Headlines about "Communication and disclosure to participants"

Gathered from the web by the editors at BenefitsLink.com.
[Official Guidance] Text of IRS Notice 2009-93 Allowing Various Information Statements to Use a Truncated Social Secuity Number (PDF)
5 pages. Identity theft is becoming such a large problem that the IRS is allowing the use of truncated (partial) Social Security Numbers on the copies of various statements that go to retirement plan and IRA participants for 2009 and 2010. Paper payee statements for forms in the 1098, 1099 and 5498 series for 2009 and 2010 are eligible for the program. (Internal Revenue Service)

IRS Pilot Program to Allow Truncated Social Security Numbers on Information Returns
Excerpt: "The IRS on Thursday announced a pilot program aimed at deterring identity theft (Notice 2009-93). Under the program, filers of certain paper information returns will be allowed to truncate the payee's Social Security number on the payee statement. The change affects statements for 2009 and 2010. Only paper payee statements for forms in the 1098, 1099 and 5498 series are eligible for the program. Filers must meet certain requirements, spelled out in the notice, but if they do, they will be treated as having met the various IRS and Treasury requirements that a payee's Social Security or taxpayer identification number be included on the statement." (American Institute of Certified Public Accountants)

DOL's Employee Benefits Security Administration Withdraws the Controversial Final Advice Rule
Excerpt: "The latest move regarding the advice rule follows EBSA's recent extension of the applicability and effective dates of the January 2009 rule to May 17, 2010 (see EBSA Delays Advice Rule ? Again ). EBSA said the extension expires on the rule's withdrawal. 'The department decided to withdraw the rule based on public comments that raised sufficient doubts as to whether the conditions of the final rule and the class exemption associated with the rule could adequately protect the interests of plan participants and beneficiaries,' EBSA commented in a news release." (PLANSPONSOR.com; free registration required)

[Official Guidance] DOL Cancels Earlier-Published Bush Administration Final Regulation on Investment Advice to Participants
Excerpt (DOL press release of Nov. 19, 2009): 'The department decided to withdraw the rule based on public comments that raised sufficient doubts as to whether the conditions of the final rule and the class exemption associated with the rule could adequately protect the interests of plan participants and beneficiaries. The department recently extended the applicability and effective dates of the final rule until May 17, 2010. That extension expires upon the effective date of this withdrawal." (Employee Benefits Security Administration, U.S. Department of Labor)

[Guidance Overview] Year End Update Regarding COBRA Subsidy
Excerpt: "First, Employers are not required to issue any information reporting documents (Forms W-2 or 1099) to involuntarily terminated workers to report the amount of the COBRA subsidy. Employers claiming the credit must, however, maintain documentation to support the credit claimed. Second, Employers must claim the COBRA subsidy using Form 941 and must file such claims on a Form 941 filed for a quarter in the year in which the subsidy was provided to the assistance-eligible individual." (Miller & Chevalier Chartered)

[Guidance Overview] PPA & WRERA Qualified Plan Guidance: Action Items for 2009 (PDF)
6 pages. Excerpt: "Qualified plan amendments or action items required in 2009 relating to the Pension Protection Act of 2006 (PPA) and Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), including; (i) WRERA suspension of 2009 required minimum distributions, with operational compliance required by December 1, 2009, as well as model amendments in Notice 2009-82 which must be adopted by end of 2011 play year; (ii) revised model notices for eligible rollover distributions under Notice 2009-68, which must be put in place by end of 2009 plan year; (iii) sample amendments to add automatic enrollment to plans in Notice 2009-65 needs to be adopted by end of 2009 plan year; (iv) QACA and EACA notices, and qualified default investment alternative notice required at least 30 days in advance of plan year; (v) PPA amendments required by end of 2009 plan year. Also, other recent PPA qualified plan guidance include: (i) rollovers from employer plan or regular IRAs to Roth IRAs have no income limit in 2010, and (ii) contribution of paid time off at end of plan year or on termination of employment permitted." (Charles C. Shulman, Esq.)

