DOL Fiduciary Rule Update; May Seminar

DOL FIDUCIARY RULE UPDATE. On February 3, the President issued a Presidential Memorandum directing the Secretary of Labor to: “Examine the Fiduciary Duty Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. As part of this examination, you shall prepare an updated economic…


New Law Permitting Health Reimbursement Plans in some Small Employer Situations

As we have previously reported, the regulators take the position that, since the effective date of the ACA, employer plans that reimburse employees for individual health policy premiums and/or for medical expenses (or that pay those premiums and/or expenses directly) are unlawful, unless those reimbursement/payment arrangements are “bundled” with an underlying health plan that meets…


Latest Developments for Opt-Out Arrangements

As we have discussed in prior e-Alerts and at our seminars, over the last several years the IRS has taken a variety of sometimes inconsistent positions on the effect of employer health plan “opt-out” payments on the affordability test of the Affordable Care Act. The IRS’s central position was expressed with the following example: An…


Late Breaking Developments

We want to call your attention to some recent developments. Effect of the Presidential Election on the April 10, 2017 DOL Fiduciary Rule. As we discussed in prior e-Alerts, earlier this year the DOL published a final regulation that, among other things, greatly expands the definition of “fiduciary” under ERISA and the Internal Revenue Code…


Overtime Law Development

As we previously reported, the DOL recently effectively doubled (to $47,476) the minimum annual salary needed for an employee to qualify as exempt from the FLSA’s overtime requirements under the “white collar exemptions.” Yesterday, a federal judge stayed the implementation of those changes. Unfortunately, there have been suggestions in some quarters that this judicial stay…


Retirement Plan Fee and Investments Lawsuits Against Employers

We imagine that all of our clients have seen the rather extensive press about the growing series of lawsuits being brought – often by “professional class action lawyers” — against employers and various retirement plan decision makers (e.g., Board investment committees, etc.) alleging that they have permitted their retirement plans to pay “excessive” administrative and…


Non-Profit and Government Employers – New Deferred Comp Rules

As we previously reported, in June the IRS published extensive proposed regulations under Code Section 457, the Code section that governs the nonqualified deferred compensation plans of non-profit and government entities. (The IRS also published in June less extensive proposed regulations under Code Section 409A, the Code section that governs the nonqualified deferred compensation plans…


New DOL Rules Expand Definitions of “Fiduciary” and “Advice”

Last month, the DOL published its long awaited/feared final regulations expanding the definition of “fiduciaries” who provide “advice” (as very broadly defined) relating to retirement plans, IRAs, Health Savings Accounts, Education Savings Accounts, and participants in those arrangements. In addition to imposing statutory duties and liability exposure on this expanded group of individuals and firms,…