Empowering HR leaders with insightful content.
The Internal Revenue Service (“IRS”) has increased its level of scrutiny on the limitations imposed on participant loans from defined contribution retirement plans. Internal Revenue Code (“IRC”) Section 72(p) generally limits a participant’s plan loans to the lesser of: $50,000, or 50% of the participants vested account balance. Additionally, if the participant already took out …
Continue reading “IRS Scrutiny of Plan Loans Increases, but IRS Provides Helpful Guidance”
An employee comes into your office and requests a copy of the plan document for the medical plan. What document do you give to the employee? One of the basic ERISA rules is that all employee benefit plans must have a written plan document. Under ERISA Section 402, a plan document must include these elements: …
Continue reading “Why Do I Need a Plan Document for my Welfare Benefit Plan?”
A common failing of supervision and management in dealing with a problem employee is failing to document counsellings and verbal warnings issued concerning annoying or counterproductive, yet correctable, employee behavior. For example, tardiness, excessive breaks, excessive time away from working areas, etc. These behaviors, in and of themselves, are not serious enough to warrant discharge …
Continue reading “The Most Common Failing of Supervision is Failing to Document”
The U.S. Department of Labor (DOL) decided this week to end its appeal of a preliminary injunction issued by a federal court in Texas. That injunction had stopped implementation of the increased salary basis test regulations issued by the DOL in 2016. The DOL’s decision to end the appeal confirms the continued application of the …