[Guidance Overview] Upcoming Compliance Deadlines for 403(b) Plans (PDF)
2 pages. Excerpt: "This bulletin is a brief reminder and overview of important new requirements for 2009 for 403(b) plans and certain applicable deadlines for a plan operating on a calendar year. Note that different effective dates may apply to certain types of plans and special exceptions apply to plans covering collectively bargained employees or ministers and to governmental and church plans." (Thompson Hine LLP)

Employers Must Post New EEOC Poster to Comply with GINA
Excerpt: "The Equal Employment Opportunity Commission has revised its 'Equal Employment Opportunity is the Law' poster to include information about Title II of the Genetic Information Nondiscrimination Act (GINA) and the Americans with Disabilities Act Amendments Act of 2008. Employers are waiting for the EEOC to issue final regulations implementing Title II of GINA, which prohibits the use of genetic information in employment decisions and restricts its collection and disclosure by employers. Employers are required to post the new notice by Title II's effective date of Nov. 21, 2009." (Mercer LLC)

[Guidance Overview] Notices to DC Plan Participants Due by December 1
Excerpt: "In recent years, Congress has created a slew of new notices that must be given to all participants in defined contribution plans at least 30 days before the beginning of each plan year. As December 1, 2009, approaches, each sponsor of a defined contribution plan that uses a calendar plan year should make sure that it is prepared to send participants each of the notices that applies to its particular type of plan. In addition, December 1 is the day by which defined contribution plans must adopt procedures to implement the waiver of the 2009 required minimum distributions for terminated employees over the age of 70?." (Seyfarth Shaw LLP)

[Guidance Overview] 2008 Form 5500 Information on Defined Benefit Pension Plans Must Be Posted on Company Intranet
Excerpt: "Employers with defined benefit pension plans that have recently filed a 2008 Form 5500 should address the [disclosure] issues immediately to determine if the posting obligation applies to them, and if so, how to best comply with this new disclosure obligation. At a minimum, employers with an intranet site must make the required information available on the site as soon as possible in order to be in compliance." (Pillsbury Winthrop Shaw Pittman LLP)

[Guidance Overview] 2010 Retirement Plan Regulatory Limits Poster and DC Compliance Calendar
Excerpt: "This poster, compliments of Vanguard Strategic Retirement Consulting (SRC), is a convenient way to remind you of important regulatory limits and dates for retirement plans. Note that there are no increases in regulatory limits for 2010. SRC also has created a calendar that lists recurring compliance and notice requirements for qualified defined contribution plans. You'll want to keep these valuable reference tools on hand in the upcoming year." (The Vanguard Group, Inc.)

[Guidance Overview] ERISA Plan Documents Time Limitations Are Enforceable
Excerpt: "In two separate cases, U.S. circuit courts buttressed a plan's right to invoke a time limit on lawsuits over benefit denials, by refusing to accept plaintiff arguments that the plans confused them about the starting point of the time limits. In one of the cases . . ., the court adopted the limit from state law (because presumably the plan document lacked one). In the other case, the limit was housed in an ERISA plan document, thereby preempting state law. An increasing number of circuit courts hold that reasonable time limitations in ERISA plan documents are enforceable. In a similar case, Scharff v. Raytheon, 2009 WL 2871229 (9th Cir., Sept. 9, 2009), the 9th U.S. Circuit Court of Appeals enforced an employer's one-year limit on worker lawsuits over benefit denials." (Passion for Subro)

[Guidance Overview] November 30, 2009, Deadline for Important Decisions Regarding 2009 RMDs
Excerpt: "Because the relief under WRERA is optional, plan sponsors must decide now how they intend to treat 2009 RMDs. Plan sponsors have the following three options: Forego the optional waiver and continue with 2009 RMDs as normal. Waive 2009 RMDs, unless a participant elects a distribution of such amounts. Distribute 2009 RMDs, unless a participant elects to waive such amounts." (Troutman Sanders LLP)

[Guidance Overview] IRS Grant of Hybrid Pension Plan Relief on Timing of Amendments and Notices (PDF)
3 pages. Excerpt: "On November 10, the IRS released Announcement 2009-82, which gives sponsors of cash balance and other hybrid pension plans additional time to bring their plans into compliance with the Pension Protection Act of 2006 (PPA) requirement that the plan's interest-crediting rate not exceed a 'market rate of interest.' The IRS indicated in the announcement that regulations outlining what constitutes a market rate of interest under PPA will be issued 'in the near future.' The announcement also grants 204(h) notice relief for plan sponsors that adopt amendments to adopt a market rate of interest by the end of the 2009 plan year." (Morgan, Lewis & Bockius LLP)

