Practical HR Tips, News & Advice. Updated Daily.
Retirement plan administrators do not have the authority to conclude that a domestic relations order (DRO) is not qualified because it is based on a “sham” divorce, the 5th U.S. Circuit Court of Appeals decided July 18, 2011. The 5th Circuit stated that a key ERISA section “does not authorize an administrator to consider or […]
Do you have to file the new Form 8955-SSA? If so, you may be able to breathe — and file — a little more easily. The IRS recently provided Announcement 2011-21 clarifying how the form is to be used, including how it is to be signed and electronically filed. The IRS also has provided additional information […]
A landmark Supreme Court ruling on relief available under ERISA in employee benefit cases is bringing cases back to life that we thought were dead and gone. In CIGNA v. Amara, the U.S. Supreme Court on May 16 ruled that ERISA’s enforcement provision allowing for “appropriate equitable relief” — ERISA Section 1132(a)(3) — aka Section […]
Companies that move from pensions to a cash balance plan can benefit by avoiding the risk of market volatility, but they should explain all aspects of the switch to employees and be careful not to violate the prohibition against age discrimination. When cash balance accounts replace retirement pensions, employees can be highly sensitive to the […]
It’s now official: The effective dates regarding fiduciary and participant fee disclosure regulations for retirement plans have been extended. The U.S. Department of Labor (DOL) has issued a final rule (which becomes effective July 15) providing that: Fiduciary-level Fee Disclosure Regulation: The effective date for the interim final rule is extended from July 16, 2011, […]
It seems the voice of the retirement plan community has been heard — the U.S. Department of Labor (DOL) is proposing extending the applicability dates of two controversial fee disclosure regulations. “Extending these dates will more closely align the application of the two rules and ensure that parties have sufficient time to comply with the […]
In the past year, litigation filed under the Employee Retirement Income Security Act (ERISA) has exploded, and it’s quickly becoming an ever-present reality for employers. One of the most recent and fastest-growing areas of this litigation involves 401(k) fee cases. Because the lawsuits are very new and still not well publicized, they catch many employers […]