June 22, 2010 - When Does a Health & Welfare Plan Lose its “Grandfathered” Status?
The U.S. Department of Health and Human Services (HHS), Labor and Treasury have issued interim and final regulations for group health plans and health insurance coverage relating to status as a grandfathered health plan under the Patient Protection and Affordable Care Act (P.L. 111-148). The regulations, which also call for comment, were published in the June 17 Federal Register and have been synthesized for easy reading. To read the entire article click on the title.

April 27, 2010 - Considerations - Traditional IRA to Roth IRA Conversion
In 2010, an important Roth IRA rule change went into effect as part of the Tax Increase Prevention and Reconciliation Act signed by President George W. Bush in 2006. In the past, individuals could not convert their traditional IRA to a Roth IRA if their income exceeded $100,000 and those who were married filing separately could not convert regardless of what they earned. Effective January 1, 2010, traditional IRA holders are able to convert to a Roth IRA with no income limit. Also, as a one-time offer for 2010 only, the law allows the taxes on the entire conversion amount either to be reported in full for 2010, or spread out equally over the next two tax years (2011 and 2012 only). The married-filing–separately restriction was also repealed. To read this entire article, click on the title above.

March 30, 2010 - Post Script to the eActionAlert dated March 24, 2010
We have welcome news for employers with existing group health plans. After a detailed examination of both the Patient Protection and Affordable Care Act (HR 3590, a.k.a. the “health care reform bill”) and the Health Care and Education Reconciliation Act of 2010 (HR 4872, a.k.a. the “fix it bill”), we have confirmed that existing group health plans are ‘grandfathered’ from having to make several of the changes identified in our Alert dated March 24, 2010. To read this entire article, click on the title above.

March 24, 2010 - The Landmark Health Care Reform Bill
On March 23, 2010, President Obama signed into law the bill (HR3590) originally passed by the Senate on December 24, 2009 and approved by the House on March 21, 2010. Later that Sunday night the House also passed the reconciliation bill (HR4872). That bill (HR 4872) has now moved to the Senate for the "reconciliation" process. It must receive 51 "yes" votes in the Senate to pass. Although passage is not certain, it is expected. Once that is done, the implementation process will begin; a process that will take several years. The financial impact of this legislation will be significant and tax increases will almost certainly be required to provide the necessary funding. To read this entire article, click on the title above.

Our first order of business was to bring you up to date on the changes that are likely to survive the reconciliation process. You can expect additional updates from us as events unfold. To read this entire article, click on the title above.

February 28, 2010 - Self Reporting of Single Employer Welfare Plan Compliance Failures
Employers need to know that the formalization of the self-reporting of compliance failures became effective January 1, 2010. This means that all group health plan sponsors are now required to assess their compliance with COBRA, HIPAA and other regulations and report compliance failures to the IRS. Failure to do so carries significant penalties. Because this is such a significant issue, we’ve prepared a comprehensive chart to help our clients assess the impact on their companies. Additional information can be found in the forms available at the websites listed at the end of the Chart. To read this entire article, click on the title above.

December 28, 2009 – COBRA Subsidy Extension Requires Immediate Employer Action
The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months for those eligible for COBRA during the period beginning September 1, 2008 and ending December 31, 2009 due to an involuntary termination of employment that occurred during that period. The TAA Health Coverage Improvement Act of 2009, enacted as part of ARRA, also made changes with regard to COBRA continuation coverage. To read this entire article, click on the title above.

November 3, 2008 - DOL Proposes Additional Disclosure Rules
Marc Zimmerman, AIF®, Vice President Qualified Plans Consulting
The Department of Labor (DOL) requires plan fiduciaries to provide participants with information sufficient to enable them to make informed decisions about the investment management of their accounts. Last year, DOL proposed regulations that would impose new and expanded disclosure requirements on plan sponsors. To read this entire article, click on the title above.

November 3, 2008 - The Mental Health Parity and Addiction Equity Act of 2008
Juan Kelly, ASA, EA, MAAA, Senior Actuarial Advisor
In the past, strict limitations were placed on mental health and substance abuse benefits because of concerns over the potential for abuse and fraud. The Mental Health Parity and Addiction Equity Act changes that by requiring group health insurance plans to cover mental illness and substance abuse disorders on the same terms and conditions as other illnesses. To read this entire article, click on the title above.

August 15, 2008 - Cashed-out DC Plan Participants can Sue for Investment Losses Caused by Breach of Fiduciary Duty
M&A Vice President, Compliance
In two federal cases, the courts held that former, cashed-out participants have standing to sue under Section 502(a)(2) of the Employee Retirement Income Security Act of 1974, for Investment Losses Caused by Breach of Fiduciary Duty. This decision was affirmed on July 18th, in the 1st Circuit Court of Appeals, which includes Massachusetts. The fact that a participant has left their employ does not protect plan sponsors from liability for breaches of fiduciary duty. To read this entire article, click on the title above.

August 15, 2008 - DOL Proposes New Service Agreement Rules
M&A Vice President, Compliance
The Department of Labor (DOL) has issued proposed regulations which, when they become final, will require that contracts between service provider(s) and a plan disclose enough information to assist the fiduciaries in ascertaining and understanding (1) exactly what the plan actually pays for specific services (2) whether all the compensation received by the vendor is reasonable for those services and (3) the potential for conflicts of interest that may affect a vendor’s performance of those services. To read this entire article, click on the title above.

July 16, 2008 - Top Ten Mistakes Participants Make on their 401(k) Plans
Marc Zimmerman, AIF®, Vice President Qualified Plans Consulting
For many employees, the money they save in their 401(k) Plan will be the primary source of retirement income. For this reason, it is critical that they have a complete understanding of how their Plan works and the implications of their participation, investment and withdrawal decisions. This is primarily the responsibility of the employer. The list of “don’ts” in this article will help employers help participants avoid these common mistakes. To read this entire article, click on the title above.