The Top Affordable Care Act Reporting Mistakes We Continue to See in 2024

Nearly once a week, I receive a frantic call or email from a current or potential client who has received a proposed or final assessment from the IRS related to Affordable Care Act (“ACA”) reporting. So-called “Applicable Large Employers” (“ALEs”) with 50 or more full-time and full-time equivalent employees have been required to annually report …

Remote Employees Participating in Employee Benefit Plans – What’s Local Law Got to Do with It?

Recently, a client called about a remote employee who was moving from the company’s primary location to a different state, and would continue working for the company.  The company had no other employees in the new state and the client wanted to know if the employee’s new state residence might affect the company’s 401(k) retirement …

Why Establish a Fiduciary Committee for Welfare Benefit Plans?

Many plan sponsors have read about the lawsuit filed against Johnson & Johnson alleging that it breached its fiduciary duties with regard to the prescription drug component of its group health plan, causing participants to “overpay” for their prescriptions. Lewandowski v. Johnson & Johnson (Case No. 1:2024cv00671), filed February 5, 2024, in the federal district …

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 …

Avoid the Year-End Rush – 5 Proactive 401(k) Plan Administrative Steps to Take Now

Anyone responsible for the administration of a 401(k) retirement plan probably has a “to-do” list that never ends. For example, as soon as a plan administrator files the Annual Report Form 5500 for the prior year, it is time to start planning to distribute the Summary Annual Reports and annual fee and QDIA notices to …

10 Important Issues For Employers During the 2024 Open Enrollment Season

Open enrollment is rapidly approaching for employers with calendar-year employee benefit plans. Following are ten important issues for employers to consider for the 2024 open enrollment season: Affordability of Group Health Plan. If the employer is an applicable large employer, make sure that the employee contribution for full-time employees for at least one of the …

A Cautionary Tale for Administrators Who Neglect Employee Benefit Plan Terms

Individuals responsible for 401(k) retirement or welfare plan decisions know that the plan document is the first place to look for guidance when deciding a difficult administration question, such as whether a participant is entitled to a benefit. A recent 6th Circuit Court of Appeals case, Laake v. Benefits Committee, Western & Southern Financial Group …

The 6th Circuit Clarifies Retaliation Under the FMLA

On January 25, 2023, the United States Court of Appeals for the Sixth Circuit held that an employee’s notice of need for leave, regardless of whether the employee was ultimately entitled to the leave, was protected conduct under the Family and Medical Leave Act (“FMLA”).  Milmen v. Fieger & Fieger, P.C., No. 21-2685 (6th Cir. …

Religious Accommodation in a Post-Groff Employment Landscape

As the Supreme Court’s session was concluding, the Supreme Court issued Groff v. DeJoy, Postmaster General, No. 22-174 (June 29, 2023), an opinion that changes the employment landscape as it pertains to religious accommodations for employers and what actually constitutes an “undue hardship.” In Groff, the Supreme Court held, “Title VII [of the Civil Rights …