NUTS AND BOLTS

DataPath Sponsored Events

Other Events

Changes to our Web Site

IRS FAQs Web Site

Erisa Law Web Site

Agendas for IRS, DOL, and DHHS

Sales/Support:   Phone Numbers and Email Addresses

DataPath Sponsored Events

June 12-13, 2002
Defined Contribution (Max105, MERP105, Flex105)
Radisson Hotel
Memphis, TN
Learn the regulatory issues, successful marketing approaches, and your competition. John Hickman will speak on 6/12. See article.

June 19-21, 2002
DPI-COBRA Education / Training Seminar
Little Rock, AR
Education on COBRA rules and regs and hands-on DPI-COBRA Training.   See article.

September 24-26, 2002
Annual DataPath Advanced Seminar
Memphis, TN
Subjects will include COBRA, Defined Contribution, DataPath's Plastic Solution, Internet Administration. John Hickman will be speaking one day on changes in regs. Come exchange ideas with other users over the country.

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Other Events

August 14-16, 2002
ECFC Cafeteria Plan Administrator's Symposium
Reno, NV
15th Annual Cafeteria Plan Administrator's Symposium will be held in Reno, NV. DataPath will have a booth.

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Agendas for IRS, DOL, and DHHS

Would you like to see what regulations IRS, DOL, and DHHS plan to develop or review during the next 12 months? If so, see:

IRS Agenda
DOL Agenda
DHHS Agenda

EBIA has warned its members to expect "lots of new regulations and other goodies" this next year. All we can do is wait and see what happens.

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Changes to our Web Site

We are adding to our web site constantly. Here are some of the new or improved features.

Event Calendar.  Do you want to know when a training seminar is going to be held? Find out with our newly added Event Calendar. The Event Calendar also displays other useful information for our users. Check it out at www.dpath.com/events/eventcalendar.asp.

DataPath Newsletters.  The DataPath Newsletters can be viewed directly from our web site. Just go to http://www.dpath.com/news/newsletters.asp.

Improved Site Map.  You can easily navigate the Windows-Exployer style directory to find a topic quickly. Try it out at www.dpath.com/resources/sitemap/sitemap.asp.

Links Page.  We are adding daily to the extensive list of links through which you can find information, laws, forms, and much more. See www.dpath.com/resources/links/index.asp.

In the upcoming months, you can look forward to:

Knowledge Base.  A fully functional Knowledge Base will be activated and you will be able to search for the answers you need. Both software, regulatory, and administrative issues will be listed.

Navigational Graphics.  Updated graphics will be added to enhance the site navigation.

We recommend you use Internet Explorer Version 5.5 or later to take full advantage of our web site.

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IRS FAQs Web Site

IRS has a web site listing FAQs for a variety of topics. You can search by Category (such as IRS Procedures, Social Security Income, or Pensions and Annuities) or by the subcategories below them. You can also search by keyword (such as Child Care Credit, FICA Taxes, or Letter Ruling). The answers soften include links to other sites for pertinent information. Just go to http://www.irs.ustreas.gov/faqs/display/0,,i1%3D54%26genericId%3D16004,00.html#Cat12. This web site, with numerous others, can be found hwww.dpath.com/resources/links/index.asp.

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ERISA Law Web Site

We have had many requests asking where they can find the text of ERISA regulations. You can find this at www4.law.cornell.edu/uscode/29/ch18.html.

This web site, with numerous others, can be found at www.dpath.com/resources/links/index.asp.

Sales and Support
Phone Numbers and Email Addresses

Telephone Numbers:
Sales: 1-800-633-3841
Tech Support: 1-501-296-9993
Regs Support: 1-501-296-9990 x212

Email Addresses:
Sales: sales@dpath.com
Tech Support: support@dpath.com
Regs Support: regs@dpath.com

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ARTICLES

       ERISA Definitions Pertinent to 5500 Filing Requirements

       Hear the Experts Discuss "Defined Contributions"

       DataPath's Defined Contribution Administrative Systems

       Frazzled by COBRA? Here's the Solution!

       What's "myRSC.com"?

       Are You Comfortable with your Backup System?

ERISA Definitions Pertinent to 5500 Filing Requirements

Much discussion and many questions were created by the changes in Form 5500 regulations. By the next newsletter, hopefully I can include an article answering some of those questions. Until then, I would like to give you the following definitions of the terms used in the regulations for small group exemptions.

