As group health plan sponsors, employers are responsible for ensuring compliance with the prescription drug data collection (RxDC) reporting requirements added to ERISA by the Consolidated Appropriations Act of 2021 (CAA). Under ERISA section 725, enforced by the US Department of Labor (DOL), group health plans (not account-based plans, e.g.,
Articles about the Employee Retirement Income Security Act (ERISA) and other issues relating to employee benefit topics
Goldman Sachs Successful in Getting 401(k) Fee Class Action Dismissed
A New York district court recently summarily dismissed, with prejudice, a 401(k) plan participant’s putative class action complaint alleging breaches of fiduciary duty. Falberg v. Goldman Sachs Grp., Inc., No. 19-cv-9910, 2022 U.S. Dist. LEXIS 167064 (S.D.N.Y. Sep. 14, 2022). The Plaintiff alleged that the Plan fiduciary-Defendants breached their
OCR Reminds Healthcare Providers and Their Business Associates – You Need an Incident Response Plan!
We have been quite busy this October, which happens to be National Cybersecurity Awareness Month. But, we did not want to let the month go by without some recognition; and we are grateful to the HHS Office for Civil Rights (OCR) for this always timely reminder for HIPAA covered entities
Court Finds No ERISA Liability for Plan Provider Who Delivered Self-Interested Rollover Advice
A New York federal court recently held that a service provider for employer-sponsored retirement plans was not liable as a fiduciary under the Employee Retirement Income Security Act (“ERISA”) when it used participant information to encourage certain plan participants to roll over assets into its more expensive managed account
Seriously Spiked COLAs for Qualified Retirement Plans for 2023
Qualified retirement plans will experience unusually sharp increases to compensation and contribution limitations for 2023 compared to adjustments in recent years. On October 21, 2022, the Internal Revenue Service (IRS) released Notice 2022-55, providing the 2023 calendar year cost-of-living adjustments, also known as COLAs, for tax-qualified retirement plans.
2023 Cost of Living Adjustments for Retirement Plans
The Internal Revenue Service recently announced its cost-of-living adjustments applicable to dollar limitations on benefits and contributions for retirement plans generally effective for Tax Year 2023 (see IRS Notice 2022-55). Most notably, the limitation on annual salary deferrals into a 401(k) or 403(b) plan will increase from $20,500 to $22,500
Failure to Identify Sound Comparisons Sinks ERISA Fee, Investment Claims in Eighth Circuit
Plaintiffs must plead a “sound basis for comparison—a meaningful benchmark” — to sustain their claims of imprudent investment and excessive fee against a 401(k) plan, the federal appeals court in St. Louis has held, dismissing a class action lawsuit for breached of fiduciary duties under ERISA. Matousek v. MidAmerican Energy Co., No. 21-2749 (8th Cir. Oct. 12, 2022).
PBGC Issues Proposed Rule on Withdrawal Liability Actuarial Interest Rate Assumptions
On October 14, 2022, the Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures and regulates private-sector defined benefit pension plans under Title IV of the Employee Retirement Income Security Act of 1974 (ERISA), published a proposed rule governing employer withdrawal liability.
The Employee Retention Tax Credit: Retroactive Filing Is Ongoing Through 2024
Many employers have already claimed millions of dollars in tax credits through the Employee Retention Tax Credit (ERTC). Those employers that have not yet claimed (or incorrectly claimed) any ERTC may still do so retroactively by filing amended payroll tax returns for tax years 2020 and 2021.
Withdrawal Liability and The Building and Construction Industry Exception
Withdrawal liability is a statutory obligation under the Employee Retirement Income Security Act (ERISA) that any unionized employer may have to confront. Exemptions from liability include one applicable to construction industry employers.
4th Quarter 2022 Quick Hits for Plan Sponsors and Administrators
As we enter the fourth quarter of 2022, sponsors and administrators of employee benefit plans have a lot to juggle. From open enrollment and required notices to plan document deadlines, it is a busy time of year. Yet, there always seems to be something new to add to the mix.
What New Student Loan Relief Means for Employee Benefits
The Biden administration announced several student loan debt relief measures on August 24, 2022, including an extended loan repayment moratorium through December 31, 2022, and debt cancellation that will be available near the end of the year.
New No Surprises Act Guidance -Frequently Asked Questions Bolster Final Rule
The No Surprises Act (Act), which establishes protections for health plan participants from surprise medical billing, was passed in late 2020 as part of the 2021 Consolidated Appropriations Act. On October 7, 2021, the Departments of Labor, the Treasury, and Health and Human Services (collectively, Departments) issued Interim Final Rules
Recent HIPAA Settlement Offers Lessons on Data Disposal and the Meaning of PHI
A $300,640 settlement announced yesterday by the Office for Civil Rights (OCR) provides important reminders about HIPAA Privacy Rule and data privacy practices generally: robust data disposal practices are critical and “protected health information” (PHI) is not limited to diagnosis or particularly sensitive information.
The OCR’s settlement involved a New
New HDHP Insulin Safe Harbor Under Inflation Reduction Act of 2022
On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (IRA) (P.L. 117-169), a budget reconciliation act focused on tax reform, climate change, and healthcare costs. One notable provision of the IRA for employers is the expansion of coverage of insulin under high deductible health
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