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PBGC OIG Financial Statement Audit Management Letter Report, Fiscal Year 2023 (PDF)

"During the audit EY became aware of deficiencies in internal control, other than a material weakness or significant deficiency, and other matters that are opportunities to strengthen PBGC's operations. This management letter summarizes these deficiencies and recommendations. The issues noted in this report are not significant ... The purpose of this letter is solely to describe the scope of [EY's] testing of internal control over financial reporting and compliance, and the result of that testing."

New Amount for PCORI Fee

"Employers with a calendar-year health plan should have procedures in place to make sure they file IRS Form 720, Quarterly Federal Excise Tax Return, and pay their PCORI fee at a rate of $3.84 per covered life on or before July 31, 2026."

California Establishes Extensive Rules for Pharmacy Benefit Manager Conduct

"[K]ey provisions ... include: [1] an 'any willing provider' requirement; [2] a prohibition on spread pricing; [3] a requirement to use a passthrough business model; and [4] a general prohibition on retroactive payment reductions and payment reductions through a reconciliation process. Effective dates vary, with many of the provisions applying to any contracts from January 1, 2019, or later and other provisions applying to contracts beginning January 1, 2026, or 2027."

Preparing for a Successful Annual Benefits Enrollment

"[K]ey components necessary to lay the groundwork for a successful annual enrollment season: [1] Strategic planning ... [2] System configuration: enrollment portal and payroll system ... [3] Employee communication and education ... [4] Compliance considerations ... [5] Post-annual enrollment follow-up."

IRS Announces Significant Increases to Penalties for Failing to Offer Affordable Health Care with Minimum Coverage for 2026

"Revenue Procedure 2025-26 specifies the new indexing adjustments for employer shared responsibility payments (ESRPs) for the 2026 plan year. The 'A Penalty' for not offering minimum essential coverage rises to $3,340 per full-time employee and the 'B Penalty' for offering unaffordable minimum value coverage increases to $5,010.... The higher penalty amounts for 2026 are the result of changes to the income and premium factors that are used in calculating the penalty amounts."

Split Court Rulings Invite Pension Risk Transfer Claims Lacking Any Evidence of Wrongdoing or Harm

"[A] federal court in Maryland ... [allowed] a group of class-action plaintiffs to continue their lawsuit challenging Lockheed Martin's decision to use Athene as the insurer for a pension risk transfer (PRT).... [K]ey takeaways: ... [1] Plaintiffs can unfairly advance their fiduciary claims -- even PRT claims -- without alleging any flaws or mistakes in the decision-making process undertaken by plan fiduciaries.... [2] PRT claims might well be won or lost on the issue of standing.... [3] Plaintiffs are already experimenting with unfounded and aggressive allegations to overcome their standing problem." [Konya v. Lockheed Martin Corp., No. 24-0750 (D. Md. Mar. 28, 2025); Camire v. Alcoa U.S.A. Corp., No. 24-1062 (D.D.C. Mar. 28, 2025)]

DOL Voluntary Fiduciary Correction Program Updates

"[K]ey updates include the introduction of a Self-Correction Component (SCC), which allows fiduciaries to rectify specific issues without submitting a full VFCP application. Instead, a streamlined SCC notice can be filed electronically, covering delinquent participant contributions and inadvertent participant loan failures."

Summary of Proposed Marketplace Integrity and Affordability Rule (PDF)

"HHS estimates that overall, the cumulative impact of the proposed rules could reduce enrollment by up to two million consumers.... [K]ey changes included in this proposed rule: [1] Changes for 2026 AV de minimis ... [2] Maximum out of pocket ... [3] Increased documentation requirements ... [4] Restriction on premium payment thresholds ... [5] Shortening open enrollment period ... [6] Auto-enrollment changes ... [7] Changes to essential health benefits (EHB)."

Early Retirement Incentive Programs in Higher Education

"[Early retirement incentive programs (ERIPs)] have been most successful in recent years -- across all industries -- when organizations leverage targeted program designs.... [K]ey factors for colleges and universities to consider when implementing an ERIP: ... [1] Run a financial analysis ... [2] Keep the design simple ... [3] Leverage technology ... [4] Communicate with transparency."

IRS Releases Guidance on Furnishing ACA Forms

"While Notice 2025-15 contemplates employers placing a notice that an individual's form is available upon request on their website, such website would need to be accessible to all intended recipients -- employees, former employees and retirees. Employers should also consider that certain states have their own requirements for furnishing forms to individuals and confirm what is required."