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State Tax Laws 'A Mess' For Same-Sex Couples And Employers

"[Attorney Carol] Calhoun [said] that the situation is 'a mess in a couple of ways. We think of it primarily as to the couples themselves, but it also affects their employers.' She calls it 'an administrative nightmare' in addition to being a burden on the couples and their employers.... Calhoun is also reminding same-sex couples that under some state laws, they may actually pay higher taxes as a married couple."  MORE >>

Federal Law Update for Teacher Retirement Plans (PDF)

At pp. 8-69 of 69-page document.

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Federal District Court Blocks Michigan Law Eliminating Health Benefits for Domestic Partners of Public Employees

"The Act did not by its terms make reference to gay or lesbian employees. Nevertheless, Judge Lawson found that, 'The historical background and legislative history of the Act demonstrate that it was motivated by animus against gay men and lesbians.' The decision relied in part on the Supreme Court's recent decision in United States v. Windsor, which struck down the provision of the federal Defense of Marriage Act which had precluded federal recognition of same-sex marriages."  MORE >>

Checklist of Federal Tax Law Rules Applicable to Public Retirement Systems

"This outline is a basic summary of the principal Internal Revenue Code qualification requirements that apply to governmental plans, other than plans described in Code section 403(b) or 457(b). It also includes selected Code requirements that do not relate to qualification. It is very general in nature, and does not replace research on specific questions."  MORE >>

Laws Other than ERISA Provide Recourse for Kickbacks from Public Retirement Systems

"An article in Forbes magazine alleges that the Employees' Retirement System of Rhode Island paid kickbacks to placement agents. As most are aware, the Employee Retirement Income Security Act of 1974 (ERISA) does not apply to governmental plans. So, what kinds of protections are available in the case of kickbacks from public retirement systems?"  MORE >>

Employer Groups File Brief Against Iowa PBM Law to Protect Self-Funded Plan Flexibility

"The plaintiff is challenging the Iowa law requiring that, among other provisions, 'any willing pharmacy' be included in a prescription drug plan's provider network, including self-insured prescription drug plans governed by ERISA. In October, a federal judge blocked enforcement of several portions of the law, citing potential conflict with ERISA. In its brief, ERIC argued that ERISA preempts Iowa's law because that law directly interferes with prescription-drug benefit plan design and administration [.]" [Iowa Assoc. of Bus. and Ind. v. Ommen, No. 25-0211 (S.D. Iowa Jul. 21, 2025; on appeal to 8th Cir. No. 25-2494)]  MORE >>

Pharmacy Groups Defend Iowa PBM Law Amid Legal Challenge

"The National Community Pharmacists Association, Iowa Pharmacy Association, American Pharmacists Association and Independent Pharmacy Cooperative filed a friend-of-the-court brief ... arguing that the law is legal and urging the 8th Circuit Court of Appeals to allow it to stand. The groups, which represent independent community pharmacies, say that PBM actions targeted by Iowa's law are driving unaffiliated pharmacies out of business and harming patient access to drugs." [Iowa Assoc. of Bus. and Ind. v. Ommen, No. 25-0211 (S.D. Iowa Jul. 21, 2025; on appeal to 8th Cir. No. 25-2494)]  MORE >>

Group Health Plan Considerations in the Face of Potential Changes to Abortion Laws

"If an employer provides a travel benefit outside of its group health plan, the employer could unwittingly create another group health plan that would raise numerous compliance issues ... Amending a group health plan to provide travel benefits for participants to receive abortions out of state where abortions are not legal could subject an employer and its employees to potential risk under state law.... Employers who wish to take action to address the changes in the law should proceed with caution and remain flexible[.]"  MORE >>

New Illinois State Law Imposes Disclosure Requirements on Group Health Plans

"The CCDA requires employers that sponsor group health plans with employees in Illinois to disclose a comparison of the plan's coverage to certain 'Essential Health Benefits' required by Illinois state law.... The CCDA broadly applies, regardless of the employer's size or its location, to fully insured and self-funded group health plans. Additionally, the Illinois [DOL] has taken the position that the CCDA also applies to ERISA-covered self-funded group health plans."  MORE >>

Groom Law Group Comments on Possible Changes to Administrative Procedures and Rules for IRAs (PDF)

10 pages. Excerpt: On behalf of a group of financial institutions which offer products and services to individual retirement accounts and annuities, Groom Law Group submitted the [target] letter to the IRS requesting that the Service consider several areas in which the administrative procedures and rules for IRAs for tax purposes, which have not significantly changed in many years, could be improved or supplemented.  MORE >>

Groom Law Group Urges IRS to Expand Determination Letter Program

"[Groom Law Group submitted letters] recommending consideration of the following plans as applicants for updated determination letters: [1] Plans with a cash balance or similar benefit formula whose last determination letter was before the effective date of the final IRS hybrid plan regulations. [2] Plans that address income replacement and inflationary pressures through adoption of a variable annuity feature. [3] Traditional pension plans that convert to a cash balance-type formula. [4] Plans that undergo major changes that otherwise make certain compliance testing unnecessary -- such as safe harbor 401(k) plans. [5] Plan changes accompanying significant workforce adjustments, such as downsizings or corporate separations. [6] Corrective plan amendments submitted as part of an EPCRS submission. [7] Governmental plans where there has been a significant change in the governing state or local law."

