Employee Benefits Archives | Page 66 of 151

Fridays With Benefits Webinar | Quick & Easy Recipes for Fixing 401(k) Plans

by Allison Wilkerson, Brian Tiemann and Sarah L. Engle | May 9, 2019 | Employee Benefits, Retirement Plans

Join us Friday, May 17, as Allison Wilkerson, Brian Tiemann and Sarah Engle join host Judith Wethall to talk through the value of conducting a proactive self-audit of 401(k) plans. They will provide best practices designed to reduce the risk of costly government investigations. Attendees will come away prepared and confident in their position, and ready to respond assertively if an investigation comes to pass.

Our lively 45-minute discussion will cover the following points:

Self-auditing common compliance issues raised during IRS audits, including errors in administering the plan’s eligibility rules, compensation definition, loan procedures and minimum required distribution provisions
Self-auditing common issues raised during DOL audits, including late payroll deposits
Tips to enhance plan governance procedures

Friday, May 17, 2019

10:00 – 10:45 am PST
11:00 – 11:45 am MST
12:00 – 12:45 pm CST
1:00 – 1:45 pm EST

Register Now.

DOL Offers Interim Relief for Employers’ Association Health Plans

by Megan Mardy and McDermott Will & Schulte | May 7, 2019 | Employee Benefits, Health and Welfare Plans

Last week, the Department of Labor (DOL) responded to the district court decision striking down the final regulations expanding the ability for a group of unrelated employers to form an organization in order to offer health care to its members. The DOL’s statement setting forth policy positions regarding association health plans (AHPs) indicated its intent to fight the district court decision, and offered interim relief for those employers who have obtained health coverage from AHPs relying on the DOL’s final regulations. The DOL noted that the agency is committed to taking all appropriate action within its legal authority to minimize undue consequences on employees and their families. Thus, employers participating in insured AHPs can generally maintain that coverage through the end of the plan year or, if later, the contract term. During this time, the DOL will not pursue enforcement actions involving AHP in reliance of the DOL’s final rules.

IRS Opens the Door to Lump Sum Payment Windows for Retirees in Pay Status

by J. Christian Nemeth, Jeffrey Holdvogt and McDermott Will & Schulte | May 2, 2019 | Employee Benefits, Retirement Plans

Due to an Internal Revenue Service (IRS) change in course published in Notice 2019-18, plan sponsors may now offer retirees lump-sum windows as another pension “de-risking” option. Plan sponsors considering pension de-risking opportunities and options should carefully evaluate the potential benefits and risks of a retiree lump-sum window.

Access the full article.

Selling a Family or Multi-Shareholder Business to an ESOP

by McDermott Will & Schulte | Apr 25, 2019 | Employee Benefits, Employee Stock Ownership Plans (ESOPs)

In a presentation for the National Center for Employee Ownership (NCEO) Conference, Erin Turley presented on selling a family of multi-shareholder business to an ESOP. She discussed ownership transition alternatives and how to execute the ESOP transaction. Below are a few key takeaways from the presentation.

A multi-shareholder-owned company should not be a deterrent selling to an ESOP
Communicating with the shareholder group is key
Legal procedures must be followed to ensure all shareholders are informed

View the full presentation.

ESOPs: What Not To Do (and If You Did, How to Correct It)

by McDermott Will & Schulte | Apr 16, 2019 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans

In a presentation for the National Center for Employee Ownership (NCEO) Conference, Emily Rickard presented on ESOP plan design, operation and administration. She, along with the other presenters, identified ERISA compliance watchdogs including the plaintiff’s bar, Department of Treasury and Department of Labor, and what attracts their attention when it comes to audits. Emily also identified common mistakes employers make during the entire ESOP lifecycle (e.g. lack of employee communication, distribution strategy and planning) and provided guidance on how to correct those mistakes.

View the full presentation.

Fridays With Benefits Webinar | The Triage Unit: Cutting Health Plan Costs Without Sending Benefits to the Emergency Room

by McDermott Will & Schulte | Apr 11, 2019 | Employee Benefits, Health and Welfare Plans

Join us Friday, April 19 as Erin Turley and Judith Wethall discuss some of the innovative strategies organizations are employing to achieve transparency, reduce fees and provide enhanced offerings when negotiating multi-year health and welfare benefit plan contracts.

