Employee Benefits Articles

Recent Legislation and Regulations Require Changes to Health and Welfare Benefit Plans.

elin@elinfonet.com (Employment Law Information Network) — Fri, 17 Jul 2009 00:00:00 EST

Congress and federal regulatory agencies have been busy enacting legislation and proffering guidance which implements many new requirements for group health and welfare benefit plans. Many of the changes will require thoughtful action on the part of administrators and sponsors of group health and welfare benefit plans.

Michelles Law Expands Health Plan Coverage And Notice Obligations For Employers.

elin@elinfonet.com (Employment Law Information Network) — Thu, 09 Jul 2009 00:00:00 EST

On October 9, 2009, an important new law affecting employer-sponsored group health plans will become effective. The new law is known as �Michelle�s Law� (Pub. L. No. 110-381) and expands employers� coverage and notice obligations for eligible college students. You should begin preparing now to meet these obligations.

What It Means to Receive a Critical Status/Surcharge Notice from a Multi-Employer Pension Plan.

elin@elinfonet.com (Employment Law Information Network) — Tue, 07 Jul 2009 00:00:00 EST

The Pension Protection Act of 2006 creates new funding classifications for multi-employer pension plans, with the most seriously underfunded plans being classified as �critical� (or colloquially, �red zone�). The trustees of a red-zone plan must send participating employers a notice about the plan�s critical status including the employer�s obligation to start paying a surcharge on top of its regular contributions to the pension fund.

IRS Provides Trends, Tips, Internal Control Questionnaire and Plan Documentation Guide Online.

elin@elinfonet.com (Employment Law Information Network) — Thu, 25 Jun 2009 00:00:00 EST

The Internal Revenue Service (IRS) has recently added important guidance to its Employee Plan Team Audit (EPTA) website that is very helpful to retirement plan sponsors and retirement plan administrators. First, the IRS has released an internal controls questionnaire to assist a plan sponsor in making sure its retirement plans operate in accordance with the plan terms and the Internal Revenue Code (the "Code"). Second, the IRS has released information regarding EPTA trends and tips revealed from audits of large retirement plans. Third, the IRS now provides a tool that assists employers with the documentation needed for an exam by type of plan, including defined contribution and defined benefit plans. This article summarizes the important features of these IRS materials.

IRS To Focus on Qualified Retirement Plan Failures.

elin@elinfonet.com (Employment Law Information Network) — Wed, 17 Jun 2009 00:00:00 EST

Qualified retirement plans are generally exempt from federal income tax, but nevertheless must comply with reporting and other requirements related to how they are administered. Further, as with individuals and entities subject to federal tax laws, qualified retirement plans are vulnerable to audits by the IRS. On its website, www.irs.gov/retirement, the IRS has clearly stated its intention to conduct audits this year to analyze operational features of retirement plans. According to Monika Templeman, the Director of Employee Plans Examinations, "There will be a prominent [employee benefit] examination presence in the Retirement Plans Community of benefits practitioners, plan sponsors/employers, and plan participants/employees." She states further that the IRS will increase its focus on enforcement this year.

IRS Provides Trends, Tips, Internal Control Questionnaire and Plan Documentation Guide Online.

elin@elinfonet.com (Employment Law Information Network) — Wed, 17 Jun 2009 00:00:00 EST

The Department of Health and Human Services Issues Guidance Regarding Security Breaches Concerning HIPAA-Protected Information.

elin@elinfonet.com (Employment Law Information Network) — Tue, 16 Jun 2009 00:00:00 EST

The Department of Health and Human Services (HHS) released guidance on April 17, 2009, regarding the new protected health information (PHI) security breach notification requirements set forth in the American Recovery and Reinvestment Act of 2009 (ARRA).

IRS Issues Proposed Relief for Safe Harbor.

elin@elinfonet.com (Employment Law Information Network) — Tue, 09 Jun 2009 00:00:00 EST

On May 18, 2009, the IRS issued proposed regulations that would permit employers incurring a substantial business hardship to reduce or suspend required Safe Harbor Nonelective Contributions without losing their plan�s qualified status.

IRS Mandates New Reporting and Notice Obligations for Employer-Owned Life Insurance.

elin@elinfonet.com (Employment Law Information Network) — Thu, 28 May 2009 00:00:00 EST

The IRS has issued Notice 2009-48 outlining the reporting and notice obligations for employer-owned life insurance policies. The new rules become effective June 15, 2009.

New Safe Harbor 401(k) Guidance Helps Economically Distressed Employers.

elin@elinfonet.com (Employment Law Information Network) — Tue, 26 May 2009 00:00:00 EST

The Internal Revenue Service issued proposed regulations on May 18, 2009 which allow for the suspension or reduction of safe harbor nonelective contributions under certain 401(k) safe harbor plans.