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Effect of New Federal Laws on Group Health Plans (PDF)

5 pages. Excerpt: This bulletin provides a summary of two federal laws that will impact group health plans: The American Recovery and Reinvestment Act of 2009, which was signed into law on February 17, 2009, and the Children's Health Insurance Program Reauthorization Act of 2009, which was signed into law on February 4, 2009.  MORE >>

Is My Group Health Plan Covered by State PBM Reporting Laws?

"[A]ll 50 states have laws that regulate PBMs in some way, but all are unique.... [Most] have the same primary goals of reducing governmental waste and addressing the rising cost of drugs.... [M]any states have started implementing laws that have either a direct reference to self-insured plans or, even when silent on whether they apply to self-insured plans, still have a direct effect on the actions of the plan administrators."  MORE >>

Business Groups Sue Over Iowa's New Law Regulating PBMs

"The lawsuit ... contends that the law, Senate File 383, would upend prescription drug coverage in the state and violate the First Amendment by preventing employers from directing workers to some pharmacies over others. The lawsuit also says the Iowa law is in conflict with [ERISA]." [Iowa Association of Business and Industry v. Ommen, No. 25-0211 (S.D. Iowa complaint filed Jun. 23, 2025)]  MORE >>

District Court Rules Colorado Law Turns Group Life Insurance Policy's Two-Year Suicide Exclusion into a One-Year Exclusion

"Colorado Revised Statute Section 10-7-109 nullifies suicide exclusions longer than one year in life insurance policies. MetLife argued the statute applied to individual policies, but not group policies. The court rejected this argument because the Supreme Court of Colorado had recognized the longstanding public policy in Colorado that disfavored suicide exclusions and had applied the statute to group credit life insurance -- a different, but similar type of group insurance." [Auwae v. Metropolitan Life Ins. Co., No. 19-2504 (D. Colo. Mar. 2, 2020)]  MORE >>

Groom Law Group Recommendation for IRS Priority Guidance Plan: Expand 'Dependent' Definition for VEBA Purposes

"The Treasury regulations governing VEBAs were published nearly 45 years ago. Since that time, the provisions regarding who qualifies as a 'dependent' for VEBA purposes have become outdated.... This letter briefly summarizes [the] rationale for requesting this change and recommends an approach to modify the VEBA regulations to include expanded family relationships, similar to other areas of the law."  MORE >>

Groom Law Group Letter to IRS: 2024-25 Priority Guidance Plan Recommendation (PDF)

"We again write to recommend that Treasury and IRS publish official guidance confirming that the 100% excise tax on reversions under Section 4976 of the Internal Revenue Code ... does not apply when an employer 'repurposes' surplus retiree benefit assets in a welfare benefit fund to provide other health and welfare benefits, including to active employees.... [T]here are compelling policy reasons to issue guidance to allow the repurposing of such assets -- and no apparent policy or legal reasons to continue to place billions of dollars of tax-deferred welfare benefit fund assets in 'tax limbo.' "  MORE >>

What Federal Laws Apply to Wellness Programs Under ERISA Group Health Plans? (PDF)

"Employers are faced with the tremendous challenge of understanding and complying with the many overlapping laws and continually changing rules that govern the various types of programs. Here is a high-level overview of some of the federal laws that employers with ERISA group health plans should consider before adding a wellness program."

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Law Group Argues That Court Misapplied 'Thole' Ruling in ERISA Case

"A nonprofit law group has asked an appellate court to narrow the standing for plaintiffs suing Universal Health Services over investments in its defined contribution (DC) plan to only those investments in which the plaintiffs were invested." [Boley v. Universal Health Serv. Inc., No. 21-2104 (3d Cir. amicus brief filed Aug. 9, 2021)]

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Supreme Court Holds That ERISA Does Not Preempt Arkansas PBM Law: The Impact on Employer Sponsored Group Health Plans

"The decision gives the green light for state-by-state regulations of PBM networks and payment practices. The impact of Rutledge on employer-sponsored group health plans, particularly multi-state arrangements, is difficult to underestimate. Employers will need to grapple with the inevitable proliferation of state PBM laws that, while purporting to regulate the relationship between a PBM and a pharmacy, will in all likelihood have unintended and unwelcome consequences for their group health plans." [Rutledge v. Pharmaceutical Care Mgmt. Assoc., No. 18-540 (S. Ct. Dec. 10, 2020)]  MORE >>