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Are your severance benefits subject to ERISA?
The provision of severance benefits may constitute an ERISA plan and therefore such arrangements may be subject to the statute's requirements. Although case law provides guidance to employers, ultimately the facts and circumstances of the particular severance arrangement will dictate ERISA’s application. While severance arrangements that provide ongoing benefits to a number of employees will very likely be treated as a plan subject to ERISA, other severance arrangements pursuant to employment or severance agreements may or may not be subject to ERISA.
Severance Memorandum | Employment Law
Paying severance raises unique legal issues and pitfalls that employers and their advisors often fail to recognize.
DOL Issues Guidance on Apprenticeship Plans Graduation Ceremonies and Program Marketing
On April 2, 2012, the Department of Labor (“DOL”) issued Field Assistance Bulletin No. 2012-01, which provides guidance on the use of Apprenticeship and Training Plan assets for program graduation ceremonies and marketing. Under the guidance, the DOL will not consider a plan’s payment of expenses associated with a “modest graduation ceremony” attended by graduating […]
Federal District Court Holds Plan Fiduciaries Liable for Excessive Investment Fees and Imprudent Investments
In one of the first 401(k) fee class action cases to be decided on the merits, the U.S. District Court for the Western District of Missouri recently ruled in Tussey v. ABB, Inc., that 401(k) plan fiduciaries breached their ERISA fiduciary duties by failing to monitor recordkeeping costs and revenue-sharing payments, selecting more expensive share […]
Social Media Activities May Be Concerted/Protected Activity Under Labor Law | Employment Law
Jules Smith, a partner in the Labor & Employment Practice of Blitman & King, recently discussed the latest pronouncements of the National Labor Relations concerning employer applications of rules restricting employee use of Social Media, which are generally measured against the rights contained in Section 7 of the National Labor Relations Act. Section 7 provides that employees not only […]
IRS Provides W-2 Reporting Relief
The Patient Protection and Affordable Care Act of 2010 amended the Internal Revenue Code to require, beginning January 1, 2011, that employers report the aggregate cost of employer-provided health coverage on Forms W-2 issued to employees. This requirement was later delayed by the IRS, in Notice 2010-69, to January 1, 2012. On September 19, 2011, […]
CMS Issues Technical Guidance Confirming that Self-Insured Plans are Not Subject to Medical Loss Ratio Reporting Regulation
On April 20, 2012, the Centers for Medicare & Medicaid Services (“CMS”) issued Technical Guidance CCIIO 2012-02, which contains a set of Frequently Asked Questions (“FAQs”) regarding the PPACA’s requirement that health insurance insurers issue a Medical Loss Ratio Report (“MLR”) to the Secretary of HHS and provide rebates to enrollees if at least 80% […]
IRS Releases Proposed Rule on Comparable Effectiveness Research Fees
On April 12, 2012, the Internal Revenue Service (“IRS”) released a proposed rule implementing the comparative effectiveness research fee, which was enacted under the PPACA to fund the Patient-Centered Outcomes Research Institute (“Institute”). The Institute will conduct research to evaluate and compare health outcomes, and the clinical effectiveness of various medications, treatments, and medical services. […]
Agencies Issue Additional Guidance on Summary of Benefits and Coverage Requirement
On March 19, 2012, the Departments of Labor, Health and Human Services, and the Treasury jointly issued a set of Frequently Asked Questions (“FAQs”) providing additional guidance on the PPACA’s Summary of Benefits and Coverage (“SBC”) requirement. Group health plans must begin providing the SBC, which includes a four page summary of the plan’s material […]