Last Friday, the U.S. Court of Appeals for the First Circuit ruled that two co-investing Sun Capital private equity funds (the Sun Funds) had not created an implied “partnership-in-fact” for purposes of determining whether...more
12/2/2019
/ Commercial Bankruptcy ,
Controlled Groups ,
Employee Retirement Income Security Act (ERISA) ,
Joint and Several Liability ,
Multiemployer Plan ,
Partnership-in-Fact ,
PBGC ,
Pensions ,
Portfolio Companies ,
Private Equity Funds ,
Sun Capital Partners ,
Withdrawal Liability
On February 6, 2019, the Pension Benefit Guaranty Corporation ("PBGC") issued a proposed rule that impacts how multiemployer pension plans in endangered or critical status calculate withdrawal liability. The rule is not yet...more
The Pension Benefit Guaranty Corporation (the “PBGC”) launched a Pilot Mediation Project in October 2017 to provide plan sponsors an opportunity to negotiate resolutions in Early Warning Program cases and in termination...more
Editor's Overview -
For over two decades, federal law has required covered health plans and insurers to ensure that certain mental health benefits are in parity with offered medical/surgical benefits. The meaning of...more
1/9/2018
/ 401k ,
Affordable Care Act ,
Attorney's Fees ,
Benefit Plan Sponsors ,
Claim Procedures ,
Compensation & Benefits ,
Cost-Sharing ,
Deferred Compensation ,
Department of Health and Human Services (HHS) ,
Department of Labor (DOL) ,
Disability ,
Disability Benefits ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Enforcement Actions ,
Fiduciary Duty ,
Health Savings Accounts ,
Healthcare Facilities ,
Healthcare Reform ,
Income Taxes ,
Individual Retirement Account (IRA) ,
Mental Health ,
Mental Health Parity Rule ,
MHPAEA ,
Public Health Service Act ,
QMAC ,
QNEC ,
Securities and Exchange Commission (SEC) ,
Sexual Harassment ,
Shared Responsibility Rule ,
Statute of Repose ,
Tax Deductions ,
Tax Reform ,
User Fees
The House Committee on Ways and Means publicly released a working draft of the Tax Cuts and Jobs Act for the first time on Thursday. In the weeks leading up to the release of the draft, speculation has swirled as to whether...more
11/6/2017
/ 401k ,
Educational Institutions ,
Employee Benefits ,
Hardship Distributions ,
HSA ,
Income Taxes ,
Individual Retirement Account (IRA) ,
Proposed Legislation ,
QMAC ,
QNEC ,
Reimbursements ,
Retirement Plan ,
Tax Exempt Entities ,
Tax Reform ,
Tuition
In light of the recent decisions by the U.S. Court of Appeals for the First Circuit and the U.S. District Court for the District of Massachusetts in Sun Capital, private investment funds, multiemployer pension funds and the...more
10/26/2017
/ Controlled Groups ,
Employee Retirement Income Security Act (ERISA) ,
Investment Portfolios ,
Joint and Several Liability ,
Limited Partnership Agreements ,
Multiemployer Plan ,
PBGC ,
Pensions ,
Private Equity Funds ,
Sun Capital Partners ,
Withdrawal Liability
The Pension Benefit Guaranty Corporation (the “PBGC”) launched a new Pilot Mediation Project to facilitate negotiations with (i) plan sponsors involved in corporate transactions under the purview of the PBGC’s Early Warning...more
Editor's Overview -
This month we take a look at the plaintiffs' past successes in fee litigations, and the influx of such lawsuits seeking to impose heightened fiduciary standards for 401(k) plans. Regardless of the...more
8/1/2016
/ 401k ,
Best Interest Contract Exemptions ,
Centers for Medicare & Medicaid Services (CMS) ,
Chevron Deference ,
Conflicts of Interest ,
Corporate Counsel ,
Department of Labor (DOL) ,
Elizabeth Warren ,
Employee Retirement Income Security Act (ERISA) ,
Executive Compensation ,
Fidelity Investments ,
Fiduciary Duty ,