Among the exemptions for Welfare Benefit Plans listed on the Form 5500 instructions are:

    1. A welfare benefit plan that covered fewer than 100 participants as of the beginning of the plan year and is unfunded, fully insured, or a combination of insured and unfunded.

    a. An unfunded welfare benefit plan has its benefits paid as needed directly from the general assets of the employer or employee organization that sponsors the plan. . . . .

    b. A fully insured welfare benefit plan has its benefits provided exclusively through insurance contracts or policies, the premiums of which must be paid directly to the insurance carrier by the employer or employee organization from its general assets or partly from contributions by its employees or members . . .

    c. A combination unfunded/insured welfare plan has its benefits provided partially as an unfunded plan and partially as a fully insured plan. . .
    . . . .

    3. A governmental plan.
    . . . .

    9. A church plan under ERISA section 3(33).

To view the complete 5500 instructions, go to http://www.irs.gov/pub/irs-pdf/i5500.pdf/.

The ERISA definition for participant is as following:

ERISA § 3(7): The term “participant” means any employee or former employee of an employer, or any member or former member of an employee organization, who is or may become eligible to receive a benefit of any type from an employee benefit plan which covers employees of such employer or members of such organizations, or whose beneficiaries may be eligible to receive any such benefit.

The DOL definition for covered participants is as following:

DOL 2510.3-3(d)(A-C): Participants covered under the plan. (l) (i). An individual becomes a participant covered under an employee welfare benefit plan on the earlier of ­­

    (A) The date designated by the plan as the date on which the individual begins participation in the plan;

    (B) The date on which the individual becomes eligible under the plan for a benefit subject only to occurrence of the consistency for which the benefit is provided; or

    (C) The date on which the individual makes a contribution to the plan, whether voluntary or mandatory.

For More Information

You can see the Press Release announcing the changes at http://www.irs.gov/pub/irs-news/ir-02-43.pdf, and the related Notice 2002-24 at http://www.irs.gov/pub/irs-drop/n-02-24.pdf.

EBIA is offering a Tele-Web Seminar, Form 5500: What Plans Must File What, on May 30, 2002. For information, go to www.ebia.com/misc/telewebseminar.pdf.

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Hear the Experts Discuss "Defined Contributions"

DataPath is holding a seminar in Memphis, TN, June 12-13, Evolution of Defined Contribution in Today's Market, to discuss the new health benefit designs and funding arrangements for employer plan sponsors made possible through the Defined Contributions (DC) approach. Agenda

Listed below are the participants. For further information on each speaker and their topic, go to www.dpath.com/events/event.asp?EventID=49.

• John Hickman, Attorney and Partner with Alston & Byrd, Atlanta, GA.  You probably know him best as co-author of EBIA Cafeteria Plans manual and for his extensive lectures on HIPAA, ERISA, Cafeteria Plans, and other health plan issues. Hickman will cover the legislative and regulatory aspects of DC Health Plans, including rollovers and the latest IRS commentary.
• Carol Schmidt,  Employee Benefits Manager, The City of Minneapolis.  Carol Schmidt will provide the history leading up to the overwhelming necessity to make significant cost-effective changes to city health care programs.
• Michael Taggart, FSA, President, Synhrgy HR Technologies, Inc.  With 21 years' experience in the health and human resources industries, he oversees the company's business and development initiatives. Michael Taggart will take the actuarial approach in illustrating the savings opportunities of the DC Health Model.
• T. Michael (Mike) Whitney, CLU, ChFC, FLMI.  Mike Whitney specializes in combining Self Funded Medical/Dental Plans with Cafeteria Plans to create multiple-option employee choice programs. He will show you that combining Health Care Accounts with self-funded plans really does work.
• John Bowman.  John Bowman is President of Human Resource Dept., Inc., and has been in the insurance business since 1974. You might recognize him as a speaker at other DataPath seminars and for articles he has published in trade publications. He will moderate the round table discussion the first night and a panel discussion the second afternoon.
• Mendel Boykin.  Mendel Boykin will demonstrate the art of forging cost-effective and employer-friendly Employee Health Benefit Solutions using today's products. Being able to react and rebound from changes are more than skill, it is an art form he has gained from years of practice in the field.

For more information, see www.dpath.com/events/event.asp?EventID=49 or email sales@dpath.com.

You can download an enrollment form at www.dpath.com/events/files/105_Registration.doc.

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DataPath's Defined Contribution Administrative Systems

DataPath's 105 Administration Systems (MERP-105, Max105, and Flex-105) are Windows-based 105 administration systems developed by DataPath, Inc. MERP-105 and Flex-105 integrate with other systems in Datapath's employee Benefit Software Suite. These systems take the Defined Contribution approach to health benefits often discussed in today's employee benefit world.

