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Citing ERISA Preemption, Sixth Circuit Dismisses State-Law Claims

Excerpt: The Sixth Circuit rejected Lerner's [the plaintiff] arguments that his state-law claims against EDS were based not on Continental's denial of long-term disability benefits, but on EDS's alleged failure to make sure that his SDRC benefits were not diminished in the corporate transition. The Court pointed out that Lerner had specifically pled in his state-law claims that his damages included 'the loss of disability insurance benefits (monthly benefit payments, return to work benefits, and rehabilitation benefits.)' In the view of the Court, 'Lerner has thus chosen to seek payment of the disability insurance benefits themselves, not merely damages in an amount equal to those benefits.' Therefore, the Court said, 'the state-law claims against EDS for breach of contract, fraudulent misrepresentation, and innocent misrepresentation 'relate to' an ERISA benefit plan and are preempted by that federal statute.'

New Lifetime Income Disclosure Regs Implement SECURE Act Requirement

"The rule provides a set of assumptions to use in preparing the lifetime income illustrations, as well as model language that may be used for benefit statements.... The interim final rule will be effective 12 months after the date of its publication in the Federal Register ... [and] includes a 60-day comment period."

ARPA Includes Voluntary Extension and Expansion of FFCRA Paid Leave

"An employer's decision to extend EPSL and EFMLA paid leave is entirely voluntary.... However, employers wishing to take advantage of the refundable tax credits will need to comply with the EPSL and EFMLA requirements, as modified by the ARPA."

Presence Not Required: IRS Extends Remote Signature Procedures for Qualified Plans

"For a participant election witnessed by a notary public, the physical presence requirement is deemed satisfied with remote notarization using live audio-video technology that satisfies certain requirements. For a participant or spousal election witnessed by a plan representative, the physical presence requirement is deemed satisfied if an audio-video system is used that satisfies [specified requirements.]"

How to Register as a Pooled Plan Provider

"The DOL explains that the purpose of these filings is to provide time-sensitive knowledge to the DOL, the Treasury Department, and the IRS to permit those agencies to oversee PPPs, and to allow employers hiring a PPP to be able to exercise their fiduciary duties of selection and monitoring.... The Proposed Rule requires electronic filing of all PPP registrations, and also provides that a new EBSA form be established -- EBSA Form PR (Pooled Plan Provider Registration) -- as the required filing format for PPP registrations."

Court Orders CIGNA to Pay Six-Figure Attorney's Fees in ERISA Case

Excerpt: Steven Alfano won his ERISA claim for long-term disability benefits against CIGNA. The district court had previously ruled that there was 'no sound basis in the record to support CIGNA's finding that plaintiff's back condition ? had in fact improved.' Alfano sought attorney's fees from CIGNA under 29 U.S.C. ? 1132(g)(1). In its analysis, the court considered the following factors under Second Circuit jurisprudence: (1) defendant's culpability or bad faith, (2) defendant's ability to withstand payment, (3) the extent to which an award would deter others from similar conduct, (4) the relative merits of the parties' positions, and (5) whether the action confers a common benefit on a class.

District Court Ruling Gives Providers Ammunition in Fights Over Health Insurer Clawbacks

"[A] recent ruling from a federal district court in New Jersey gives ammunition to providers fighting to stop insurers from engaging in this routine billing practice, known as cross-plan offsetting. The court ruled the practice violates [ERISA].... The court [also] held that provisions in health plan documents that prevent patients from allowing a provider to sue on their behalf over an unpaid benefit are enforceable." [Lutz Surgical Partners PLLC v. Aetna, Inc., No. 15-2595 (D.N.J. Jun. 21, 2021)]