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Court Permits Beneficiary Designation by Telephone

"First, the court noted that the beneficiary designation forms were not plan documents because they did not contain information about the participant's benefit entitlement. Only documents that provide information about where the participant stands with respect to the plan could constitute plan documents. Second, the court noted that the terms of the Xerox Plans did not incorporate the beneficiary designation forms by reference.... The Ninth Circuit concluded that the participant had substantially complied with the terms of the Xerox Plans, because the plan documents did not require the use of a beneficiary designation form to change a beneficiary designation." [Becker (plaintiff in interpleader) and Mays-Williams v. Williams, No. 13-35069 (9th Cir. Jan. 28, 2015)]

2025 Annual Employee Benefits Compliance Checklists

"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 2025, and focus on what to expect for 2026. [These checklists] address plan amendments, notices, and other considerations for qualified retirement plans, welfare plans, and stock-based and performance-based plans. [1] Plan Administrators of Plans Covered by ERISA; [2] Corporate Counsel; [3] Plan Administrators of Governmental and Church Plans; [4] General Counsel of Tax-Exempt and Governmental Entities."

2024 Annual Employee Benefits Compliance Checklists

"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

2023 Annual Employee Benefits Compliance Checklist for Plan Administrators (PDF)

12 pages. "This checklist addresses plan amendments, notices and other considerations for qualified retirement plans, welfare plans, and stock-based and performance-based plans. A chart showing benefit and contribution limits for 2024 is included."

IRS Reduces 2024 Affordability Percentage

"IRS Rev. Proc. 2023-29 set the lowest affordability percentage since the implementation of the ACA, following a three-year trend of reduction.... Under the FPL safe harbor, the employee contribution cannot exceed 8.39% of the FPL, which for 2024 in the mainland United States is $14,580 annually, or $101.94 per month (down from $103.28 per month in 2023). Employers that set employee contributions based on the exact FPL safe harbor dollar amount will need to reduce the required employee contribution for the 2024 plan year."

Seventh Circuit Denies Deferred Compensation Deduction in Taxable Asset Sale

"The Seventh Circuit's conclusion differs from what has come to represent the common analysis and interpretation of these timing rules in practice. Given this opinion, it will be important for employers to take a fresh look at the effect of transactions on deferred compensation deductions." [Hoops, LP and Heisley Member, Inc., Tax Matters Partner vs. Comm'r, No. 22-2012 (7th Cir. Aug. 9, 2023)]

SECURE Act 2.0 Summary of Changes to Retirement Plans (PDF)

9 pages. This article summarizes the changes that impact: [1] Access to retirement plans; [2] Withdrawals and distributions; [3] Individual Retirement Accounts (IRAs); [4] Small employers, SIMPLE plans and SEPs; [5] Pooled Employer Plans (PEPs) and Multiple Employer Plans (MEPs); [6] Employee Stock Ownership Plans (ESOPs); and [7] 403(b) plans and governmental plans.

2022 Annual Employee Benefits Compliance Checklist for Plan Administrators

"This checklist addresses plan amendments, notices and other considerations for qualified retirement plans, welfare plans, and stock-based and performance-based plans. A chart showing benefit and contribution limits for 2023 is included."

New DOL Independent Contractor Proposed Rule

"The new rule focuses the analysis of worker classification on whether workers are in business for themselves to determine whether they are independent contractors.... [T]he DOL will look at whether workers can meaningfully negotiate their pay for the work, whether they accept a particular consulting job, whether they control when they work on the job, whether they engage in activities like marketing to expand their business, and whether the workers are the ones purchasing materials or equipment."

July Deadlines for Retirement Plans

"Employers using pre-approved plan documents for their defined contribution retirement plans, such as 401(k) plans, must adopt restated adoption agreements by July 31, 2022.... If a retirement plan was amended in 2021, the plan sponsor may need to issue a summary of material modifications (SMM) or update the [SPD] to reflect the change.... [For] a plan year that ended December 31, 2021, the SMM must be distributed no later than July 29, 2022."