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U.S. Supreme Court Set To Rule On ERISA Case

As of press time, the U.S. Supreme Court was set to rule on a case that could redefine the claims and remedies allowed under the federal Employee Retirement Income Security Act (ERISA). The lawsuit arose after a 401(k) plan participant asked the plan administrator, which was his employer, to change his elections. The participant claimed […]

IRS Notice Provides Relief Regarding Non-Qualified Deferred Compensation Plans

The IRS recently issued Notice 2007-100, which gives employers an opportunity to correct unintentional operational mistakes concerning nonqualified deferred compensation plans. Internal Revenue Code Section 409A, which covers these plans, specifies the manner in which they must be reported to avoid premature taxation. The notice gives employers the opportunity to self-correct unintentional operational errors—the failure […]

DOL Proposes Rule To Reveal 401(K) Plan Fees

The U.S. Department of Labor (DOL) has issued a proposed rule that would force 401(k) plan administrators to report compensation they derive directly and indirectly from their services. In addition, the rule would require plan administrators to disclose in writing potential conflicts of interest to plan fiduciaries, namely employers. The regulation’s main purpose is to […]

Retirement Benefits: EEOC Allows Employers to Coordinate Retirees’ Health Benefits with Medicare

A new U.S. Equal Employment Opportunity Commission (EEOC) rule gives employers some relief regarding their ability to reduce or eliminate retirees’ healthcare benefits once they become eligible for Medicare. Such a reduction or elimination will not violate the Age Discrimination in Employment Act (ADEA), the federal statute that prohibits age-based discrimination, the new rule states. […]

Wage Disputes: Time Limit to Recover Waiting-Time Penalties Clarified

A waiting-time penalty is assessed when an employer willfully fails to pay a worker the compensation he or she is entitled to on termination of employment. A California appeals court recently ruled that when a worker seeks waiting-time penalties but not unpaid final wages, his or her claim is subject to a one-year statute of […]

Retirement Plans: Automatic Enrollment Only Part of Equation for 401(k) Savings; Tips for Ensuring Quality Enrollment

Only 25 percent of the 300 mid- to large-sized employers polled in a survey by global HR-services company Hewitt Associates said they viewed a high participation rate in their 401(k) plans as the prime measure of the plans’ success. The survey indicated that more employers are placing less importance on the number of employees enrolled […]