What steps can retirement plan sponsors take to mitigate Employee Retirement Income Security Act of 1974 litigation risks? McDermott Partner Andrew Liazos presented on this topic and shared best practices during the Plan Sponsor Council of America’s National Conference.
Even though it is the employer’s responsibility to track down former employees and let them know of leftover retirement benefits, it doesn’t always work out that way. In recent years, the US Department of Labor’s Employee Benefits Security Administration has demanded companies improve their methods for finding former workers.
In this article published by the Center for Retirement Research at Boston College, McDermott Partner Jeffrey M. Holdvogt said regulators “put a lot of pressure, in a good sense, on plan administrators to really up their games.” Holdvogt shared his comments in a May webinar hosted by the Pension Action Center at the University of Massachusetts, Boston.
What can employee stock ownership plan (ESOP) managers due to prepare an effective record in advance of a potential US Department of Labor or Internal Revenue Service investigation? McDermott Partner Allison Wilkerson presented on this topic during The ESOP Association‘s TEA National 2021 Conference.
The Internal Revenue Service (IRS) recently issued Revenue Procedure 2021-30, which provides an updated version of the Employee Plans Compliance Resolution System (EPCRS).
EPCRS is the IRS’s comprehensive program for plan sponsors to correct tax-qualified plan errors. This EPCRS update expands plan sponsors’ ability and methods to correct overpayments and to self-correct certain plan failures without filing a Voluntary Compliance Program (VCP) application, which can be costly and time-consuming. However, the IRS also eliminated the ability of plan sponsors to submit an anonymous VCP application, replacing anonymous VCP submissions with a pre-submission conference option.
With the upward trend in commercial bankruptcy filings likely to continue, what happens to collective bargaining agreements in bankruptcy?
The US Department of Labor (DOL) recently issued guidance concerning a new exemption under the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA) in connection with the provision of investment advice. PTE 2020-02, Improving Investment Advice for Workers & Retirees (the Exemption), became effective on February 16, 2021. On April 13, 2021, the DOL issued additional guidance, in FAQ format, to further explain the Exemption.
Employment law continues to evolve, and it can be a challenge amid an ever-changing landscape of local employment laws for human resources executives and employment counsel at multinational businesses to maintain a consistent global corporate culture.
McDermott’s Global Employment Law Update brings you the key highlights from across Asia, Africa, Europe, Latin and North America. Developed in collaboration with peer firms operating in more than 50 countries, this resource guide contains summaries of the laws and significant court decisions that impacted employers and employees all over the world. It includes:
- COVID-19 legislative updates
- Remote work and telecommuting policies
- Data privacy protections
- Minimum wage and salary compensation updates
- Changes to labor protection laws
- Sexual harassment modifications
Andrew C. Liazos, partner at McDermott Will & Emery, recently moderated an American Bar Association panel on the new cybersecurity guidance for retirement plan sponsors issued by the Department of Labor (DOL). The panel slides included 10 takeaways for the new DOL guidance.
As a background, the DOL’s new guidance formalized its long-held view that retirement plan fiduciaries have an obligation to ensure proper mitigation of cybersecurity risks. More specifically, the DOL expects retirement plan fiduciaries to select and monitor the cybersecurity practices of their service providers.
The DOL guidance is in three parts.
- The first part provides plan fiduciaries with a framework for reviewing a vendor’s cybersecurity practices.
- The second part provides a robust list of cybersecurity “best practices” for record keepers and other vendors responsible for plan-related IT systems and data. For example, the DOL recommends that all retirement plan vendors with critical participant data conduct a reliable annual third-party audit of their security controls.
- The third part provides security tips for participants and beneficiaries who manage their retirement accounts online.
Last month, McDermott partner Jeffrey M. Holdvogt was a speaker at the ERIC March Financial Wellness Huddle on the topic of Recent Developments in Employer Student Loan Repayment Benefits. His presentation covered:
- Student loan repayment benefits
- Employer options for student loan benefits
- CARES Act Educational Assistance Program
- Converting unused PTO funds to student loan debt relief
- Retirement plan options