Retirement Plans Archives - Page 14 of 70

High Court Pension Row May Have Broad Impact

by Richard J. Pearl | Oct 1, 2019 | Benefit Controversies, Fiduciary and Investment Issues, Retirement Plans

A US Supreme Court case pitting pensioners against US Bank could have a wide-ranging impact on who can bring suit under ERISA, whether they participate in a defined benefit pension plan or a 401(k) plan.

Recently, on Law360, McDermott’s Richard J. Pearl weighed in on the impact of Thole v. US Bank, one of three ERISA cases that the US Supreme Court will decide this term. The case, discussed in greater detail in our On the Subject, will address whether defined benefit pension plan participants have standing to bring suit under ERISA if their plan is fully funded.

Although the case focuses on participants’ ability to bring suit on behalf of defined benefit pension plans, according to Pearl, the case seems to ask the high court to answer a question that often crops up in defined contribution plan litigation, as well: Whose injury matters, the plan’s or the person’s? As a result, the court’s decision could impact not only litigation involving defined benefit pension plans, but also defined contribution plans, where case law is still being developed around what gives a participant grounds to sue on behalf of a plan.

Access the full article.

Employment, Benefits and Compensation Forum: Control Your Own Headlines

by McDermott Will & Emery | Sep 24, 2019 | Employee Benefits, Employment, Health and Welfare Plans, Labor, Retirement Plans

In today’s high-stakes environment, in-house counsel and HR professionals are often on the frontlines, responding to headlines that threaten business and reputational objectives.

Join McDermott Will & Emery’s Employment and Employee Benefits practice groups at a half-day forum in our Chicago office on Oct. 10. This forward-looking program is designed to drive conversation around emerging trends to help employers craft their own narrative, instead of being held captive by it.

See full event details and register here.

Once Again, IRS Extends Nondiscrimination Relief for Frozen Defined Benefit Plans

by Alan D. Nesburg, PC and Charnae Supplee | Sep 19, 2019 | Employee Benefits, Retirement Plans

The Internal Revenue Service (IRS) has once again extended the temporary nondiscrimination relief for frozen defined benefit plans, now through 2020. Frozen pension plans are pension plans that have been closed to new participants but continue to provide ongoing benefit accruals for certain participants. This extended relief is intended to enable frozen pension plans to satisfy certain nondiscrimination testing requirements. In most cases, the relief allows the frozen defined benefit plan to be aggregated with a defined contribution plan to satisfy the nondiscrimination testing requirements. The relief assists the aggregated plan in passing nondiscrimination requirements that apply to accrued benefits and to certain rights and features relating to those benefits.

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PBGC’s Multiemployer Insurance Program Faces Insolvency, While Single-Employer Program Improves

by Charnae Supplee and Stephen Pavlick | Sep 17, 2019 | Employee Benefits, Retirement Plans

The Pension Benefit Guaranty Corporation (PBGC) recently issued a press release announcing that the Multiemployer Insurance Program remains in a dire financial condition, nearing insolvency. The agency’s insurance program for multiemployer pensions, covering more than 10 million people, will likely run out of money by the end of fiscal year 2025, according to the FY 2018 Projections Report. On the other hand, the PBGC’s projection for the Single-Employer Program shows continued improvement. However, these positive projections are subject to a range of potential outcomes due to the Program’s sensitivity to economic conditions.

Access the full article.

Federal Court Certifies Class in Multiple-Plan ERISA Challenge to Health-Plan and Retirement-Plan Fees

by Richard J. Pearl | Sep 10, 2019 | Benefit Controversies, Employee Benefits, Fiduciary and Investment Issues, Health and Welfare Plans, Retirement Plans

A Texas federal court certified a class in case brought by participants in one plan, and allowed those participants to represent participants in unaffiliated plans. The claims alleged that the defendants, who marketed and provided services to all of the plans, breached fiduciary duties by imposing excessive fees. See Chavez, et al. v. Plan Benefits Services, Inc., et al., No. AU-17-CA-00659-SS, United States District Court for Western District of Texas (Aug. 30, 2019).

Access the full article.

Ninth Circuit Answers Some Questions About Arbitration of ERISA Claims

by Richard J. Pearl | Sep 5, 2019 | Benefit Controversies, Employee Benefits, Retirement Plans

In two opinions—one published and one unpublished—the Ninth Circuit overturned prior precedent and held that a Plan amendment requiring arbitration meant that an individual had to arbitrate, on an individual basis, purported class claims alleging imprudent and disloyal management of 401(k) investments. This decision, although unpublished, provides support for plans wishing to add binding arbitration provisions that apply to ERISA 502(a)(2) claims.

Access the full article.

Right Around the Corner: Expanded IRS Determination Letter Program Opens in September

by Brian Tiemann, Sarah L. Engle and McDermott Will & Emery | Aug 22, 2019 | Employee Benefits, Retirement Plans

Beginning September 1, 2019, the IRS is expanding its retirement plan determination letter program to apply to certain individually designed statutory hybrid and merged plans. Employers sponsoring hybrid plans not previously reviewed by the IRS for required (or other) plan changes, and employers that have or will merge two or more of their plans together in connection with a corporate transaction, should consider taking advantage of this expanded determination letter program.

Access the full article.

Capital Perspective: An Analysis of Hot Topics in Benefits and Compensation

by Andrew Liazos, Evan A. Belosa and Jeffrey Holdvogt | Aug 8, 2019 | Employee Benefits, Employment, Executive Compensation, Health and Welfare Plans, Retirement Plans

With the uncertainty of the general election just one year away—and change on the horizon—now is the time to take stock of the legal and regulatory environment to prepare your organization for the future.

On September 10 in Boston, the ERISA Industry Committee (ERIC), Fidelity and McDermott invite you to join your peers and colleagues for breakfast and an interactive discussion at 8 am EDT around hot topics in benefits and compensation. Areas of focus will include:

Congressional action on healthcare—from Rx costs to surprise billing
Direct contracting for health plans
Federal and state paid leave
Lasting impacts of tax reform
New leveraged ESPP funding alternative
Student loan repayment plans
The SECURE Act and what comes next

Register for the event.

Kruse-Western Wins Partial Dismissal in ERISA Lawsuit over $244 Million Stock Sale

by Charnae Supplee and Richard J. Pearl | Aug 6, 2019 | Benefit Controversies, Employee Stock Ownership Plans (ESOPs), Retirement Plans

The federal court affirmed ERISA’s limitations on the types of claims and remedies available under ERISA. This well-reasoned decision affords Congress the deference it deserves by limiting claims and remedies only to those Congress intended to provide in ERISA.

Access the full story.

On Top of ESOP Developments: Insights from the 42nd ESOP National Conference

by Ted Becker | Aug 1, 2019 | Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans

The 2019 ESOP National Conference, an annual gathering for employee owners from all levels, association volunteer leaders and expert professionals, took place May 22–24. Two McDermott partners, Theodore (Ted) M. Becker and Erin Turley, presented three sessions during the conference, the slides of which are available for download on the conference website. See descriptions of the presentations below: (more…)

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