"The current accounting rule may make sense for a traditional cash balance plan, in which the interest crediting rate is generally unrelated to the plan's discount rate, by allowing recognition of the economic effect that difference. But MRCB plans function much more like defined contribution plans, where returns on plan accounts equal returns on plan assets. In that context, as FASB says, the current accounting rule 'may not reflect the economics of those plans.' " MORE >>
"More than half of plans automatically rollover small balances -- either through the Portability Services Network or through an automatic rollover solution provider.... [N]early ten percent are considering it (8.9%). Most comments think it's a good idea though there are some concerns about not all recordkeepers being a part of the Portability Services Network and the challenges that creates." MORE >>
"Even if you are not a hospital or insurance company, your self-funded health plan may qualify as a 'covered entity' under the Health Insurance Portability and Accountability Act. That can create potential legal exposure for both you, as the employer, and for your Third Party Administrator." MORE >>
"President Trump signed an executive order this spring designed to enhance the options for workers who don't have access to an employer-provided retirement plan ... The White House initiative coincides with a government matching-contribution program that also starts next year, known as the Saver's Match ... Some states are also taking measures to help workers who lack access to employer-sponsored retirement plans by providing automatic IRAs." MORE >>
"The Wall Street Journal called it 'The Retirement-Savings Weapon Doctors and Lawyers Use to Build Wealth' and 5500 and 5500-SF form filings for 2024 reported that, of the 39,194 Schedule SB filings for Defined Benefit plans, 27,462 were for Cash Balance (CB) plans of which at least 20,919 satisfied coverage and nondiscrimination requirements by combining the CB plan with another plan. This series will examine how Cash Balance plans became so popular with an emphasis on how nondiscrimination testing got weaponized." MORE >>
"Under a law enacted last year, five of Indiana's largest nonprofit hospital systems cannot charge patients covered by job-based health plans more than an established price cap. Hospitals that fail to keep prices below the threshold by 2029 risk losing their tax-exempt status ... Even before that penalty kicks in, the law requires these hospitals, which control nearly half the state's hospital market, to offer direct-to-employer contracts -- bypassing insurers -- and stay within limits set by the state. Hospitals that don't comply face a $10,000-a-day penalty. Many other Indiana hospitals must comply with this provision beginning in September." MORE >>
"The decision shows how an insurer's own post-denial communications can create a fact question about where a claimant was required to send an appeal, defeating an exhaustion defense that might otherwise have ended the case." [Lucas v. Hartford Life and Accident Ins. Co., No. 24-7561 (S.D.N.Y. June 18, 2026)] MORE >>
"In a combo design the employer's defined benefit and profit sharing contributions are aggregated and tested on a benefits basis ... The idea is for the owner/key employees to receive more of their retirement value in a DB plan, while rank-and-file employees receive more through a DC plan ... For 2023, Form 5500-SF included a new compliance question: [14a] Does the plan satisfy the coverage and nondiscrimination tests of Code sections 410(b) and 401(a)(4) by combining this plan with any other plans under the permissive aggregation rules? So how prevalent is a design that warrants this question?" MORE >>
"The decision is a reminder that even a well-grounded ERISA long-term disability claim can stall at the pleading stage when the complaint does not clearly separate its claims and identify which defendant each claim is brought against." [Isoviv v. Hartford Life and Accident Ins. Co., No. 25-5865 (N.D. Ga. Jun. 18, 2026)] MORE >>
"[T]wo-thirds of clients (66%) currently cover GLP-1s for obesity, and most intend to continue doing so. Few clients that do not cover GLP-1 drugs for obesity are considering adding them.... This finding is consistent with [WTW's] 2025 Best Practices in Healthcare Survey, where 57% of employer respondents indicated coverage of GLP-1 medications for obesity.... 74% are considering or already using a clinical wrap to support appropriate utilization, engagement and outcomes." MORE >>
"[OPM] is providing notice of adjusted present value factors applicable to certain retirees under the Federal Employees' Retirement System (FERS): [1] Retirees who elect to provide survivor annuity benefits to a spouse based on post-retirement marriage; [2] retiring employees who elect the alternative form of annuity; or [3] retirees who elect to credit certain service with nonappropriated fund instrumentalities. This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System." MORE >>
"[OPM] is providing notice of adjusted present value factors applicable to certain retirees under the Civil Service Retirement System (CSRS): [1] Retirees who elect to provide survivor annuity benefits to a spouse based on a post-retirement marriage; [2] retiring employees who elect the alternative form of annuity, owe certain redeposits based on refunds of contributions for service ending before March 1, 1991, or elect to credit certain service with nonappropriated fund instrumentalities; or [3] for retirees with certain types of retirement coverage errors who can elect to receive credit for service by taking an actuarial reduction ... This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System." MORE >>
