An article by WorldatWork staff posted on the association's website (Newsline) today discussed some of the possible changes in the compensation and benefits arena which may come as a result of yesterday's election victories which gave Democrats a majority in the U.S. House of Representatives, including:
- Health Savings Accounts: Efforts to improve and expand HSAs will be slowed down considerably according to James A. Klein, President of the American Benefits Council. Kent Hoover, Washington Bureau Chief for bizjournals.com notes that "most Democrats see HSAs as just another tax break for the wealthy."
- Medicare Prescription Drug Benefit: According to Klein, "revising various aspects of the Medicare prescription drug benefit -- especially the feature of the law restricting federal government negotiation of drug prices and the so-called doughnut hole -- will be front and center."
- Minimum Wage: According to the Oct. 19-20, 2006 Newsweek Poll, 81% of Democrats and 53% of Republicans believe that increasing the minimum wage should be a top priority.
- Executive Compensation: Expect continued scrutiny of executive compensation levels and arrangements. Representative Barney Frank (D-Mass.), who is expected to become chairman of the House Financial Services Committee in January, has been a leader in the attack on rising CEO pay.
- 401(k) Plans: There will be an increased focus on the fiduciary responsibilities surrounding 401(k) plan administration, including plan fees and related matters.
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