1

MMiissssiioonn SSttaatteemmeenntt

PEBA will strive to berecognized throughout theDelaware Valley as the premierorganization in all areas relatedto employee benefits andcompensation by providingopportunities for:

• education• information• professional

development andexchange, and

• sharing professionalexpertise.

IInnssiiddee TThhiiss IIssssuuee

Benchmarking — How Do Your Plans Stack Up? . . . . . . . . . . . . . . 1

PEBA Members Help Alleviate Hunger . . . . . . . . 2

SEC Requires More Disclosure on Executive Pay . . . . . . . . . . . 3

PEBA Members “Beat The Odds” at 24th Annual Forum . . . . 6

How PEBA Membership and ID Numbers Work . . . . 7

With Your Help, PEBA Continues to Grow . . . . . . . . . . . . . . 8

Can You Top This? . . . . . . 10

Have a Question? Don’t Know Where to Turn For an Answer? Then “Ask The Expert!” . . 10

Kudos and “Thank You!” to the PEBA Forum Committee . . . . . . 11

More Great Information onwww.peba.org . . . . . . . . 11

Summer 2006

BBeenncchhmmaarrkkiinngg —— HHooww DDoo YYoouurr PPllaannss

SSttaacckk UUpp??By Bobbi W. Butler

ppeebbaa nneewwssYOUR BENEF I TS AND COMPENSAT ION ASSOCIAT ION

As HR and benefits managers planfor 2007, they turn to “Benchmarking,”often referred to as the beginning of thehealth and welfare annual cycle, as acritical component of the process.

Before benefit decisions are made,companies want to review the state oftheir benefit plans, especially healthcare, relative to the market. This createsthe opportunity for HR to present seniormanagement with a snapshot of how theplans stack up against competition andnorms, how plans are trending, and pre-liminary recommendations for plandesign and funding changes.

You compare what you want tomanage, control, or change.

When CEOs were surveyed in late2004 by the Business Roundtable, anamazing 43% pinpointed health carecost as their #1 cost pressure, surpass-ing litigation and energy costs. MetLifeupdated their benefits study for 2005and found that 81% of CEOs said healthcare costs are keeping them up at night.It wasn’t too long ago that benefits costsdidn’t really matter to the executive suite.Now, the financial success of the com-pany can be directly impacted by bene-fits costs.

So how do you compare and whatdo you compare? Data is everywhereand making sense of it is the tricky part.What you compare is usually a functionof what you want to manage, control, orchange. For budget-conscious compa-

nies, cost comparisons are critical.Competition for workers and customersmakes it important to look at costs fromboth the company’s and the employees’standpoint.

The employer’s cost is generally eas-ier to account for, since the employerpays the bills. Premiums and claims arerelatively simple to add up and there isa lot of comparative data on the totalcost of health care benefits. Getting ahandle on the employees’ cost is some-what more challenging, since this is afunction of both pprreemmiiuumm ccoosstt sshhaarriinngg(the easy part) and ppllaann ddeessiiggnn ccoosstt sshhaarr--iinngg (the hard part). The balance betweenthe two is also something to keep inmind. PPrreemmiiuumm ccoosstt sshhaarriinngg spreads thecost evenly over all participants, whileppllaann ddeessiiggnn ccoosstt sshhaarriinngg places a greaterburden on the people who use the ben-efits. Comparative data is available butthe quality can be spotty. Listening toemployees and taking their perspectiveinto account is also a very helpful tool inthis process.

While 2005 health cost increaseswere generally predicted to be under10%, many employers experienced dou-ble-digit increases, especially in theNortheastern US, where costs tend to runhigher. Based on the current renewalcycle, 2006 is the first year in which actu-al increases for many employers havedropped to single digits, with some areascoming in with renewals of between 8%and 9%.

Continued on page 3.

2

PPEEBBAAMMeemmbbeerrss

HHeellppAAlllleevviiaatteeHHuunnggeerr

By Edward J. O’Malley,RHU, CLU

Not knowing where their chil-dren’s next meal will come from is ablinding, searing pain that impactstens of thousands of parents in theDelaware Valley. It could happen toany one of us at any time. That wasthe sobering message given in thePhilabundance introduction thatPEBA members received prior torolling up our sleeves and givingback to our communities. OnSaturday morning, May 13, 2006, wegathered at the Philadelphia FoodBank and, using assembly line skillsmany of us did not know we had,packed hundreds and hundreds ofboxes of food for the needy and agedof the region. It was an amazingopportunity for our members to getto know each other better, laugh, andlearn how each of us can make a dif-ference in the lives of our neighbors.The depth of the hunger in our regionis staggering. Thanks to the generos-ity of local employers, restaurants,and individuals, Philabundance fillsthe void.

It was hard, heavy work, but ourteam members commented that theycould not have spent a more produc-tive or rewarding Saturday. A specialthank you to the committee members,to Sherry Tomlinson, who did her ownimpersonation of Lucille Ball’s “I LoveLucy” assembly line scene, and espe-cially to Audrey Im from HewittAssociates for her logistical support.An additional “Thank You” to Matt

PEBA participants roll flyers. Back row left: Matt Sydney and Audrey Im.Front row left: Sherry Tomlinson

Mike McCloskey and crew are ready to receive their instructions.