"Most employers are overpaying for healthcare by about $4,000 per employee each year, and the first step in reclaiming that lost profit is establishing proper governance and oversight. However, even the most robust fiduciary committee charter is only as effective as the adviser who guides it." MORE >>
"The national median total cost for a C-section for commercially insured patients staying in network is $19,911 ... Alaska is the state with the highest median allowed amount for vaginal deliveries ... followed by (in order from highest to lowest) New Jersey, New York, Connecticut and Oregon. Alaska also has the highest median allowed amount for C-sections ... followed by Vermont, Maine, Oregon and Wyoming. Alabama has the lowest median allowed amount for vaginal deliveries ... [and] also has the lowest median allowed amount for C-sections[.]" MORE >>
"[OPM] is revising the table of reduction factors for early commencing dates of survivor annuities for spouses of separated employees who die before the date on which they would be eligible for unreduced deferred annuities. The annuity factor for spouses of deceased employees who die in service when those spouses elect to receive the basic employee death benefit in 36 installments under the Federal Employees' Retirement System (FERS) Act of 1986 remains unchanged." MORE >>
"The Office of Personnel Management (OPM) is providing notice of revised normal cost percentages for employees covered by the Federal Employees' Retirement System (FERS) Act of 1986." MORE >>
"The letter... concludes that annuity buyouts involving employees who remain employed generally should not be counted when determining whether a defined benefit plan has experienced an 'active participant reduction' reportable event under [ERISA]. In explaining that conclusion, the agency also reiterated that once pension liabilities have been transferred to an insurer, the PBGC no longer bears responsibility for paying benefits if that insurer later fails." MORE >>
"According to the guidance, Trump Accounts ... and employer contribution arrangements to them generally will not be considered employee pension benefit plans under [ERISA], provided that employers maintain a limited role and meet specific conditions. The clarification removes a potential compliance concern for employers weighing whether to offer contributions to the accounts as a workplace benefit, particularly for employees' children." MORE >>
"The final policy may impact health plans that are not directly required to provide EHB, such as self-insured group health plans and large-group market fully insured plans that must follow the annual and lifetime dollar-limit restrictions on EHB and annual cost-sharing limitation requirements.... The final policy is consistent with CMS' desire to provide the 'regulatory framework' for innovation, without mandating it.... Issuers should plan to follow the timelines as outlined by their State and CMS. This policy is subject to litigation in Columbus II. " MORE >>
"All employers with 100+ covered employees must set up a Minnesota Secure Choice Employer Account by June 30, 2026, and either enroll their workers in the state's payroll‑deduction IRA program or certify their exemption by the required date. Noncompliant employers face graduated fines of up to $500 per employee after an initial warning period." MORE >>
"The court explained that a suit for benefits due must be brought against a party with an obligation to pay, which is the entity that controls benefit determinations. Here, the plan and the summary plan descriptions consistently identified Prudential as the Claims Administrator with discretionary authority to process and decide claims, while Accenture, as Plan Administrator, retained authority only over limited matters such as eligibility." [Justman v. Accenture LLP, No. 25-2084 (3d Cir. June 17, 2026)] MORE >>
"While the judge dismissed one count of the complaint for alleged breach of the duties of prudence and loyalty under ERISA regarding the reasonableness of 401(k) plan fees, he allowed the other four counts to proceed.... The proposed class alleges that Lockheed and its investment management subsidiary breached their fiduciary duties of prudence and loyalty under ERISA by selecting and retaining the TDFs despite their poor performance." [Fezer v. Lockheed Martin Corp., No. 25-0908 (D. Md. Apr. 16, 2026)] MORE >>
"The OBBBA significantly expanded Code Section 4960 for taxable years beginning after Dec. 31, 2025, broadening the scope of employees that tax-exempt organizations must evaluate for potential excise tax exposure.... Tax-exempt organizations should review compensation arrangements, deferred compensation plans and compliance processes before the new rules take effect, particularly where compensation may approach or exceed the $1 million threshold." MORE >>
"Plan sponsors that are considering offering a large behavioral health network should note that its effectiveness will depend more on thoughtful design, governance and deployment than on the size of the network. This article describes large behavioral health networks and their appeal. It also covers things to consider before choosing a large behavioral health network. Additionally, it outlines four steps that plan sponsors can follow to ensure the successful introduction of a large behavioral health network." MORE >>
"One major type of Defined Contribution (DC) systems are provident fund systems.... [P]rovident fund systems are very inexpensive, while private pensions are costly due to administrative costs (like DB systems) and due to high levels of profit taking. Members of provident fund systems can invest money themselves.... [P}rovident fund systems are the most efficient and cost-effective social security system available, apart from different kinds of (smart or blind) universal benefit systems." MORE >>