Best Buy Finds Social Networking and 401(k)s Can Be a Good Fit
Excerpt: "As employers continue to struggle with getting younger workers interested in saving for retirement, social networking seems like a no-brainer, says George Thomas, a principal who leads the communication practice at Mercer. 'You can feel the momentum,' he says. 'HR is looking at it in terms of how social networking can be used to engage people and as a medium to communicate with them.' That's not to say there aren't significant concerns among employers about offering social networking sites to employees, let alone using them to communicate about retirement savings. A roadblock for many companies is the idea of allowing employees to talk freely in an online forum for all other employees to see, says Sam Templeton, a communications consultant with Watson Wyatt." (Workforce Management; free registration required)

[Guidance Overview] The Approaching 403(b) Plan Document Deadline
Excerpt: "Employers that allow employees to contribute to 403(b) plans and arrangements need to adopt a plan document by December 31, 2009 if they have not already done so. In adopting a plan document, employers that have a voluntary 403(b) plan which the employer intends to be exempt from ERISA should review the plan document and their practices to confirm the 403(b) plan is not subject to ERISA." (Dorsey & Whitney LLP)

Tweeting Health Benefits . . . in 140 Characters or Fewer
Excerpt: "Benefits managers are getting over their aversion to talking publicly about health benefit plans and using social media to cut through the clutter of information and connect with employees." (Workforce Management; free registration required)

[Guidance Overview] Plan Action Required: Updated Safe Harbor Rollover Notices (PDF)
2 pages. Excerpt: "It should be noted that the newly issued safe harbor notices do not include a discussion of the special rollover rules that apply if a defined contribution plan has allowed participants to receive a distribution of amounts that would otherwise represent required minimum distribution but for the special waiver of such distributions for 2009. While formal notice is not required of these provisions, plan sponsors may wish to provide participants with information about them." (Patterson BelknapWebb & Tyler LLP)

[Guidance Overview] Clear Reservation-of-Rights Saves Company from ERISA Class Action Over Change in Retiree Benefits
Excerpt: "Can an employer modify or terminate the medical benefits of retired employees? The answer depends on the language in the employer's medical benefit plan. A recent federal court ruling highlights the importance of medical benefit plans unambiguously reserving the right to modify or terminate plan benefits. Without this language, an employer makes itself vulnerable to 'he said/she said' disputes in which retirees claim that their former managers promised the retirees that their medical benefits would remain unchanged through retirement." (Haynes and Boone LLP)

Why Financial Literacy Matters to You and Your Employees
Excerpt: "Here are ten components which comprise a Financial Literacy series of workshops: How to Create a Budget/Strategies of Saving; Debt Consolidation; How to Read, Monitor, and Improve Your Credit Report; Understanding Your Company's Retirement Plan; College Planning; The Role of Insurance in Financial Planning; Types of Mortgages/How to Qualify; Tax Issues ? Homeowners, Retirement Savings, Estate Planning; Financial Issues of Divorce; Pre-Retirement Issues/When Can I Afford to Retire?" (401kExchange, Inc.)

On Using Texting for Communications on Savings
Excerpt: "A new study by a group of economists looking at why people save money found that sending out text reminders to participants cell phones increased savings balances by 6%. According to a Dow Jones news report, the study challenges the idea that people don't have enough self-control to save. Instead Dartmouth University economics professor Jonathan Zinman, one of the study's four authors, said savings just isn't at the top of people's minds. 'Basically all we did was remind them,' he said. The study also found that while positive or negative language didn't have a significant effect on the savings rate, mentioning a customer's specific goal did. In addition, when reminders mentioned incentives offered by the bank for consistent deposits, bank savings increased by almost 16%, the news report said." (PLANSPONSOR.com; free registration required)

Specific Corporate Compliance Challenges by Practice Area: ERISA
Excerpt: "[The chapter] provides a general overview of the Employee Retirement Income Security Act of 1974 ('ERISA') and discusses best practices for fiduciary compliance, ERISA litigation and risk management, and ERISA reporting and disclosure requirements." (Corporate Compliance Practice Guide: The Next Generation via Seyfarth Shaw LLP)