PPEEBBAA PPaarrttiicciippaannttss::Mary Caulder, HealthPartnersCarol Feskanin, GSKAudrey Im, HewittMike McCloskey, Commerce InsuranceBrian O'Malley, Towers PerrinEd O'Malley, Commerce InsuranceCatherine Stasky, Duane MorrisMatt Sydney, HealthEquitySherry Tomlinson

Sydney from Health Equity who designed the PEBA T-shirts that proud-ly proclaimed we represented “PEBA—Your Employee Benefits andCompensation Association.“

If you’d like to join this committee please contact Ed O’Malleyat (856)489-7075 or eomalley@yesinsure.com.

EEddwwaarrdd JJ.. OO’’MMaalllleeyy, RHU, CLU, is Senior Vice President, ChiefMarketing Officer, at Commerce Bank.

In July 2006, the Securities andExchange Commission (“SEC”) voted 5 - 0to adopt the first change to the execu-tive compensation disclosure rules since1992. Starting with the 2007 meetingseason (compliance is required for fis-cal years ending on or after December15, 2006), companies will be requiredto provide more detailed information toshareholders regarding the compensa-tion packages provided to a company’sexecutive officers and directors, includ-ing compensation philosophy andobjectives. Some companies arealready attempting to comply for the2006 proxy season.

Public companies must providemore detailed information,

including an expanded narrativeand seven tables.

The rules affect compensation dis-closures in proxy statements, annualreports, prospectuses, and Forms 8-K(on which public companies reportmaterial events or corporate changes),and address disclosure with respect torelated person transactions, employ-ment arrangements, and the dating ofstock option grants.

The new rules are changing the wayin which compensation decisions aremade, and focus more attention on share-holder reaction to the required disclosure.

NNooww RReeqquuiirreedd:: • A narrative section (in addition

to the current compensationcommittee report andperformance graph) called the“Compensation Discussion &Analysis” (“CD&A”) explainingthe company’s compensationpolicies and practices

• The performance graph will bemoved to the annual report toshareholders, and the

compensation committee reportwill be different in scope and willdisclose whether thecompensation committee hasreviewed the CD&A withmanagement

• Plain English disclosure in seventables reflecting currentcompensation, equity awards,and post-termination benefits

CCoommppeennssaattiioonn DDiissccuussssiioonn && AAnnaallyyssiiss The CD&A must disclose all ele-

ments of executive compensation(including perquisites and retirementbenefits) with respect to the principalexecutive officer, the principal financialofficer, the three other highest paidexecutive officers, and all directors. TheSEC reproposed the so-called “KatieCouric” rule regarding disclosure withrespect to employees who are morehighly compensated than the top fiveofficers, up to a maximum of three. Asreproposed, the rule would limit disclo-sure of “star-employee” salaries to man-agerial executives who make “significantpolicy decisions” according to John

White, director of the SEC’s corporationfinance division. The disclosure alsoincludes a bottom-line dollar amountshowing the overall aggregate compen-sation for each covered executive. Indetermining the top five officers, thefinal rules do not require use of this over-all aggregate compensation amount.Instead, the final rules back out the num-bers relating to preferential earnings ondeferred compensation and increases inpension values, to avoid over-inclusionof longer-term officers. The CD&A cov-ers six principal topics: • Compensation program

objectives • What the programs are designed

to reward (and not reward) • Compensation elements • The reason for each element • The manner in which an element

is determined, and • The relationship of each element

to the others and to the overallcompensation objectives.

3

Employee benefits issues are bottom line issues.

Risk Management • Insurance & Reinsurance Brokerage • Human Capital Consulting • Outsourcing

Whether your company is small, mid-size or among the Fortune 500, you have the samechallenges — how to improve productivity, reduce costs and retain your best people.

Aon Consulting can help.

Aon Consulting is a world leader in the areas of employee benefits, compensation, HR and employee benefits outsourcing. With 6,800 professionals around the world, andheadquartered in Chicago, Aon Consulting focuses its human capital consulting professionalson only one mission — to help you achieve yours.

Visit us at www.aon.com, or contact us at our Radnor office: Mark Scarafone 610.834.2209; Tom Vicente 610.834.2197; Carol Wellings 610.834.2281

5.5x4.25ad 6/28/06 11:33 AM Page 1

SSEECC RReeqquuiirreess MMoorree DDiisscclloossuurree oonn EExxeeccuuttiivvee PPaayy

By Amy Pocino Kelly, Esq.

Continued on page 4.

4

Mark your calendar

now!Wednesday,

October 18, 200655::3300 ttoo 99::0000 ppmm

Cocktails and hors d’oeuvres

for PEBA’s evening with

Mark SchweikerPresident and CEO of the

Greater Philadelphia Chamber of Commerce and

Former Governor of Pennsylvania

Join us to hear Mr. Schweiker’s views on

“Prospects for Philadelphia: The Employer’s Perspective”

Independence Visitor CenterOne North Independence Mall West

6th and Market StreetsPhiladelphia, PA 19106

DDEETTAAIILLSS TTOO FFOOLLLLOOWW!!

The CD&A includes information such as the company’spolicy for the allocation of long-term versus short-term com-pensation; timing of equity awards; performance measures(although a company is not required to disclose perform-ance target levels or confidential criteria if the disclosurewould have an adverse effect on the company); whether thecompany used benchmarking and, if so, the companiesincluded in the benchmark; and the role of the executiveofficers in the compensation process. The final rules expandthe CD&A requirements to require companies to clearly dis-close their practices and procedures for setting exercise prices,including whether options were granted before the release ofmaterial non-public information.

Companies must disclose a bottom-line compensationamount for each covered executive.

