Headlines about "Death benefits, incl. life insurance"

Gathered from the web by the editors at BenefitsLink.com.
[Official Guidance] Eighth Circuit Addresses Standard of Review in Long-Term Disability Insurance Dispute (PDF)
"Standard's [disability insurance] policy language reserving the power to 'resolve all questions . . . [of] interpretation' indicates the administrator has discretionary power to construe ambiguous terms. Thus, our standard of review is for abuse of discretion.' (Hankins v. Standard Insurance Company, 8th Cir., May 14, 2012). (Justia.com)

Current Challenges and Best Practices Concerning Beneficiary Designations in Retirement and Life Insurance Plans (PDF)
"The complexity of the rules under ERISA may, in some cases, lead to beneficiary designations that do not accurately reflect the participant's intent, and can frequently result in disputes over who is entitled to ERISA plan benefits following the death of the participant.... [E]ven when the beneficiary designation correctly indicates the participant's intent, beneficiaries may be unaware of what to do to obtain the benefit or to determine the benefit to which they are entitled.... The Council is examining this topic and intends to draft recommendations to the Secretary of Labor for consideration." (2012 ERISA Advisory Council)

ERISA Advisory Council to Examine Disability Coverage, Retirement Income and Beneficiary Designations (PDF)
"[The Advisory Council on Employee Welfare and Pension Benefit Plans (also known as the ERISA Advisory Council) [meeting] will be held on June 12-14, 2012 [in] Washington, DC].... The Advisory Council will study the following issues: (1) Managing Disability Risks in an Environment of Individual Responsibility; (2) Current Issues Regarding Income Replacement During Retirement Years; and (3) Current Challenges and Best Practices Concerning Beneficiary Designations in Retirement and Life Insurance Plans." (Employee Benefits Security Administration)

Employee Benefits Developments, April 2012
The newsletter covers recent rulings, opinions, and cases; the two cases both involve Retained Asset Accounts. (Hodgson Russ LLP)

[Guidance Overview] Another Question is Answered in the Who's the Employer Q&A Column
Can the spouse of a limited partner in a limited partnership be treated as an employee? (BenefitsLink.com)

Nearly 20% of Life Insurance Shoppers Went Through Workplace
"A recent LIMRA study of Americans' buying habits found that nearly 20 percent who shopped for life insurance went through their place of work, and 75 percent of workplace shoppers actually bought life insurance." (insurancenewsnet.com)

Employer-Provided Life Insurance Benefits, 2011
"In March 2011, 58 percent of private industry workers were offered life insurance benefits by their employers; of these, 97 percent chose to enroll in this benefit. Among full-time workers, 73 percent were offered life insurance and 97 percent participated in the benefit; among part-time workers, by contrast, 14 percent were offered life insurance and 91 percent participated." (U.S. Bureau of Labor Statistics)

Life Insurance Benefits: Variations Based on Workers' Earnings and Work Schedules
"According to data from the National Compensation Surveynearly two-thirds of private industry workers were offered life insurance benefits by their employers in March 2011; of these, 97 percent chose to enroll in this benefit." (U.S. Bureau of Labor Statistics)

[Guidance Overview] Spousal Consent Requirements for Qualified Retirement Plans
"If a married participant in a retirement plan with survivor annuity benefits wants to receive a distribution in a different form, the spouse must provide written consent and the consent must be witnessed by a plan representative or notary public. This requirement also applies if the participant applies for a plan loan. However, if the participant is not married, or there is satisfactory evidence that the spouse cannot be located, spousal consent is not necessary." (McKay Hochman)

[Guidance Overview] Unintended Errors in Benefits Communications May Result in Liability under ERISA
"In 'Winkelspecht,' an email from an employer's Administrator of Payroll and Benefits, erroneously advising a participant that the company would continue to pay his life insurance premiums post-retirement, provided the basis to find the employer and the life insurance plan liable for the benefit under principles of ERISA estoppel." (Littler)

IRS's Updated Version of Taxable Fringe Benefit Guide
"This publication offers helpful insight into the IRS's views regarding the taxation, withholding, and reporting requirements for many fringe benefits. And unlike many other IRS summaries, it includes citations to statutes, regulations, cases, and guidance that make it useful as a gateway reference." (Thomson Reuters/EBIA)

