EMPLOYEE BENEFITS BLOG
EMPLOYEE BENEFITS BLOG
Legal insights on employee benefits and executive compensation
EMPLOYEE BENEFITS BLOG
Legal insights on employee benefits and executive compensation
Retirement Plans
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Multiple Class Action Complaints Challenge Church Plan Status of Hospital Pension Plans

by | Jul 11, 2013 |

by Wilber H. Boies, PC, Ralph E. DeJong, Michael T. Graham, David E. Rogers, Nancy G. Ross, Mary K. Samsa, Kerrin B. Slattery, Todd A. Solomon and Joseph K. Urwitz 

Recent complaints challenging the “church plan” status of certain pension plans maintained by church-sponsored hospital systems may signal the beginning of a new wave of lawsuits challenging underfunded church pension plans.  Sponsors of church plans would be well advised to examine their church plans and assess the risk associated with the plan’s funded status and the strength of their position that the plan qualifies as a church plan.

To read the full article, please click here. 

 



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DOL Issues Initial Guidance Describing Proposed Lifetime Retirement Income Notices

by | Jul 9, 2013 |

by Joseph S. Adams, Anne S. Becker, Kary Crassweller and Stephen Pavlick, PC

New guidance issued by the U.S. Department of Labor (DOL) aims to help participants and beneficiaries with the “decumulation” phase of retirement planning by requiring sponsors to provide illustrations of lifetime retirement income.

To read the full article, please click here.



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PBGC Releases Revised Proposed Regulations Addressing Reportable Event Requirements under ERISA

by | Jun 18, 2013 |

by Paul J. Compernolle, Ashley McCarthy and Maureen O’Brien

Section 4043 of the Employee Retirement Income Security Act of 1974 (ERISA) requires pension plan sponsors to report a variety of corporate and plan events to the Pension Benefit Guaranty Corporation (PBGC).  In November 2009, the PBGC proposed regulations that would have eliminated most of the reporting waivers available under current law and drastically increased the reporting requirements applicable to pension plans.  Plan sponsors and practitioners widely criticized the 2009 proposed regulations as overly burdensome.  Citing both this feedback and a 2010 executive order directing agencies to review existing regulations to identify those that could be made less onerous, the PBGC recently issued revised proposed regulations (the Proposed Regulations) that reinstate many of the exemptions that would have been eliminated under the 2009 proposed regulations.  The Proposed Regulations would also replace the current funding-based exemption scheme with an approach based on the financial soundness of pension plans and their sponsors.



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Employers Should Review How Plan Documents Define Spouse in Light of Recent Benefits Litigation

by | May 14, 2013 | ,

by Lisa K. Loesel, Todd A. Solomon, Jacob Mattinson and Brian J. Tiemann

Two recent cases challenging benefit eligibility for same-sex spouses highlight the need for employer-sponsored retirement and welfare plans to clearly define "spouse" for eligibility purposes. Employers may want to review their plan documents to determine whether plan amendments are needed to clarify benefit eligibility for same-sex spouses in light of the upcoming ruling by the Supreme Court of the United States on the constitutionality of the federal Defense of Marriage Act.

To read the full article, click here.



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Employee Benefits Issues in Spin-Offs

by | May 9, 2013 | , , ,

by Joseph S. Adams and Jeffrey M. Holdvogt

In a corporate spin-off, both the existing company and the new company (spinco) must consider the implications for employees, employee benefit plans and executive compensation arrangements.  Benefit plans and compensation arrangements can represent significant liabilities and responsibilities, and typically are expressly allocated in an employee matters agreement (EMA).  This article provides a brief summary of some of the key employee benefit plans issues to consider in a spin-off.

To read the full article, click here.



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DOL Releases Informal Guidance Addressing Fiduciary Responsibilities With Respect to Target Date Funds

by | May 7, 2013 |

by Joseph S. Adams, Anne S. Becker, Karen A. Simonsen and Ashley McCarthy

Recent U.S. Department of Labor (DOL) guidance underscores the need for plan fiduciaries to rigorously examine and monitor target date fund (TDFs), and potentially explore the use of custom or non-proprietary TDFs.

To read the full article, click here.



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IRS Issues Procedures for Securing Favorable Opinions on Pre-Approved 403(b) Programs

by | Apr 25, 2013 |

by Mary K. Samsa, Todd A. Solomon and Joseph K. Urwitz

The Internal Revenue Service (IRS) recently released a revenue procedure establishing a new program for the pre-approval of 403(b) plans.  The program opens June 28, 2013, and the IRS will begin accepting applications for opinion and advisory letters on whether the form of prototype plans and volume submitter plans meet the requirements of Code Section 403(b).

To read the full article, click here.



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Company Owners Personally Liable for $3.1 Million Withdrawal Liability Assessment — Owners’ Lease of Commercial Property to Company Constituted “Trade or Business”

by | Apr 22, 2013 |

by Jonathan J. Boyles, Paul J. Compernolle and David Diaz

The U.S. Court of Appeals for the Seventh Circuit ruled that owners can be personally liable for multiemployer withdrawal liability where the owner leases property to its own closely held corporation.  The decision highlights the dangers of related-party transactions, failing to observe business formalities and holding property personally.

To read the full article, click here.



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DOL Issues Guidance on MAP-21 Annual Funding Notice Requirements

by | Apr 2, 2013 |

by Anne S. Becker, Stephen Pavlick and Kary Crassweller

The U.S. Department of Labor (DOL) recently issued guidance on the new disclosure requirements for single-employer defined benefit plans under the Moving Ahead for Progress in the 21st Century Act (MAP-21).  Plan administrators of single-employer defined benefit plans that meet certain requirements must disclose the effect of MAP-21 on the plan’s funding and the plan sponsor’s minimum required contribution to the plan.  The new guidance sets forth technical questions and answers, and includes a model supplement to the model annual funding notice that may be used to comply with the new disclosure requirements.  Because calendar year plans must provide the required disclosures by April 30, 2013, plan sponsors should ensure their plans’ annual funding notices incorporate the most recent guidance from the DOL.

To read the full article, click here.



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What You Need to Know About FATCA’s Impact on Non-U.S. Retirement Plans

by | Mar 26, 2013 |

by Andrew C. Liazos, Todd A. Solomon and Kary Crassweller

The Internal Revenue Service recently published final regulations under the Foreign Account Tax Compliance Act (FATCA), which are effective immediately.  FATCA imposes significant reporting obligations on both non-U.S. foreign financial institutions (FFIs) and U.S. taxpayers holding foreign financial accounts.  A non-U.S. retirement plan may be subject to FATCA reporting responsibilities as an FFI unless there is an available exemption.  Failure to comply with applicable reporting requirements may trigger substantial withholding taxes and penalties.  This On The Subject summarizes what you need to know about FATCA for both plans and participants.

To read the full article, click here.



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