Final Rules ,
Forum Selection ,
Health Insurance ,
Internal Revenue Code (IRC) ,
Pensions ,
Popular ,
Retirement Plan ,
Revenue Sharing ,
Section 162(m) ,
Shared Responsibility Rule ,
Stock Float ,
Tax Deductions ,
Unenforceable Contract Terms ,
Vanguard
Section 162(m) of the Internal Revenue Code generally limits the deductibility of compensation paid in excess of $1 million to the chief executive officer and the three other highest compensated officers (other than the chief...more
Editor's Overview -
This month we feature three key developments. First, we review the U.S. Supreme Court's decision in Gobeille v. Liberty Mut. Ins. Co., 136 S. Ct. 936, 947 (2016) wherein the Supreme Court held that a...more
4/27/2016
/ 401k ,
Benefit Plan Sponsors ,
Best Interest Contract Exemptions ,
Best Interest Standard ,
Closely Held Businesses ,
Collective Bargaining Agreements (CBA) ,
Conflicts of Interest ,
Controlled Groups ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
FIfth Third Bancorp v Dudenhoeffer ,
Final Rules ,
Forum Selection ,
Gobeille v Liberty Mutual Insurance Com. ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
M&G Polymers v Tackett ,
Multiemployer Plan ,
Participant-Directed Plans ,
Partnership-in-Fact ,
PBGC ,
Preemption ,
PTEs ,
Reporting Requirements ,
Retirement Plan ,
SCOTUS ,
Stock Drop Litigation ,
Sun Capital Partners ,
UAW ,
Vesting ,
Withdrawal Liability
District Court finds affiliated funds acted in de facto partnership which controlled portfolio company; Decision may be significant in making private equity acquisition structuring choices.
As we previously reported, in...more
4/6/2016
/ Commercial Bankruptcy ,
Controlled Groups ,
Employee Retirement Income Security Act (ERISA) ,
Investment Portfolios ,
Joint and Several Liability ,
Joint Venture ,
Limited Partnership Agreements ,
Multiemployer Plan ,
PBGC ,
Pensions ,
Private Equity Funds ,
Sun Capital Partners ,
Withdrawal Liability
Editor's Overview -
As the summer draws to a close, this month's Newsletter previews three cases that the U.S. Supreme Court already has agreed to hear that ought to be of particular interest to ERISA plan sponsors and...more
8/28/2015
/ 401k ,
Actual Injuries ,
Affordable Care Act ,
Article III ,
Benefit Plan Sponsors ,
COBRA ,
Defined Benefit Plans ,
Defined Contribution Plans ,
Delta Airlines ,
Department of Health and Human Services (HHS) ,
Department of Labor (DOL) ,
Duty to Disclose ,
Employee Retirement Income Security Act (ERISA) ,
Equitable Relief ,
Fair Credit Reporting Act (FCRA) ,
Fiduciary Duty ,
FIfth Third Bancorp v Dudenhoeffer ,
Final Rules ,
HDHP ,
Health Insurance ,
Health Plan Sponsors ,
HSA ,
IRS ,
Medicaid ,
Medicare ,
Montanile v Board of Trustees ,
Non-Grandfathered Health Plans ,
PBGC ,
Penalties ,
Preemption ,
Reimbursements ,
Reporting Requirements ,
SCOTUS ,
Section 510 ,
Spokeo v Robins ,
Standing ,
Stock Drop Litigation ,
Subrogation ,
Summary of Benefits and Coverage ,
Tax Credits ,
Trade Adjustment Assistance ,
Trade Preferences Extension Act (TPEA) ,
U.S. Treasury
On July 6, 2015, President Obama signed the Trade Preferences Extension Act of 2015. Among other things, the Trade Act retroactively reinstated the Health Coverage Tax Credit (HCTC), which had previously expired on January...more
7/19/2015
/ Affordable Care Act ,
COBRA ,
Commercial Bankruptcy ,
Employer Group Health Plans ,
Health Insurance ,
PBGC ,
Pensions ,
Qualified Health Plans ,
Tax Credits ,
Trade Adjustment Assistance ,
Trade Preferences Extension Act (TPEA)
The Pension Benefit Guaranty Corporation (the “PBGC”) recently finalized its premium filing requirements for 2015. In addition to higher premium rates and other more minor changes, plan sponsors are now required to report...more
