News

"You have probably become used to being assaulted by legal and regulatory changes that you need to address for your retirement plan.... Several issues are waiting for you in 2025, either because they are truly effective then, or because government guidance has been issued that makes an option available to you now.... [Here is] a quick summary of what is lurking around the corner for 2025 that may need your attention."

"Retirement Plans: Plan sponsors should engage in conversations with their recordkeeper about implementation of the many optional provisions under SECURE 2.0.... Though SECURE 2.0 plan amendments are not due until December 31, 2026, plan sponsors should update the plan's summary plan description to include any SECURE 2.0 changes already in effect.... Health and Welfare Plans: [HIPAA] reproductive healthcare rights ... Section 408(B)(2)(b) fee disclosures ... Mental health parity ... Cybersecurity."

"This interim guidance specifically refers to the application of the plan qualification and rollover distribution rules ... to the correction methods available for inadvertent benefit overpayments under the [EPCRS] as outlined in [Rev. Proc. 2021-30].... The interim guidance provided in Notice 2024-77 is effective for operational failures caused by inadvertent benefit overpayments that occurred on or after October 15, 2024[.]"

"Plan administrators and counsel should review key issues with respect to employee benefit plans and executive compensation arrangements, confirm actions to be taken before the end of 2024, and focus on what to expect for 2025. [These checklists] address plan amendments, notices, and other considerations for qualified retirement plans, welfare plans, and stock-based and performance-based plans."

• Plan Administrators
• Corporate Counsel
• Plan Administrators of Governmental and Church Plans
• General Counsel of Tax-Exempt and Governmental Entities

"Overlaying this year's 'To Do' List is the Supreme Court's landmark decision in Loper Bright ... [T]he reversal of Chevron fundamentally alters the landscape of administrative law and is sure to affect the world of employee benefits.... [In] 2024 and 2025 we expect employers will focus their compliance efforts on: [1] updating fiduciary practices for health and welfare plans; [2] implementing cybersecurity best practices; [3] complying with and implementing the recently updated [MHPAEA] requirements; and [4] ensuring [HIPAA] compliance with the new reproductive health care rules."

24 pages. "[S]tate continuation laws ... (often referred to as 'mini-COBRA' laws), fill in COBRA's gaps, particularly for small employers offering fully insured group health plans as well as fully- insured large-employer group health plans ... This GRIST summarizes the major aspects of state continuation requirements -- including a comparison and interaction with COBRA rules and useful tables encapsulating applicable laws in each state."

"New comparability plans ... allow an employer to allocate different profit-sharing contribution percentages to different groups of employees at the employer's discretion.... New comparability plans make sense for businesses that want to maximize employer contributions for older, higher-paid owners and key employees while providing a modest contribution for younger employees."

"We don't yet have a clear definition of who is a 'covered employee' subject to the mandatory auto enroll feature.... The addition of an auto enroll feature will likely result in more small account balances for terminated participants.... Similar to the mandatory auto enroll feature, the LTPT employee provisions may result in increased small balances for terminated participants.... Beginning in 2025, an increased dollar limit [for catch-up contributions] applies for participants who have attained age 60 but not yet age 64.... [T]he provisions effective in 2025 can be operational prior to amending the plan."

"The Final RMD Regulations are effective for distribution calendar years beginning on or after January 1, 2025. For distribution calendar years before January 1, 2025, a good faith, reasonable interpretation of statutory provisions standard applies. The key provisions from the Final RMD Regulations that clarify or expand on the 2022 Proposed Regulations and the Proposed RMD Regulations are discussed [in this article]."

"One of the simplest and most effective ways for [a participant] to safeguard his account is to regularly change his passwords and avoid using the same one twice.... The DOL also warns us all to be cautious when using public Wi-Fi in places like coffee shops, airports, or hotels ... As a service provider, the recordkeeper should have a written policy and internal detailed procedures on how it handles any potential breach.... Communication is key."

94 pages. "This GRIST summarizes potential year-end 2024 and expected 2025 compliance and policy developments affecting health and leave benefits and suggests action steps for employers. Topics covered include ... [1] Congressional outlook.... [2] Regulatory outlook.... [3] Outlook for 2025 election-related policy changes.... [4] Litigation outlook.... [5] State outlook."

8 page chart lists required disclosures, along with required timing for initial disclosure and other periodic disclosures.

