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disclosure regulations with respect to electronic disclosure of ERISA plan-related documents and notices are woefully out of date, not having been updated in more than fifteen years.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 …
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 …
Buyers Beware: Sixth Circuit Holds That Asset Purchaser Can Be Sued for Predecessor’s Unpaid Pension Liability
In a typical asset sale transaction, the purchaser takes great care to disclaim any responsibility for the seller’s business debts. When the seller is a sponsor of a defined benefit pension plan, this typically includes a disclaimer for any pension liability (e.g., unpaid plan contributions, PBGC premiums, and liability upon plan termination). The purchaser will …
When to Call Your ERISA Benefits Attorney
If you are responsible for the administration of your company’s retirement plan, you probably reach out to the plan’s record-keeper and investment advisor on a frequent basis. With the extensive bundled services offered by many record-keepers, you may wonder why you even need the name of an ERISA benefits attorney in your contacts list. An …
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The Sixth Circuit Reminds Plan Sponsors of the Importance of Firestone “Magic Words” for ERISA Plan Interpretation
A recent ruling by the Sixth Circuit Court of Appeals acts as an important reminder to ERISA plan sponsors that reserving the written right to interpret plan documents may be critical in interpreting otherwise ambiguous language. The Firestone Language In the 1989 case Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101 (1989), the …
Final ERISA Claims Procedures for Plans Providing Disability Benefits Effective April 1, 2018
March and April will be critical months for employers who sponsor ERISA-governed employee benefit plans that provide benefits subject to the disability claim procedures. Any claims filed after April 1, 2018 will be subject to a new final rule issued by the Department of Labor (“DOL”) in December of 2016. Plans subject to these rules …
Minimizing the Risk of Costly 401(k) and 403(b) Investment Fund and Fee Lawsuits
As employers who sponsor 401(k) and 403(b) retirement plans prepare their 2017 year-end and 2018 “to do” lists, they should be sure to include a review of their processes for selecting and monitoring the investment funds they make available for plan participant investment and the fees their plans pay to record keepers and other service …
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