IRS Clarifies “Qualifying Relative” Definition for Health Plans

The IRS recently released final regulations to clarify the definition of “qualifying relative” following the suspension of the personal exemption deduction for 2018-2025 created by the Tax Cuts and Jobs Act of 2017 (TCJA). Background In August 2018, the IRS issued Notice 2018-70 which stated that it would issue proposed regulations to clarify the definition of “qualifying relative” for the TCJA-created $500 Read More

Employers Beware! Retirement Plan Disclosures Are Required Under 408(b)(2)

Since 2012, retirement plan service providers have been required to provide compensation disclosures to plan sponsors every year under Section 408(b)(2) of the Employee Retirement Income Security Act (ERISA). Once plan sponsors have received the disclosures, they are in turn required to issue 404a-5 fee disclosures to plan participants. Under ERISA's prohibited transaction rules, a service agreement must be Read More

Employers Consider Variety of Health Benefit Offerings in Shadow of COVID-19

The COVID-19 pandemic has brought dramatic changes to the employment landscape over the past six months, challenging employers to keep pace with ongoing regulatory changes that have mandated additional flexibility for health benefit plans to address employee needs during this crisis. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which went into effect on March 27, 2020, altered some of the Read More

DOL Issues Proposed Regulations on Pooled Plan Providers

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) established a new structure whereby a group of unrelated employers could participate in a single defined contribution plan as of January 1, 2021. Pooled Employer Plans (PEPs) must be administered by a Pooled Plan Provider (PPP), which must register with the Department of Labor (DOL) before commencing operations.  On August 20, 2020, the DOL Read More

DOL’s Proposed Regulations Likely to Lead to Fiduciary Re-evaluation of Proxy Voting

On September 4, 2020, the Department of Labor (DOL) published a proposed regulation clarifying the rules regarding proxy voting and the exercise of other shareholder rights by fiduciaries for plans subject to ERISA.  With the proposed regulation, the DOL stated that it hopes to clarify the “confusion or misunderstandings” from prior guidance that ERISA fiduciaries are required to vote all proxies, noting that Read More

Proactive Employer Measures for Avoiding Coronavirus-Related Benefits Litigation

The COVID-19 pandemic has brought about an overwhelming number of changes for employers in the past few months, requiring them to realign their plans and policies to incorporate regulatory changes affecting employee benefits. In this environment, it’s important for employers to ensure these changes have not triggered any adverse consequences like benefits litigation related to the coronavirus. Employers are Read More

OCR Recommends IT Asset Inventory List for HIPAA-Covered Entities and Business Associates

In its recent cybersecurity newsletter, the Office of Civil Rights (OCR) recommended that HIPAA-covered entities and business associates develop information technology (IT) asset inventory lists to assist with tracking electronic health information (“ePHI”) throughout their organizations in order to satisfy risk analysis compliance requirements under the HIPAA Security Rule. According to the OCR, organizations Read More

IRS Expands Discretionary Amendment Deadline for Pre-Approved Retirement Plans

On September 2, 2020, the IRS released Revenue Procedure 2020-40, which modifies prior guidance set forth in Revenue Procedure 2016-37 and Rev. Proc 2019-39 to expand the circumstances under which deadlines for discretionary amendments may be extended for pre-approved qualified plans and 403(b) plans. Background The provisions of the prior revenue procedures as revised by Revenue Procedure 2020-40 include the Read More

IRS Provides Potpourri of Guidance on Various SECURE Act Provisions

On September 4, 2020, the IRS issued Notice 2020-68 to provide guidance on a number of provisions in the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) affecting retirement plans, as well as Section 104 of the Bipartisan American Miners Act of 2019. Notice 2020-68 also provides guidance on plan amendment deadlines. The Notice provides Q&A guidance on the following SECURE Act Read More

Coronavirus Implications to Short- and Long-Term Disability Plans

For a majority of employer-sponsored group disability plans, coverage for a disability linked to COVID-19 is likely to depend on each individual plan’s definition of “disability.” Although definitions may differ from plan to plan, most plans typically state that an employee is considered disabled if he or she is unable to perform the duties of his or her occupation. Employees that test positive for COVID-19 but only Read More