"[If] your plan is subject to ERISA, you will have a fiduciary obligation to monitor the process for completion of the comparative analysis.... You should learn enough about the rules to be able to identify NQTLs, engage one or more service providers to assist with the comparative analysis, and especially if your plan is subject to ERISA, monitor and review the work of those service providers and ask appropriate questions.... The rules require a comparative analysis to be conducted and documented regardless of whether a government official ever asks for it."

"ACA marketplaces (also called exchanges) provide a way for people to buy affordable health coverage on their own. [This] FAQ explains the cost-sharing reductions that are available to low-income individuals and families via ACA marketplace plans, to help them afford out-of-pocket costs when they get health care."

"Plans should update existing NQTL comparative analyses documentation on or before the effective date. ... Self-funded non-federal governmental plans must begin to comply with all MHPAEA provisions. An ERISA plan fiduciary must certify that the fiduciary has engaged in a prudent process to select at least one qualified service provider to complete the plan’s comparative analysis and has satisfied the duty to monitor the service provider."

"Companies that sponsor 401(k) plans rely on their service providers to complete the required annual nondiscrimination testing for the plan. Often the results are presented to the plan sponsor, perhaps just a pass/fail. If failed, results generally include the amount of the refunds that need to be made to certain highly paid employees. However, there may be other options for employers to explore before issuing refunds."

"Although [Notice 2024-63] applies to 2025 and later plan years, it can be relied upon for employer QSLP matching contributions made on or after January 1, 2024.... In general, similar rules apply to QSLP matching contributions for employers who sponsor a SIMPLE IRA plan as for those employers who sponsor 401(k), 403(b), and governmental 457(b) plans."

"This article will describe the contents of Interpretive Bulletin 95-1, explain the current controversy over pension risk transfers, discuss DOL's position, and describe recent litigation challenging de-risking transactions and offer a prediction as to where that litigation may be headed.... The biggest question asked by the current litigation is whether pension plan participants need to wait for a default before they can expect to receive any relief."

"This alert aims to provide a comprehensive overview of the critical compliance dates and deadlines for the fourth quarter, helping you navigate the complexities of employee benefits administration with confidence. [This] fourth quarter guide is categorized by federal and state deadlines in chronological order with additional notice requirements due at open enrollment."

15 pages. "[The authors] provide a detailed review of the major annuity offerings ... review the tradeoffs among available annuity options, which participants benefit most from annuities (as well as those which do not), when to purchase an annuity, and how much to annuitize ... provide a framework for comparing and evaluating various annuity products against one another over various time horizons, and ... [review how] these solutions will be offered within DC plans, including steps plan sponsors can take to prepare."

"[E]mployer-plan sponsors should consider including contract provisions requiring the carrier/TPA to administer the plan in accordance with MHPAEA requirements and provide a complete Comparative Analysis to include any NQTLs it imposes. They also should consider asking the service provider to assist in reviewing plan data and network information to show the plan operates in accordance with MHPAEA.... The significant rise in plans offering telehealth benefits with no participant cost-sharing ... creates potential challenges for plans in passing the 'substantially all' portion of the test (e.g., that the same type of cost-sharing must apply to at least 2/3 of claims in a classification in order to be applied to MH/SUD claims in that classification)."

11 pages. "The final rules represent a major overhaul of the existing parity regulations. Plans and insurers will need to conduct additional analysis to determine the rules' impact in general and for a particular plan.... Self-funded plan sponsors have more compliance obligations and will require assistance from one or more service providers to comply. The final rules' numerous examples illustrating how the parity requirements work should be reviewed carefully for insight into plan design, application and outcome red flags."

20 pages. "To stay relevant through these disruptive times, many recordkeepers will need to reinvent their business models at a fundamental level.... [T]his paper [explores] strategic recordkeeping models that will compete in the future landscape and those that may face extinction. [It also explores] the evolving revenue pools offering an opportunity for retirement recordkeepers to reinvent and expand their business models if they are to exist profitably in this space."

"The update to the QPAM exemption requires action on the part of investment managers (banks, etc.), for example, filing the QPAM notice with the DOL. More importantly, the update provides an opportunity ... to review and reevaluate ... practices and processes, which may have been adopted years ago, to assure they are consistent with their current business environment as well as the updated QPAM exemption."

"[T]he Final Rule will continue to pose significant compliance challenges for plans and issuers with new requirements related to the documentation and justification of NQTLs. Plans and issuers must continue to perform and document NQTL comparative analyses, and these new rules will require plans and issuers to update existing NQTL comparative analyses documentation to comply with these new requirements."