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2010 End of Year Plan Sponsor 'To Do' Lists

Excerpt: In this issue [Snell & Wilmer] provide seven 'to do' lists that may require you to take action before the end of 2010 or in early 2011. Many of the action items are a result of the Pension Protection Act of 2006 ... and may require plan amendments.

Ninth Circuit Weighs Employer’s Use of Non‑Vested 401(k) Funds

"Plan sponsors and administrators should closely monitor the Hutchins appeal because the decision should clarify the extent of discretion plan administrators may wield regarding the use of forfeited funds, and the decision may shape new practices for retirement plan design and administration." [Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Feb. 5, 2025; on appeal to 9th Cir. No. 25-826)]

Enforcement Pause Provides Only Limited Mental Health Parity Relief for Plan Sponsors

"This may come as welcome news for employers throughout the country who have struggled to understand, and ultimately comply with, the highly technical mental health parity laws, particularly the requirement to provide a detailed non-quantitative treatment limitation (NQTL) comparative analysis. However, until the Departments re-examine their MHPAEA enforcement program more broadly, the non-enforcement policy provides limited relief[.]"

House Bill Offers New Tax-Favored Savings Account

"Parents or legal guardians may open accounts on behalf of eligible children ... The Act calls for the federal government to seed each Trump Account with an initial $1,000 deposit upon creation.... Contributions would be capped at $5,000 per year, adjusted for inflation.... Favorable tax treatment would apply to payment of certain 'qualified expenses,' including costs related to financing higher education, purchasing a home, or starting up a small business.... No distributions are permitted until the beneficiary turns 18, except in limited circumstances."

Five Things to Know about the DOL’s New VFCP Self-Correction Feature

"[1] The SCC is not available for every VFCP-eligible failure ... [2] The SCC does not absolve plans from notifying the DOL about the failure ... [3] The SCC does not absolve plans from documenting the failure and correction ... [4] Following a self-correction under the SCC, self-correctors will not receive a 'no action' letter from the DOL like they would following a formal VFCP submission.... [5] [F]ailures corrected under SCC may also be eligible for excise tax relief[.]"

Mental Health Parity Compliance: Next Steps for Employers

"[T]he regulations are dense, the calculations to ensure parity are complex, and [TPAs] rarely provide a sufficient NQTL Analysis.... The DOL Office of Inspector General.... is currently urging Congress to pass legislation to enhance the DOL's enforcement authority ... and ... urging DOL to use other enforcement tools ... [A chart outlines] some plan design and plan administration issues employers may want to consider now."

2024 End-of-Year Plan Sponsor 'To Do' List, Part 4: Executive Compensation

"Last chance to correct certain Section 409A document failures discovered in 2024.... Nonqualified deferred compensation deferral elections should be made on or before December 31, 2024:.... Take certain action to address impact of Tax Cuts and Jobs Act on Section 162(m) of the Code.... Review whether equity-based compensation plans have sufficient shares remaining for 2025 awards.... Review director pay practices and consider separate annual limits on director equity awards.... Section 6039 of the Code information statements due by January 31, 2025.... Continue to consider clawback disclosure issues."

2024 End-of-Year Plan Sponsor 'To Do' List: Qualified Retirement Plans

"[O]verlaying this year's 'To Do' list is the Supreme Court's landmark decision in Loper Bright ... Although the specific impact remains unclear, the reversal of Chevron fundamentally alters the landscape of administrative law and, therefore, may have an effect on all qualified plans.... [The authors] have broken this 'To Do' List into four categories. [1] All Qualified Plans ... [2] Defined Contribution Plans (Including Section 401(k) Plans) ... [3] Defined Benefit Plans ... [4] Section 403(b) Plans."

2024 End-of-Year Plan Sponsor 'To Do' List, Part 2: Annual Cost of Living Adjustments

This article describes annual cost-of-living increases for both qualified and health and welfare plans, and includes a summary table of penalties, percentages, and premiums under the employer shared responsibility requirements of Code Section 4980H.

2024 End-of-Year Plan Sponsor 'To Do' List: Health and Welfare Plans

"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."