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JANUARY 2015: LEGAL DEVELOPMENTS IMPACTING HEALTH AND WELFARE PLANS (OTHER THAN HEALTH CARE REFORM (“PPACA”)) 2014 YEAR END UPDATE
1. In June 2013 the Supreme Court issued its decision in U.S. v. Windsor, invalidating a section of DOMA, the law which limited federal recognition of marriages to opposite-sex couples.U.S. v. Windsor, 133 S. Ct. 2675 (2013). On June 5, 2014, the Washington State Attorney General, Office of the Insurance Commissioner, and Human Rights Commission (the "Washington Agencies") jointly issued an announcement clarifying that under Washington State law (which recognizes same-sex marriages and [...]
DOL FAB ON APPRENTICESHIP AND TRAINING PLANS
The DOL recently issued a Field Assistance BulletinFAB 2014-02. on using apprenticeship and training plan assets to pay for skills competitions and related expenses. This 2014 Bulletin was a follow-on to their 2012 BulletinFAB 2012-01. on using plan assets to pay for graduation ceremonies and advertising. Required for all expenditures Fiduciaries must ensure the reasonableness of plan expenses in light of the education objectives of the training program, be able to justify [...]
DECEMBER 2014 LEGISLATIVE UPDATES
In December 2014, President Obama signed into law two pieces of legislation impacting employee benefit plans: the Consolidated and Further Continuing Appropriations Act of 2015 ("Appropriations Act") and the Tax Increase Prevention Act of 2014 ("TIPA").P.L. 113-235 and P.L. 113-295, respectively. This bulletin briefly highlights some of the key provisions of these Acts impacting employee benefit plans. Provisions of the Consolidated and Further Continuing Appropriations Act of 2015 Special Rule for Determining Normal [...]
RECENT CASE LAW REGARDING RETIREMENT PLAN INVESTMENTS IN EMPLOYER STOCK: THE PRESUMPTION OF PRUDENCE
Background Congress created a statutory framework that encourages employee ownership of company stock through retirement plans-- including tax incentives, special dividend and loan provisions, and an exemption from ERISA’s duty to diversify plan assets. Beginning in 1995 with the Third Circuit, several courts applied a presumption that employer stock is a "prudent" investment under ERISA.Moench v. Robertson, 62 F. 3d 553 (3rd Cir. 1995). Before 2014, the Second, Third, Fifth, Seventh, and [...]
RECENT CASE LAW REGARDING RETIREMENT PLAN INVESTMENTS IN EMPLOYER STOCK: INCORPORATION OF SECURITIES LAW FILINGS INTO SPDs
Background It is not uncommon for retirement plans holding employer stock to incorporate in summary plan descriptions, by reference, stock filings made under securities law. This practice satisfies certain securities law disclosure requirements. Recent case law suggests that incorporation of securities law filings by reference into an SPD is a fiduciary act, and so may lead to ERISA §404 fiduciary liability if the filings include false or misleading information. Recent Case Law [...]
UPDATED GUIDANCE ON PREVENTIVE CARE REQUIREMENTS
UPDATED GUIDANCE ON PREVENTIVE CARE REQUIREMENTS The United States Preventive Services Task Force ("USPSTF") has revised several of its recommendations concerning preventive care services that must be covered by non-grandfathered group health plans subject to PPACA's preventive care requirements. The minimum preventive care coverage requirements under these revised recommendations are described below. Hepatitis C (HCV) screening for persons at high risk for infection, and a one-time screening for hepatitis C infection in adults [...]
AGENCY ANNOUNCEMENT: WASHINGTON STATE LAW REQUIRES SELF-INSURED ERISA PLANS COVER SAME-SEX SPOUSES
On June 5, 2014, the Washington State Attorney General, Office of the Insurance Commissioner, and Human Rights Commission (the "Agencies") jointly issued an announcement clarifying that under Washington State law (which recognizes same-sex marriages and prohibits discrimination on the basis of sexual orientation), all group health plans providing coverage to opposite-sex spouses must extend that coverage to same-sex spouses as well. The Agencies' clarification was the result of its investigation of O'Reilly [...]
UPDATE ON HIPAA ELECTRONIC TRANSACTIONS
HPIDs Generally Required by November 5, 2014 A health plan identifier ("HPID") is a numeric code that will be used to identify a health planFor purposes of the HIPAA electronic transaction rules, "health plan" is broadly defined and includes insurers as well as employer-sponsored group health plans. See 45 CFR § 160.103. in HIPAA electronic transactions. Per final HHS regulations,The final regulations are available at: <a href=" href=" mce_href=">http://www.gpo.gov/fdsys/pkg/FR-2012-09-05/pdf/2012-21238.pdf. health [...]
GUIDANCE FOR RETIREMENT PLANS ON RETROACTIVITY OF WINDSOR
In April 2014, the IRS issued new guidance (Notice 2014-19 and website FAQs) on applicability of the Windsor decision to retirement plans.Notice 2014-19 is available at http://www.irs.gov/pub/irs-drop/n-14-19.pdf and the FAQs are available at http://www.irs.gov/Retirement-Plans/Answers-to-Frequently-Asked-Questions-Regarding-the-Application-of-the-Windsor-Decision-and-Post-Windsor-Published-Guidance-to-Qualified-Retirement-Plans. In short, the guidance provides that plans must operationally comply with Windsor effective June 26, 2013, and plan sponsors have at least until December 31, 2014 to adopt any required plan amendments. Background The Defense of Marriage Act (DOMA) was signed into law in [...]
HEALTH CARE REFORM: SUMMARY OF FINAL “PLAY OR PAY” REGULATIONS APRIL 2014
In February 2014, the Treasury Department issued final regulations under Internal Revenue Code ("Code") Section 4980H, more commonly known as PPACA's "Play or Pay" or "Employer Shared Responsibility" rules. This bulletin provides a summary of the final regulations and the Play or Pay rules generally. 1. What is the Effective Date of the Play or Pay Rules? The Play or Pay rules were originally scheduled to go into effect on January 1, 2014. [...]