Tag: qualified beneficiary

Short-lived Sale Option Did Not Negate COBRA Small-employer Exception

A former employee argued that her former employer, which employed fewer than 20 employees (and thus was exempt from COBRA) for eight months of the year, formed an affiliated service group with another employer and thus employed more than 20 employees for four months of that year. Thus, she contended the employer became subject to […]

COBRA Penalties and Legal Costs Due to Notice Failure, Evasive Answers Rise to $126K

An employer/plan administrator continues to get an expensive lesson on the risks of having both inadequate COBRA notice procedures and poor explanations of how those procedures work. An “inefficient, unwieldy” notice process — coupled with evasive and contradictory answers from employees on why a qualified beneficiary did not receive a COBRA election notice — led […]

Court Reverses Award of Deceased’s Pension to Stepchildren

By Jane Meacham An appellate court sided with a plan administrator’s decision that a deceased plan participant’s stepsons are not entitled to his pension benefits, a ruling that may set the direction for similar plan interpretations under ERISA law. In the case, Herring v. Campbell , Case 11-40953 (Aug. 7, 2012), John Wayne Hunter, a retiree […]

Courts, Agencies Take Mixed Actions Affecting Same-sex Partners

Branches of the federal government have taken divergent actions affecting same-sex partners. A federal district court upheld a state law defining marriage as occurring between a man and a woman; meanwhile, the U.S. Office of Personnel Management has issued final and proposed regulations to expand federal employees’ benefits coverage to their same-sex partners and those […]

Full 9th Circuit Refuses to Review California’s Same-sex Marriage Ban

Employers can expect continued uncertainty regarding whether they will need to adjust their plans, documents and policies to accommodate same-sex spouses. The 9th U.S. Circuit Court of Appeals on June 5 refused a petition that the full bench of the court rehear Perry v. Brown, Nos. 10-16696, 11-16577. That lets stand the ruling by a […]

Federal DOMA Unconstitutional, First Circuit Says, But Doesn’t Disturb State Laws

Employers and plan administrators hoping clarity will soon dispel the confusing tangle of divergent laws governing same-sex marriage and how they must address it in their benefit plans and HR policies have longer to wait. The 1st U.S. Circuit Court of Appeals on May 31 issued a ruling in Commonwealth of Massachusetts v. U.S. Department […]

Rhode Island Recognizes Other States’ Same-sex Marriages

Same-sex marriage is not legal in Rhode Island, but employers there must make provision for employees’ same-sex spouses nonetheless. Gov. Lincoln Chafee (I) on May 14 signed an executive order announcing that Rhode Island will recognize the validity of same-sex marriages entered into in states where it is legal. The executive order went into effect […]

Obama’s Same-sex Marriage Statement Doesn’t Change Employer Plans’ Status Quo

Employers likely will need to continue to pay close attention to how their individual states’ approach to same-sex marriage will affect their employee benefit plans, regardless of President Obama’s newly articulated support for it. The president on May 9 said that he supports same-sex marriage, but also that the states should be able to decide […]

N.C. Voters Nix Same-sex Marriage: Implications for Employers

Employers in North Carolina will not face the complications their counterparts in states where same-sex marriage is legal or recognized do, but local and municipal governments that provide domestic partner benefits may have to change their policies. Tar Heel State voters on May 8 approved an amendment to the state constitution that defines marriage as […]