On June 17, 2021, the U.S. Supreme Court ruled that Texas - along with 17 other states and two individuals - lacked standing to challenge the Affordable Care Act’s (ACA) individual mandate to purchase health insurance. Congress eliminated the monetary penalty for not complying with the mandate in 2017, effectively making the ACA’s individual mandate provision unenforceable. In a 7-2 decision, the high court found Read More

On May 27, 2021, the U.S. Government Accountability Office (GAO) released the results of a 15-month investigation into ERISA enforcement by the Department of Labor’s Employee Benefits Security Administration (EBSA).  EBSA is charged with protecting the rights of participants in employer sponsored benefit plans. As of fiscal year 2020, this included about 154 million participants in 722,000 retirement plans and 2.5 Read More

Recently, the IRS issued Notice 2021-31 that provides guidance for employers, plan administrators, and health insurers regarding the tax credit available to them under the American Rescue Plan Act of 2021 (ARPA) for providing continuation health coverage to certain individuals under COBRA. Under ARPA, a 100% COBRA premium subsidy and other COBRA benefits are available to qualifying assistance eligible individuals Read More

On July 2, 2021, the U.S. Supreme Court granted certiorari in Hughes v. Northwestern University to address the split among several circuit courts on the pleading standard that applies to breach of fiduciary duty claims under ERISA. The issue coming before the eight Supreme Court justices this fall (Justice Amy Coney Barrett recused herself from the case) is this: Whether allegations that a defined-contribution Read More

The U.S. District Court for the Southern District of Texas recently dismissed breach of fiduciary and other claims against Shell Oil Company retirement plan record keeper Fidelity Investments in Harmon v. Shell Oil, where 401(k) participants claimed that Fidelity shared participant data with its affiliates for marketing purposes in violation of ERISA. The class action suit alleged that Fidelity breached its Read More

On May 18, 2021, the IRS issued Notice 2021-31 that provides guidance for employers, plan administrators, and health insurers regarding the tax credit available to them under the American Rescue Plan Act of 2021 (ARPA) for providing continuation health coverage to certain individuals under COBRA. Under ARPA, a 100% COBRA premium subsidy and other COBRA benefits are available to qualifying assistance eligible Read More

Passed in December 2020, the Consolidated Appropriations Act, 2021, (CAA) included provisions that address group health plan price transparency provisions, reporting, disclosure, and other patient protections. The price transparency rules are slated to become effective on January 1, 2022, so employers should be working with their carriers or TPAs on compliance efforts soon. Advance EOB Requirements The CAA requires Read More

On May 5, 2021, the House Ways and Means Committee voted unanimously to advance new retirement savings legislation to the House for approval. The Securing a Strong Retirement Act - dubbed “SECURE Act 2.0” - would enable millions more workers to build savings through employer-provided retirement plans while lowering costs for employers. Plan Participant Benefits Raises the Saver’s Credit. The Saver’s Credit Read More

The COVID-19 pandemic has brought about a number of changes to the American workforce, including shifts in how work actually gets done - or doesn’t get done. According to government data, the pandemic has accelerated the rate at which Americans are retiring, with a reported 2.7 million Americans over the age of 55 considering retirement years earlier than they had imagined. Thanks to soaring stock market and real Read More

On April 13, 2021, the Department of Labor (DOL) issued clarifying guidance for Prohibited Transaction Exemption (PTE) 2020-02, Improving Investment Advice for Workers & Retirees, which became effective on February 16, 2021. Adopted in December 2020, PTE 2020-02 allows investment advice fiduciaries to receive compensation as a result of providing fiduciary investment advice if that advice meets the DOL’s Read More