| |

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restriction was also repealed.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. |
|