The Biden Administration’s prudence in selecting plan investments and exercising shareholder rights rule allows plan fiduciaries to consider environmental, social, and governance (ESG) factors when selecting retirement plan investments.
Articles about the Employee Retirement Income Security Act (ERISA) and other issues relating to employee benefit topics
Biden Administration Sets New Course on ESG Investing in Retirement Plans
In late 2022, the Department of Labor finalized a new rule titled “Prudence in Selecting Plan Investments and Exercising Shareholder Rights,” largely reversing Trump-era guidance that had strictly limited the ability of plan fiduciaries to consider “environmental, social, and governance” (ESG) factors in selecting retirement plan investments and generally discouraged the exercise of proxy voting.
A List of Current “To Do’s” for Retirement Plan Sponsors – SECURE 2.0 Act of 2022
President Biden signed The Consolidated Appropriations Act, 2023 in late December 2022. The final bill included the SECURE 2.0 Act of 2022 (“SECURE 2.0”). As we reported in a prior article, SECURE 2.0 contains a host of wide-ranging provisions that impact retirement plans, plan sponsors, and plan participants.
ERISA Fiduciary Breach Action Narrowly Hurdles Motion to Dismiss in Minnesota
An ERISA action alleging breaches of fiduciary duty recently cleared the pleadings stage in Minnesota district court, narrowly avoiding a complete dismissal. See Schave v. CentraCare Health Sys., No. 22-cv-1555 (WMW/LIB), 2023 U.S. Dist. LEXIS 13786 (D. Minn. Jan. 27, 2023).
In Schave, a CentraCare employee challenged the healthcare
SECURE 2.0: Oops! So the Employer-Sponsored Retirement Plan Overpaid?
SECURE 2.0 may cause some insecurity. However, the law’s changes to the treatment of overpayments from employer-sponsored retirement plans may replace that insecurity with relief.
SECURE 2.0 Series Part 10: Emergencies, Hardships and Disasters? Not To Worry – We Have You Covered
Welcome to Part 10 (of 10) of our series about the SECURE 2.0 Act of 2022 (SECURE 2.0) (our other articles are on our JL Employee Benefits Blog Page). Among the many changes within SECURE 2.0, the following allow for increased flexibility for participants to access certain retirement plan accounts
Employers Prepare for Thawing ERISA Deadlines
With the pandemic winding down, deadlines for employee benefit plans governed by the Employee Retirement Income Security Act (ERISA) will be resuming. Two different emergencies affect employer-sponsored group health plans: the national emergency and the public health emergency.
SECURE 2.0 Series Part 9: Now It’s Easier Than Ever to Clean Up Those Nasty Little Messes!
The SECURE 2.0 Act of 2022 (the Act) contains several provisions that liberalize the rules for fixing particular retirement plan administrative mistakes that happen occasionally. The IRS has a comprehensive program for correcting retirement plan failures, the Employee Plans Compliance Resolution System (EPCRS), including a self-correction program and a voluntary
Seventh Circuit Case Confirms that “Full and Fair Review” of Disability Claims Requires Disclosure of New Evidence Before Denying Appeals
A recent federal appeals court case clarifies that, under ERISA, the regulations governing disability plans’ claims review procedures apply to claims that predate the 2018 changes to the regulations. The decision also serves as a reminder for plan administrators to review their claims review procedures to ensure compliance with
SECURE 2.0 Series Part 8: New Lost and Found Program and an Increase to the Dollar Limit on Mandatory Distributions
Welcome to Part 8 of our series about the SECURE 2.0 Act of 2022 (SECURE 2.0) (our other articles may be found on our JL Employee Benefits Blog Post Page). Among the many changes within SECURE 2.0 are two provisions that may help employers reduce the number of retirement plan
The Year Ahead in Benefits
Benefits beyond the usual medical, dental and vision will continue to occupy HR ideas and initiatives in 2023. Jackson Lewis principals Joy Napier-Joyce and Melissa Ostrower note that employers will be proactive, formalizing and distributing policies focused on both retention through benefits and recession should one materialize.
SECURE 2.0 Series Part 7: Matching Contributions Based on Student Debt Repayments and Financial Incentives
Additional Tools for Employers to Encourage Retirement Savings
Matching Contributions on Student Debt Payments
One of the most eagerly anticipated provisions of the “SECURE 2.0” legislation is the ability for employers to “match” within a defined contribution savings plan employees’ payments of student debt. This provision is just one of
SECURE 2.0 Series Part 6: Changes to Retirement Plan Notice Requirements
The SECURE 2.0 Act of 2022 (SECURE 2.0) eliminates the requirement for plan sponsors to provide certain notices to eligible but unenrolled employees in defined contribution plans, changes the delivery method plan sponsors must use to furnish benefit statements to participants in retirement plans, and modifies the language required in
Update in ERISA Litigation Involving Breaches of Fiduciary Duty Claims
Several appellate courts over the past year have applied Supreme Court precedent to determine whether complaints properly allege a breach of fiduciary duty under ERISA to warrant relief. Trends useful for employers defending such lawsuits have emerged.
Lawsuits against employers offering retirement benefit plans have been on
SECURE 2.0 Retirement Legislation Has Arrived in Style and Is Here to Stay: Top 10 Contribution-Related Provisions
After months of suspense and intrigue on whether SECURE 2.0 would make it to the finish line and become law, the U.S. Congress ended the suspense by attaching SECURE 2.0 to the Consolidated Appropriations Act, 2023 funding bill on December 23, 2022. President Biden made it official on December 29,