On October 7, 2003, the State of California will hold a special election to determine whether Governor Gray Davis is recalled and, if so, who will succeed him. The list of certified candidates is available through the California Secretary of State's website at www.ss.ca.gov.

California residents covered by the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) should register and request a ballot by completing and submitting a Federal Post Card Application (FPCA) (SF-76) to their county clerk or Registrar of Voters no later than September 22. Ballots should be voted and returned as soon as they are received; the county elections office must receive voted ballots by the close of polls on Election Day (8pm, October 7).

California accepts the online version of the FPCA that can be found at www.fvap.gov. Also, California allows their UOCAVA voters to submit their FPCA by fax. Mail the original FPCA after faxing. California will fax blank ballots at their discretion. Citizens may submit the completed FPCA by fax using the following numbers: 1-800-368-8683, +1&mnsp;703 6935527 or DSN (military) 223-5527. Also, at www.fvap.gov, there is a list of toll-free fax numbers from 49 countries for use by U.S. citizens overseas. Voters must provide a return transmission fax number (including international prefixes) on all documents sent via fax.

For assistance, you may contact an FVAP staff member through the DoD Voting Information Center (VIC). The VIC also provides recorded messages from candidates, as well as other information concerning elections, 24 hours a day.

Citizens may reach the VIC toll-free from 59 countries using the toll-free numbers listed on the FVAP website, http://www.fvap.gov/. In the U.S. call 1-800-438-VOTE (8683) or +1 703 5881343 from anywhere or use DSN (military) 425-1343. Additionally, the FVAP can be reached via e-mail at vote@fvap.ncr.gov and on the World Wide Web at www.fvap.gov.

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States are gradually making it easier for overseas voters to participate in the electoral process - that is, to register or vote via fax or use on-line forms - so overseas voters are advised to check on the current regulations for their own state. Currently, the only states or territories that do not accept the On-line Federal Postcard Application (OFPCA) are American Samoa, Guam, Louisiana, and Ohio. The OFPCA is an alternative to the cardstock Federal Post Card Application (FPCA). Visit the FVAP website at www.fvap.gov for instructions on completing the OFPCA. The form is in Adobe Acrobat format and can be filled in on-line, printed out, signed, dated, placed in an envelope with proper postage and then mailed to the appropriate Local Election Official (LEO).)

FVAP (the Federal Voting Assistance Program) will continue to work with the States to simplify and improve the absentee voting process for UOCAVA citizens.

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LOUISIANA: The 2003 Louisiana Gubernatorial Primary Election will be held on October 4th, followed by the Louisiana Gubernatorial General Election on November 15th. The list of certified candidates is available through the Louisiana Secretary of State's website at www.sec.state.la.us.

MASSACHUSETTS: US citizens who have never resided in the US but have a parent who is eligible to vote in Massachusetts are eligible to vote at the same voting residence claimed by their parent (for local, state and Federal office ballots).

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With the so-called "Open Season" for Participants in the Federal Employee Health Benefit Program (FEHB) fast approaching, those insured persons residing overseas would be well advised to review the policies of the insurers.

Some insurers penalize overseas residents for not utilizing so-called "Preferred Provider Organizations" (PPOs). In the US, insured who receive medical/surgical services from PPOs are usually compensated for their allowable expenses at a higher rate than those who do not use these "Providers." This policy is fair and equitable for residents in the US, but it is unfair and discriminating for overseas residents for the simple reason that there are no so-called authorized PPOs outside of the US.

Some participating insurers have recognized this problem and in light of it have made fair and equitable adjustments in their reimbursement policies. FEHB overseas participants would therefore be well advised to carefully review and compare their policies to make certain they are getting maximum value for their premium payments.

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Under the leadership of ACA, AARO (Association of Americans Resident Abroad), and FAWCO (Federation of American Women's Clubs Overseas), the second annual Overseas Americans Week has been scheduled for September 22-25 in Washington, D.C. The four days of events offer an opportunity for those working as advocates for Americans living abroad to meet with senior members of the Administration, the Congress, the media, and leading institutions and individuals in the private sector.

A cocktail party scheduled for Sunday evening September 21 will kick off the week. Events planned for Monday through Thursday include meetings with the Census Bureau, State Department consular officials, Congresspersons and staffers on key committees dealing with taxation, foreign affairs and appropriations, meetings with members of the press, and a dinner at the National Press Club with discussions on "The Overseas American Presence in the 21st Century."

A few places are still available for this opportunity to take part in an event guaranteed to be stimulating, exhausting and exhilarating. The participation fee of $400 includes visit kits, a cocktail reception, four breakfasts, and two dinners. For information contact ACA's focal point: Andy Sundberg (andysun@iprolink.ch) or the ACA office in Geneva (tel/fax: +41 22 3400233 or acage@aca.ch).

The United States and United Kingdom have finally ratified their 2001 tax treaty, providing significant relief for expatriate employees in both countries - but particularly for US participants in British "approved pension schemes," the UK equivalent of US qualified retirement plans, according to the consulting firm Watson Wyatt Worldwide.

The US generally taxes the worldwide income of its expatriates. Without an overriding tax treaty provision with the country where the US expatriate is working and earning the benefit, accruals or employer contributions under a foreign plan become US taxable income when the employee's rights vest. Since foreign plans generally cannot or do not satisfy US qualification requirements, they are treated as nonqualified plans, with accruals often taxed long before distribution. However, under the newly ratified tax treaty, accruals, contributions and income in either US-qualified plans or UK-approved schemes will be taxed when amounts are distributed, not when they are earned.

The treaty applies to tax years starting in 2004. Watson Wyatt notes that transferring employees to other countries poses a variety of challenges for multinational businesses, including the tax treatment of employee benefits. Employees may earn a pension in a host country but receive the benefit back home. The United States has tax treaties with various countries covering a wide variety of cross- border tax issues, including pensions. The US-UK tax treaty is noteworthy, not only because of the size of the trading relationship and number of cross-border employee transfers, but also because of its unique pension provisions. The new treaty, according to Watson Wyatt, includes the conventional provision that pension and social security benefits are taxable only in the recipient's country of residence at the time of distribution. Under a new provision, however, lump-sum distributions will be taxable only in the country where the pension was established. UK Inland Revenue generally does not tax lump-sum pension distributions at all. Absent this provision, lump-sum distributions from US-qualified plans could escape taxation by either country, an apparently unacceptable result for the IRS.

The United States will not tax US citizen employees working in the United Kingdom on their current benefit accruals or contributions to UK pension schemes. This is the first time the United States has agreed not to tax its citizens on foreign pension income. The general treaty provisions exempting host country pension accruals from home country taxation are inapplicable to US citizens under a common treaty provision known as the savings clause. The savings clause allows either country to tax its citizens under its laws regardless of the treaty provisions. This generally only affects US citizens, since other countries do not tax their citizens on worldwide income. Such a provision, for example, is unnecessary for UK citizens working in the United States and participating in US-qualified plans.

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The ACA office in Geneva experienced some technical difficulties in early September, leading to our phone, fax and email services being temporarily suspended. If you tried to contact the office during this period and were unable to get through, please try us again! All of our machinery has been fixed and is now fully operational.

And SAVE THE DATE - The ACA 25th Anniversary Gala will be held in Geneva on November 8, 2003. We hope you will join us! For more information, contact the ACA office at acage@aca.ch.

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W.I.N. (Women's International Networking) will hold its 6th annual conference in Lausanne, Switzerland from 2-4 October 2003. The group specializes in "leadership events for women working internationally." To learn more about them and the upcoming conference, see: www.winconference.net or email: network@winconference.net.

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