Previously, the compensation committee report was notrequired to be “filed” with the SEC, but was instead treatedas “furnished.” The proposed rules would have requiredthat the narrative disclosure be considered a company dis-closure “filed” with the SEC (which could subject the com-pany to liability if there were any material misstatements),subject to the CEO and CFO certification requirementsimposed under Sarbanes-Oxley. The SEC backed off fromthis position in the final rules and, as a consequence, theCD&A will be considered “filed” but the compensation com-mittee report will continue to be treated as “furnished.”

TTaabblleess The rules require disclosure in tabular format. Current

compensation will continue to be reported on the summarycompensation table, but the table now also reflects a totalannual compensation amount and the “all other compen-sation” column is expanded to include above market or pref-erential earnings on nonqualified deferred compensation(instead of all earnings as originally proposed). The thresh-old for disclosing perquisites is reduced to $10,000;perquisites in excess of $10,000 have to be separately item-ized; and the list is expanded to require disclosure of virtu-ally all company-provided perquisites. Equity compensationis reflected in two tables—one showing outstanding equityawards (potential amounts that may be received in the future,including exercise price and vesting schedule) and anothershowing exercised options and value realized.

Two other new tables reflect post-termination of employ-ment compensation and benefits and nonqualified deferredcompensation. Companies must disclose payments and ben-efits (including perquisites) payable on termination or changein control; the potential annual post-termination compensa-

SSEECC RReeqquuiirreess MMoorree DDiisscclloossuurree oonn EExxeeccuuttiivvee PPaayy

(Continued from Page 3.)

tion and benefits payable to each namedexecutive officer (note that the requiredpension benefit disclosure is now limitedto the actuarial present value of the offi-cer’s accumulated benefits); and the year-end balance, executive contributions,company contributions, earnings, andwithdrawals for the year with respect tononqualified deferred compensationplans.

OOtthheerr CChhaannggeessThe new rules also update, clarify,

and expand the disclosure provisionsregarding related person transactions,including a requirement that companiesdisclose policies and procedures forapproving such transactions.

Finally, the new rules modify the dis-closure requirement for Form 8-K toinclude employment arrangements andmaterial amendments to employmentarrangements only for named executiveofficers, and consolidate all Form 8-Kdisclosures regarding employmentarrangements under a single item.Compliance with these new 8-K rules isrequired for triggering events that occur60 days or more after the final rules arepublished in the Federal Register.

CCoonncclluussiioonn The new rules have been, and will

continue to be, the subject of muchscrutiny and analysis. In structuringexecutive and director compensationand benefit arrangements and to pre-pare for compliance with the new rules,public companies and their compensa-tion committees will need to inventoryexisting arrangements and considerwhether appropriate mechanisms arein place for tracking the amount of thecompensation and benefits as well aswhat the required narrative disclosurewill look like. Companies will also like-ly monitor the disclosure of their peersto determine whether their compensa-tion arrangements remain competitivein the market place – and executivesmay seek increased compensation andbenefits based on what their peersreceive.

AAmmyy PPoocciinnoo KKeellllyy,, EEssqq.., is anAssociate at Morgan Lewis.

One of the most popular metricsmonitored by companies is annual hheeaalltthhppllaann ccoosstt ppeerr eemmppllooyyeeee. Although thisnumber floats by enrollment and depend-ency status, it is a good snapshot in timeto determine how one company com-pares to another. Most companies focuson annual per employee cost. It is alsoimportant to note the ccoosstt ppeerr ccoovveerraaggeelleevveell, since employees are often requiredto pay all or a large portion of the health-care premium cost for themselves andtheir dependents. National averagesshow that companies require employeesto pay about 15% of the cost of singlecoverage and about 25% of the cost forfamily coverage.

Consider benchmarking health cost per coverage level

and drug plan usage.

One of the fastest growing cost com-ponents of health care is prescriptiondrugs. Employers are experiencing double-digit increases in drug plan costsdue to higher costs of ingredients, newand more expensive therapies, andincreased utilization. This is a good rea-son for employers to understand theirpopulations’ usage patterns for drugs:• Are brand drugs over-utilized,

especially the most heavilyadvertised ones?

• Could more cost-effectivegenerics be used instead?

• Should these factors beconsidered when making plandesign decisions?

• Are the health and prescriptiondrug benefits coordinated?

• Do you have the information youneed to even answer thesequestions?

Fads and new ideas hit the marketon a regular basis. After testing, somesucceed and some fail. Most cost-sav-ing ideas boil down to one or more ofthe following: • Premium cost sharing – how

much of the premium (and

under what structure) canemployees be asked to pay?

• Benefit plan design – costsharing in terms of plan designinvolves coinsurance, co-payments, deductibles, andcovered services. This includesthe newer consumer drivenhealth plan designs. How muchare we asking employees to paywhen they access the health caresystem? How much responsibilitycan we truly expect them to takefor their health care decisions?

• Buying smarter – preferredprovider and carefully managedprescription drug plans are afew examples of how employerscan be proactive in settingpayment levels to providers andmaking sure they’re getting acompetitive price for the servicesthey buy. These systems alsogive employers the opportunityto make sure employees aregetting their care from the bestproviders and facilities.

• Vendor management – what you payfor the management of the healthplan is also a critical issue. Healthinsurance is a competitive business. Itis important to make sure that you, asa company, are a smart consumer.Minimizing administrative andretention fees while achieving the bestnetwork discounts is critical tocontrolling cost.

SSuummmmaarryyIt’s all about the money — for the

company and the employee. With theplethora of public information on thesubject of benefits and health care,employers know they are challenged tobe creative and fair.

