Faegre Drinker, Author at Spotlight on Benefits

In Case You Missed It: Spotlight on Benefits – 2024 Winter

Written by members of Faegre Drinker’s benefits and executive compensation team, this blog features analysis and information on matters related to retirement plans, health and welfare plans, ESOPs, fiduciary governance, and other benefits issues.

This quarterly digest provides links to our most popular posts during the past few months so that you can catch up on what you missed or re-read them.

ERISA Moments, Ep. 13: Rollover Recommendations Will Be Fiduciary Advice … And What About Withdrawals?

By Bradford Campbell and Fred Reish
We’re looking at the DOL’s fiduciary proposal and the prohibited transaction exemptions associated with it. In this episode, Fred and Brad are talking about rollovers. The proposed definition of fiduciary advice basically says that a one-time investment recommendation can result in an adviser or insurance agent becoming a fiduciary.

Five Habits of the Healthy Health Plan Fiduciary

By Kendra L. Roberson
As it is often said, “the only constant in the world is constant change.” So it is important for health plan fiduciaries to periodically review the fundamentals for consistency and compliance to avoid risk and costly mistakes. We provide a health plan fiduciary checklist — with five actions that health plan fiduciaries can take to help keep an organization safe and successful.

Roth Employer Contributions

By Doug Heffernan and Mark Rosenfeld
On December 20, 2023, the IRS issued Notice 2024-2, which provides question-and-answer guidance on various aspects of the SECURE 2.0 Act. This post focuses on the ability to make employer contributions (match or nonelective) as Roth contributions under SECURE 2.0 Act, Section 604.

In Case You Missed It: Spotlight on Benefits – Winter 2024

This quarterly digest provides links to our most popular posts during the past few months so that you can catch up on what you missed or re-read them.

IRS Announces 2024 Retirement Plan Limits

By Sarah Bassler Millar, Mark Rosenfeld, Dawn Sellstrom and Inés Sosa
The IRS recently announced the 2024 cost-of-living adjustments to various benefit and contribution limits applicable to retirement plans. The IRS modestly increased the applicable limits for 2024.

Introducing ERISA Moments: Bite-Size Vodcasts on the Latest ERISA Developments

By Fred Reish and Bradford Campbell
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments.

When One Door Closes, Another Opens…Maybe Fourth Circuit Holds that Surcharge Is Not Equitable Relief Available Under ERISA but Paves the way for Unjust Enrichment Claims

By Rick Pearl
In an ERISA case for wrongful denial of health insurance benefits, the U.S. Court of Appeals for the Fourth Circuit addressed when a plaintiff may recover monetary relief under §§ 502(a)(1)(B) and (a)(3). The Fourth Circuit unsurprisingly held that ERISA § 502(a)(1)(B) limits recovery to benefits due under the terms of a plan, and a plaintiff cannot recover the cost of a denied surgery because the cost is not a “benefit” due; coverage for the cost, and payment to the provider, is the benefit. Unless a plaintiff pays the bill first, the plaintiff cannot recover the cost from an insurer.

In Case You Missed It: Spotlight on Benefits – Fall 2023

This quarterly digest provides links to our most popular posts during the past few months so that you can catch up on what you missed or re-read them.

DOL Issues Long Awaited Mental Health Parity Guidance

By Sarah Bassler Millar, Yael Kalman and Dawn Sellstrom
Plan sponsors, insurers, and third-party administrators should pay close attention to the new guidance to facilitate health plan compliance with complex nonquantitative treatment limitation comparative analyses requirements.

Another 401(k) Plan Fiduciary Defeats Breach of Fiduciary Duty Claims at Trial

By Kimberly Jones and James E. Crossen

401(k) plan fiduciaries recently defeated a lawsuit alleging the fiduciaries imprudently managed and paid excessive record keeping an investment fees. The victory for the fiduciaries follows a jury trial win of Yale University’s 403(b) plan. The court opinions in both of these cases serve as a good reminder that offense is the best defense, and ERISA plan fiduciaries best protect themselves against ERISA breach of duty of prudence claims by proactively implementing strong fiduciary governance practices, such as keeping thorough committee meeting minutes.

IRS Issues 2-Year Delay for Roth Catch-Up Contribution Requirements

By Mona Ghude and Mark Rosenfeld

On August 25, 2023, the IRS announced a two-year delay for the Roth catch-up contribution requirement for employees making $145,000 or more in the prior calendar year that would have applied in 2024. The Roth catch-up contribution requirement will now be effective for taxable years beginning after December 31, 2025.

Happy Labor Day from Faegre Drinker

IRS Announces 2021 Dollar Limits for Employee Benefits Plans

The IRS has announced the dollar limits for contributions and benefits in retirement plans and certain deferred compensation plans for 2021. We have compiled a chart summarizing the key limits below, including how they compare with those in the previous year. Plan sponsors should confirm with their recordkeepers that all systems have been updated to reflect the 2021 limits.

Audiocast: Year-End Checklist for Your Retirement Plan: 2020

Each year, retirement plans’ fiduciaries have a lot of responsibilities as they prepare for year-end. This year, fiduciaries and plan sponsors have a few extra “to do’s” on their list, with the passage of the CARES and SECURE Acts within the past year. Join Summer Conley, partner at Faegre Drinker, and Bonnie Treichel, co-founder and COO of ZUNA, on Thursday, October 22, 2020, at 1:00 p.m. ET for an actionable audiocast that will cover the tasks that are most critical to preparing for a successful year-end and start to 2021.

Continue reading “Audiocast: Year-End Checklist for Your Retirement Plan: 2020”

Benefits and Breakfast: Latest Developments in Welfare Plans

Missed last month’s Benefits & Breakfast meeting on the latest developments in welfare plans in Chicago, Los Angeles and Philadelphia? We have you covered!

Listen to recordings for each meeting, where we covered the following topics:

New Health Reimbursement Account (HRA) Regulations – Will a standalone HRA work for you?
Recent Welfare Plan Litigation – Are you prepared to defend a lawsuit based on your current plan documentation and procedures?
Privacy – Are changes to the HIPAA Privacy Rule in the future? Will new California privacy rules affect you?
Health Plan Executive Order – What is coming for HSAs, FSAs, and health care price transparency initiatives?

Recordings: Chicago | Los Angeles | Philadelphia