News & Analysis as of

Benefit Plan Sponsors

Holland & Knight LLP

Supreme Court Urged to Resolve Split on ERISA Standing Requirements in Excessive Fee Cases

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Chavez v. Plan Benefit Services, Inc., 108 F.4th 297 (5th Cir. 2024), began when three employees of a single employer sued the service providers of their health and welfare benefit plan for allegedly charging excessive fees...more

BCLP

Autumn Budget 2024 - Key Employment Highlights

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The Chancellor of the Exchequer, Rachel Reeves, has published her Autumn 2024 budget with the aim of “fixing the foundations of the economy and delivering change by protecting working people.” We set out a very brief summary...more

Groom Law Group, Chartered

Proposed Settlement Agreement Reached in Actuarial Equivalence Lawsuit

Earlier this month, a group of retired employees of Citgo Petroleum Corporation filed a motion for settlement of their lawsuit claiming they were harmed by their pension plan’s use of unreasonable actuarial assumptions. The...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

A good plan provider will admit they’re wrong

A long-time advisor-client called with a chuckle that both he and I were right and a partner at a law firm admitted that we were....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

There is no such thing as free administration

In England, many of the top pubs are owned by British breweries because watering holes are an effective means of beer distribution. Pepsico (owners of Pepsi) used to own Yum Brands (KFC, Taco Bell, Pizza Hut, etc.) for that...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

I hate short plan years

When drafting new 401(k) plans for clients during the middle of the year, I like drafting them with an effective date of the first of the year and with deferrals effective as of when they can run the plan with payroll. Like...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

What 401(k) Plan Providers Never Tell Plan Sponsors

Ihave a college degree and two law de- grees (I’m not bragging), so I have three alma maters. I attended Stony Brook University, American University Washing- ton College of Law, and Boston University. Out of the three, my...more

Faegre Drinker Biddle & Reath LLP

Things I Worry About: Automatic Enrollment (1)

This starts a new series of blog posts…Things I Worry About. I will number these, but they will be more episodic than sequential. SECURE Act 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

I wish the DOL would act over TPA termination

It’s all friendly between the plan sponsor and the Third-Party Administrator (TPA) until the plan sponsor wants to make a change. Then it could get nasty when the TPA wants to be compensated for doing work for the...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Annuities in 401(k) Plans

As Michael Corleone said in the very underrated “The Godfather Part III”, “Just when I want to get out, they keep bringing me back in.”...more

Faegre Drinker Biddle & Reath LLP

Retirement Philosophy

As qualified retirement plan sponsors evaluate the various new distribution options available under SECURE 2.0 (read our overview here), it is worth asking: What is your company’s retirement philosophy? The answer to this...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The problem with too much loyalty to providers

When I first started in the retirement plan business in 1998, I worked for a law firm that served as the counsel for a third-party administration (TPA) firm in Syosset, NY....more

Bricker Graydon LLP

New IRS Guidance for Long-Term Part-Time Employees in ERISA covered 403(b) Plans at Private, Non-Profit Institutions of Higher...

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In potentially welcome news for public institutions of higher education, in Notice 2024-73, the Internal Revenue Service (IRS) confirmed that the new long-term part-time (LTPT) rules introduced by the SECURE Act and SECURE...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Which Plan To Set Up?

I call this time of the year Retirement Plan Crazy Season where plan sponsors decided to change plan providers to get things changing smoothly on January 1. I call it Crazy Season based on NASCAR’s Crazy Season when drivers...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The Problem of Plan design

When you start fixing up the house (for me, a never-ending battle) and replacing appliances or items like the front door or the roof (had to fix it again), you realize that the replacements are more energy efficient....more

Keating Muething & Klekamp PLL

Benefits Monthly Minute - October 2024

The October Monthly Minute highlights two recent retirement plan cases, one in which the court sides with the plan and emphasizes plan administrative review over specific investment results and another where plaintiffs are...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Filing that late 5500 can be a weapon of mass destruction

Missing that deadline to file a Form 5500 is a huge problem. Sometimes people forget even when the Third Party Administrator (TPA) completes it promptly. I’ve had clients not realizing they had a year or two years’ worth of...more

Verrill

Final Mental Health Parity Rule Spells Compliance Changes

Verrill on

The long-anticipated final rule under the Mental Health Parity and Addiction Equity Act (MHPAEA) was published on September 9, 2024. The MHPAEA prohibits group health plans that provide mental health and substance use...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

How 401(k) Plan Sponsors Can Avoid The Scams And The Cons

There is a saying I have about scams: “I’m from Brooklyn, you’re go- ing to have to get up earlier in the morning to get one on me.” Growing up in Canarsie Brooklyn in the 1970s and 1980s allowed me to have street smarts,...more

Miller Canfield

IRS Weighs in on Inadvertent Benefit Overpayments

Miller Canfield on

Earlier this week, the IRS released Notice 2024-77, which provides much-anticipated guidance related to the handling of so-called “inadvertent benefit overpayments” from qualified retirement plans under the SECURE 2.0 Act. ...more

Schwabe, Williamson & Wyatt PC

Year-End Compliance Considerations for Employee Benefit Plans

Open enrollment is right around the corner (at least for employers that run calendar-year health benefit plans), so many employers will be updating their benefit communication plans. Though not comprehensive, the following is...more

Jackson Lewis P.C.

Johnson & Johnson Case Sparks Concerns Over Future Excessive Health Fee Litigation

Jackson Lewis P.C. on

Recent scrutiny of pharmacy benefit managers, also known as “PBMs,” has resulted in various lawsuits alleging that the high drug costs they charge violate ERISA. Among the first lawsuits in what appears to be a wave of new...more

Kaufman & Canoles

ESOPs, Benefits & Compensation Q3 2024 Client Update

Kaufman & Canoles on

Fall greetings from the Kaufman & Canoles ESOPs, Benefits & Compensation team. We hope you’re enjoying the cooler weather, changing leaves, and—of course—the continual pace of change in employee benefits. Please find below a...more

Bricker Graydon LLP

Mental Health Parity and Addiction Equity Act (MHPAEA) Final Regulations Have Been Issued

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If you are a state or local government that sponsors a “self-funded” employee group health plan instead of using an insurance provider, you had previously been allowed to “opt out” of compliance with the following four...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Offering Self Directed Brokerage Accounts In A 401(k) Plan Can Give You a Good Headache

In the movie “Back to School,” Thornton Melon, played by Rodney Dangerfield laments that his second wife, Vanessa is a pain and gives a “great headache.” While participants, namely business owners, want a self-directed...more

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