Benchmarking is the first step in theprocess of determining how well yourplans are operating and what changesor enhancements are going to be impor-tant to evaluate in the coming year.

BBoobbbbii WW.. BBuuttlleerr isPartner/Principal at The SavitzOrganization, Inc.

5

BBeenncchhmmaarrkkiinngg —— HHooww DDoo YYoouurrPPllaannss SSttaacckk UUpp??

(Continued from Page 1.)

6

Over 340 people attendedPEBA’s 24th Annual Forum on April20th, held for the first time at theHilton Philadelphia City Avenue.Participants enjoyed a “full house”of valuable information, fantasticspeakers, networking, and goodfood.

Charisse R. Lillie, VicePresident of Human Resources,Comcast Corporation, and SeniorVice President of HumanResources, Comcast Cable, pro-vided the keynote address. Sheshared Comcast’s best practicesin many areas of concern to PEBAmembers.

Attendees “en masse” alsoappreciated the LegislativeUpdate, where a variety of pend-ing regulations were discussed.Ten impressive topics were alsopresented throughout the day, cov-ering key benefits, compensationand general HR topics. Copies ofthe presentations are now avail-able at www.peba.org in the“Members Only” section.

PEBA members enjoyed visit-ing fifty-five exhibitors, most ofwhom have been with us at previ-

PPEEBBAA MMeemmbbeerrss ““BBeeaatt TThhee OOddddss”” aatt 2244tthh AAnnnnuuaall FFoorruumm

By Cheryl A. Griest

Bob Krane, Stephanie D’Alessio and Mark Cesarano from The Savitz Organization

Forum Co-Chairs Ron Seifert and Tracy Duffield

Bob Lizanich and Jackie Gada from Vision Service Plan

Joe Skwara and Myka Ingerman from Ameriprise Financial

Tom Morrison, Robert Falcey, Ron Arculeo, Judy Mester and Ginger Jaffe from Deloitte

Many thanks to Ginger Jaffe for capturing the day’s events in pictures.

7

ous Forums. The attendees’ evaluations showed great support of the time and exhibitor process: 70% stated theyhad met at least one exhibitor they would contact or had asked to contact them. 90% of the Forum’s exhibitorsstated they would most likely exhibit again next year.

Attendance also offered PEBA members an extra “payoff” – earning continuing education credits. As previ-ously announced, PEBA is now an Approved Provider of HRCI recertification credits. Attendees were also able toreceive Pennsylvania CLE credits and CCP, CBP and GRP recertification credits.

We extend a heartfelt thank you to our sponsors:

MMeerrcceerr HHeeaalltthh && BBeenneeffiittss – Brochure sponsorTTrriioonn CCoonnssuullttiinngg – Lunch sponsorCCoorrppoorraattee SSyynneerrggiieess – Breakfast sponsorCCoommccaasstt CCaabbllee CCoommmmuunniiccaattiioonnss,, IInncc.. – Keynote SpeakerCChhaarroonn PPllaannnniinngg – Coffee and Cookies Afternoon Break with Grand PrizeHHaayy GGrroouupp – Attendees’ Bag SponsorWWaattssoonn WWyyaatttt WWoorrllddwwiiddee – Lanyard SponsorMMooddeell CCoonnssuullttiinngg – Valet Parking SponsorVViissiioonn SSeerrvviiccee PPllaann – Friend of PEBA

A hearty “Wow — Well Done!” is extended to the Forum Committee. Please see the related article on thishard-working group.

As always, “Thank you” and “Great Job” go to Roslyn Coleman, Joy Wilson, and Sherry Tomlinson.

CChheerryyll AA.. GGrriieesstt is Director of Benefits at AAA Mid-Atlantic.

Sometimes it seems like a big mys-tery. What’s a Primary Member? Whogets the dues notice at our company?What happens to my PEBA ID Numberif I change jobs? Read on for helpfulinformation!

CCoommppaannyy aanndd IInnddiivviidduuaallMMeemmbbeerrsshhiippss

Your company is the primary mem-bership holder. The company pays thefirst $200 (for plan sponsors) or $300(for providers). Everyone else in yourcompany who belongs to PEBA is anaaddddiittiioonnaall mmeemmbbeerr for whom the com-pany pays $90.

Someone at your company is des-ignated as the pprriimmaarryy mmeemmbbeerr. Theannual dues notice is sent to this per-son and he or she is responsible forcoordinating payment of dues for every-one in the company. PPEEBBAA sseennddss oonneeiinnvvooiiccee ttoo eeaacchh ccoommppaannyy.

The primary and additional mem-bers all have unique IDs. If someonedoes not have an ID, he or she has notbeen registered and paid for by thecompany as a PEBA member. If you area member and leave your employer, thecompany may give your membership tosomeone else for the remainder of thedues year.

YYoouurr UUnniiqquuee PPEEBBAA IIDDYour PEBA ID is yours alone. Use it to

register for programs and WorldatWorkclasses, and to gain access to the MembersOnly area of the PEBA website.

This ID is not transferable to any-one else. If you change jobs andbecome a member again at your newcompany, your ID number will be reac-tivated for you at that location.

Do you have questions about mem-bership, such as who is the primarymember at your company, or aboutyour PEBA ID? If so, call Joy Wilson,PEBA Membership Coordinator, at(215) 735-9435, Extension 3. She hasthe answers!

