Practical HR Tips, News & Advice. Updated Daily.
Sometimes an employer may delay transfers of payroll deductions to employees’ retirement accounts. That’s a breach of fiduciary responsibility, but a recent decision by the U.S. District Court for the District of Massachusetts may offer them some comfort. Managing retirement plan administration can be a burden for busy small business owners who aren’t financial professionals. […]
Employers that sponsor health plans are bracing themselves for a significant tax hit under health reform. Health reform’s transitional reinsurance program, which will require insurers and self-funded plans to pay billions of dollars to partly reimburse commercial insurers writing individual policies for patients with very high medical costs, imposes large costs on employers to further […]
An employer/plan administrator continues to get an expensive lesson on the risks of having both inadequate COBRA notice procedures and poor explanations of how those procedures work. An “inefficient, unwieldy” notice process — coupled with evasive and contradictory answers from employees on why a qualified beneficiary did not receive a COBRA election notice — led […]
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 […]