DOL Final Regulations on ESG Investing: “It’s All ‘Bout the Money”

Whether it is appropriate for institutional investment decision-makers to take into account environmental, social, or governance (“ESG”) factors or invest to promote ESG objectives, has become a divisive political issue and a frequent topic in the popular press. For example, the state of Florida recently announced that it would divest $2 billion of state assets …

Reproductive Healthcare Issues for Employers Series, Part 5: Collective Bargaining Implications of the U.S. Supreme Court Decision in Dobbs

On June 24, 2022, the United States Supreme Court released Dobbs v. Jackson Women’s Health Organization, which overturned Roe v. Wade. In our Reproductive Healthcare Issues for Employers series, we have discussed the impact of the Dobbs decision on abortion services as a non-taxable benefit under certain types of group health programs (Part 1), abortion-related …

401(k) Plan Sponsors – It Doesn’t Pay to Ignore Your Plan’s Definition of Compensation

One of the most common errors in 401(k) plan administration continues to be a mismatch between a plan’s definition of compensation and the actual compensation taken into account for plan purposes despite this problem being common enough for the IRS to include it in its “401(k) Plan Fix-It Guide”. In this All Things HR Blog, …

Knowledge is Power: Information Available to Contributing Employers in Multiemployer Fringe Benefit Plans

Employers that contribute to multiemployer fringe benefit plans are generally aware of the financial risks associated with these plans.  In addition to making regular contributions to these plans required by their collective bargaining agreements, these employers are subject to periodic contribution audits by the plans, potential surcharges or increased contributions owed to pension plans in …

Does the Tail Know What the Head is Doing? – The Importance of Internal Communication Between Management and Employee Benefits Personnel

Employers who sponsor employee benefits plans are used to providing ongoing communication to plan participants.  The communications range from legally required disclosures (e.g., summary plan descriptions) to legally required notices (e.g., COBRA notices) to information voluntarily provided to participants (e.g., the importance of saving for retirement).  However, regular internal communication between employer management and employees …

Hey Employers, Can You Prove You Don’t Owe Multiemployer Fringe Fund Contributions?

Employers who sponsor employee benefits programs understand the importance of maintaining accurate records of benefit eligibility, elections, claims, payments, and other data.  Besides complying with ERISA’s record keeping requirements, keeping accurate benefit records is simply a prudent business practice.  In recognition of this, employers retain outside service providers such as consultants, third party administrators, insurers, …

401(k) and 403(b) Fund and Fee Litigation: Employers, Can You Answer These Four Questions?

Most employers sponsoring 401(k) and 403(b) plans are well aware of the large number of lawsuits filed over the past decade or so alleging breach of ERISA fiduciary duty related to plan investment funds and service providers. Unfortunately for plan sponsors (and their employees who serve as investment related fiduciaries), the pace of these lawsuits …

Benefits Briefs in the Time of COVID-19, Part 5: Suspending or Reducing 401(k) Safe Harbor Contributions

As businesses across the country adjust to the financial reality of Coronavirus related shutdowns and restrictions, some employers that sponsor safe harbor formula 401(k) plans are revisiting a money saving strategy last implemented on a wide scale basis over a decade ago during the great recession—the suspension or reduction of safe harbor contributions. Under a …

Summary of Employee Benefits Provisions in CARES Act (as passed by U.S. Senate)

On March 25, 2020, the Senate passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, as a follow-up to the Families First Coronavirus Response Act.  The Act contains a number of employee benefits related provisions to address the COVID-19 emergency.  The House of Representatives intends to take up the legislation on March 27, 2020.  …

Pay Attention to Requests for ERISA Plan Documents or Risk the Con$equence$

Every so often an employer sponsoring an ERISA employee benefit plan will receive a written request from a participant or beneficiary (or their legal counsel) to provide plan related documents. Sometimes the request asks for specific documents and sometimes the request is broader, asking for all instruments under which the plan is established or operated, …