McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsCracking the Code: Taxing Developments in Benefit Compliance
By McDermott Will & Emery on Aug 21, 2015
Posted In Employment, Fiduciary and Investment Issues, Retirement Plans
Generally, any type of organization can offer a defined benefit pension plan under Section 4019a) in the Internal Revenue Code of 1986, as amended (the “Code) or a Code Section 401(k) Plan. However, only employers described in Code Section 501(a) and educational organizations described in Code Section 170(b)(A)(iii) are permitted to sponsor Code Section 403(b)...
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Affordable Care Act Reporting Penalties Significantly Increased
By McDermott Will & Emery on Aug 6, 2015
Posted In Employment, Health and Welfare Plans
On June 29, 2015, President Barack Obama signed the Trade Preferences Extension Act (the Act) into law. In addition to containing several revenue offsets, the Act significantly increased penalties for incorrect information returns, including those required by the Affordable Care Act (ACA). The Internal Revenue Service (IRS) may impose penalties for both failing to file...
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Effective Employee Suspension Agreements to Facilitate Compliance Investigations
By McDermott Will & Emery on Jul 10, 2015
Posted In Employment
The proper handling of employees who are under investigation, is crucial to ensuring effective compliance investigations that minimize disruption to the organization. The first step often involves entering into a suspension agreement with employees whose conduct is being investigated. Read the full article.
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Fiduciary Risks Involved in Transferring Assets from a Seller’s 401(k) Plan to the Buyer’s Plan
By McDermott Will & Emery on Jun 2, 2015
Posted In Benefit Controversies, Fiduciary and Investment Issues, Health and Welfare Plans, Retirement Plans
In many transactions, particularly those where the buyer is a portfolio company of a private equity fund, the buyer agrees to cause its 401(k) plan to accept a transfer of assets from the seller’s 401(k) plan. The asset transfer from the seller’s plan provides the buyer’s with an asset base with which to negotiate the...
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IRS Issues Q&As on Information Reporting under Code Section 6055 and 6056
By McDermott Will & Emery on May 22, 2015
Posted In Health and Welfare Plans
Yesterday the U.S. Internal Revenue Service issued new Questions & Answers regarding the Affordable Care Act’s reporting rules under Code Section 6055 and 6056. The categories under the guidance include: Basics of the Reporting, Who is Required to Report, Methods of Reporting (for employers), What Information Must be Reported (for providers), and How and When to...
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Supreme Court Acknowledges Fiduciaries Have Continuous Duty to Monitor Plan Investments, Remove Imprudent Investments
By McDermott Will & Emery on May 21, 2015
Posted In Fiduciary and Investment Issues, Retirement Plans
On May 18, 2015, the Supreme Court of the United States issued its opinion in the Tibble v. Edison Int’l, 575 U.S. ___ (2015) case, finding that the U.S. Court of Appeals for the Ninth Circuit erred in applying the six-year statutory bar in the Employee Retirement Income Security Act (ERISA) to plaintiff’s claim alleging...
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McDermott’s Todd Solomon Discusses Same-Sex Employee Benefits with the Wall Street Journal
By Diane Morgenthaler and McDermott Will & Emery on May 14, 2015
Posted In Benefit Controversies, Employee Benefits, Employment, Executive Compensation, Fiduciary and Investment Issues, Health and Welfare Plans, Retirement Plans
As the U.S. Supreme Court weighs whether gay couples are constitutionally entitled to marry, more companies in states with marriage equality have begun to mandate that gay employees marry in order to maintain benefits, including health care coverage. In a recent interview with the Wall Street Journal, McDermott partner Todd Solomon discusses the shifting terrain...
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UK Employment Alert: Holiday Pay – The Case Continues
By McDermott Will & Emery on Apr 16, 2015
Posted In Employment
In the latest in a long-running series of cases on holiday pay, the Employment Tribunal has handed down its first judgment in Lock v British Gas Trading Limited. This judgment confirms the principle that workers paid commission should receive holiday pay at a rate reflecting normal income, which can include commission, rather than basic salary...
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SEC No-Action Letter Permits Non-ERISA Retirement Plans to Issue Participant Fee Disclosures Without Violating Securities Laws
By McDermott Will & Emery, Brian Tiemann and Todd Solomon on Mar 26, 2015
Posted In Retirement Plans
The U.S. Securities and Exchange Commission (SEC) issued a no-action letter on February 18, 2015, that extends relief from SEC Rule 482 to sponsors of certain retirement plans exempt from ERISA. The relief permits sponsors of non-ERISA plans to follow final U.S. Department of Labor regulations for participant-level fee disclosures, provided the sponsor complies with...
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C-Suite – Changing Tack on the Sea of Data Breach?
By McDermott Will & Emery on Mar 24, 2015
Posted In Employment, Privacy and Data Security
The country awoke to what seems to be a common occurrence now: another corporation struck by a massive data breach. This time it was Anthem, the country’s second largest health insurer, in a breach initially estimated to involve eighty million individuals. Both individuals’ and employees’ personal information is at issue, in a breach instigated by...
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