[Guidance Overview] Estoppel in ERISA: Simple Mistakes Can Lead to Costly Litigation
"Even if the participant ultimately fails in proving the elements of estoppel, defending against such claims is costly and time-consuming. Accordingly, employers and plan administrators should take the following steps to protect themselves from these types of claims: . . . ." (Employee Benefits Law Report)

Use of TPAs to Outsource Benefit Plan Administation Increased Substantially During Past Four Years (PDF)
"[R]oughly two in five plan sponsors (37%) say they are increasing the use of third party administrators (outsourcing benefits administration) to some extent in order to manage costs. Among those using this strategy, 65% indicate it has been successful in achieving desired cost savings." (Prudential)

Life Settlements an Option for Retirement
"Many Baby Boomers are cashing in life insurance policies to help pay for retirement. These transactions are called life settlements, and they have become popular in recent years as an alternative retirement vehicle." (BenefitsPro)

[Guidance Overview] Missouri Slayer Law Preempted by ERISA
"The court also questions whether Missouri's Slayer Statute even creates a private right of action, but eventually concludes that it need not decide the case because of its holding on ERISA preemption. The court does allow the Plaintiff to proceed on the ERISA claim and points out that it is not precluded in applying the principles of a Slayer Statute to Plaintiff's ERISA benefits claim." (ERISABoard.com)

GAO Report: Federal Employees' Group Life Insurance: Retirement Benefit and Retained Asset Account Disclosures Could Be Improved
"GAO recommends that OPM (1) improve disclosures on important FEGLI features, (2) develop and implement a more structured process for reviewing the FEGLI program and premium rates, and document review outcomes, and (3) improve disclosures on RAA protections and regulation." (U.S. Government Accountability Office)

[Guidance Overview] ERISA's Outer Limits: The Admissibility of Extrinsic Evidence in Denied Claims for Plan Benefits
"Plaintiffs . . . who seek ERISA-regulated plan benefits often attempt to introduce evidence to a court which they did not earlier present to the employee benefit plan's administrator. Standing in the way of the introduction of extrinsic evidence is the ERISA statute's requirement that participants exhaust the plan's claims review procedure before filing suit." (Aspen Publishers, Wolters Kluwer Law & Business via Winston & Strawn LLP)

How to Avoid Leave-Related Lawsuits
"1. With self-funded health plans, make sure eligibility policies that are more generous than FMLA or other federal laws are approved by the reinsurance carrier. . . . 2. Clearly communicate conversion rights and termination of coverage to employees on leave." (Employee Benefit News)

Majority of Employees Enroll for Benefits Online
"Sixty-two percent of workers now enroll online for their employee benefits, compared to only 29% in 2005, according to the Guardian Life Insurance Company of America." (Wolters Kluwer Law & Business / CCH)

Life Insurance Premium Changes on The Way for Some Federal Employees, Retirees
"All [Federal Employees' Group Life Insurance (FEGLI) Program] enrollees receive basic insurance, which includes coverage totaling the employee's annual pay, rounded to the nearest $1,000, plus an additional $2,000. Enrollees also can elect additional plans." (GovExec.com)

Profit Sharing Plan's Spousal Death Benefits Fight Spotlights DOMA Question
"The parents [of the deceased qualified profit sharing plan participant] have argued [in federal district court] that DOMA, which limits marriage to only between a man and a woman, prohibits [the proposed payee, to whom the participant became married in 2006 under Canada law] from being considered a 'spouse' as defined by the plan. And even if Pennsylvania law were to apply instead of the federal DOMA, the state also has a similar law prohibiting same-sex marriage, they argued." (Pittsburgh Post-Gazette)

Text of DOL Amicus Brief, Supplemental, Supporting Plaintiff-Appellant on Panel Rehearing
"Whether the court has authority to order, as 'appropriate equitable relief,' that MetLife pay plaintiff the insurance proceeds that she would have received but for MetLife's breach of fiduciary duty, in accordance with section 502(a)(3) of [ERISA], 29 U.S.C. ? 1132(a)(3), as recently construed by the Supreme Court in CIGNA Corp. v. Amara, 131 S. Ct. 1866 (2011)." (U.S. Department of Labor)

New California Law Requires More Options for Payment of Life Insurance Proceeds
"Previously, California law permitted life insurers to limit beneficiaries' option for receipt of payment to Retained Asset Accounts ('RAA'). . . . SB 599 emphasizes 'lump sum' payments over payment through RAAs." (SNR Denton)