HHooww PPEEBBAA MMeemmbbeerrsshhiipp aanndd IIDD NNuummbbeerrss WWoorrkk

8

EEnnddoo PPhhaarrmmaacceeuuttiiccaallss(P. Maud Dayton, Director, Compensation & Benefits)

Endo is a specialty pharmaceutical companyengaged in the research, development, sale, andmarketing of prescription drugs used primarily totreat and manage pain. Generic drugs accountedfor one-third of their 2004 sales. Corporate head-quarters are located in Chadds Ford, PA.

SSuunnCCoomm(Cheryl Jackson, Sr. Compensation Consultant)

SunCom provides digital wireless communi-cations to more than 960,000 subscribers. Thecompany has operated in the Southeastern USsince 1999 and in parts of the Caribbean since2004. SunCom employs more than 1,900 peopleand has a business office in Berwyn.

LLiibbeerrttyy MMuuttuuaall(Timothy J. Higgins, Executive Benefit SalesConsultant)

Liberty Mutual, founded in 1912, is a leadingglobal insurer and the sixth largest P&C insurer inthe US. They provide disability products, integrat-ed disability management, group life, AD&D, andFMLA administration. Their mission is “helpingpeople live safer, more secure lives.”

WWaarrrreennSShheeppeellll IInntteerrnnaattiioonnaall(Alice Solomon, Director, US BusinessDevelopment)

WarrenShepell has been an EAP provider forover 20 years, providing services and solutionsthat focus on employees’ emotional and psycho-logical well-being. They believe that a strong work-force gives companies a competitive advantage.WarrenShepell gives back to the community byproviding services, sponsorships, and support forthe arts.

NNeeww CCeennttuurryy TTrraannssppoorrttaattiioonn(Stephanie Bystrycki, Benefits Administrator)

New Century is a leading provider of region-al and national truckload services. Their fleet offersprotection from heat and cold, liftgate services,specialized guaranteed delivery, 100% Hazmat cer-tified drivers, and fully-integrated 24/7 satellitetracking and cellular communication.

KKRRBB AAssssoocciiaatteess(Carolyn Conroy)

KRB Associates is a professional placementservice, specializing in accounting / finance,administrative, engineering, HR, IT, insurance,manufacturing, and sales/customer service.Through their affiliation with Inter-City PersonnelAssociation (IPA), KRB provides national exposurefor their candidates.

BBeenneellooggiicc(Annemarie Fitzpatrick, Regional Sales Manager)

Benelogic develops software applicationsdesigned to simplify employee benefits adminis-tration and streamline data transfer. They provideintegrated solutions for employees, employers,consultants, and carriers, to support their mission:Connecting People with Benefits through theIntegration of Service and Technology.

HHeeaalltthhEEqquuiittyyMatthew Sydney, VP, Corporate Development)

HealthEquity provides services to healthplans, insurance companies, TPAs, financial insti-tutions, and large employers entering the world ofconsumer driven health care. They offer health careaccounts (HSAs, HRAs, and FSAs), health carefinancial services, and client advisory services.

BBiinnnneeyy && SSmmiitthh(Lisa Burland, Senior Compensation Analyst)

Who can forget the joy of opening a 64-colorbox of Crayola crayons—with a built-in sharpener?The company that also brings you Silly Putty has itsworld headquarters in Easton, and is a subsidiary ofHallmark Cards. In 2000, more than 25,000 Crayolafans participated in the first online Crayola ColorCensus. Their favorite? Blue.

PPhhiillaaddeellpphhiiaa PPaarrkkiinngg AAuutthhoorriittyy(Tona Whitaker, Manager, Compensation)

The Philadelphia Parking Authority’s missionis to provide an efficient, well-organized trans-portation system that serves the needs of the pub-lic and encourages economic development. Theirduties range from supervising parking and trafficmanagement programs to building and operatinglots and garages. Can you guess how many park-ing meters there are in Philadelphia? 14,500!

BBaayyaaddaa NNuurrsseess(David Desch, Chief Human Resources Officer)

Founded in 1975, Bayada Nurses is one ofthe largest home health care providers in the US.They employ more than 10,000 RNs, LPNs, homehealth aides, and therapists in over 100 offices in15 states, providing home care services includingskilled nursing, personal care, and rehabilitationand therapies for pediatric, adult, and geriatricclients.

PPeennnn BBeehhaavviioorraall HHeeaalltthh(Jessica Hoopes, Sales and Marketing

Penn Behavioral Health, the clinical arm ofPenn’s Department of Psychiatry, is a nationalleader in the diagnosis, management, and treat-ment of behavioral, mental health, and addictivedisorders. Masters’ level professionals provideservices at three hospitals (HUP, Penn PresbyterianMedical Center, and Pennsylvania Hospital).

AAssssoocciiaatteedd SSeerrvviicceess ffoorr tthhee BBlliinndd(Annette Cannistraci)

Associated Services for the Blind (ASB), anon-profit organization, promotes self-esteem,independence, and self-determination in peoplewho are blind and visually impaired by providingsupport through education, training, andresources. ASB also serves as a voice and advo-cate by working to remove barriers through com-munity action and education.

WWeellllnneessss MMeeaassuurreess,, IInncc..(Susan Jones, President)

Wellness Measures, located in Chalfont, pro-vides health promotion programs tailored to a com-pany’s needs. Their clients repor t improvedemployee health, appropriate utilization of servic-es, reduced healthcare costs, improved morale,enhanced work commitment, and increased pro-ductivity.

MMiicchhaaeell PP.. JJeewweerr && AAssssoocciiaatteess(Michael P. Jewer, President)

Michael P. Jewer & Associates, located in Lititz,PA, provides pension, investment, and fiduciary con-sulting, as well as administrative services, for small-to medium-sized qualified plans in the mid-Atlanticregion. They focus on helping their clients reducetheir fiduciary liability and provide superior benefitsto plan participants.

