On October 24, 2011, the Department of Labor, Employee Benefits Security Administration, released its final rule on investment advice. This final rule implements a statutory prohibited transaction exemption under ERISA which permits financial advisors to receive fees from providers of investment products that are recommended to participants of employee benefit plans. The final rule becomes effective December 27, 2011.
On October 20, 2011, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged. Of note:
In the article, entitled "How Gross Takes the Teeth Out of a Proposal For an Employment-Status Discrimination Cause of Action," Michael R. Daum discusses pending congressional legislation to prohibit employers from discriminating against applicants on the basis of their employment status and warns that such a law would be rendered ineffective by the U.S. Supreme Court’s 2009 decision in Gross v. FBL Financial Services.
On October 4, 2011, Daniel R. Brice, Jonathan M. Cerrito and Ginger B. LaChapelle presented to Fulton, Hamilton and Montgomery Counties, Fourth District Dental Society–an organization formed in 1868 to provide member services and serve as a liaison with the New York State Dental Association the American Dental Association, and other State Agencies and Societies–on various employee benefit issues facing the dental industry.
Nathaniel G. Lambright, a Partner in the Labor Department of Blitman & King, has been selected to serve as a Panelist for the upcoming conference sponsored by the Syracuse, Rochester and Buffalo Labor and Employment Relations Association chapters and Cornell’s Industrial and Labor Relations Program.
New York State Governor Andrew Cuomo recently announced that the State will be conducting investigations of nonprofit organizations, including hospitals and clinics, that receive Medicaid funding from the State. A New York State Not-for-Profit Entities Task Force will be created to audit the organizations with a focus on executive compensation levels. The investigations are in response to reports of excessive salaries and compensation packages for executives of nonprofit organizations that depend on state Medicaid funding.
Congratulations to the following Blitman & King attorneys who have been named as 2011 Super Lawyers for New York: Charles E. Blitman, Employee Benefits/ERISA; Bernard T. King, Employment & Labor; Daniel E. Kornfeld, Employee Benefits/ERISA; James R. LaVaute, Employment & Labor; Donald D. Oliver, Employment & Labor; Jules L. Smith, Employment & Labor; Kenneth L. Wagner, Employment & Labor
Inside this issue are updates regarding Medicare Part D Creditable Coverage Notices, Constitutional Challenges to Health Care Reform, the Impact of New York State’s Same-Sex Marriage Law on ERISA Covered Health Plans, FASB and more.
Nathaniel G. Lambright, a Partner in the Labor Department of Blitman & King, has been selected to serve as a Panelist for the New York State Bar Association, Labor & Employment Law Section Fall Meeting. As a Panelist, Nat will present “The What, When, Where and Why of the NLRB’s Proposed Rules Reforming R-Case” providing insight the NLRB’s proposed rules which will expedite, modernize and streamline the Union election and representation process.
The Department of Labor recently issued a final rule that extends by three months, from January 1, 2012 until April 1, 2012, the effective date for service providers to comply with final regulations concerning disclosure of fees and costs to the responsible plan fiduciary.