How to Drive Value for Your Benefits Package with the Enrollment Experience
28 pages. Excerpt: "This white paper discusses how to reinvent the enrollment experience to benefit both employers and employees -- while increasing a company's return on its benefits investment. Employers will learn how this paradigm shift is driving the need for more comprehensive benefits education and what measures they can take to help employees better understand and appreciate their benefits choices. Readers will learn the importance of planning and reporting before, during and after the actual enrollment. The paper also illustrates why an effectively communicated benefits package can make a big difference in how employees perceive their company and how they may perform -- no matter if the company has a few employees or a few thousand." (Colonial Life)

Target Date Retirement Funds: Lack of Clarity Among Structures and Fees Raises Concerns (PDF)
21 pages, dated October 2009; summary of the committee's research. (U.S. Senate Special Committee on Aging:)

SEC to Firms: Cut the Mind-Numbing Disclosures
Excerpt: "The SEC expects to soon start reviewing disclosure requirements for quarterly and annual filings. The agency wants to figure out what information should be omitted and what needs to be added. . . . " (Business Insurance)

[Guidance Overview] 2009 Year-End Health and Welfare Issues
Excerpt: "2009 is quickly coming to a close and health and welfare plan sponsors should address several recent legal developments and ongoing compliance requirements before year-end. In particular, calendar year plans should be amended (and SPDs updated) to reflect the new requirements that will be effective January 1, 2010, including Michelle's Law, expanded mental health parity requirements and GINA. Plan Sponsors should also ensure that plan changes needed for CHIPRA and the COBRA subsidy are implemented and documented." (DrinkerBiddle)

[Guidance Overview] Justices Tackle Case on Investment Fees
Excerpt: "Several Supreme Court justices on Monday seemed reluctant to make the courts arbiters of whether mutual fund investment advisers are charging excessive fees for their work on what has become an essential investment tool for Americans." (Washington Post; free registration required)

5 Tips in Using Retirement Planning Tools
Excerpt: "Retirement planning software is available for free on several major investment and retirement websites. But according to a recent analysis sponsored by the Pension Research Council, these programs do an inconsistent and often poor job." (U.S. News & World Report)

[Guidance Overview] Be Careful With Severance Plans; ERISA Reporting and Disclosure Rules Can Apply
Excerpt: "While most employers are well aware of ERISA's application to retirement plans and group health plans, many are surprised to learn that some severance arrangements are considered 'welfare pans' under ERISA and, are therefore, subject to ERISA's reporting and disclosure requirements, as well as the rules for processing and determining claims. Because not every severance arrangement is covered by ERISA, many employers overlook its potential application when they are implementing or designing a severance plan." (Fisher & Phillips)

[Guidance Overview] Chart of Year-End Required Participant Notices for Qualified Retirement Plans; Dec. 1 Deadline in Some Cases (PDF)
4 pages. Excerpt: "This advisory focuses on the escalating number of year-end notices that defined contribution plans must issue to participants. These notices must be distributed within a reasonable period of time prior to the start of the plan year. The accompanying charts describe these deadlines." (Alston+Bird)

[Guidance Overview] Medicare Part D Notices to Eligible Individuals Due Nov. 15 (PDF)
14 pages. Includes links to Model Individual Creditable Coverage Disclosure Notice and Model Individual Non-Creditable Coverage Disclosure Notice to be used in 2009. (Warner Norcross & Judd)

[Guidance Overview] Senate Hearing Considers 401(k) Target-Date Fund Concerns, More Regulation
Excerpt: "Concerns about 401(k) target-date funds aired in a Senate Special Committee on Aging hearing and report raise the prospect of greater regulation. Hearing witnesses praised the funds as an important savings option but reiterated some issues noted in the report, such as wide differences in asset allocations among funds with the same target date, provider fees and potential conflicts of interest. The Department of Labor is working with the SEC to assess the need for more guidance and may revisit rules for qualified default investment alternatives to ensure 'meaningful disclosure.'" (Mercer)

