Prior to 2014, many federal courts applied a “presumption of prudence" standard when evaluating a fiduciary's decision to offer employer stock as an investment option under their company’s retirement plan. However, Fifth Third Bancorp v. Dudenhoeffer, drastically changed this, as the U.S. Supreme Continue Reading
Employee Relations Law Journal | The Need for Employers To Get ”Control” of IRS Controlled Group Rules
Business owners have wide discretion in determining the best corporate structure to use in setting up their businesses. Some use a single entity, while others use multiple entities, which can take the form of corporations, partnerships, and limited liability companies. Regardless of form, however, Continue Reading
Employee Relations Law Journal | Qualified Plan Mistakes Happen: What Plan Sponsors Do Next Is What Matters Most
The Internal Revenue Service (“IRS”) is very much aware that plan sponsors of tax-qualified retirement plans (such as 401(k) plans) make mistakes in plan administration. The types of mistakes are varied and numerous. For example, a plan sponsor may neglect to enroll an eligible employee in their Continue Reading
Employee Relations Law Journal | Cryptocurrency Investing by Retirement Plans and IRAs
Employee Relations Law Journal | To Arbitrate or Litigate Under ERISA – That Is the Question
It is common knowledge among the benefits community that there is now a flood of class action lawsuits being filed against plan fiduciaries alleging that they have breached their fiduciary duties under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Allegations include Continue Reading
Employee Relations Law Journal | Bostock, Section 1557, and Transgender Benefits in Self-Funded Health Plans
Historically, many benefit plans contained exclusions for gender dysphoria treatments, including gender affirmation surgery. The reasons for this exclusion may have been the result of a number of considerations, including, at a basic level, managing the costs of the plan. However, in recent years, Continue Reading
Employee Relations Law Journal | ESG Investing by ERISA Plan Fiduciaries: The DOL Final Regulations
There has been a long, confusing trail of regulatory and sub-regulatory guidance issued by the U.S. Department of Labor (DOL) dealing with the standards that plan fiduciaries must meet when selecting socially conscientious investments for their retirement plan (i.e., so-called ESG investments). Most Continue Reading
Employee Relations Law Journal | The Department of Labor’s Final Rule Creates a New Electronic Disclosure Safe Harbor for Employee Retirement Plans
The U.S. Department of Labor (“DOL”) has issued final regulations creating a new safe harbor for electronic delivery of required disclosure documents pertaining to employee retirement plans (the “Final Rule”). In 2002, the DOL established its first electronic safe harbor (the “2002 Safe Harbor”) for Continue Reading
Employee Relations Law Journal | Emerging From the COVID-19 Pandemic: Returning Employees and Benefits Considerations
During the coronavirus pandemic, businesses were faced with myriad important employment considerations, including the difficult decision of having to furlough or lay off employees. Even those that did not take such actions may have had far more employees requesting a leave of absence than in prior Continue Reading
Employee Relations Law Journal | Setting Every Community Up for Retirement Enhancement Act of 2019
On December 20, 2019, President Trump signed into law the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”), a widely supported bipartisan piece of legislation which significantly amends portions of the Internal Revenue Code of 1986 (the “Code”). The SECURE Act was Continue Reading