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Text of IRS Notice 2026-36: Notice of Intent to Issue Regulations Under Section 4960 (PDF)

"This notice announces that the Department of the Treasury and the [IRS] intend to issue proposed regulations under section 4960 of the Internal Revenue Code (Code)1 pertaining to the tax on excess tax-exempt organization executive compensation. It is anticipated that the proposed regulations will address the effective date of the amendment to the definition of covered employee made by section 70416 ... the One, Big, Beautiful Bill Act (OBBBA) and will also propose exceptions to the definition of covered employee that are similar to the limited hours and nonexempt funds exceptions in the existing section 4960 regulations. This notice also solicits public comments on the matters addressed in this notice."  MORE >>

IRS Publishes Dependent Coverage of Children Regulation as Both Proposed and Temporary Reg; Comments Requested

The regulations published today by EBSA and HHS as Interim Final Regulations also are published as IRS Temporary Regulations. In addition, the IRS is publishing them (verbatim) as Proposed Regulations, in order to solicit comments per the usual procedures for proposed regulations. Excerpt: Before these proposed regulations are adopted as final regulations, consideration will be given to any ... comments .... Comments are specifically requested on the clarity of the proposed regulations and how they may be made easier to understand.

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New 403(b) Regulations

Excerpt: The IRS has issued proposed 403(b) regulations. The new regulations represent the first comprehensive guidance on 403(b) plans in 40 years. The new regulations incorporate the statutory changes from ERISA through EGTRRA and other IRS rulings issued since 1964. In addition, the regulations address other issues that have not been addressed by the IRS in any formal guidance. The new regulations are effective for taxable years beginning after December 31, 2005.  MORE >>

NAIC Regulators Continue Pushing for Annuity Illustration Updates

"State insurance regulators are seeking to reopen a key annuity illustration model regulation as they consider a significant overhaul of how illustrations are used in the sales process.... [R]egulators are weighing revisions addressing illustration length, disclosure requirements, accountability measures and how insurers present non-guaranteed crediting rates.... The group is simultaneously considering a temporary 'stopgap' approach through an actuarial guideline that could be used before any model revisions are adopted by individual states."  MORE >>

Proposed PBM Transparency Regulations Issued (PDF)

"Disclosures are required in advance of the date the contract with the covered service provider is entered into, semi-annually, and upon request of the plan sponsor and are subject to audit rights by plan fiduciaries. If finalized, the regulations would become effective 60 days after they are issued, with an applicability date for plan years beginning on or after July 1, 2026 (i.e., January 1, 2027, for calendar year plans). Many of the provisions in the proposed regulation are similar to the provisions in the legislation passed by Congress earlier this year (Consolidated Appropriations Act (CAA), 2026) but differ in various respects. The final regulations will likely look to harmonize those varying provisions."  MORE >>

Text of Presidential Memorandum Directing the Repeal of Unlawful Regulations

"Following the 60-day review period ordered in Executive Order 14219 to identify unlawful and potentially unlawful regulations, agencies shall immediately take steps to effectuate the repeal of any regulation, or the portion of any regulation, that clearly exceeds the agency's statutory authority or is otherwise unlawful. Agencies should give priority to the regulations in conflict with the United States Supreme Court decisions listed earlier in this memorandum. The repeal of each unlawful regulation shall be accompanied by a brief statement of the reasons that the 'good cause' exception applies."  MORE >>

Recently Issued Regulations That Will Take Effect in 2025 and 2026

"Prior to the end of the Biden administration, a number of proposed and final regulations were issued that impact retirement and welfare benefit plans. The final regulations are effective in 2025, and the proposed regulations, if finalized, would be effective in 2026.... [1] New relief on ACA employer mandate penalties.... [2] IRS anticipates a delay in applicability date for future SECURE 2.0 required minimum distribution regulations.... [3] IRS proposes regulations on SECURE 2.0 Act catch-up provisions."  MORE >>

Eighth Circuit: ERISA Preempts North Dakota Statute Regulating Pharmacy Benefit Managers (PDF)

"In 2017, North Dakota passed ... [a statue which] 'sought to define the rights of pharmacist[s] in relation to [PBMs], and to regulate certain practices by PBMs.' The legislation regulates the fees PBMs and 'third-party payer[s]' may charge pharmacies, ... regulates benefits provisions and plan structures, ... and requires certain disclosures on the part of PBMs and prohibits PBMs from setting limits on information pharmacists may provide patients ... The North Dakota legislation's definitions of and references to 'pharmacy benefits manager,' 'third-party payer,' and 'plan sponsor' mean the legislation's provisions apply to plans 'subject to ERISA regulation.' ... [A] statute that implicitly regulates ERISA plans as part of its regulatory scheme is preempted by ERISA and cannot be saved merely because the reference also includes entities not covered by ERISA." [Pharmaceutical Care Management Association v. North Dakota, No. 18-2926 (8th Cir. Aug. 7, 2020; S. Ct. vacated and remanded Mar. 26, 2021)]  MORE >>

DOL Finalizes MEP Regulation

"[This article briefly reviews] the legal background ... the final regulation ... [and] DOL’s discussion, in the preamble to the final regulation, of the fiduciary obligations of an employer that adopts a multiple employer plan. [The article concludes] with a brief discussion of the separate Request for Information (RFI) on Open MEPs also released on July 22, 2019."  MORE >>

Text of Second Circuit Opinion: Extent of Plan's Compliance with DOL Claims Procedure Regulation Determines Court's Standard of Review (PDF)

"[We] hold that, when denying a claim for benefits, a plan's failure to comply with the [DOL]'s claims-procedure regulation, 29 C.F.R. Section 2560.503-1, will result in that claim being reviewed de novo in federal court, unless the plan has otherwise established procedures in full conformity with the regulation and can show that its failure to comply with the regulation in the processing of a particular claim was inadvertent and harmless. We further hold that civil penalties are not available to a participant or beneficiary for a plan's failure to comply with the claims ‐ procedure regulation. Finally, we hold that a plan's failure to comply with the claims-procedure regulation may, in the district court's discretion, constitute good cause warranting the introduction of additional evidence outside the administrative record." [Halo v. Yale Health Plan, No. 14-4055 (2d Cir. Apr. 12, 2016)]

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