Employee Benefits Archives | Page 58 of 153

“Because of Bostock” – Court Delays HHS Rule Re-interpreting Section 1557 Discrimination “Because of Sex”

by Jacob Mattinson, Todd Solomon, Gregory Fosheim and Winnie Uluocha | Aug 25, 2020 | Benefit Controversies, Employee Benefits, Health and Welfare Plans

One day before an updated rule of the US Department of Health and Human Services regarding Section 1557 of the Patient Protection and Affordable Care Act took effect, the US District Court for the Eastern District of New York ordered a stay and issued a preliminary injunction precluding the most recent final rules from becoming operative. Entities subject to Section 1557 should — at least until decisions are issued in cases pending in US district courts — be cautious in their approach to their non-discrimination compliance obligations.

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Updated PBGC Guidance for Defined Benefit Plans

by Jeffrey Holdvogt | Aug 21, 2020 | Employee Benefits, Fiduciary and Investment Issues, Retirement Plans

Earlier this year, the US Pension Benefit Guaranty Corporation (PBGC) issued a final rule, modifying PBGC regulations that apply to defined benefit pension plans. Among those changes were revisions to: (i) the reportable event notification requirements; (ii) annual financial and actuarial information (Form 4010) reporting; (iii) single-employer plan termination rules; and (iv) the premium rate calculation rules. The rule was generally effective on March 5, 2020, but some provisions have different applicability dates.

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Multiemployer Pension Plans: Addressing the Issue of Underfunding

by Todd Solomon | Aug 11, 2020 | Employee Benefits, Retirement Plans

A significant issue facing many business owners is the impact of underfunded multiemployer pension plans. This is most common, but not exclusive to, unionized businesses. McDermott Partner and Global Head of the Firm’s Employee Benefits and Executive Compensation Practice Group Todd Solomon joins Domenic Rinaldi, owner and managing partner of Sun Acquisitions, for a recent episode of the M&A Unplugged Podcast to talk about multiemployer pension plans and discuss proactive steps owners can take to get ahead of future issues regarding pension participants.

Access the podcast.

The Biggest Benefits Rulings of 2020: Midyear Report

by J. Christian Nemeth | Jul 29, 2020 | Benefit Controversies, Employee Benefits, Health and Welfare Plans, Retirement Plans

The US Supreme Court took up several Employee Retirement Income Security Act (ERISA) cases this term, handing down both a major loss and a substantial win to employees looking to sue their employers over retirement plan mismanagement. In a recent Law360 article, McDermott Partner Chris Nemeth discusses these decisions.

“It’s going to be really interesting to see how this plays out,” said Nemeth.

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The New Electronic Disclosure Rule is Here

by Andrew Liazos | Jul 22, 2020 | Employee Benefits, Retirement Plans

Plan Sponsor Council of America hosted a webinar to discuss the new electronic disclosure rule for retirement plans from the US Department of Labor (DOL), which took effect July 26, 2020. The rule allows employers to deliver disclosures to plan participants primarily electronically, which the DOL says will reduce printing, mailing, and related plan costs by an estimated $3.2 billion over the next decade. Speakers included McDermott’s Andrew Liazos, and the topics discussed included:

New Safe Harbors, Effective Date and Scope of Rules
Notice and Access Safe Harbor
E-Disclosure Rule Q & A

Access the presentation slides.

Use a Checklist to Avoid LGBTQ Discrimination in Your Benefits Programs

by Jacob Mattinson | Jul 21, 2020 | Benefit Controversies, Employee Benefits, Employment, Health and Welfare Plans

The US Supreme Court ruled June 15 in Bostock v. Clayton County, Ga. that the prohibition against sex discrimination in the workplace under Title VII of the Civil Rights Act covers sexual orientation and gender identity. Title VII applies to employers with 15 or more employees, including part-time and temporary workers.

Following the decision, benefits experts advise that employers review their benefits programs to ensure that lesbian, gay, bisexual, transgender and queer (LGBTQ) employees are treated equally. Employers can use a checklist to find and correct discriminatory language and practices, and thereby reduce the likelihood of being sued under Title VII or other statutes that provide employees with sexual-orientation and gender-identity protections.

Access the full article.

Revisit Wage and Hour Policies During the Pandemic

by McDermott Will & Schulte | Jul 16, 2020 | Employee Benefits

The coronavirus pandemic has shifted some employees to remote work permanently while others are telecommuting more frequently. Employers’ wage and hour policies and enforcement should account for the rise in telework.

“Ensure that employees understand that time spent checking e-mails is compensable,” said Ellen Bronchetti, a partner at McDermott Will & Emery in San Francisco, in a recent article by the Society for Human Resource Management (SHRM). “Employers should conduct periodic audits to ensure employees are not checking e-mails off the clock.”

Consider requesting supervisors regularly certify that they did not call, text or e-mail a nonexempt employee outside workhours, Bronchetti said.

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More Caring: New CARES Act Guidance for Retirement and Nonqualified Plans

by Diane Morgenthaler and Sarah L. Engle | Jul 15, 2020 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Executive Compensation, Retirement Plans

New Internal Revenue Service (IRS) guidance expands the availability of Coronavirus Aid, Relief and Economic Security Act (CARES Act) distributions and loans under eligible retirement plans, and it provides important clarifications regarding how to administer and report CARES Act distributions and loans. The guidance also provides welcome relief for a participant who receives a CARES Act distribution, allowing the participant to revoke an otherwise irrevocable salary deferral election under a nonqualified deferred compensation plan. Finally, consistent with prior guidance, the new IRS guidance confirms that CARES Act provisions are optional, meaning that plan sponsors may choose whether to implement CARES Act changes.

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Deja Vu with Retirement Plan Extension 2

by Erin Steele, Joseph K. Urwitz and Lisa Loesel | Jul 9, 2020 | Employee Benefits, Retirement Plans

In response to the administrative difficulties faced by plan administrators due to the ongoing COVID-19 pandemic, the Internal Revenue Service (IRS) recently issued Notice 2020-35, which extends additional retirement plan deadlines for 2020 not previously extended under IRS Notice 2020-23. The IRS also stated that this relief applies for purposes of ERISA if the tax code deadline has a corresponding ERISA provision.

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Agencies Issue Helpful FAQs on COVID-19 Testing Coverage

by Jacob Mattinson | Jul 7, 2020 | Employee Benefits, Employment, Health and Welfare Plans

The US Departments of Labor, Health and Human Services, and Treasury issued a second set of answers to frequently asked questions. The tri-agency FAQs (Part 43) clarify important health and welfare provisions under the Families First Coronavirus Response Act (FFCRA), which became law on March 18, 2020, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted on March 27, 2020. Both laws addressed Coronavirus (COVID-19) testing and prevention coverage, as well as expansion of telehealth service availability.

Access the full article.

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