Ways and Means Committee Holds Hearing on DB Plan Funding and Investment Advice
Excerpt: "On Oct. 1, 2009, two panels testified before the House Committee on Ways and Means on retirement-related matters. The first focused on, and lobbied for, defined benefit (DB) pension funding relief. The six panelists, including Watson Wyatts director of Retirement Research, Mark Warshawsky, Ph.D., provided a wide range of experience and expertise. While it was universally accepted that pension relief is necessary, panelists disagreed about its form and who should receive it. Some advocated temporary relief from certain provisions of the Pension Protection Act of 2006 (PPA), while others argued for permanent changes to the law. The second panel focused on investment advice provided to defined contribution (DC) participants, specifically who can give investment advice to employees and how it should be provided." (Watson Wyatt Worldwide)

[Guidance Overview] Notice of Funding-Based Restriction on Lump-Sums Not Required for Participants in Pay Status
Excerpt: "CCH Note: The Treasury Department was authorized by the Worker, Retiree, and Employer Recovery Act of 2008 (P.L. 110-458) to prescribe rules (in consultation with the Labor Department) governing the ERISA-required notice of funding based limitations on distributions. The instant guidance has been issued pursuant to this authority. In addition, the IRS has further indicated that it will set forth (and presumably expound upon) the relief in upcoming guidance." (Wolters Kluwer)

[Guidance Overview] EEOC Updates Notice to Employees
Excerpt: "The Equal Employment Opportunity Commission (EEOC) has published a notice revising its 'Equal Employment Opportunity is the Law' poster to reflect changes required by the employment provisions (Title II) of the Genetic Information Nondiscrimination Act (GINA), which become effective on November 21, 2009. . . . The new poster can be found at http://www.eeoc.gov/posterform.html." (PLANSPONSOR.com; free registration required)

[Guidance Overview] Effects of the 401(k) Fair Disclosure and Pension Security Act (PDF)
3 pages. Excerpt: "This article discusses how employers providing 401(k) plans to their employees will be affected by the 401(k) Fair Disclosure and Pension Security Act of 2009 in the realm of fee disclosure under legislation currently pending in the U.S. House of Representatives. There are other provisions of the proposed legislation, including the provision of investment advice, which are not discussed here." (New York Law Journal via Patterson Belknap Webb & Tyler LLP)

[Opinion] HHS Breach Notification Rules Again Under Fire
Excerpt: "The Center for Democracy and Technology is the latest to find fault with the Department of Health and Human Services' data breach rules for personal health records. Under the current interim rules health care organizations that use encryption or destruction, no breach notification is necessary, but for those who don't, the health organization makes the call on whether the breach is harmful enough to trigger a breach notification. The Department of Health and Human Services should replace its controversial harm standard for triggering a personal health record data breach notification with a risk assessment approach that requires organizations to determine whether the data was actually viewed or acquired by an unauthorized person, according to the Center for Democracy and Technology." (eWEEK.com)

Creating the Impression of Lifetime Retiree Health Benefits Is Breach of ERISA's Fiduciary Duties
Excerpt: "An employer breached ERISA's fiduciary duties by giving employees the impression that retiree health benefits would continue for life when, in fact, the company had the power to eliminate them at any time, ruled the Third Circuit Court of Appeals (In re: Unisys Corp. Retiree Med. Benefits ERISA Litig.). The court said the message to employees during retirement counseling was 'at best a half truth' without mention of the company's right to amend the plan. The latest decision in this protracted litigation reminds employers not to overpromise in retiree health or any benefit communications." (Mercer LLC)

[Guidance Overview] Remember to Distribute Annual Medicare Part D Notices by November 15, 2009
Excerpt: "Just a reminder that it's time once again to make sure that you have distributed the Notice of Creditable Coverage required under Medicare Part D, which informs participants whether the prescription drug coverage offered under your health plan constitutes creditable or noncreditable coverage. Once again, the Centers for Medicare and Medicaid Services (CMS) has issued updated forms that you may use to provide this notice. Employers who sponsor a health plan offering prescription drug benefits must provide an annual notice to all Medicare-eligible participants that explains whether the prescription drug benefits offered under the plan are at least as good as the benefits offered under the Medicare Part D plan. The only employers exempt from this notice requirement are those that establish their own Part D plan or who contract with a Part D plan." (Warner Norcross & Judd LLP)

