Mastering Retirement Plan Forfeitures: A Deep Dive into IRS’s 2023 Proposals & Fiduciary Litigation Trends

When a participant terminates employment without being fully vested in their qualified retirement plan account, the non-vested portion of the account is a “forfeiture.” While forfeitures are a common element of most retirement plans, many plan sponsors remain unclear on how and when forfeitures may be used. This led the Internal Revenue Service (“IRS”) to …

Federal Court Blocks Enforcement of Some ACA Preventive Health Service Requirements: What Plan Sponsors Should Consider

In a March 2023 ruling, a Texas federal district court vacated all actions taken by the Departments of Labor (“DOL”), Health and Human Services (“HHS”), and Treasury (collectively, the “Departments”) to implement or enforce certain preventive care requirements under the Patient Protection and Affordable Care Act (“ACA”). Recently, the Departments released initial FAQ guidance addressing …

Reproductive Healthcare Issues for Employers Series, Part 4: Navigating Mental Health Parity Requirements for Travel Benefits

On June 24, 2022, the United States Supreme Court released Dobbs v. Jackson Women’s Health Organization, overturning Roe v. Wade. The Dobbs decision has employers scrambling to understand the impact on group health plan coverage. Many employers are considering implementing travel reimbursement options to assist employees who wish to seek abortions that might be restricted …

Reproductive Healthcare Issues for Employers Series, Part 3: HHS Guidance on HIPAA and Other Privacy Issues

After the U.S. Supreme Court ruling in Dobbs v. Jackson Women’s Health Organization overruling the constitutionally protected right to an abortion, federal agencies have issued guidance intended to help protect the privacy of patients. Employers should carefully consider this guidance because it impacts their responsibilities as a sponsor of a group health plan and the …

Reproductive Healthcare Issues for Employers Series, Part 2: Avoiding Costly “Employer Payment Plan” Status for Travel Benefits

In light of the U.S. Supreme Court ruling in Dobbs v. Jackson Women’s Health Organization overruling the constitutionally protected right to an abortion, many employers have announced various travel benefits that may cover employees who wish to seek abortion services that might not be available in their state. While many employers have included that travel …

It’s Form 5500 Season: Five Common Mistakes that Plan Sponsors Should Avoid

We are just past the “official” start of summer, which means it is time for sponsors of retirement plans and many health and welfare plans to think about preparing and submitting Form 5500. In this post on the All Things HR Blog, I examine the most common mistakes I encounter when assisting plan sponsors in …

Recovering Retirement Plan Overpayments: Process is Key

A qualified retirement plan paying more in distributions than a participant is entitled to occurs frequently. Common reasons for overpayments include miscalculation of benefits due to systemic error, the plan sponsor being unaware of the death of a participant for some time, or the incorrect application of the provision of a plan (e.g., the definition …

Reporting Health Care Costs on Form W-2—The Devil is in the Details

The Affordable Care Act (ACA) requires employers who file 250 or more W-2s to report the cost of coverage under an employer-sponsored group health plan on an employee’s W-2.This is reported in Box 12, with Code DD. This does not mean that the coverage is taxable—the reporting is for informational purposes only and is intended …

Benefits Briefs in the Time of COVID-19, Part 3: Layoffs/Furloughs and Excise Taxes under the Affordable Care Act

Employers that are laying off or furloughing employees during the COVID-19 crisis may be creating the possibility for excise taxes under the Affordable Care Act (“ACA”). Knowing the method by which employers determine full-time status is key to understanding the issue. Excise Taxes under the ACA The ACA generally provides that employers with 50 or …

Benefits Briefs in the Time of COVID-19, Part 1: Federal Agencies Relax Summary of Benefits and Coverage (“SBC”) Disclosure Deadlines

Recent guidance from the Department of Labor (“DOL”), Health and Human Services (“HHS”) and Treasury (the “Departments”) provides limited enforcement relief from the summary of benefits and coverage (“SBC”) disclosure rules during the COVID-19 crisis for employers to comply with the CARES Act or to add other benefits to their group health plans. Dickinson Wright’s …