Executive Compensation and ERISA

Co-authored by Christopher K. Buch.

The United States Department of Labor (DOL) released a direct final rule on July 13, that amended the procedures retirement plan fiduciaries are to use for reporting a covered service provider’s (CSP’s) failure to furnish the newly required disclosures related to the CSP’s compensation and possible conflicts of interest.


Continue Reading DOL Issues Direct Final Rule Related to Service Provider Disclosures

The Internal Revenue Service recently published Notice 2012-40 in which it provided guidance with regard to the $2,500 limitation effective next year for health flexible spending arrangements (Health FSAs) subject to Internal Revenue Code (Code) Section 125. The reduction in the maximum amount of contribution (from the current limit of $5,000) was enacted as part of the Patient Protection and Affordable Care Act. Health FSAs with a cap on employee contributions which exceed $2,500 will have to be amended to come into line with this new limitation.


Continue Reading IRS Provides Guidance on Reduction in Health FSA Limit to $2,500

Co-authored by Christopher K. Buch.

On April 17, the Internal Revenue Service published in the Federal Register proposed Regulations setting forth the details for the new fees imposed upon self-insured plans and health insurance policy issuers. These fees were mandated in the Patient Protection and Affordable Care Act (PPACA) and are effective for current plan years and for the six years thereafter.


Continue Reading New IRS Regulations Imposing Fees Upon Self-Insured Plans and Health Insurance Policies

As part of its efforts to effect transparency of fees paid by plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) to investment managers and other service providers, the U.S. Department of Labor (DOL) has indicated that it will develop and propose a required format for a "summary guide" of the disclosures under ERISA Section 408(b)(2).


Continue Reading DOL Plans to Propose Format for Service Provider Fee Disclosures; No Required Format for 2012 Disclosures

Co-authored by Ann M. Kim

Coming up this summer are a number of reporting and disclosure deadlines under the Employee Retirement Income Security Act of 1974 (ERISA) that deal with fees and expenses paid by plans that are subject to ERISA.  Service providers to such plans, including investment managers who manage plan assets, and other entities that provide investment products (such as annuity contracts or collective investment funds), should be aware of their responsibilities and be prepared for requests for information from their ERISA plan clients.


Continue Reading Important Deadlines for ERISA Plans to Receive and Report Information on Fees, Expenses

Citing a concern about increased risk of fraud and material misstatement, on February 28, the Public Company Accounting Oversight Board (the PCAOB) issued Release No. 2012-001 (the Proposal). The Proposal would amend public company auditing standards to require increased review and analysis of executive compensation programs because such programs can put pressure on management to meet financial performance targets to ensure larger compensation payments. The PCAOB believes that such pressure may result in a material misstatement of the company’s financial position.

Continue Reading Audits May Soon Require Even Greater Scrutiny of Executive Compensation

Co-authored by Evan A. Belosa.

Each year, veterans leave the armed services and enter or re-enter the job market. The U.S. Equal Employment Opportunity Commission (the EEOC) estimates that 25% of veterans returning from the Middle East conflicts will have a service-connected disability. Recognizing the importance of assuring returning veterans a level playing field at home, on February 28, the EEOC issued Q&A guides for employers and for veterans, serving as reminders that veterans with disabilities are covered by the Americans with Disabilities Act (the ADA), and the Americans with Disabilities Act Amendments Act of 2008.


Continue Reading EEOC Issues ADA Guidance for Employers on the Rights of Veterans with Disabilities

Co-authored by Christopher Buch.

Under final regulations issued February 9, group health plans must issue a summary of benefits and coverage and a uniform glossary. The final rule implements a Patient Protection and Affordable Care Act (PPACA) requirement of group health plans to provide its enrollees and potential enrollees with certain disclosures to help them better understand their health coverage, as well as to learn about additional coverage options. The final regulations were the combined effort of the Internal Revenue Service, the Employee Benefits Security Administration, and the Centers for Medicare & Medicaid Services, the three agencies responsible for implementing healthcare reform legislation under PPACA.


Continue Reading Agencies Issue Final Rules On Summary of Benefits for Health Plans and Insurance Coverage Under PPACA