The U.S. Supreme Court on Jan. 17 ended a yearlong legal challenge to the enforceability of a forum selection clause in an ERISA-governed benefit plan, when the court denied the plaintiff’s petition for writ of certiorari. The case is Clause v. U.S. District Court for the Eastern District of Missouri, 2017 U.S. Dist. LEXIS
New disability claim procedures require strict compliance
The Department of Labor (DOL) has issued a final rule amending its claim procedure regulation, 29 C.F.R. § 2560.503-1, to better protect those seeking disability benefits. Disability claims comprise the vast majority of lawsuits seeking benefits under the Employee Retirement Income Security Act of 1974 (ERISA). Employee benefit plans must strictly comply with the new
Take that target off my back: A guide to avoiding 401(k) litigation
In an earlier post, I discussed the spread of 401(k) litigation and the fact that smaller plans were becoming targets for aggressive litigators. As the pool of large plans diminishes and the litigation theories become well-known, it is inevitable that the volume of 401(k) litigation will expand. Fortunately, most plan sponsors can avoid 401(k)
How will the election impact employee benefit plans?
Donald Trump’s victory in the presidential election, combined with the Republican Party’s retention of a majority in both houses of Congress, is likely to lead to significant changes in laws, regulations and policies that will impact many aspects of life and business in the United States for the foreseeable future. In the coming weeks and
ACA reporting: Earlier deadlines and the end of transition relief
Since 2015, employers have been subject to the Affordable Care Act (ACA) information reporting requirements and penalties. For the 2015 reporting year, the IRS extended the deadlines and gave employers a few extra months to provide these forms to their employees and to file them with the IRS. However, this transition relief was not extended
Proposed Form 5500 overhaul requires more data, creates more litigation risks
UPDATE (Sept. 29, 2016):
On Sept. 23, 2016, the Department of Labor announced that the deadline for submitting comments would be extended by more than two months, to Dec. 5, 2016.
ORIGINAL POST:
The Department of Labor (DOL) — jointly with the IRS and the Pension Benefit Guaranty Corporation — has proposed major revisions to
Who’s next? 401(k) fee litigation expands
For the past few years, we have been reading about litigation against large employers and financial institutions regarding fees charged to participant accounts in 401(k) plans. These lawsuits generally allege a breach of fiduciary duty under ERISA by selecting poorly performing funds that carry higher expenses than similar investment alternatives.
This litigation has led to
Is an ESOP right for your business?
An employee stock ownership plan, or ESOP, is a type of defined contribution retirement plan in which employees’ accounts are invested primarily in stock of the sponsoring employer. In other words, the ESOP literally owns the corporation — whether partly or fully — allowing the employees to benefit from its success.
ESOPs are unique retirement
Government updates ACA reporting forms, SBC template
The Department of Labor, the Internal Revenue Service and the U.S. Department of Health and Human Services have released final versions of the Summary of Benefits and Coverage (SBC) template and Uniform Glossary documents required under the Affordable Care Act.
The IRS also has released updates to Forms 1094-C and 1095-C. The updated SBC template
Considering in-kind contributions to defined benefit plans
The U.S. Department of Labor recently issued a proposed prohibited transaction exemption allowing privately held conglomerate ABARTA to contribute real property to its defined benefit plan and simultaneously lease back the property.
Newsworthy? Yes, because there have been so few prohibited transaction exemption (PTE) offerings from the DOL in recent years. Sponsors of defined benefit