"[A] key question that courts will have to grapple with in each of these cases is whether the plans fall outside the ambit of ERISA in accordance with the [DOL's] 'voluntary plan' safe harbor ... Plaintiffs maintain that the employers lacked any process to review, select or monitor carriers and brokers or to confirm that broker commissions were reasonable. They further allege ERISA prohibited transactions, asserting that employers and brokers caused the payment of excessive commissions from plan assets." MORE >>
"The complaints generally allege that the employers offering these programs could and should have negotiated lower premiums. According to the plaintiffs, the higher premiums may be the result of potentially excessive broker commissions, and excessive compensation to the consultants that administer them. The complaints speculate that employers offer these voluntary benefit programs without first engaging in a request for proposal process." MORE >>
"Employees may take full advantage of both the credit and the exclusion for employer reimbursements but not for the same expenses.... Because employer-provided adoption benefits are subject to FICA, most employees will use the tax credit first.... Lower-income employees may be unable to take full advantage of the credit.... Employer-provided adoption benefits can help employees' cash flow." MORE >>
"Historically, benefit consultants functioned primarily as intermediaries between employers and insurance carriers and did so under the protection of ERISA's fiduciary exemption. But here plaintiffs allege that consultants exercise discretion in selecting insurance carriers and insurance policies, and also in structuring voluntary benefit plans to gain sizeable commissions -- actions that, plaintiffs argue, make these consultants plan fiduciaries." MORE >>
"[Employers] should carefully consider whether the voluntary benefits they offer fit within the DOL's safe harbor ERISA exemption for voluntary programs.... [S]eemingly innocuous actions can render the exemption inapplicable, which means that the voluntary programs are subject to ERISA, including its fiduciary rules. While these rules and the fiduciary duties they impose on health and welfare plan sponsors are not new, they have recently become the focus of plaintiffs' attorneys." MORE >>
"The complaints show consultants earning 22% to nearly 40% of premiums, far above the typical 10% industry standard.... When only 25-35 cents of every premium dollar goes to paying claims, with the rest consumed by commissions and administrative costs, the math simply doesn't support fiduciary prudence.... What plan sponsors should do: ... [1] Request complete disclosures ... [2] Audit voluntary benefits ... [3] Document fiduciary oversight ... [4] Restructure conflicted relationships." MORE >>
"The complaints advance a unified and increasingly familiar theory: once voluntary benefits are offered through an ERISA-governed welfare plan, they are subject to ERISA's full fiduciary framework.... According to the plaintiffs, failures in process, rather than outcomes alone, caused plan participants to pay excessive and unreasonable premiums, while brokers and other service providers reaped outsized financial benefits." MORE >>
"These novel lawsuits challenging voluntary benefits are not only notable for what they allege, but also because they implicate consultants and brokers.... [P]laintiffs may be leveraging data gathered regarding service provider compensation disclosed pursuant to the [CAA] ... [E]mployers should consider creating a process to monitor voluntary benefit programs offered to their employees, including the commissions charged by the various brokers, akin to what many employers maintain to monitor retirement plans and health plans." MORE >>
"Determining what employer actions constitute an endorsement of the voluntary program, and thus cause the program to be subject to ERISA, is highly fact-specific but may include actions such as using an employer logo or its letterhead on communications about the program. Employers should contact their legal counsel to determine if a voluntary benefit program is subject to ERISA." MORE >>
"51% of brokers said voluntary products generate more than half of their sales revenue. Plaintiffs' law firms are connecting the dots between incentives, misuse of plan access and conflicted advice.... Voluntary benefits themselves are not the problem -- the incentives are.... [E]mployers should treat any recommendation, product access or employee interaction as an area requiring thoughtful, documented fiduciary oversight -- especially when employees are making decisions influenced by those recommendations." MORE >>
"The lawsuits are not limited to employers. The complaints further contend that the brokers themselves are functional fiduciaries under ERISA because they exercise discretion in recommending, implementing, and managing the voluntary benefit plans -- and then violated their fiduciary duties by steering plans toward arrangements that allowed the brokers to pay themselves excessive commissions. Because these commissions were paid entirely out of the premiums for the voluntary benefits (which were 100% paid by employees), the complaints allege that plan assets were impermissibly used and the value of the benefits were diminished." MORE >>
Rev. Dec. 2025. "Use Form 4547 to make the election to establish an initial Trump account for the exclusive benefit of a child who is eligible for a Trump account. Also, use Form 4547 to make an election for a $1,000 pilot program contribution from the U.S. Treasury to a child's Trump account if they are eligible for the contribution." [Also available: IRS Form 4547, Trump Account Election(s), and IRS Form 8879-TA, IRS e-file Signature Authorization for Form 4547, Trump Account Election(s)] MORE >>
