DOL Provides Needed Clarification on Authorized Representatives Acting for ERISA Claimants

There are times when an individual who has a claim under ERISA is unable to bring that claim on their own. In these situations, an authorized representative of the claimant can bring the claim instead. A recent Department of Labor (DOL) Information Letter, issued at the end of February, provides clarification regarding the ability of this individual to act on behalf of the claimant. Specifically, it addressed the Read More

Can a Company Implement a Match Safe Harbor Mid-Year?

Businesses make plans and strategic changes throughout the year. These changes may involve ramping up or down employees, buying or merging with other businesses, or changing goals in such a way that HR needs to re-align benefits to reflect those goals. Human resources departments, meanwhile, are working to follow either a calendar or fiscal year plan of important notices, paperwork, and changes for employees. Is it Read More

Case Study: Deconstruction and Redesign of the Executive Compensation Program for a Company with Long-Term Growth and Retention Objectives

This blog is an excerpt of Anne Tyler Hall's book "Case Studies in ERISA: Why It Matters And How It Benefits You, A Plan Sponsor's Guide To Employee Benefits Legal Compliance"  request your free digital copy of the book here.   Client: A global firm based in the Southeast with more than 400 employees. It had an existing, but ineffective LTIP and deferred compensation (DC) plan. The LTIP was intended to Read More

Key Benefits Considerations in Mergers & Acquisitions

When companies come together through a merger or acquisition, there’s significant work conducted when blending the two organizations, particularly in regards to benefits offered. Comparing health plans, retirement plans, and other benefit packages offered is just the first step to merging the benefits and keeping key employees in the company being bought happy with the arrangement. Comparing Plans Benefits is just Read More

Mitigating the Tax Impact on Employee Equity Compensation

Businesses of all sizes, from brand new startups to large blue-chip enterprises, like to use equity compensation for key employees. This ties the employee’s financial interest to that of the company and can provide the company with a creative additional way of compensating individuals. Depending on the type of plan a business sets up, this compensation may be better tax wise for employees than traditional Read More

COBRA Coverage Considerations for Terminated Employees

The Consolidated Omnibus Budget Reconciliation Act of 1985’s continuation of coverage requirements, now commonly known as COBRA, is the option employees have to continue with their existing insurance coverage for a period of time after termination of employment. Employees may choose to keep their current plan instead of shopping for a plan on the Exchange for a number of reasons, often related to coverage. Once a Read More

RMDs and the “Still Working” Exception: Planning Strategies

In general, qualified retirement plans require participants to begin taking the required minimum distribution (RMD) by April 1st of the year they turn 70 ½. Some plan participants, however, intend to keep working and want to take an exception to this rule, leaving the funds in their retirement plan to further grow. When taking the exception, then the RMD begins when the employee retires or is laid off from work with Read More

New Code Section 83(i) Equity for Private Employers: More Headache Than Benefit?

Recently, the IRS issued guidance on the election to defer compensation under section 83(i). However, there is still much question, especially for smaller operations, regarding the administrative headache, as compared to the benefits, of setting up deferred compensation. Indeed, many businesses are electing to simply avoid 83(i) by amending their equity plans altogether. In short, section 83(i) permits private Read More

The Importance of Proactive ERISA Legal Compliance Reviews

Periodically, the IRS will audit qualified retirement plans to ensure compliance with ERISA and federal regulations. Having taken the time to be proactive and conducting an internal legal compliance review before the IRS comes calling means you not only have confidence in your plan’s ability to pass an audit, but you’ll be prepared to hand the IRS agents the documentation they need. Preparation makes the process less Read More

State Fiduciary and Best Interest Developments

In addition to federal laws and regulations, businesses must also pay attention to state-level laws that might affect their benefits and programs. Here are a few recent changes at the state level that specifically apply to benefit fiduciaries and best interests. Connecticut: As of the first of this year, a company responsible for administrating a retirement plan offered by a political subdivision of the state, Read More