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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 the entire article click on the title.
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.
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.
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.
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.
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.
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.
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