Practical HR Tips, News & Advice. Updated Daily.
A victory by the health plan participant in US Airways v. McCutchen, now before the U.S. Supreme Court, may erode ERISA plans’ ability to enforce plan terms as written, a legal expert tells the blog. In McCutchen, the Court has a very difficult balancing act to answer whether: (1) an ERISA health plan administrator is entitled […]
Federal guidance on the Americans with Disabilities Act states that all employee medical information must be kept confidential, but that goes above and beyond what the statute requires, the 7th U.S. Circuit Court of Appeals ruled Nov. 20. Despite what the U.S. Equal Employment Opportunity Commission says, ADA protects only information obtained in response to […]
A recent Illinois federal bankruptcy court ruling is an important reminder to ERISA plan fiduciaries that violations of fiduciary duties under ERISA can result in personal liability from which Chapter 7 bankruptcy proceedings cannot protect the fiduciary. The case is In re John Dombek III, No. 11-40894 (Bankr. N.D. Ill. Oct. 16, 2012); In re John […]
Plan sponsors and administrators face many issues when making disbursements from retirement plans. A recent court ruling on a payout based on a fraudulent claim should reassure those making distributions that if the distribution was in accordance with the plan terms, an employer may not suffer a penalty. In Foster v. PPG Industries Inc. (No. […]
The U.S. Supreme Court has ordered a federal appeals court to rehear a Christian university’s challenge to the health reform law in Liberty University v. Geithner. Reviving the case creates the possibility that the High Court may rule on the case itself sometime in 2013, which would make it the second challenge to health reform […]
New reform standards for health plan value and coverage are important for employers, first because they will determine the kind of insured coverage that small employers buy. But grandfathered and self-funded employer health plans also need to know the rules to avoid penalties under health reform. The proposed rules, which HHS announced on Nov. 20, […]
Plan sponsors in areas Hurricane Sandy affected may want to prepare for an increase in loan or hardship withdrawal requests after the IRS on Nov. 16 said it temporarily will relax its rules that apply to such emergency funding for retirement plan participants. The IRS announced the relief in Announcement 2012-44. Hurricane Sandy should be […]
States will get one more month, until Dec. 14, to notify federal regulators whether they will set up and run their own health insurance exchanges, the U.S. Department of Health and Human Services told two governors in a letter dated Nov. 15. Without the extension, the deadline for signaling intent would have been Friday, Nov. […]
Eliminating a participant option to switch to a defined benefit plan from a defined contribution offering does not violate ERISA anti-cutback provisions, even if participants’ accrued — but unclaimed — benefits are reduced. The recent ruling in Andersen v. DHL Retirement Pension Plan (Case No. 2:12-cv-00439-MJP WL 5389141, U.S. Dist., Western District of Washington Nov. […]
Time will soon tell how many states will run health exchanges and expand Medicaid as directed in the federal health reform law. But for employer plans, the waiting game just draws out the inevitable confusion that may occur as those plans anticipate being impacted in different ways on a state-by-state basis, speakers explained at a […]