On December 16, 2014, President Obama signed into law the $1.1 trillion Consolidated and Further Continuing Appropriations Act of 2015 (Appropriations Act), which includes some significant changes to the rules governing...more
1/28/2015
/ Appropriations Bill ,
CBAs ,
Collective Bargaining ,
Defined Benefit Plans ,
Defined Contribution Plans ,
Employee Benefits ,
Multiemployer Plan ,
New Legislation ,
PBGC ,
Pensions ,
Unions
The PBGC has recently initiated efforts to enhance retirement security for Americans by promoting lifetime income options (i.e., annuitized benefits). As part of these efforts, as well as those of the IRS and U.S. Department...more
Editor's Overview -
This month's newsletter focuses on repayment of pension plan overpayments. Our issue discusses pension plan overpayments to participants, a plan administrator's duties to seek repayment, corrections...more
Pension plan overpayments to participants and their beneficiaries are an all-too-common occurrence. When overpayments occur, a plan administrator’s duties are fairly clear. Typically, the plan administrator must seek...more
This month we discuss the evolving case law on the issue of whether unpaid employer contributions due under a collective bargaining agreement can be viewed as plan assets such that the individuals who decide to withhold such...more
On February 26, 2014, U.S. Congressman Dave Camp released a comprehensive tax reform proposal that includes several provisions intended to limit or restrict executive compensation. Congressman Camp’s proposal includes the...more
The employee benefits issues to be considered by the U.S. Supreme Court continue to be of great significance to plan sponsors and fiduciaries. This month we review the Court's employee benefit decisions from 2013 and also...more
2/24/2014
/ 401k ,
Affordable Care Act ,
Appeals ,
Class Certification ,
Comcast v. Behrend ,
Contraceptive Coverage Mandate ,
Department of Labor (DOL) ,
DOMA ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
ESOP ,
FICA Taxes ,
FIfth Third Bancorp v Dudenhoeffer ,
First Amendment ,
Health and Welfare Plans ,
Heimeshoff v. Hartford Life & Accident Insurance Co. ,
Hobby Lobby ,
Human Resources Professionals ,
Involuntary Reduction in Force ,
IRS ,
McCutchen v. U.S. Airways ,
MHPAEA ,
Provider Payments ,
Quality Stores ,
Same-Sex Marriage ,
SCOTUS ,
State of Celebration ,
Statute of Limitations ,
Transition Relief ,
US v Windsor
The PBGC finalized a proposed rule that changes the flat-rate premium due date for large plans to the same as their variable-rate due date, which is 9.5 calendar months after the beginning of the premium payment year (October...more
This month we look at part two of our three part series on Class Actions. In part two, Robert Rachal, Page Griffin and Madeline Chimento Rea address Wal-Mart's Rule 23(b) principles, including some defenses to plaintiffs' use...more
12/19/2013
/ ADEA ,
Affordable Care Act ,
Class Action ,
Class Certification ,
Collective Actions ,
Comcast v. Behrend ,
Declaratory Relief ,
Dukes v Wal-Mart ,
Duty of Prudence ,
Employee Retirement Income Security Act (ERISA) ,
Fair Labor Standards Act (FLSA) ,
Injunctions ,
Plan Administrators ,
Rebuttable Presumptions ,
Wal-Mart
In Adams v. General Motors Company (Case No. 12-2084), the Sixth Circuit rejected an ineligible retiree’s claim for reinstatement of erroneous benefit payments under her former employer’s pension plan. The retiree received...more
As we previously noted, the PBGC filed a complaint (E.D. Pa. Case No. 13-02069) to involuntarily terminate a defined benefit plan prior to a corporate transaction that would change the plan sponsor’s controlled group. The...more