Health Care Organizations Hire Advisers / Change Plan Designs, According to Survey
Excerpt: "The new 403(b) regulations and the recent market volatility, combined with heightened fiduciary concerns, led more health care organization retirement plan sponsors to retain a retirement plan adviser, according to a survey conducted by Diversified Investment Advisors and the American Hospital Association (AHA). A press release said three-quarters of survey respondents reported they now have a plan adviser. In addition, 21% of plan sponsors consolidated the number of vendors used in their 403(b) plans and 20% converted to a single vendor arrangement." (PLANSPONSOR.com; free registration required)

[Guidance Overview] Plan Administrator Cannot Consider Motivation for Participants' Divorces When Determining Status of QDRO
Excerpt: "EBIA Comment: Plan administrators generally are not required to analyze whether a divorce order is valid under state domestic relations law. However, according to a prior DOL advisory opinion (also addressing allegedly sham divorces by pilots), if there is credible evidence that the order has been procured through fraud, plan administrators should take appropriate steps to resolve the validity of the order. Those steps will depend on the facts and circumstances, and could include relaying the evidence of fraud to the court or agency that issued the order. But if requested guidance from the court or agency is not received within a reasonable time, the plan administrator must proceed with determining the validity of the order (in other words, the plan administrator may not independently determine that the order is not valid under state law). Because these issues can be complex and fact-specific, plan administrators faced with potentially fraudulent QDROs may wish to seek the advice of experienced legal counsel." (Employee Benefits Institute of America)

[Opinion] Divorce and Pensions: Continental Style
Excerpt: "This is one of the great ERISA stories of all time - its like something out of a Boston Legal episode. I am speaking, of course, of the case, detailed here, of the Continental pilots who, concerned that the retirement plan may go belly up long before they retire, divorced their wives, executed QDROs transferring the retirement benefit to their now ex-spouses, after which the ex-wives took out lump sum payments, as the plan allowed. . . . [L]urking in the background, behind the entertaining fact pattern (entertaining, at least, to ERISA lawyers): the fact that we have a retirement system that is so tenuous that employees feel it is necessary to go to lengths such as this to protect themselves. That is the more significant issue that needs addressing, much more so than whether plan terms or QDRO requirements should be able to be manipulated in such a manner." (Stephen Rosenberg of The McCormack Firm, LLC)

Participant Education: Guidance for Defined Contribution Plans, 2009 (PDF)
2 pages. Excerpt: "The GFOA recommends that public plan sponsors make sure high-quality investment education is provided to defined contribution plan participants who are allowed to direct their investments. To accomplish this goal: 1. The plan should provide a consistent, ongoing educational program that uses a number of communication channels to address participants' different career stages and learning styles. Channelscould include one-on-one meetings, seminars, phone calls, the internet . . . ." (Government Finance Officers Association of the United States and Canada)

[Opinion] American Benefits Council Comments on Interim Final Rule on Breach Notification for Unsecured Protected Health Information (PDF)
4 pages. Excerpt: "The Council strongly supports the 'harm threshold' HHS adopted in its Interim Final Rule, requiring a covered entity to consider a number of factors to determine whether a particular disclosure poses a 'significant risk of financial, reputational, or other harm to the individual.' 45 CFR 164.402 (definition of 'breach'). If a disclosure meets the 'harm threshold,' the covered entity is required to provide notice to the affected individuals, the media (where applicable) and HHS." (American Benefits Council)

[Guidance Overview] Employer That Did Not Comply with Health Plan's COBRA Notice Requirements Is Not Entitled to Stop-Loss Reimbursement
Excerpt: "EBIA Comment: Because COBRA does not apply directly to insurers and stop-loss carriers, these entities are generally not obligated to provide COBRA coverage (or stop-loss coverage for COBRA claims) unless they enter into a contract requiring them to provide that coverage. The policies issued by group health insurers and by stop-loss insurers will generally include provisions requiring them to cover (or provide stop-loss coverage for) qualified beneficiaries who elect COBRA. But such policies often include provisions that allow the insurer to refuse payment unless certain conditions, including notices being given pursuant to the terms of the plan, are met. Employers that fail to follow the terms of their plan may, therefore, end up with no insurance coverage for an individual's COBRA claims." (Employee Benefits Institute of America)

