McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsUnderstanding a Trustee’s Role in Management Incentive Plans
By McDermott Will & Emery on Jun 9, 2022
Posted In Benefit Controversies, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Executive Compensation, Fiduciary and Investment Issues, Retirement Plans
On May 5, 2022, McDermott Partner Erin Turley delivered a presentation during the 2022 TEA National Conference titled “Understanding a Trustee’s Role in Management Incentive Plans.” Her presentation focused on the trustee’s role in Management Incentive Plans (MIPs), how retention and performance stock appreciation rights (SARs) impact an employee stock ownership plan (ESOP) and ways...
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Employers Explore Abortion Coverage Continuation
By Sarah Raaii and McDermott Will & Emery on Jun 1, 2022
Posted In Benefit Controversies, Employee Benefits, Employment, Executive Compensation, Health and Welfare Plans
While the United States awaits the Supreme Court’s ruling in Dobbs v. Jackson, which may overturn Roe v. Wade and eliminate the federal standard for abortion access, some states are considering setting their own standards that would ban or protect the medical procedure. This state-by-state rulemaking will cause some difficulty for employer plans, and employers are increasingly exploring...
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ERISA Litigation: What Have We Learned?
By McDermott Will & Emery on May 24, 2022
Posted In Employee Benefits, Employee Stock Ownership Plans (ESOPs), Executive Compensation, Fiduciary and Investment Issues, Retirement Plans
Earlier this spring, McDermott Partner Erin Turley delivered a presentation about the impacts of recent Employee Retirement Income Security Act of 1974 (ERISA) litigation. Lawsuits now target both large and small employee benefit plans; plan sponsors are being sued and dragged into complex and lengthy litigation, thus changing the basic economics of the provision of...
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Agencies Clarify How Employers Can Charge COVID-19 Vaccine Premium Incentives
By Sarah Raaii and McDermott Will & Emery on Feb 24, 2022
Posted In Employee Benefits, Employment, Health and Welfare Plans, Labor
US employers have grown increasingly interested in identifying incentives that increase COVID-19 vaccination among employees. The US Departments of Labor, Treasury and Human and Human Services recently issued guidance regarding the application of the Health Insurance Portability and Accountability Act (HIPPA) wellness rules to vaccine-related premium surcharges and discounts, clarifying that employers may charge vaccine...
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Expect More Difficulty Obtaining Fiduciary Insurance
By McDermott Will & Emery on Dec 7, 2021
Posted In Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Privacy and Data Security, Retirement Plans
Increasing retirement plan-focused litigation has put insurance carriers and fiduciary service providers in difficult positions. In this article published in PLANSPONSOR, McDermott Partner Erin Turley said such litigation continues to be a “major focus” in the fiduciary insurance marketplace. “It is a challenging market right now, to the point that we are looking at trying...
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Agencies Clarify How Employers Can Charge COVID-19 Vaccine Premium Incentives
By Sarah Raaii and McDermott Will & Emery on Nov 2, 2021
Posted In Employee Benefits, Employment, Health and Welfare Plans
On October 4, 2021, the US Departments of Labor, Treasury, and Health and Human Services issued guidance regarding the application of the Health Insurance Portability and Accountability Act (HIPAA) wellness rules to vaccine-related premium surcharges and discounts, clarifying that employers may charge vaccine premium incentives if they adhere to the requirements of activity-only health-contingent programs....
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Missing Participants, Cybersecurity Top Challenges for Plan Advisors
By McDermott Will & Emery on Oct 28, 2021
Posted In Employee Benefits, Privacy and Data Security, Retirement Plans
Missing participants and cybersecurity are among the top challenges for retirement plan advisors, according to participants at the National Association of Plan Advisors’ 2021 NAPA 401(k) Summit in Las Vegas. During the Summit’s opening day workshop session, McDermott Partner Erin Turley said advisors should make an effort to discuss cybersecurity with clients in advance of...
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IRS Provides Further Guidance on COBRA Election and Payment Deadlines
By Sarah Raaii and McDermott Will & Emery on Oct 27, 2021
Posted In Employee Benefits, Employment, Health and Welfare Plans
In Notice 2021-58, the Internal Revenue Service clarified that the one-year tolling relief periods for Consolidated Omnibus Budget Reconciliation Act (COBRA) elections and initial premium payments run concurrently, not consecutively. This means that a qualified beneficiary generally will have only one year of total disregarded time for the election and initial payment periods. Read more...
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Employers on Hook for Mental Health Parity Despite New Target
By McDermott Will & Emery on Oct 20, 2021
Posted In Employee Benefits, Health and Welfare Plans
The US Department of Labor (DOL) is casting a skeptical eye on health insurance companies’ inconsistent coverage of mental health and substance use disorder benefits. The DOL recently commenced litigation against an insurer to require mental health and substance use disorder coverage be on par with regular physical care. In an article in Bloomberg Law,...
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Premium Surcharges for the Unvaccinated Are Lawful Within Limits
By McDermott Will & Emery on Oct 14, 2021
Posted In Employee Benefits, Health and Welfare Plans
Many plan administrators expressed bewilderment at the Biden administration’s recent guidance to limit vaccine incentive or surcharge programs for unvaccinated plan participants. According to this SHRM article, which features insight from McDermott Partner Judith Wethall, any premium surcharges must comply with the Health Insurance Portability and Accountability Act’s (HIPPA) nondiscrimination rules. HIPPA nondiscrimination rules allow...
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