[Guidance Overview] Court Affirms Dismissal of Suit Challenging Insurer's Use of Retained Asset Account To Settle Life Insurance Benefits
"DoubleClickAndReplaceMeWithExcerpt" (Goodwin Procter LLP)

[Guidance Overview] IRS Interim Guidance on Federal Income Tax Treatment of Annuity and Life Insurance Contracts with Long-Term Care Insurance Feature (PDF)
"The Notice requests public comment on several questions 'to assist in the development of further guidance' concerning the taxation of combination products." (Sutherland Asbill & Brennan LLP)

[Guidance Overview] Group Life RAAs Fall Outside ERISA, According to Appeals Court
"A 3-judge panel at the 2nd U.S. Circuit of Appeals came to that conclusion in a ruling on Faber vs. Metropolitan Life Insurance Company, Number 09-4901, a suit filed on behalf of beneficiaries of group life policies written by Metropolitan Life Insurance Company . . . ." (National Underwriter Life & Health)

[Guidance Overview] Third Circuit Concludes That De Novo Standard Was Appropriate, Given Insurance Policy Language
"The standard of review in an ERISA benefits case can have a major impact on the outcome, making it critical to recognize the role played by plan language in dictating which standard will apply." (Thomson Reuters/EBIA)

GM Faces another Retiree Benefits Suit
"A group of 45 General Motors Co. salaried retirees have filed a lawsuit claiming the auto giant and Metropolitan Life Insurance Co. breached its contract when it slashed life insurance benefits." (PLANSPONSOR.COM)

Determination of Pension Benefits
This edition of the firm's newsletter includes several items on pension cases; see item numbers 4, 5, 6, 7 and 10. (Cypen & Cypen)

More Confusion Like on Disclaimers of Death Benefits by Former Spouses
"Former spouses, who made common-law disclaimers, but claimed benefits as designees, may find their victories against the plans rather ephemeral [despite the unanimous decision of the U.S. Supreme Court in Kennedy v. Plan Administrator of the Du Pont Savings and Investment Plan." (Workplace Prof Blog)

Employer Costs for Employee Compensation in March 2011
"Wages and salaries averaged $19.85 per hour worked and accounted for 70.7 percent of total compensation costs, while benefits averaged $8.25 and 29.3 percent, respectively." (U.S. Bureau of Labor Statistics)

[Guidance Overview] Terms of Life Insurance Plan, Not State Law, Determined Proper Definition of Domestic Partner
"General definitions of domestic partner in state and local law will (if they exist at all) tend to vary from place to place. As this case illustrates, that makes it incumbent on the plan to provide a careful definition." (Thomson Reuters/EBIA)

Retirement Plan Finances for Surviving Spouse
"New surveys show that women continue to trail men when planning for retirement. That makes it all the more important for most married couples to make retirement-planning decisions with the goal of leaving the spouse with greater longevity -- typically, the wife -- in good shape financially after the other dies." (The Wall Street Journal)

[Official Guidance] Text of DOL's McCravy Amicus Brief, in Support of Petition for Rehearing or Rehearing En Banc
"AS CIGNA NOW MAKES CLEAR, APPROPRIATE EQUITABLE RELIEF UNDER ERISA SECTION 502(a)(3) INCLUDES RELIEF THAT MAKES INJURED PARTICIPANTS AND BENEFICIARIES WHOLE AND THUS PERMITS THE COURT TO SURCHARGE METLIFE FOR THE INSURANCE PROCEEDS THAT MCCRAVY WOULD HAVE RECEIVED BUT FOR THE ALLEGED BREACHES OF FIDUCIARY DUTY" (U.S. Department of Labor)

ERISA Preemption and Beneficiary Designation Forms
"The circuit courts are split as to whether ERISA preemption would require benefits to be paid to the estate or state law doctrines would allow the beneficiary designation form to be honored." (Employee Benefit News; free registration required)

Unpaid Life Insurance and Annuity Benefits' Issues Continue to Intensify
"Attention to unclaimed property issues affecting life insurance companies . . . has significantly escalated in recent weeks, due to regulatory actions, media coverage, and public expressions of interest by the plaintiffs' bar. This Legal Alert discusses those developments and puts them into perspective." (Employee Benefit News; free registration required)