With Your Help, PEBA Continues to Grow By Sharon E. Kazaras

Have you told anyone about PEBA lately?We welcome the following member companies who joined in recent months:

9

SSoovveerreeiiggnn BBaannkk(Terri Hartman, Manager, Compensation Planning)

Sovereign Bank is a $63 billion financial insti-tution with over 650 community banking offices,1,000 ATMs, and about 10,000 employees. Withits principal markets in the nor theastern US,Sovereign is the 18th largest banking institution inthe country, offering a broad array of financial serv-ices and products including retail banking, mort-gages, business and corporate banking, cashmanagement, capital markets, trust and wealthmanagement and insurance.

TThhee FFaarrmmiinnggttoonn CCoommppaannyy(Steven Frankel, Director, Corporate Services)

The Farmington Company, headquartered inConnecticut, provides employers and their employ-ees with communication, administration, and enroll-ment services for core and voluntary insuranceprograms. Their goal is to help employees nation-wide make informed voluntary benefit decisions.

DDoowwnniinnggttoowwnn AArreeaa SScchhooooll DDiissttrriicctt(Kimberlee A. Gardner, Benefits Coordinator)

Downingtown Area School District, located inChester county, includes nine elementary schools,two middle schools, and two high schools. Its mis-sion is to educate all students to meet the challengesof a global society by providing an individuallyresponsive learning environment characterized byoutstanding academic and personal achievement inpartnership with family, students, and community.

BBrraannddyywwiinnee GGlloobbaall IInnvveessttmmeennttMMaannaaggeemmeenntt(Jane E. Mitchell, HR Generalist)

Brandywine Global Investment Management,LLC, a subsidiary of Legg Mason, offers equity,fixed income, and balanced portfolios that investin US, international, and global markets. As of3/31/06, Brandywine managed over $30 billion inassets for more than 330 clients, with growthfueled primarily by an increasing presence in inter-national markets, particularly in Europe, Asia, theMiddle East, and South Africa.

AAbbiinnggttoonn MMeemmoorriiaall HHoossppiittaall(Barbara A. O’Shea, Mgr. Compensation & Benefits)

Abington Memorial Hospital is a 570-bed,regional teaching hospital with more than 34,000annual inpatient admissions and the only level twotrauma center in Montgomery County. AMH is amajor regional referral center for cancer care, car-diac care, and surgery, and is a leader in seniorhealth services. AMH operates a nursing school,sponsors five residency programs and providespostgraduate medical education, and has pro-grams in radiologic technology, nuclear medicine,and medical technology.

RRiicchhaarrddss,, LLaayyttoonn && FFiinnggeerr (David A. Metzler, HR Admin. & Opns Exec.)

Richards, Layton & Finger, Delaware’s largestlaw firm, provides a wide range of legal services.With approximately half the country’s Fortune 500corporations incorporated in Delaware, the firm’spractice has a national focus as well as a local andregional base. RL&F has played a significant rolein many of the leading cases decided in Delawarecourts addressing corporate law and governance,mergers and acquisitions, fiduciary relations, com-mercial and general civil matters, and interpreta-tion of Delaware business laws.

BBiioovvaaiill CCoorrppoorraattiioonn (Rekha Daniel, Compensation & BenefitsSpecialist)

Biovail Corporation is a specialty pharmaceu-tical company engaged in formulating, testing, reg-istering, manufacturing, and marketing productsutilizing advanced drug-delivery technologies.Their proprietary platforms offer more consistentdrug release, greater patient compliance, andpotentially superior effectiveness and lower inci-dence of side effects. Biovail’s portfolio includesmore than 25 products, representing both brand-ed and generic medications.

BBeenneeffiitt AAssssoocciiaatteess,, IInncc..(Joshua M. Spivak, Managing Director)

Benefit Associates, Inc. is an innovative con-sulting firm specializing in the design, delivery, enroll-ment, and administration of voluntary benefits.

TThhee AAmmeerriiccaann CCoommppeettiittiivveenneessss IInnssttiittuuttee(Robert T. Sommers, Human Resources Manager)

The American Competitiveness Institute (ACI)is a scientific research corporation dedicated to theadvancement of electronics manufacturing process-es and materials for the Department of Defense andindustry. ACI has achieved excellence in electronicsmanufacturing training, research, and consultingservices. Its 36,000 sq.ft. facility near the airporthouses a demonstration factory, classrooms, an ana-lytical laboratory, conference and lecture rooms, andan expansive technical library.

CCeenntteerr CCiittyy DDiissttrriicctt(Toni Nazzario, Director, Human Resources)

The Center City District was founded in 1990by 2,000 property owners, commercial tenants, andemployers in Center City who, along with the Cityof Philadelphia, agreed to establish a private–sectorbusiness improvement district committed to keep-ing downtown clean, safe, and attractive. The CCDis authorized through 2025 to provide security,cleaning, and promotion services, and to financeand implement a comprehensive program ofstreetscape improvements.

NNuuttrriiSSyysstteemm,, IInncc..(Carol F. Krause, VP, Human Resources)

NutriSystem, Inc. has been helping Americaget thin and healthy for the past 30 years throughits comprehensive weight loss program, based onquality foods, a nutritionally balanced meal plan,and individualized counseling. NutriSystembecame a publicly traded company in 1999 andlaunched its website, NutriSystem Direct, to pro-vide live counseling, both online and via telephone,as a new and private way for people to deal withweight loss issues.