Our lively 45-minute discussion will cover emerging trends you can leverage at the negotiating table, including

Pharmacy Pricing Transparency
Data Access/Ownership Rights
Performance Guarantees and Other Rebates

Friday, March 15, 2019

10:00 – 10:45 am PST
11:00 – 11:45 am MST
12:00 – 12:45 pm CST
1:00 – 1:45 pm EST

Register Now.

Court Puts Association Health Plans in Limbo

by Jacob Mattinson and Megan Mardy | Apr 9, 2019 | Benefit Controversies, Employee Benefits, Health and Welfare Plans

On March 28, a District of Columbia federal court agreed with a New York-led challenge by a group of 11 states and the District of Columbia and found that the Department of Labor’s (DOL) 2018 association health plan (AHP) rule (the Final Rule):

Is contrary to the Employee Retirement Income Security Act of 1974 (ERISA)’s text and purpose; and
Circumvents the protections and standards of the Affordable Care Act (ACA).

The decision, penned by Judge Bates, may act to deal a significant blow to the Trump administration’s attempt to expand coverage for small employers. Crafted in response to the October 12, 2017, executive order directing the DOL to promote the availability of AHPs, the Final Rule materially relaxed the standards for qualifying as an AHP under ERISA.

As further described here, the Final Rule sets forth the criteria pursuant to which a “bona fide group or association of employers” may establish a single-employer AHP under ERISA. Under the Final Rule, employers, associations and sole proprietors (referred to as “working owners”) can participate in AHPs provided certain arguably subjective requirements are satisfied. The states challenged the Final Rule, arguing that the DOL unreasonably expanded ERISA’s definition of employer. Applying the Chevron standard, the court agreed with the states to hold that the DOL unlawfully expanded ERISA’s definition of employer by failing to provide a “meaningful limit on the associations that would qualify as ‘bona fide’ ERISA ‘employers.’” The court vacated the bona fide association and working owner provisions of the Final Rule, but also provided some specific critiques and ordered the DOL to determine whether any part of the Final Rule can be salvaged; for now, the Final Rule is in limbo.

In a set of Questions and Answers issued April 2, 2019, the DOL noted that it disagrees with the court’s decision, and is considering all available options in consultation with the Department of Justice (DOJ). The DOJ has until May 28 to file a notice of appeal. The Trump administration could seek a stay of the order pending resolution of any appeal. Unless a court issues a stay, the regulations in effect prior to the Rule would be in effect. Stay tuned for further guidance and developments.

Oracle Granted Partial Summary Judgment in 401(k) Fees/Investment Option Case

by McDermott Will & Emery and Richard J. Pearl | Apr 2, 2019 | Benefit Controversies, Employee Benefits, Fiduciary and Investment Issues

The US District Court for the District of Colorado granted partial summary judgment to 401(k) fiduciaries, holding that ERISA’s six-year statute of repose barred some claims and rejecting challenges to the plan’s fees.

Access the full article.

ERISA Health Plan Fiduciaries Defeat DOL’s Excessive Fee Claims

by Erin Steele, Megan Mardy and Richard J. Pearl | Mar 26, 2019 | Benefit Controversies, Employee Benefits, Health and Welfare Plans

In one of the first ERISA cases to address claims against fiduciaries for excessive health plan fees, the court entered judgment in favor of the defendants on all counts. The decision addresses health plan fiduciary standards for reviewing plan fees and expenses.

Access the full article.

ERISA Plan Controversy | Rising Stakes for Those Unprepared

by Chris C. Scheithauer and Ted Becker | Mar 21, 2019 | Benefit Controversies, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Health and Welfare Plans, Retirement Plans

In a presentation at McDermott’s Employment and Employee Benefits Forum, Ted Becker and Chris Scheithauer explored the various ways that disgruntled employees file lawsuits with plaintiffs’’ lawyers. Lawsuits have been brought in cases alleging, imprudence in the management of plans, challenging fees, involving company stock, actuarial equivalence and more. They used recent cases such as, NYU, American Century Services and IBM, as examples of the various types of lawsuits and the important lessons employers can take away from them. In addition, they provided attendees with key strategies to minimize exposure to lawsuits, including demonstrating a thoughtful and deliberative decision-making process.

Looking ahead to 2019, they touched on ERISA issues to watch for including, venue/forum selection clauses in plan documents, arbitration agreements and impact on fiduciary duty claims, statute of limitations and burden of proof issues.

View the full presentation.

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