[Guidance Overview] Supreme Court Speaks on the Remedies for Benefits Description Mistakes
"In a move that will gratify plan sponsors, administrators and fiduciaries, the Supreme Court . . . concluded that plan summaries, including summary plan descriptions and summaries of plan modifications, do not constitute plan terms. . . . The authors recently hosted a 25-minute teleconference addressing this Supreme Court decision [the link to which is on the target web page]." (McDermott)

[Guidance Overview] Supreme Court Addresses Remedies for Violation of ERISA Disclosure Rules
"[T]he Supreme Court found that errors or omissions from the SPD might justify equitable relief in some circumstances. Drafting good SPDs has always been a challenge, and drafters must now consider Amara in writing or amending SPDs." (McGuireWoods)

Door to Monetary Awards Against Fiduciaries Is Opening (PDF)
"[T]he Supreme Court has signaled that 'compensatory,' 'make-whole' monetary relief is available under ERISA's catch-all provision, Section 502(a)(3). . . . . [Also, the] impact of the Supreme Court's holding that the terms of an SPD cannot be enforced as if they were plan terms will have to be sorted out in future litigation. The decision appears to overturn the rule adopted by many circuits . . . ." (Trucker Huss)

At Supreme Court, Employees Win New Benefit Protections
"In a 6-2 decision, the Supreme Court ruled that a lower court could award employees the benefit the company led them to believe they had. The ruling could have broad repercussions not only in pension cases, but also for health-care, disability and other workplace benefits." (Wall Street Journal)

Law Firm Investigating Several Life Insurance Companies for Potential Violations of Various State Laws As Well As ERISA
"According to a press release from the law firm, the investigation focuses on insurers that allegedly delay or withhold payments to beneficiaries despite knowledge that the life insurance policy holder has passed away." (PLANSPONSOR.COM)

[Guidance Overview] Court Rules That Plan Owners Must Get Consent of Spouse to Pass Wealth to Children
"The court determined that under the terms of the participant's plan, a spouse's right to plan assets is immediately vested upon marriage, and since no spousal waiver was obtained, the default beneficiary is the spouse, even though she was not the named beneficiary." (Investment News; free registration required)

[Guidance Overview] Fifth Circuit Holds That Accidental Death Benefit Not Payable Due To Exclusion In Plan For Drunk Driving
"In Redeaux v. Southern National Life Insurance Company, . . . the Court faced the question of whether an accidental death benefit was payable from a plan subject to ERISA . . . ." (ERISA Lawyer Blog)

[Guidance Overview] Court Says Spouse Trumps Beneficiary Designation of Children
"A federal court has granted retirement plan benefits of a deceased participant to his spouse, even though he had listed his children as beneficiaries on the plan's designation form." (PLANSPONSOR.COM)

[Guidance Overview] Life Insurance: ERISA And Misrepresentation
"There are a large number of people residing and working in the Texas who are here illegally. For the most part these people obey the laws, both criminal and civil. They do things like, buy life insurance. This case is relevant in understanding the laws that may affect whether a life insurance company is going to have to pay a claim." (Dallas Fort Worth Insurance Lawyer Blog)

[Guidance Overview] Court Denies Mother's Claim to Deceased Son's Benefits
"A federal court has upheld an employer's decision to grant death benefits to the beneficiary designated by a former employee, though his mother claimed he was unduly influenced." (PLANSPONSOR.COM)

[Guidance Overview] Beneficiary Designations Under Qualified Plans
"There have been many changes in federal pension law that have an impact on a participant's beneficiary designation form. Beneficiary forms drafted even a few years ago may be outdated and not compliant with current law." (Foster Swift Collins & Smith PC)

[Guidance Overview] Court Rules Death Benefits Should Go to Estranged Ex
"According to the Courthouse News Service, although Robert Alsager had signed a separation and property-settlement agreement with his ex-wife releasing claims to her estate or property, a three-judge panel . . . said it leaned heavily on the 2009 decision for Kennedy v. Plan Administrator for DuPont Savings & Investment Plan, in which the U.S. Supreme Court concluded that a claim for benefits must stand or fall by the terms of the plan." (PLANSPONSOR.COM)

