Having recently helped a client determine if it employed on average more than 50 employees per month in a calendar year and therefore was an applicable large employer (“ALE”) subject to the Affordable Care Act (“ACA”) in the following calendar year, I had many opportunities to see the complexities of the ACA’s rules in operation. …
Considerations for Plan Sponsors Who Discover Unauthorized Workers in their Retirement Plans, Part 2: Tax Reporting, Withholding, and Missing Participants
With immigration enforcement in the news, some employers may be wondering what responsibilities they have related to their retirement plans, if an employer discovers that an employee lacks documentation to demonstrate they are authorized to work in the United States legally. In Part 1 of this series, I addressed the consequences under ERISA of undocumented …
Considerations for Plan Sponsors Who Discover Unauthorized Workers in their Retirement Plans, Part 1: ERISA and the Department of Labor
With immigration enforcement in the news, some employers may be wondering what responsibilities they have related to their retirement plans, if an employer discovers that an employee lacks documentation authorizing the employee to work in the United States legally. While there is not clear guidance in this regard, it appears to be inconsistent with ERISA …
The Department of Labor Sends Electronic Disclosure Plan to the Office of Management and Budget
As I have discussed previously on Dickinson Wright’s All Things HR Blog, the Department of Labor’s (“DOL”) disclosure regulations with respect to electronic disclosure of ERISA plan-related documents and notices are woefully out of date, not having been updated in more than fifteen years. For example, the basic DOL rule continues to be that employers …
High Deductible Health Plans Allowed to Provide Additional Preventive Care Benefits for Individuals with Chronic Conditions
A high deductible health plan (“HDHP”) is not permitted to pay for medical expenses until the plan’s deductible has been satisfied, with the exception of medical expenses incurred for preventive care. Preventive care did not generally include expenses for any service or benefit intended to treat an existing illness, injury or condition. In a welcome …
Increasing Access to Retirement Security
On August 31, 2018 President Trump issued Executive Order 13847, titled “Strengthening Retirement Security in America”. This Executive Order directed the Secretary of Labor to: Clarify and expand the circumstances under which small and midsize businesses may sponsor or adopt a multi-employer plan (MEP) as a retirement savings option for employees; and Increase retirement security …
Another Multiemployer Pension Fund Cautionary Tale: Employer Does Not Owe Withdrawal Liability, But May Still Owe An “Exit Fee”
Employers that completely or partially withdraw from underfunded multiemployer pension funds are well aware that they may owe the fund withdrawal liability—an assessment against the employer of its allocable share of the fund’s underfunding, provided under ERISA. Imagine an employer that finds out its withdrawal liability is reduced to zero under the “de minimis reduction,” …
Association Health Plans: Still Viable?
The Department of Labor (“DOL”) issued final regulations in June 2018, which loosened the DOL’s long-standing sub-regulatory guidance and allowed more organizations to form Association Health Plans (“AHPs”). The impetus for issuing the regulations was to provide another option for small employers to have access to affordable, high quality health care. AHPs would allow small …
Surprise! A QDRO Can Apply to a Welfare Benefit Plan
Most plan administrators are familiar with a qualified domestic relations order or “QDRO,” which is used to split retirement plan benefits between a plan participant and an alternate payee, such as an ex-spouse or minor child. Even an experienced plan administrator may not be aware that a QDRO can also apply to a welfare benefit …
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Debunking SPD Myths, Part 5: Yes, There Are Reporting Requirements for “Top Hat” Plans
It is well known by employers that nonqualified deferred compensation (“NQDC”) plans that are established to provide unfunded deferred compensation benefits to a select group of management or highly compensated employees (referred to as “top hat plans,” as in the top hat, for example, worn by the “Monopoly Man”) are not subject to the typical …