Retirement Plans Archives - Page 9 of 70

EBSA Privacy and Cybersecurity Guidance

by Andrew Liazos and Todd McClelland | May 20, 2021 | Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Privacy and Data Security, Retirement Plans

Andrew C. Liazos, partner at McDermott Will & Emery, recently moderated an American Bar Association panel on the new cybersecurity guidance for retirement plan sponsors issued by the Department of Labor (DOL). The panel slides included 10 takeaways for the new DOL guidance.

Access the slides.

As a background, the DOL’s new guidance formalized its long-held view that retirement plan fiduciaries have an obligation to ensure proper mitigation of cybersecurity risks. More specifically, the DOL expects retirement plan fiduciaries to select and monitor the cybersecurity practices of their service providers.

The DOL guidance is in three parts.

The first part provides plan fiduciaries with a framework for reviewing a vendor’s cybersecurity practices.
The second part provides a robust list of cybersecurity “best practices” for record keepers and other vendors responsible for plan-related IT systems and data. For example, the DOL recommends that all retirement plan vendors with critical participant data conduct a reliable annual third-party audit of their security controls.
The third part provides security tips for participants and beneficiaries who manage their retirement accounts online.

Recent Developments in Employer Student Loan Repayment Benefits

by Jeffrey Holdvogt | Apr 29, 2021 | Employee Benefits, Employment, Retirement Plans

Last month, McDermott partner Jeffrey M. Holdvogt was a speaker at the ERIC March Financial Wellness Huddle on the topic of Recent Developments in Employer Student Loan Repayment Benefits. His presentation covered:

Student loan repayment benefits
Employer options for student loan benefits
CARES Act Educational Assistance Program
Converting unused PTO funds to student loan debt relief
Retirement plan options

Access the presentation.

DOL Move Bodes Well for Socially Conscious 401(k) Investing

by McDermott Will & Emery | Apr 20, 2021 | Employee Benefits, Health and Welfare Plans, Retirement Plans

The US Department of Labor’s decision last month to table Trump-era regulations limiting socially conscious investments by retirement plans signals that the Biden administration is considering an embrace of so-called ESG funds, which attempt to advance environmental, social and corporate governance goals.

Tabling these regulations brings “the Department of Labor into alignment with the desire of not just plan fiduciaries, but more notably, the actual plan participants to use their retirement assets in a socially conscious manner,” McDermott partner Erin Turley said in an article for Law360.

Access the article.

Easing the Burden: New PBGC Rule Simplifies Multiemployer Plan Withdrawal Liability Calculations

by Lisa Loesel and Todd Solomon | Apr 14, 2021 | Employee Benefits, Labor, Retirement Plans

New guidance streamlines the methods for calculating withdrawal liability for multiemployer union pension plans that have adopted benefit reductions, benefit suspensions, surcharges or contribution increases—a common occurrence with underfunded multiemployer pension plans.

Access the article.

American Rescue Plan Act of 2021: Key Healthcare Provisions

by Rodney Whitlock and Eric Zimmerman | Apr 7, 2021 | Employee Benefits, Employment, Health and Welfare Plans, Labor, Privacy and Data Security, Retirement Plans

On March 10, 2021, US Congress finalized and passed the American Rescue Plan of 2021 (ARPA), the latest COVID-19 relief package that largely tracks President Joe Biden’s initial $1.9 trillion proposal. The ARPA extends unemployment insurance benefits and provides direct $1,400 stimulus payments to qualifying Americans, but it also makes several important health policy-related changes. These include providing funding for vaccine distribution and testing to combat the COVID-19 pandemic, making policy adjustments to the Medicaid program, facilitating health insurance coverage and providing more money for healthcare providers. The final bill also makes two narrowly focused technical Medicare payment changes.

This summary highlights notable health policy provisions of the final bill.

Access the summary.

For more information, please contact Meg Gilley, Mara McDermott, Kristen O’Brien, Katie Waldo, Rodney Whitlock or Eric Zimmerman.

Employee Rewards in M&A Transactions: Comparability Provisions

by McDermott Will & Emery | Mar 9, 2021 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Employment, Executive Compensation, Privacy and Data Security, Retirement Plans

Companies enter into merger & acquisition (M&A) deals for a range of reasons, but how employees are treated once a deal closes depends largely on the buyer’s deal strategy. Often the buyer signs a deal under the promise that the acquired business’ employees will continue to receive rewards at deal close that are comparable to those they received before, at least for a specified period of time. But why include such comparability provisions in deal terms given that they appear to restrict the buyer? What do these provisions typically cover? And what are best practices?

Willis Tower Watson recently tapped law firms with leading M&A advisory teams, including McDermott’s Carole Spink, to dig into the answers.

Access the article.

Making Sure It Hurts: 2021 Increased Penalties for ERISA Violations

by Diane Morgenthaler and McDermott Will & Emery | Feb 24, 2021 | Employee Benefits, Health and Welfare Plans, Labor, Retirement Plans

The Department of Labor (DOL) made inflation adjustments to a wide range of penalties for Employee Retirement Income Security Act (ERISA) violations by employee benefit plans and plan sponsors. The new penalty amounts that apply in 2021 are included herein.

Access the article.

Full Disclosure Required: Lifetime Income Estimates on Defined Contribution Plan Benefit Statements

by Lisa Loesel, Joseph K. Urwitz and McDermott Will & Emery | Feb 9, 2021 | Employee Benefits, Retirement Plans

The Department of Labor provided interim guidance on the new required annual lifetime income disclosures to participants in defined contribution plans, including plans covered under section 401(k) or 403(b) of the Internal Revenue Code, profit-sharing plans and employee stock ownership plans (ESOPs). The Lifetime Income Disclosure Rule is currently scheduled to go into effect on September 18, 2021. Given this timeframe, sponsors of defined contribution plans should start planning for these new disclosure requirements now.

Access the article.

Virus Stokes Telemedicine, Mental Health Benefits’ Popularity

by Jacob Mattinson | Jan 19, 2021 | Employee Benefits, Health and Welfare Plans, Retirement Plans

The COVID-19 pandemic that ravaged 2020 spurred workers to take advantage of telemedicine and mental health benefits more frequently, and demand for those services isn’t expected to wane in the near future, experts say.

A recent article in Law360 examined three ways the pandemic had an impact on employee benefits over the past year, with McDermott partner Jacob Mattinson weighing in.

Access the article.

Final Rule for Selecting Retirement Plan Investments Leaves “ESG” Behind

by Brian Tiemann and McDermott Will & Emery | Dec 17, 2020 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans

In recent guidance, the Department of Labor clarified the retirement plan standards for environmental, social and corporate governance (ESG) investing without mentioning the term ESG. The new guidance provides that, when selecting and monitoring plan investments, an Employee Retirement Income Security Act (ERISA) fiduciary must never sacrifice investment returns, take on additional investment risk or pay higher fees to promote non-pecuniary benefits or goals.

Teal Trujillo, an incoming associate in our Chicago office, also contributed to this On the Subject.

Access the article.

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