SShhaarroonn EE.. KKaazzaarraass is President ofSharon E. Kazaras Consulting.

WANTED:WRITERS

PEBA News welcomesnew contributors with

new ideas!

If you enjoy writing and wouldlike your own by-line, please

contact Arleen Barisa,Communications Committee

Chair, atArleen.Barisa@uphs.upenn.edu

SShheerrrryy TToommlliinnssoonn has resigned fromPEBA effective July 28. We would liketo thank Sherry for her many contri-butions and wish her well in the future.

CCyynntthhiiaa ddee LLeeoonn is the interim ExecutiveDirector while the search for a new ED is conducted. You can contactCynthia at (215) 735-9435, Ext. 4 orat executivedirector@peba.org

JJooyy WWiillssoonn is on maternity leave untilOctober, 2006. We’re happy to haveTTaarraa MMccFFaaddddeenn filling in for Joy duringher absence. Tara can be reached at(215) 735-9435, Ext. 2.

10

Did you know it’s worth visiting thePEBA website at least once a week?Even more frequently if you want onelocation for easy-access links, contactinformation for other benefits profes-sionals, and expert information in somany areas!

In addition to such frequent updatesas PEBA Pointers, the Jobline, and Polls,PEBA’s “Ask the Experts” feature is updat-ed periodically with timely Q & A’s toassist all of us. The PEBA Experts are vol-unteers who have expertise, knowledge,and experience in either health/welfare,compensation, retirement, or complianceissues. They receive no compensation orendorsement for their time and support.

How to “Ask an Expert?” We makeit easy. Visit www.peba.org and clickPEBA Services, then Ask the Expert.You’ll just need to type in your questionand complete a few brief lines provid-ing your contact information. You’llimmediately receive an automatedconfirmation of your Ask the Expertinquiry. Within three business days, aPEBA expert will respond.

One additional click provides you with a list of recently asked ques-

tions and answers. Categories aredefined as Health/Welfare, Retirement,Compensation, and Other. Onlinequestions include:• How can I find good

benchmarking data ondomestic partners?

• Can you switch to a 401(k) SafeHarbor plan mid-year?

• Where is a good resource forCOBRA regulations?

• Is company housing taxable tothe employee?(Don’t forget to visit www.peba.org

for the answers!)In summary, be a frequent visitor

to the “Ask the Expert” feature on ourPEBA website…good information is justa click or two away!

PEBA does not specifically endorseor certify the accuracy of the answersprovided through the Ask the Expertpage and strongly recommends thatyou seek the opinion of your ownconsultant or legal counsel.

CChheerryyll AA.. GGrriieesstt is Director ofBenefits at AAA Mid-Atlantic.

HHaavvee aa QQuueessttiioonn?? DDoonn’’tt KKnnooww WWhheerree ttoo TTuurrnn

FFoorr aann AAnnsswweerr?? TThheenn ““AAsskk TThhee EExxppeerrtt!!””

AAnnootthheerr rreeaassoonn ttoo vviissiittwwwwww..ppeebbaa..oorrgg ffrreeqquueennttllyy

By Cheryl A. Griest

Meant to add a lighter note and sharesome “war stories,” this is the secondin a new series of articles that we hopeto offer our members — sharing sto-ries of the more fun, or at least inter-esting, aspects of our jobs.

I’ve been doing open enrollmentsfor longer than I’d like to remember, andjust when I think I’ve heard them all,along comes another. As a result ofchanges to our medical plans, our ven-dor issued new ID cards (on a timelybasis!). Shortly thereafter, we received asomewhat irate and frantic call from oneof our employees. She had a very impor-tant doctor’s appointment soon and hadnot received her new ID card (#1). Wechecked our records, as did the medicalvendor, and everything seemed to beOK, but we asked the vendor to send her

Our employee ended up with fourmedical I.D. cards!!

another card (#2) just to be sure, whichthey did that day. After a few days, Icalled the employee to see if either ofthe cards had arrived yet. Since theyhadn’t, our account executive offered topersonally deliver a card to her homeafter work since he lived nearby. (Yes,we were impressed!) The next morning,he sent me an e-mail reporting that heput an envelope with the new ID card(#3) in her (curbside) mailbox, althoughit was a bit difficult since it was literallyjammed with mail. I passed this alongto the employee, who expressed herappreciation, confirmed when she gothome from work that yes, it (or at leastone of the ID cards) was there, andfessed up that since her father-in-lawhad moved, her life had been in turmoil.She was very appreciative of our collec-tive efforts and relieved to have the cardfor her upcoming appointment.

CCaannYYoouu TToopp

TThhiiss??

We in Benefits chuckled about whether it was our responsibility to check hermailbox, or to ask her if she had done so, but decided against that. End of story?Nope. On the day of her appointment, she called from her doctor’s office say-ing that she had lost the ID card (already), could we please provide the officestaff with the necessary information (which we did), and please send another IDcard (#4), which the vendor did. We all wondered how many cards she had now,but fortunately have not heard from her since. Honestly, in all my years in Benefits,it never occurred to me to ask someone to check his or her mailbox when con-tacting us to say a mailing hadn’t arrived. I have added it to my (very long) list.

Now, can you top this PEBA member company’s story? If you have an interesting,scary, or bizarre story to share, please e-mail Arleen Barisa, PEBA CommunicationsCommittee chair, at Arleen.Barisa@uphs.upenn.edu. We will work with you to remove allidentifying information; we promise privacy.