Whether you are a TPA rendering 125 Cafeteria Plan services, a PPGA (Personally Producing General Agent) in the fully insured small group marketplace, or a Benefit Consultant presenting partially self-insured arrangements to larger employers, one of these systems will fit you.

• MERP-105 supports the employer-funded Medical Expenses Reimbursement Plan (MERP), designed to cover certain employee medical expenses.
• MAX-105, designed for PPGAs, focuses on the premium savings of the employer's underlying insurance policy and operates like an MSA for the employer.
• Flex-105 gives needed flexibility in partially or fully self-funded healthcare arrangements in the large employer market, and provides more benefit choices with incentive arrangements designed to engage employee participation, improve attitudes, change behaviors, and encourage sensible consumption of healthcare.

For more information, email sales@dpath.com.

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Frazzled by COBRA? Here's the Solution!

In response to requests by our users, DataPath has designed a COBRA Administrative System, DPI-COBRA. The first COBRA seminar is being held June 19-21, 2002, here in Little Rock. The first two days focus on regulations, marketing, sales, and policy; and will be held at the Ramada Inn. The third day will be hands-on training in DataPath's seminar room. You can choose to attend the first two days only, the last day only, or the entire three days.

With DPI-COBRA and its flexibility, providing COBRA Administration services is as easy as 1-2-3 with

1. Comprehensive record keeping for employers, carriers, employees, and dependents,
2. Automated "Things-to-Do" system to alert you of scheduled events based on an employee's qualifying event, and
3. Letters and reports to manage and track the flow of documentation to employers and participants.

DPI-COBRA helps you ensure consistency and compliance with today's laws (including California's regulations) and tomorrow's changes. You can use the portal of myRSC.com to give employers and employees the capability to log on and update critical information and check the status of their COBRA accounts.

For more information, email sales@dpath.com.

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What's "myRSC.com"?

You probably have seen reference to myRSC.com in our marketing materials or here in the newsletter. Watch for more information coming in the future on this exciting new DataPath product.

If you can't wait until then, you can email sales@dpath.com for more information.

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Are You Comfortable with Your Backup System?

Because of the many questions about this, we decided to rerun this article.

A dependable, easy, and comprehensive backup system is essential . . . and hard to find at affordable prices. DataPath has established a strategic alliance with a company that can reduce your backup and recovery costs by up to 50% and improve the level of system and data protection you can provide for your users.

How easy?

With their software, they are able to backup your servers at night over communication lines to their remote facility. This backup is performed unattended, and the data is securely moved across TCP/IP networks to the remote facility quickly and efficiently.

How fast?

How long does a typical backup take? A 10GB server can be backed up in 3 hours per night over an ISDN line and in as little as 15 minutes over DSL or cable modem circuits!

How can it save me money?

This solution automates the backup process of every server on your network. The service is especially cost-effective where you have geographically distributed servers that are connected with a corporate LAN. Here are some of the savings with this software.

• Capital Savings.   No more expensive tape backup devices and the tape media which wear out and have to be replaced.
• Labor Savings.    No more hiring experienced people whose job is to handle the backup and any associated problems.
• Operational Savings.   No more shipping and storage costs to send backup tapes to an off-site location to be stored.

Do you want to hear about some of the other benefits provided?

• Can you use the Internet? Absolutely! The system offers three levels of encryption to protect sensitive data.
• You get FULL RECOVERY! You get a server back with all of your data restored in advance, AND you get to test a full server restore once per year without any additional costs. The only thing you need to do is provide one spare server that matches your approved hardware configuration. We will manage that server and test it on a quarterly basis.
• With this solution, the data is at your fingertips - 24 hours per day, 7 days per week. You can restore the data over the communication line or via physical media delivered to you.
• Enhanced data longevity. With this service, a system independent data format is used which would allow you to restore your Netware data to an Windows 2000 system in three years. You can continue upgrading to stay with the latest and greatest technology and still rest comfortably knowing that your data is accessible.

How do I have to pay for it?

There's a monthly charge based on the amount of your data that is being backed up and protected, and usually this is the only charge. There is no charge for online data restores. However, there is an optional full system recovery service if you so choose. You provide a spare server to be managed and tested as part of the regular backup service.

How do you get started?

Just give DataPath a call at (800)633-3841 or email us at sales@dpath.com, and we will help get you started immediately.

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