Flexible Benefit Options Proving Cost-Efficient, According to Mercer
Excerpt: "The concept of employee choice in the type of benefits received from employers is taking hold worldwide, particularly as it offers a chance for employers to cut costs without cutting benefits, according to benefits consulting firm Mercer L.L.C. The company conducted a survey of more than 1,700 employers in 47 countries outside of the United States in May and June to find out what kinds of benefits companies offer and how they plan to change them. Attitudes and strategies toward employee benefits varies widely across the globe and depends largely upon local health systems and taxation systems. But the survey found that interest in flexible benefits packages that provide employees with wider choice about the mix of benefits received is becoming more popular in many countries." (Business Insurance)

[Guidance Overview] Deere & Co. Wins Suit over Retiree Health Benefits Reduction
Excerpt: "The U.S. District Court for the Southern District of Iowa has ruled that Deere & Co. did not violate the Employee Retirement Income Security Act (ERISA) when it changed its health benefit offering to retirees. Judge Charles R. Wolle said in his opinion that Deere was unambiguous when it reserved its right to amend the retirees' health benefits. Wolle rejected the retirees' argument that their benefits were vested and could not be altered by Deere because summary plan descriptions said their health benefits 'will continue' during retirement. 'Instead, Deere repeatedly and plainly stated in plan documents, including SPDs, that it retained the right to amend, modify or terminate the benefit plans,' the opinion said." (PLANSPONSOR.com; free registration required)

Defined Benefit Pension Sponsors Implementing Lump Sum Restrictions Need Not Notify Retirees
Excerpt: "Pension plan sponsors implementing PPA's lump sum restrictions do not need to notify individuals in pay status who no longer can elect a lump sum regardless of the PPA restriction, according to an IRS newsletter. The guidance helps sponsors facing an October deadline under ERISA Section 101(j) to notify participants and beneficiaries of restrictions that took effect on Oct. 1 or the earlier AFTAP certification date. But the newsletter's scope is narrow, so plan sponsors should review with counsel whether notices must be provided more broadly given their plans' terms." (Mercer LLC)

[Guidance Overview] Ninth Circuit on Disclosure of Contractual Time Limitations for Commencing Benefits Lawsuits (PDF)
Excerpt: "The Ninth Circuit Court of Appeals recently held that a one-year deadline to file a benefits claims lawsuit contained in a Summary Plan Description ('SPD') could be enforced against a participant despite the participant's argument that the one year deadline was: not placed in the proper section of the SPD and in a sufficiently conspicuous manner; and never conveyed by the plan's administrator in its claim denial letters." (Trucker Huss)

[Guidance Overview] IRS Guidance on Contribution of Unused Paid Time Off, Automatic Enrollment and Tax Notices (PDF)
Pages 1-3 of 6 pages. Excerpt: "During his weekly address over this past Labor Day weekend, President Obama announced several new initiatives with the goal of providing American workers additional avenues to save for retirement. The details of those initiatives were subsequently published in several Internal Revenue Service ('IRS') rulings and notices [and are summarized in the target document]." (Trucker Huss)

ERISA Advisory Council to Meet November 3-4
Excerpt: "The Advisory Council on Employee Welfare and Pension Benefit Plans (the ERISA Advisory Council) has announced an open meeting on November 3?4, 2009. The purpose of the open meeting is for the Advisory Council members to finalize their recommendations to be presented by the Advisory Council to the Secretary. At the November 4 afternoon session, the Council members will receive an update from the Assistant Secretary of Labor for the Employee Benefits Security Administration (EBSA) and present their recommendations. The Council recommendations will be on the following issues: (1) Promoting Retirement Literacy and Security by Streamlining Disclosures to Participants and Beneficiaries, (2) Stable Value Funds and Retirement Security in the Current Economic Conditions, and (3) Approaches for Retirement Security in the United States. Descriptions of these topics are available on the Advisory Council page of the EBSA Web site. Organizations or members of the public wishing to submit a written statement may do so by mail or e-mail on or before October 27, 2009. Individuals or representatives of organizations wishing to address the Council may request to do so. Oral presentations will be limited to ten minutes, but an extended statement may be submitted for the record." (International Foundation of Employee Benefit Plans)