[Guidance Overview] Fifth Circuit Determines That ERISA Preempts State Law Claim That Participant Was Not Married
"When the plaintiff's father died, a death benefit became payable under the Plan. But to whom? The Plan provided that the death benefit would be paid to the covered individual's spouse, or if none, to his children. At the time of his death, the father was residing with a woman that he had earlier divorced." (ERISA Lawyer Blog)

[Guidance Overview] Restrictive New IRS Ruling Affects Tax-Free Exchanges of COLI
"Many companies have substantial amounts of corporate-owned life insurance . . . on their books. Typically, the policies were purchased to fund future liabilities for deferred compensation, retiree health or other significant corporate liabilities. When the policies do not perform as expected, companies may shop around for better ones." (Groom Law Group)

ERISA Loopholes: Accidental Death Becomes Suicide When Insurers Don't Pay
"Insurers can make erroneous arguments with near impunity when it comes to the 112.8 million life and accidental death policies provided by companies and associations to their employees and members. That's because of loopholes in a federal law intended to protect worker benefits." (Bloomberg L.P.)

[Official Guidance] EBSA Advisory Opinion 2011-05A: Guidance Regarding Use of Demutualization Proceeds Received by J.B. Hunt Transport Services, Inc. Employee Benefits Plan
"[A]bsent plan terms to the contrary, in our view, fiduciaries of an employee welfare benefit plan may use demutualization proceeds that are plan assets for the benefit of all current participants and beneficiaries, rather than only for those who actually contributed to premium payments for the insurance policies. In the situation you describe, ERISA does not require plan fiduciaries to consider the interests of individuals who are no longer covered under the plan in deciding how to use such demutualization proceeds." (U.S. Employee Benefits Security Administration)

Cash Value Insurance and Benefit Programs ? When Will It Stop?
"While the IRS has clearly stated its positions over the years (starting with Notice 95-34) with respect to the plans, they continue to be marketed as a way to sell CVLI." (Pension & Benefits Blog)

Hybrid LTC Plans Cited Among 2011 Benefit Trends
"One reason traditional LTC sales keep declining is the assets used to fund premiums are lost in the event that the insurance is never needed. That's not the case for a hybrid plan with an LTC rider, which enables policyholders to reallocate cash reserves to upgrade coverage, leverage death benefits when the product is combined with life insurance and access cash." (Employee Benefit News; one-time free registration required)

Top 10 Trends for Life and Health Insurers
"[Three of the five trends seen] on the health side (growing interest in health care exchanges, reforming health care payments, increasing adoption of electronic medical records) are all substantially influenced by the Patient Protection and Affordable Care Act." (Employee Benefit News; one-time free registration required)

Program Perspectives on Life and Disability Insurance Benefits (PDF)
4 pages. Excerpt: "Fifty-six percent of all private industry employees, and 78 percent of all State and local government employees participated in employer-provided life insurance plans in March 2010. . . . Thirty-eight percent of private industry employees participated in short-term disability insurance plans, and 31 percent had long?term disabilityinsurance protection." (U.S. Bureau of Labor Statistics)

BLS Looks at Employer-Provided Life and Disability Benefits (PDF)
4 pages. Excerpt: "Fifty-six percent of all private industry employees . . . participated in employer-provided life insurance plans inMarch 2010. . . . Thirty-eight percent of private industry employees participated in short-term disability insurance plans, and 31 percent had long?term disability insurance protection." (U.S. Bureau of Labor Statistics)

[Guidance Overview] Plaintiff Not Entitled to Accidental Death Benefits
Excerpt: "The plaintiff applied for accidental death benefits under an ERISA policy provided by her husband's employer. The policy covered accidental deaths occurring within 365 days of the accident." (Wisconson Law Journal)

Proskauer Rose's ERISA Litigation Newsletter, December 2010 Issue
Excerpt: "The Supreme Court is expected to rule in Spring 2011 in the case of CIGNA Corp. v. Amara. As the authors explain below, depending on the breadth of the Supreme Court's ruling, the decision could have widespread implications on the sustainability of a large variety of claims under ERISA that are premised on allegations of faulty communications." (Proskauer Rose LLP)

Upcoming Bills May Include Moves to Eliminate Tax Preferences for Insurance and Retirement Plans
Excerpt: "One of the points that likely will come out as the Congress wrestles with tax reform is that tax expenditures for retirement plans and the buildup of cash value in life insurance products are tax deferrals rather than deductions . . . ." (Investment News; one-time registration required)

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