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Many 401(k) plans allow participants to borrow amounts from their vested 401(k) plan accounts and repay such amounts, typically through payroll deductions, back to their own accounts. Plan loans must comply with IRS rules which govern: the amount of the loan (lesser of $50,000 or 50% of the vested account balance), the loan term (5 …
Continue reading “Common But Costly Mistakes in 401(k) Plan Loans”
Especially upon plan termination, locating missing participants can be a major headache for plan sponsors, who have a fiduciary obligation to locate participants and distribute benefits under the terminating plan. In one development that may help in this regard, the Pension Benefit Guaranty Corporation (“PBGC”) issued final regulations that expand, revise and simplify its Missing …
This month the United States Supreme Court declined to review the Seventh Circuit Court of Appeals’ decision in Severson v. Heartland Woodcraft, Inc. The Plaintiff asked the Supreme Court to consider whether there is a per se rule that a finite leave of absence of more than one month (after the employee had exhausted his …
Continue reading “United States Supreme Court Declines Review of Seventh Circuit ADA Leave Decision”
Employers that participate in multiemployer fringe benefit plans (i.e., a plan providing benefits for union employees into which more than one employer contributes) typically understand the basic costs of doing so.
In the wake of the #MeToo movement, most employers have become more acutely aware of the risks involved in failing to effectively prevent and respond to claims of workplace harassment. This renewed awareness should cause all employers, large and small, to evaluate their policies, processes and practices in place to prevent harassment and to respond …
It is no secret that a business which is owned by a private equity fund will eventually be sold. As part of the sale process, the potential buyer will examine the employee benefit documents and the plans’ operations to determine if there are any potential risks. If errors are found, the seller may be required …
Buried under the news of tax reform and deep within an annual bulletin, the IRS has announced reduced fees for corrections made pursuant to its Voluntary Correction Program (“VCP”). However, fees will not be lower in every circumstance. The EPCRS Program Plan sponsors that make mistakes with respect to the operation or documentation of their …
One of the most significant developments in employment law in 2017 was a federal district court in Texas declaring invalid the Obama Administration’s controversial new overtime rule that would have more than doubled the minimum salary level required to qualify for certain overtime exemptions under the FLSA. Although the business community won this battle, employers …
Continue reading “What to Watch for in 2018: The New Overtime Rule, Take Two”
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?”