11

IInntteerreesstteedd iinn bbeeiinngg tthheenneexxtt nneewwsslleetttteerr ssppoonnssoorr??

It’s an excellent way to reach PEBAmembers and tell them about a newproduct you offer or an outstandingservice you provide.

For more information, contact Arleen Barisa

Arleen.Barisa@uphs.upenn.edu.2300 Renaissance Boulevard

King of Prussia, PA 19406

1.866.874.6674

www.triongroup.com

The Power of TRION

TRION delivers a progressive blend of

innovative consulting, leveraged

procurement, and best-in-breed

administration tailored to help you

protect the health and welfare

of your employees and

your bottom line.

No doubt all attendees at the 24th

Annual Forum are saying “Wow — WellDone!” to our Forum Committee. Co-Chairs Tracy Duffield and Ron Seifertheartily thank the committee members(listed below) for their participation andhard work:

Stewart Beltz – Board of PensionsGina Grillo – ComcastJohn Hoderny – C & D TechnologiesGinger Jaffe – DeloitteJennifer Kilpatrick – IncyteMary Longstreth – Mercer Health & BenefitsDennis Mahoney – University of PAJoan McCarthy – Aon ConsultingMarilyn Paluba – CIGNASusan SmithArlene Weissman - Hewitt

Each member contributed some-thing unique and productive to theprocess. The Forum could not happenwithout the commitment, planning, andhard work of the committee members.This year, special thanks go to JoanMcCarthy for her time and creativeenergy in bringing you the Forumbrochure. In addition, although PatSchaeffer and Sharon Kazaras are nolonger officially on the committee, bothadded critical input to ensure a success-ful day.

For those not familiar with the workof this committee, we provide you withthe following information (volunteersare always welcome):

CCoommmmiitttteeee OObbjjeeccttiivvee:: TToo PPllaann tthheeAAnnnnuuaall FFoorruumm

Key Roles and Responsibilities:• Develop annual Forum theme • Develop list of session topics• Facilitate presentation

submissions to PEBA members• Identify and select session

speakers• Identify and select keynote

speaker• Secure appropriate facility and

related services • Plan logistics for the day,

incorporating feedback fromprevious Forums

• Develop and produce variousmarketing materials

• Coordinate speakerpresentations; and

• Anything else that comes up!!!

The committee meets approximate-ly 6 times between July and April andasks that each volunteer maintain a highlevel of commitment to participation. Ifyou have energy and enthusiasm tooffer, feel free to let PEBA know!

TTrraaccyy MM.. DDuuffffiieelldd is VP at ModelConsulting, Inc.

RRoonn SSeeiiffeerrtt is Senior Consultantat Hay Group.

KKuuddooss aanndd ““TThhaannkk YYoouu!!”” ttootthhee PPEEBBAA FFoorruumm CCoommmmiitttteeee

By Tracy M. Duffield and Ron Seifert

MMoorree GGrreeaattIInnffoorrmmaattiioonn oonnwwwwww..ppeebbaa..oorrgg

By Cheryl A. Griest

Are you visiting PEBA’s websiteat least once a week? Be sure to keepchecking these two fun yet helpfulfeatures, and be sure to vote in thePolls!

PPEEBBAA PPoollllss Here are the results of some

recent polls:• Do you offer summer hours?

24 members responded.(13 offer summer hours, 10don’t, and 1 is considering it)

• Is Good Friday a company-paid holiday at yourorganization? 85 membersresponded.(31 give Good Friday as a paidholiday, 53 don’t, and 1 isconsidering it)

PPEEBBAA PPooiinntteerrss:: Each topic always provides a

link to an agency’s site, specific textof the law, or other resource:• New (after 22 years!)

dependent care regulations.• May 15 reminder of the

Medicare Part D deadline.• DOL Extends Sunset Date of

Mental Health Parity Act to12/31/06.

Do you have a great tip youcan’t wait to share? Would you likeus to poll members on a selectedtopic?

If so, please contact Arleen Barisaat Arleen.Barisa@uphs.upenn.edu.

CChheerryyll AA.. GGrriieesstt is Director ofBenefits at AAA Mid-Atlantic.

12

ppeebbaa

Editor-in-ChiefSharon E. Kazaras

Graphic Artist Jill S. Anderson

This newsletter is a publication of PEBA and thecontents are intended as general information only.They do not reflect the views of PEBA and do notconstitute legal advice. You should consult yourown lawyer concerning your situation or anyspecific legal questions you may have. Thisnewsletter or any part may not be reproducedwithout the permission of a PEBA officer or theExecutive Director.

ppeebbaa nneewwss

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NONPROFITAUTO

U.S. POSTAGE PAIDPHILADELPHIA, PAPERMIT NO. 5573

See PEBA home page for $8.00parking near our office!

September 20, 21, 22 T1 Total Rewards Management

B2 Retirement Plans - Design and Management

October 23, 24, 25 T11 Fundamentals of Equity Based Rewards

Course Locations: Towers Perrin, 1500 Market St., Philadelphia, PA 19102 or

Commerce University (CU), 17000 Horizon Way, Mt. Laurel, NJ 08054

YOUR BENEF I TS AND COMPENSAT ION ASSOCIAT ION

DATE COURSE # COURSE TITLE

PEBA-SponsoredWorldatWork

2006 Compensation & BenefitsCertification Courses

Fee:PEBA Member: $895WAW Member: $985Nonmember: $1,485

Go to www.peba.org forinformation about the courses,

registration, directions andother details

Update your contact information and addyour initial membership date by logging on to

www.peba.org.