Published: November 13, 2017
The Affordable Care Act or ACA (a/k/a “Obamacare”) is not dead, yet. On November 2, 2017, FAQs 55-58 appeared, without fanfare, on the IRS’ ACA website. These FAQs outline the process the IRS will use to notify an applicable large employer (“ALE”) that a penalty under the employer mandate is being assessed. That notice will come in the form of a letter (Letter 226J), and assessment will be made based, in part, on the ALE’s reporting on IRS Forms 1094 and 1095.
Published: June 29, 2017
Lawyers with clients that deal with multiemployer plans thought we knew what plans could require withdrawing employers to pay. After all, the employer’s potential liability – commonly known as “withdrawal liability” – is described fairly comprehensively in ERISA. The US Court of Appeals for the Eleventh Circuit disagrees, and said so in a recent case. According to the court, there is nothing in ERISA that indicates Congress intended for withdrawal liability to be the only payments a withdrawing employer would ever face.
Published: June 13, 2017
Three more class action lawsuits were filed against the fiduciaries of plans maintained by institutions of higher education (University of Chicago, Princeton University, and Washington University in St. Louis). The complaints allege acts or omissions that constitute a breach of fiduciary duty under the Employee Retirement Income Security Act (“ERISA”) with respect to tax deferred annuity programs, commonly known as “403(b) plans” that have been adopted and maintained under Section 403(b) of the Internal Revenue Code of 1986, as amended.
Published: March 10, 2017
Apparently rhetoric matters. Although the former President eventually embraced the term himself, “Obamacare” was originally a derogatory term used for health care reform by Obama’s opponents in Congress. Anecdotal evidence suggests that many individuals didn’t know that the Affordable Care Act and “Obamacare” were the one and the same. Now that “Obamacare” may be repealed and replaced, many who demonized it realize that the law is more than just health insurance marketplaces.
Published: February 1, 2017
Members of Saul Ewing’s Tax and Employee Benefits and Executive Compensation Practices have outlined the recently announced 2017 dollar limits on the Social Security Wage Base, compensation and deferrals for retirement plans, and health and welfare plans, as well as PCORI fees, Medicare Part B premiums, and increases to Social Security increases in age and benefits.
Published: January 26, 2017
Over the years, we have seen numerous class action lawsuits against plan fiduciaries, starting with claims relating to mega 401(k) plans and, more recently, claims against the fiduciaries of very large University-sponsored, ERISA covered 403(b) programs. The allegations in these complaints vary, but, generally, include a breach of fiduciary duty claim alleging excessive fees were paid from plan assets for recordkeeping or other administrative services.