"[B]eginning July 4, 2026, employers may contribute to the Trump Accounts (TAs) of their eligible employees or the employees' dependents through a Trump Account Contribution Program (TACP).... [E]mployers making contributions pursuant to a TACP must affirmatively indicate to the TA trustee that the contribution is an employer contribution excludable from the employee's gross income." MORE >>
"The four lawsuits ... contend that all the voluntary benefit programs are ERISA plans.... [T]he lawsuits assert that the employers and their brokers engaged in prohibited transactions and knowingly participated in the other's violation of the prohibited transaction rules. The lawsuits seek to hold the employers, their brokers and the plan fiduciaries personally liable for all plan losses, have them disgorge any profits, and remove the plan fiduciaries who breached their duties." MORE >>
"The complaints allege breaches of fiduciary duty related to the premiums charged for accident, critical illness, cancer and hospital indemnity insurance -- voluntary benefits not subsidized by employers.... The lawsuits also named benefits consulting firms hired by the defendants ... claiming that they engaged in self-dealing that harmed plan enrollees." [Brewer v. CHS/Community Health Systems, Inc., No. 25-15578 (N.D. Ill. complaint filed Dec. 23, 2025); Braham v. Laboratory Corp. of Am. Holdings, No. 25-15583 (N.D. Ill. complaint filed Dec. 23, 2025); Fellows v. Universal Serv. of Am, LP, No. 25-10659 (S.D.N.Y. complaint filed Dec. 23, 2025); Pimm v. United Airlines, Inc., No. 25-15581 (N.D. Ill. complaint filed Dec. 23, 2025)] MORE >>
"[F]our employers [have been ] sued ... for allegedly breaching ERISA fiduciary duties regarding their voluntary benefits insurance offerings.... The complaints ... allege that the named employers do not rely on the exemption and instead operate their voluntary benefit programs as subject to ERISA. Whether this allegation is true or not, it serves as a reminder to employers who do wish to avoid ERISA that the exemption for voluntary benefits is not automatic." [Brewer v. CHS/Community Health Systems, Inc., No. 25-15578 (N.D. Ill. complaint filed Dec. 23, 2025); Braham v. Laboratory Corp. of Am. Holdings, No. 25-15583 (N.D. Ill. complaint filed Dec. 23, 2025); Fellows v. Universal Serv. of Am, LP, No. 25-10659 (S.D.N.Y. complaint filed Dec. 23, 2025); Pimm v. United Airlines, Inc., No. 25-15581 (N.D. Ill. complaint filed Dec. 23, 2025)] MORE >>
"Voya's research identified the five employee benefits that are driving acquisition and retention in 2026. These categories exclude health insurance, which is tied with retirement savings plans in importance, and PTO, which was not ranked.... [1] Comprehensive retirement planning; [2] Mental health and holistic well-being support; [3] Career development or education support; [4] Financial education and wellness programs; [5] Tailored support for key demographic groups." MORE >>
"The standard mileage rate for transportation or travel expenses for 2026 is 72.5 cents per mile for all miles of business use (business standard mileage rate) ... The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under Section 170.... The standard mileage rate for 2026 is 20.5 cents per mile for use of an automobile: [1] for medical care described in Section 213; or [2] as part of a move for which the expenses are deductible under Section 217(g)."MORE >>
"Gen Z is making it clear on social media and in the workplace that standard benefits won't cut it, and they're ready to tell organizations what they want instead.... [U]nlike their older colleagues, Gen Z doesn't want traditional wellness benefits like gym memberships or counseling services -- instead, they want more control over what's on offer outside of healthcare and retirement. They also want agency over how they can spend those benefit dollars[.]" MORE >>
"While these benefits, which have become quite popular, are not subject to cafeteria plan or ERISA rules, compliance difficulties exist. For starters, the federal monthly limits are adjusted every year. In addition, some state and local jurisdictions have imposed employer mandates, leveraging the tax advantages of commuter benefits; still other jurisdictions provide tax-related incentives. This GRIST summarizes major issues concerning qualified transportation plans under federal, state and certain local laws." MORE >>
"The decision provides a helpful reminder that, in ERISA cases involving conflicting medical opinions and evolving rationales, courts may permit targeted discovery to assess whether the insurer's structural conflict influenced its claim decision." [Kramer v. Metropolitan Life Ins. Co., No. 25-00327 (D. Utah Nov. 13, 2025)] MORE >>
"The Puerto Rico Christmas Bonus is a local tradition that comes with significant statutory requirements for employers. There are two tiers of employee eligibility and bonus amount depending on employee hire date and employer headcount. Employer profitability-related exemptions may apply, as do penalties of various percentages for failure to timely pay the Christmas Bonus." MORE >>
27 pages. "Ninety-six percent of employers say their benefits budget has grown during the past two years ... Nearly three-quarters of organizations list health care costs as an issue their benefits program is designed to address, yet only 11 percent offer accident, critical illness, and hospital indemnity insurance.... More than one in three organizations that offer dental, vision, or supplemental health benefits say enrollment for each of these benefits is higher than expected.... Sixty-five percent of employers see room for improvement in how they communicate to employees about benefits. " MORE >>
