Federal caselaw updateEmployee Benefits, December 2007Recent cases of interest to employee benefits practitioners.
Final QDIA regulations provide fiduciary reliefBy Jorge LeonEmployee Benefits, December 2007The Department of Labor has issued final safe harbor regulations dealing with default investment alternatives in qualified defined contribution plans.
Caselaw updateEmployee Benefits, October 2007Harzewski v. Guidant Corp., 489 F.3d 799 (7th Cir. 2007).
Employee benefits updateBy Bernard G. PeterCorporate Law Departments, August 2007The IRS has issued the long awaited final regulations under Internal Revenue Code (Code) Section 409A, which established new rules applicable to nonqualified deferred compensation plans.
IRS still not charitably driven when clients steer IRAs to trustsBy Michael CyrsTrusts and Estates, March 2007The Internal Revenue Service is still a miser when it comes to trusts and individual retirement accounts. In a recent internal legal memorandum (Internal Legal Memorandum 200644020 “ILM”) the Internal Revenue Service (“Service”) concluded that a transfer of an individual retirement account (“IRA”) to charity to satisfy a legacy from a trust was taxable to the trust as income in respect of the decedent under Internal Revenue Code Section 691(a)(2).
DB: RIP?Employee Benefits, December 2006The Pension Protection Act of 2006 is supposed to strengthen defined benefit (DB) plans, but new rules for funding and mortality/interest rate assumptions, along with new disclosure requirements, may actually help to undermine DB plans.
Federal caselaw updateEmployee Benefits, December 2006Howard Delivery Service, Inc. v. Zurich American Insurance Co., 126 S. Ct. 2105 (2006).
The Supreme Court enforces employer health plan reimbursement provisionsBy Travis J. KettermanFederal Civil Practice, December 2006In a unanimous decision, the U.S. Supreme Court recently ruled that a health plan may enforce a reimbursement provision against a participant who receives medical benefits and later recovers from a third party in a tort claim.
Employers should really think about adding Roth 401(k) accounts to planBy Scott E. GalbreathCorporate Law Departments, October 2006As of January 1, 2006, 401(k) plans can offer participants the option of contributing part of their compensation on an after-tax basis into a Roth 401(k) account.
Defined Contribution Plans— Summary and LimitsBy Dr. Bart A. BasiYoung Lawyers Division, August 2006There are many types of retirement plans available for taxpayers. In fact, there are so many, the President has considered reducing retirement accounts from the many types that exist today into one simplified retirement savings program.
Current state of cash balance plansBy Jennifer Hope StroufEmployee Benefits, June 2006Currently “cash balance plans” are not defined by the Code or ERISA.
Health Savings Accounts (HSAs): Are they the right option for you?Young Lawyers Division, June 2006In the maze of health care, it’s sometimes difficult to determine what’s right for you. Health Savings Accounts are a relatively new program, and one you should be aware of.
“Tax Expenditures” For FY 2007Employee Benefits, June 2006Health and welfare and pension plans receive favorable treatment under the Internal Revenue Code: employers get an immediate deduction for the contributions, and employees can defer or avoid altogether income taxes on the benefits.
Employee benefits updateBy David R. ShannonFederal Taxation, March 2006No policy, contract, certificate, endorsement, rider application or agreement offered or issued in this State, by a health carrier, to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services or of a disability may contain a provision purporting to reserve discretion to the health carrier to interpret the terms of the contract, or to provide standards of interpretation or review that are inconsistent with the laws of this State.
How to handle an employer’s group health plan lienBy Robert T. ParkCivil Practice and Procedure, January 2006As a result of an accident, the plaintiff was injured. He brings a suit in circuit court for negligence. His damages include medical bills that were paid for by his employer’s group health insurance plan. After pursuing discovery, including depositions, the case settles. The health plan asserts a lien for the amount it paid. How should the lawyer handle the employer’s group health plan lien?
Regulatory update: IllinoisEmployee Benefits, December 2005Does ERISA preempt this regulation? In Nickola v. CNA Group Life Assurance Co., 2005 WL 1910905 (N.D. Ill. 8/5/2005), the court declined to address the preemption issue (as to the same proposed regulation) because even if the arbitrary and capricious standard applied, “Defendant’s process and analysis in terminating Plaintiff’s long-term disability benefits is so defective that it fails arbitrary and capricious review.”
Senate and House DB funding reform alternativesBy Michael Barry & Brian DonohueEmployee Benefits, September 2005(Notice to librarians: The following issues were published in Volume 23 of this newsletter during the fiscal year ending June 30, 2005: September, No. 1; December, No. 2; March, No. 3; June, No. 4).
Federal caselaw updateBy David R. ShannonEmployee Benefits, June 2005The National Pension Lawyers Network, which is administered by the Pension Action Center at the University of Massachusetts (Gerontology Institute), provides referrals to employee benefits lawyers.