Aiken & Aiken

Correcting ERISA 401(k) Plan Failures When Employee Contributions Are Not Remitted in a Timely Manner

Both the Internal Revenue Service (IRS) and Department of Labor (DOL) require that employee contributions are remitted in a timely manner. Current IRS regulations mandate that employee 401(k) contributions must be remitted to the employer sponsored plan as soon as they can be reasonably segregated from the plan sponsor assets. ...

Operational Non-Compliance in ERISA Qualified Plans Can Cause Problems for Employers

Most employers who sponsor a qualified retirement plan are aware of the requirement that the plan must have a written plan document. However, just having that document is not enough. ERISA plan qualification rules also require that the plan be administered according to provisions contained in the governing plan document. ...

Can an Employee’s ERISA Rights Be Waived As Part of an Employment-Based General Release and Waiver?

Most employers have a standard release and waiver that is usually used in conjunction with severance packages for former employees. The former employee agrees not to bring suit against the employer in exchange for the offered severance package. Most release and waivers use broad, inclusive language (as broad ...

ERISA Fiduciaries – Could I Really Go to Jail?

The Employee Retirement Income Security Act of 1974 (ERISA) governs the majority of employee benefits plans and includes penalty provisions . The criminal penalties under ERISA are contained in § 501 of the Act. Originally under ERISA, criminal fines for individuals were $5,000 and potential imprisonment of up to one ...

Has Your ERISA Defined Contribution Plan Been Updated for 2008 PPA Changes?

The Pension Protection Act of 2006 (PPA) was originally created to effect change to defined benefit plans. However, the final version of the more than 900 page statute also contains provisions that significantly impact defined contribution (DC) plans. Among the provisions of the PPA that affect DC plans, some of the ...

ERISA Subrogation Rights

Employers today are constantly searching for new and effective methods to decrease the amount spent for employee health care. Consumer driven health plans, HSAs, HRAs, and wellness programs are a few of the strategies that are being used. However, a number of employers are not adequately using a tool that ...

Is Your ERISA Retirement Plan Updated for Section 415 Changes?

On April 5, 2007, the IRS released final regulations related to Section 415 of the Internal Revenue Code (Code). The final regulations closely follow the proposed regulations that were issued in 2005, with some changes, including changes that were made by the Pension Protection Act of 2006 (PPA). Section 415 was ...

ERISA Update: Deadline for 409A Compliance Fast Approaching

In October 2004, the American Jobs Creation Act enacted Section 409A of the Internal Revenue Code (Code). This Code Section made significant changes to how nonqualified deferred compensation (NQDC) plans must be structured. In October 2007, the IRS extended the deadline for 409A compliance to December 31, 2008. Employers with ...

President Bush Signs the Heros Earnings Assistance and Relief Tax (HEART) Act of 2008

On June 17, 2008, President Bush signed the Heroes Earnings Assistance and Relief Tax (HEART) Act. This bill includes a number of changes that may impact certain employee benefits plans. For more details on the Heart Act, see our blog posted on June 2, 2008.

ERISA Defined Benefit (DB) Retirement Plans Aren’t Dead Yet

In recent years, the news has been filled with stories of large companies terminating or freezing their DB (pension) plans. IBM, Sears, Verizon, and United Airlines are just a few of the companies that recently either closed their DB plans to newly hired employees, froze the benefit accumulation for existing ...