[Guidance Overview] Important 2009 Deadlines for Retirement Plans (PDF)
2 pages. Excerpt: "This chart describes certain deadlines and planning items for the months of November and December that apply to tax-qualified plans. The deadlines are noted by the type of tax-qualified plan. The term DC Plan refers to a defined contribution plan including a 401(k) Plan and the term DB Plan refers to a defined benefit plan. Items that only apply to a 401(k) Plan are shown separately." (Drinker Biddle Reath LLP)

[Guidance Overview] Retirement and Savings Initiatives' Review as of October 2009 (PDF)
3 pages. Excerpt: "In a recent flurry of activity, the Internal Revenue Service has issued a series of notices and revenue rulings designed to promote retirement savings and address technical issues related to certain plan distributions. These initiatives are intended to: (i) encourage employers to add automatic enrollment features to their 401(k) plans; (ii) enable employees to convert unused vacation into additional retirement savings; and (iii) assist both employers and employees to better understand the available options for distributions from tax-favored retirement savings. A brief summary of the various pronouncements is set forth . . . ." (Dechert LLP)

[Guidance Overview] Summary of and Suggested Action Steps to Address the GINA Interim Final Regulations
10 pages. Excerpt: "Employers whose plans include wellness, health risk assessments and/or disease management will be most affected by the new rules. Detailed action steps will depend on the specifics of the employer's health care program, but some general action steps will apply to many group health plans: . . ." (Gallagher Benefit Services)

[Guidance Overview] New HIPAA Breach Notification Rules
Excerpt: "Rather than waiting for a breach to occur and then reacting in a panic, best practice is to proactively act now to establish notice procedures, maintain breach logs, revise business associate agreements, train employees and update privacy procedures." (Briggs and Morgan P.A.)

[Guidance Overview] Sponsors of Defined Contribution Plans Must Determine Minimum Distribution Policies by Nov. 30, 2009
Excerpt: "The key decisions facing employers are: Whether to give plan participants the option to waive required minimum distributions from a defined contribution plan for 2009 Whether the defined contribution retirement plan will accept rollovers of amounts that were previously distributed, under the required minimum distribution rules, but for which distribution could have been waived Whether to inform participants who are first subject to the minimum required distribution rules in 2009 of their distribution options and rollover rights with respect to such distributions[.]" (Davis Wright Tremaine LLP)

[Guidance Overview] Regulation Deadline Approaches for Section 403(b) Plan Sponsors
Excerpt: "Section 403(b) tax-sheltered annuity plans became subject to an updated and revised set of regulations effective Jan. 1, 2009. One of the requirements of the new regulations is that the plan sponsor must maintain a written plan document that satisfies the regulations' various rules and conditions[.]" (McGuireWoods LLP)

[Guidance Overview] HHS GINA Proposed Regulations: HIPAA Covered Entities Impacted
Excerpt: "Based on the proposed regulations, other documents should also be updated to reflect the new GINA provisions, including the health plan's policies and procedures. Depending on the services that are provided by a business associate and the language of existing business associate agreements, applicable business associate agreements may also need to be updated. Last, health plan sponsors should also consider whether adding protective language in their health plan documents is also appropriate." (Kilpatrick Stockton LLP)

[Guidance Overview] Missed COBRA Qualifying Events Cause Forfeiture of Stop Loss Coverage
Excerpt: "The district court's opinion in Majestic v. Trustmark addresses numerous aspects of a controvery between an employer on the one hand and its stop loss carrier and MGU on the other. Though not dispositive of the case, the opinion does cover a broad swath of issues than can arise in the stop loss reimbursement setting . . . . In this post, I will note the facts that cost the employer stop loss coverage on several claims based upon discontinuities in the plan language and that in the stop loss policy." (Roy Harmon III via Health Plan Law)

[Guidance Overview] Cash Balance Plan Sponsor Liable for Deficient Disclosures, Appeals Court Rules
Excerpt: "A cash balance plan sponsor is liable for deficient communications about wearaway periods, the US Second Circuit Court of Appeals has ruled in a summary opinion with no precedential effect (Amara v. CIGNA). The appeals court upheld the lower court's order to determine benefits after a pre-PPA cash balance conversion using an 'A+B' approach (instead of the plan's opening balance approach) because the SPD didn't sufficiently alert participants to possible wearaways. The court did not reinstate the traditional formula, which plaintiffs argued was the proper remedy for a faulty '204(h)' notice." (Mercer LLC)

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