The SECURE Act, which was signed into law in December 2019, includes major changes impacting retirement plans. Paying attention to the long-term needs and goals of constituents is always a top priority for legislators, so there are a number of further pieces of litigation currently on the table to continue to modify and improve the laws and regulations concerning retirement savings. Automatic Enrollment Safe Read More

A recent lawsuit argued in the federal appeals court for the Southern District of New York handed a win to plan fiduciaries on a prudence and breach of loyalty claim lawsuit. In the case, Patterson v. Morgan Stanley, the court dismissed an appeal filed by Morgan Stanley stating that, contrary to Plaintiff’s claims, ERISA “does not require clairvoyance on the part of  plan fiduciaries, nor does it countenance Read More

The 2017 Tax Cuts and Jobs Act (TCJA) added a 21% excise tax on “excess” executive compensation paid by tax-exempt organizations to certain employees. It is the organization, not the employee, that is responsible for paying this tax. Because this tax applies to individuals who are generally highly compensated, this can be a significant tax burden for organizations. However, there are some strategies organizations can Read More

Many businesses use Employee Stock Ownership Plans (ESOPs) to incentivize employees and as a succession planning tool for owners as they look to turn the business they created into a successful and thriving affair without selling it off to another company. ESOPs are governed, in part, under ERISA regulations. As with all ERISA-governed benefits plans, the role and responsibilities of the fiduciary are Read More

Any time the economy is growing, it’s important to consider and plan for the next economic slowdown. When exactly this will occur is something that experts debate, and opinions vary from industry to industry, but planning for lean years during the good years is always wise, especially in the area of executive compensation. Planning creates a smooth path and ensures that executives and management team members are Read More

A recent case highlights the importance of paying attention to successor fiduciary liability when taking on a benefits plan. This case provides important color to the ERISA provision that prevents plan fiduciaries from facing liability for breaches that occurred before and after their tenure as a fiduciary responsible for the benefit plan. Fuller v. SunTrust Banks, Inc. The defendants in this case include Read More

ERISA plan failures often result in corrective actions and monetary penalties. ERISA penalties apply to all types of benefit plans, so while the case at hand is a medical benefits plan, monetary fines for failure to provide plan documents could and do apply to retirement plans, disability plans, executive compensation, and other employer-provided benefit plans. Kinsinger v. Smartcore, LLC In the case at hand, Read More

In compliance with the Affordable Care Act (ACA) and to help businesses comply with regulations, the Department of Labor (DOL) has updated its template for the important Summary of Benefits and Coverage (SBC) document as well as the instructions and other related materials. This recent round of updates, the first since 2016, reflects changes made by the Tax Cuts and Jobs Act (TCJA). These updated documents are for Read More

The Field Assistance Bulletin from the Department of Labor (DOL) released in June 2019 discusses transition relief for MEP plans in conjunction with the MEP Final Rules. This temporary relief is for retirement plans that failed to comply with ERISA Form 5500 reporting requirements. Form 5500 Reporting Requirements Under ERISA Section 103(g) a MEP must file an annual report (Form 5500) that includes a list of Read More