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 | 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
Employee Relations Law Journal | The Benefits of Using Contract Equity to Attract, Reward, and Retain Key Employees of Closely-Held Companies
In today’s hypercompetitive business environment, non-public companies are always looking for effective and creative ways of attracting, retaining, and incentivizing their key employees. For many non-public companies, the perfect solution is a phantom equity arrangement (also known as a contract Continue Reading
COVID-19 Considerations for Retirement Plan Sponsors and Committees
The Bottom Line Employers must take action now to provide appropriate oversight of their retirement plans, both in reaction to recent legislation and extreme stock market volatility due to COVID-19. This is especially true for those employers that have needed to reduce their active Continue Reading
Employee Relations Law Journal | It’s Time to Start Talking About Annuities in 401(k) Plans
When an employee retires, he or she typically has three sources of income to draw upon: personal savings, Social Security, and a retirement plan (typically a 401(k) plan). These income sources are subject to certain risks. There is “longevity risk,” i.e., the risk that the retiree will outlive his Continue Reading
IRS Reopens Its Determination Letter Program to Cash Balance Plans and Merged Plans
The Bottom Line Under the IRS’ expanded determination letter program, plan sponsors of statutory hybrid plans (e.g., cash balance plans) may now submit an application for a favorable determination letter for a 12-month period beginning September 1, 2019. Additionally, all retirement plans that Continue Reading
Employee Relations Law Journal | Sacerdote v. NYU: Lessons for Plan Fiduciaries
Over the last few years lawsuits have been filed against approximately 20 university retirement plans. Typically, the lawsuits allege that plan fiduciaries breached their duties by offering poorly performing funds and allowing their plans to pay excessive fees. Defendants include: Among these Continue Reading
Employee Relations Law Journal | Cybersecurity for Retirement Plans
Two Recent Court Rulings Signal Important Developments in ERISA Excessive Fee Litigation
The Bottom Line The recent decisions in Wells Fargo and Chevron offer plan sponsors and fiduciaries some guidance with respect to defending against ERISA fee litigation. Plan sponsors and fiduciaries need to continue to ensure that they engage in a deliberative and Continue Reading