http://www.elinfonet.com/fedindex/8 Employment law articles discussing employee benefit issues, including those under ERISA. Sun, 22 Nov 2009 00:11:29 EST en-us http://www.elinfonet.com/newscount.php?popID=8683 Article: 8683 Wed, 18 Nov 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) The health reform bill that passed the House of Representatives on Saturday, November 7, contains a provision that, if enacted, would limit severely the ability of employers to curtail or terminate retiree medical benefits provided to retired individuals and their beneficiaries. Moreover, the new rule (Section 110 of H.R. 3962) would be effective upon enactment. http://www.elinfonet.com/newscount.php?popID=8673 Article: 8673 Tue, 17 Nov 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) On November 7, 2009, the U.S. House of Representatives passed its version of health care reform, known as the Affordable HealthCare for America Act (H.R. 3962). As the media has noted, this House vote is merely one step for legislation that may or may not ever be enacted. Similar legislation is pending in the U.S. Senate, and debate is expected to begin on the Senate’s version in the near future. Any legislation that passes the Senate will then need to be reconciled with what the House passed, and then ultimately passed by both chambers and signed by the President before becoming law. http://www.elinfonet.com/newscount.php?popID=8672 Article: 8672 Tue, 17 Nov 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) A recent Department of Labor Advisory Opinion (Ad Op 2009-03A) discussed the effect of certain language that is often found in brokerage agreements that could be used in connection with Individual Retirement Accounts offered by brokerage firms. The Department advised that the language in question would result a series of "prohibited transactions," which would have the effect of invalidating the customer's IRA. http://www.elinfonet.com/newscount.php?popID=8641 Article: 8641 Fri, 06 Nov 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) Plan sponsors should be aware of upcoming deadlines for adoption of amendments to their qualified retirement plans. Certain amendments are required by the end of the 2009 plan year (December 31, 2009 for calendar year plans), while others are required by the plan sponsor's 2009 tax-filing deadline. In some cases, there may also be amendments required to be adopted by January 31, 2010. http://www.elinfonet.com/newscount.php?popID=8630 Article: 8630 Thu, 05 Nov 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) In re Unisys Corporation Retiree Medical Benefits ERISA Litigation, 579 F. 3d 220 (3d Cir. 2009), the fourth decision in the long running Unisys Corporation (Unisys) litigation, held that Unisys breached its fiduciary duty by not informing retirees that Unisys retained the right to change the terms of their retiree medical benefits. In reaching this conclusion, the court rejected Unisys' key arguments that (1) there was no need to inform the individuals of Unisys' right to amend because no amendments were being contemplated at the time, (2) the Summary Plan Description (SPD) Unisys distributed expressly stated that Unisys retained the right to amend the plan, and (3) the injunction compelling Unisys to reinstate the plan without the right to change benefits impermissibly restricted Unisys in its capacity as a settlor. The court reasoned that: in context, Unisys' statements amounted to a misrepresentation; the language in the SPD was irrelevant because Unisys did not distribute the SPD until after the individuals had retired; and the right to equitable relief trumped Unisys' rights as a settlor. http://www.elinfonet.com/newscount.php?popID=8603 Article: 8603 Mon, 02 Nov 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) The Internal Revenue Service (IRS) maintains a program known as the Employee Plans Team Audit (EPTA) program, under which random audits are used to discover, and remedy, common plan problems and mistakes, and to assist retirement plan sponsors and administrators in identifying those issues. Recently, the IRS updated its list of "common plan mistakes" that have been found during EPTA audits, as well as a sample of a questionnaire used by EPTA auditors to test the system of internal controls utilized by a plan. The EPTA Program is designed to deal with large retirement plans, i.e., those covering at least 2,500 participants, but having an insight into the EPTA procedures enables administrators of plans of all sizes to avoid most common errors in plan administration. The EPTA materials can also be utilized to develop and conduct self-audits and to correct any mistakes thereby identified. http://www.elinfonet.com/newscount.php?popID=8601 Article: 8601 Fri, 30 Oct 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) The end of the calendar year is soon approaching. For sponsors of qualified benefit plans, this means that plan amendments must be adopted and certain notices may need to be distributed. Below is a summary of the major amendments and notices that apply to most qualified retirement plans. The IRS has also released the new retirement plan limits for 2010 that are available here. During the year end flurry of activity, employers need to focus on these deadlines, notice requirements and new limits. If employers have not yet been contacted by their plan's service provider, employers should take action now to avoid being in noncompliance. http://www.elinfonet.com/newscount.php?popID=8597 Article: 8597 Fri, 30 Oct 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) IRS audits that cover compliance with Section 409A of the Internal Revenue Code seem a near term certainty.[1] As a result, employers should take steps now to ensure that their deferred compensation arrangements are in compliance with the documentary and operational requirements of Section 409A. Adverse tax consequences under Section 409A may include premature taxation, an additional 20% federal income tax (and possibly an additional state tax equivalent, as is the case in California), and an interest-charge tax. http://www.elinfonet.com/newscount.php?popID=8584 Article: 8584 Wed, 28 Oct 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) Employers should be aware that an employee welfare benefit plan may be comprised of individual, rather than group, insurance policies, as illustrated by a recent federal court decision from Tennessee. In Alexander v. Provident Life and Accident Insurance Co., No. 1:09-CV-27 (E.D. Tenn. Oct. 16, 2009), the court held that a medical practice group established and maintained an employee welfare benefit plan within the meaning of section 3(1) of ERISA through the purchase of insurance for its physician employees. The opinion clarifies that if a class of employees acquires individual policies and, by virtue of their employment relationship with the employer, obtains a benefit that they could not otherwise have obtained – such as a discount on premiums payable under the policies – the employer will be deemed to have established an ERISA plan. http://www.elinfonet.com/newscount.php?popID=8566 Article: 8566 Fri, 23 Oct 2009 00:00:00 EST elin@elinfonet.com (Employment Law Information Network) The Internal Revenue Service has announced its cost-of-living adjustments applicable to dollar limitations for retirement plans and Social Security generally effective for Tax Year 2009 (see IR 2009-94).