Help for Retiree Health Plans

In December of 2003, President Bush signed into law the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Medicare Act”) which created a voluntary prescription drug benefit under Medicare, which will be known as Medicare Part D. In addition, the legislation introduced a federal subsidy for employers who provide prescription drug benefits to retirees that are at least actuarially equivalent to Medicare Part D. On May 19, 2004, the Financial Accounting Standards Board (“FASB”) released its final position on accounting for the effect of the expected subsidies on financial statements. Recognizing the effect of the subsidies may be required as early this August for employers with calendar fiscal years.