As expected, Democratic members of the House and Senate have introduced legislation in response to the U.S. Supreme Court’s recent ruling in Burwell v. Hobby Lobby. The Court in this contentious decision held that closely-held for-profit entities with religious objections to certain aspects of the birth control mandate imposed by the Affordable Care Act could avoid the mandate by invoking the Religious Freedom Restoration Act (RFRA). As discussed in a press release on the new measure, the Protect Women’s Health from Corporate Interference Act of 2014 (H.R. 5051, S. 2578) would:
Articles about the Employee Retirement Income Security Act (ERISA) and other issues relating to employee benefit topics
Supreme Court Axes “Presumption of Prudence” in ESOP Stock-Drop Cases
On June 25, 2014, the U.S. Supreme Court issued a decision that gives comfort to “stock-drop” plaintiffs and may cause shockwaves among employee stock ownership plan (ESOP) fiduciary committees. In Fifth Third Bancorp v. Dudenhoeffer,1 the Court held that ESOP fiduciaries are not entitled to any “presumption of prudence” in lawsuits challenging their decision to invest plan assets in company stock. Instead, ESOP fiduciaries “are subject to the same duty of prudence that applies to ERISA fiduciaries in general, except that they need not diversify the fund’s assets.”
Supreme Court Rules in Favor of Hobby Lobby, Opens Door to Religious Objections to Statutes Covering Employers
On June 30, 2014, the U.S. Supreme Court ruled that closely held, for-profit entities with religious objections to certain aspects of the birth control mandate imposed by the Patient Protection and Affordable Care Act (“the ACA”) could avoid the mandate by invoking the Religious Freedom Restoration Act (RFRA).1 While the majority expressed intent to limit its holding to the facts of the cases before it, the decision’s language may open the door for a variety of religious objections to generally applicable federal laws. Whether employers should actually raise those objections is discussed later in this article.
Impact of Hobby Lobby: Closely Held Corporations May Object to ACA’s Contraceptive Mandate
In a highly anticipated decision in Burwell v. Hobby Lobby, 573 U.S. ___ (June 30, 2014), the United States Supreme Court ruled that the contraceptive mandate of the Patient Protection and Affordable Care Act (ACA) as applied by the Department of Health and Human Services (HHS) to closely held corporations violates the Religious Freedom and Restoration Act.
Supreme Court’s Contraceptive Decision Not a One-Size-Fits-All Religious Exemption from the Affordable Care Act’s Requirements
Executive Summary: In Burwell v. Hobby Lobby, the Supreme Court ruled 5-4 that closely-held, for-profit corporations have standing under the Religious Freedom Restoration Act of 1993 (RFRA). In addition, the Court held that while the government may have a compelling interest in providing contraceptive coverage to participants at no charge, there are less burdensome ways to provide such coverage other than the Affordable Care Act (ACA)’s Contraceptive Mandate.
Federal Agencies Issue Final Rules Relating to Permissible Orientation Periods Under the ACA
The U.S. departments of the Treasury, Labor and Health and Human Services (the “Departments”) recently released final regulations clarifying the maximum allowed employment-based orientation period consistent with the 90-day waiting period limitation set forth in the Affordable Care Act (ACA).
IRS Announces Section 409A Compliance Initiative Project
Executive Summary: At the American Bar Association Section of Taxation 2014 May Meeting, an IRS official announced that the IRS has created a compliance initiative project (CIP) for Section 409A of the Internal Revenue Code (IRC). As part of the CIP, the IRS will review the deferred compensation plans of selected employers to evaluate their compliance with Section 409A requirements.
Ninth Circuit Uncharacteristically Takes the Lead in Limiting Plaintiffs’ Rights to Recover for Breach of Fiduciary Duty under ERISA
In 2011, the U.S. Supreme Court recognized, for the first time, that some forms of equitable relief could lead to an award of a monetary payment for breach of fiduciary duty under section 502(a)(3) of ERISA, 29 U.S.C. section 1132(a)(3).1 Although the Supreme Court did not define the elements of each form of relief in detail, it listed three types of equitable relief: surcharge, estoppel and reformation.2 Since then, courts have struggled with the showing necessary to obtain them.
When is a Retirement Account not a Retirement Account?
Q: When is a retirement account not a retirement account? A: When it’s an inherited IRA and the owner is bankrupt.
Does OFCCP Have Jurisdiction Over TRICARE Participants? Stay Tuned. The Answer Lies Years In The Future
Over the past several years, we have written repeatedly about the efforts of the Office of Federal Contract Compliance Programs (the OFCCP) to gain jurisdiction over health care providers based solely on providers’ participation in TRICARE – the federal program that provides health care services to members of the military and their families.
U.S. House of Representatives Approves Exemption to Affordable Care Act for Expatriate Insurance Plans
For multinational corporations, the passage of the Affordable Care Act (ACA) has raised some uncertainty as to ACA’s impact on expatriate workforces. Indeed, domestic insurance providers have complained that they suffer a disadvantage in the expatriate market on account of having to comply with ACA requirements, such as by providing free preventive care and a ban on lifetime coverage limits. This is because there has been no exemption from the ACA for U.S. expatriate coverage.
DOL Releases 19th Set of Frequently Asked Questions on the Affordable Care Act
Following the release of a proposed rule that would amend employer COBRA notice requirements in light of new Affordable Care Act’s (ACA) insurance exchange options, the Department of Labor’s Employee Benefits Security Administration (EBSA) has issued new online guidance for employers.
Calendar Year Plans Need to File Form 5500 by July 31, 2014
Executive Summary: Administrators or sponsors of employee benefit plans subject to ERISA generally must file information regarding each benefit plan every year. This information is filed using Form 5500. For calendar year plans, these forms must be filed by July 31, 2014.
Life, Health, Disability and ERISA – April 2014
Life, Health, Disability, and ERISA provides a summary of decisions from across the country concerning life, health, and disability policies, including those governed by ERISA. Following your review of Life, Health, Disability, and ERISA kindly feel free to contact attorneys and co-editors with any comments you may have, or with any topics you would like to see in upcoming newsletters.
Tax Alert: Attention Employers Using Pre-Approved Retirement Plans – It’s Amendment Time Again!
Do you sponsor a tax-qualified retirement plan that was pre-approved by the IRS? If so, pre-approved documents take one of two forms.