On May 15, 2020, the U.S. House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions Act (“HEROES Act”) that was introduced by Democratic leadership as a “phase four” COVID-19 relief and stimulus package. Although the U.S. Senate seems inclined not to act on this legislation at this point and the White House opposes it, certain provisions within the Act will likely make it into a Read More

A Utah court recently refused to dismiss a breach of fiduciary duty cause of action against a third party administrator after mental health treatment benefits for a child covered by a parent’s self-insured health plan were denied.    Background In the case -- Daniel R. v. UMR -- Daniel R. was a participant in a self-insured health plan in which his child, I.M., was a beneficiary. I.M. entered treatment at New Haven Read More

The Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”) has added new lifetime income disclosure requirements to benefit statement rules under ERISA. The law requires that a participant’s total accrued benefit be expressed as a lifetime income stream in the form of a single life annuity.  If the participant has a same-age spouse, the total accrued benefit must be expressed as a qualified joint Read More

The COVID-19 pandemic has brought about a staggering number of changes for employers in the past few months, requiring them to make significant changes to workplace processes and policies virtually on the fly. In this environment, it’s important to review employee benefits plans to ensure these changes have not triggered any adverse consequences. Employers are encouraged to review their actions related to benefits Read More

Q: What is the VFCP? A: The VFCP, offered through the Department of Labor (DOL)’s Employee Benefits Security Administration (EBSA), is a way to voluntarily correct certain fiduciary breaches (or potential breaches). Only specific types of fiduciary breaches are eligible for relief on the VFCP all of which deal with transactions that raise valuation issues and/or prohibited transaction issues under Title I of Read More

Employers that sponsor nonqualified deferred compensation plans are no doubt aware of the strict requirements in providing these plans. Failure to adhere to these requirements can lead to penalties as well as tax consequences for both the employer and the participating employee. In light of the unprecedented business and market conditions as well as employee needs that have arisen as the result of the COVID-19 Read More

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) suspended required minimum distributions (RMDs) from certain retirement accounts for 2020. This waiver applies to any retirement account subject to RMDs, including 401(k)s, 403(b)s, 457(b)s, traditional IRAs, and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. Here are some of the rules you need to know regarding RMD waivers under the CARES Read More

To comply with ERISA, retirement plan fiduciaries are required to act with “care, skill, prudence and diligence under the circumstances then prevailing.” The COVID-19 pandemic certainly presents a unique set of circumstances, with a stock market downturn not seen in 12 years, mass layoffs and furloughs, business closings, and a dramatic shift in how work gets done. Retirement plan fiduciaries are undoubtedly Read More

Thanks to a provision in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), employers may allow their employees to access their retirement savings to help them cope with the financial impact of the COVID-19 pandemic. Employee benefits law has changed significantly, even if temporarily, under the CARES Act. Employees may now take a coronavirus-related distribution (CRD) from a defined contribution Read More