creates options for retiree health care programs,” Interview with Mr. Steve Coppock, CCH’s Benefit Plan Compliance, September 1999, Volume 3, Issue No. 9.


Source: CCH Incorporated is a leading provider of information and software for human resources, legal, accounting, health care and small business professionals. CCH offers human resource management, payroll, employment, benefits, and worker safety products and publications in print, CD, online and via the Internet. For more information and other updates on the latest HR news, check our Web site at http://hr.cch.com.


The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.


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