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Retirement Plan Final RMD Regs Issued

"Things to keep in mind include: [1] Once RMDs begin for an IRA owner they must continue for a beneficiary upon the IRA owner's death; [2] Generally, there is not a deadline for a spouse beneficiary to treat a decedent's IRA as his/her own IRA ... [3] In a case where an IRA owner passes away without having fully satisfied his/her RMD for the year and there are multiple beneficiaries one of them can satisfy the RMD; and [4] The IRS will eventually release updated model documents and mandate an amendment of IRA agreements."

IRS Issues Guidance for Multiemployer DB Plans Receiving Special Financial Assistance from PBGC

"The guidance covers the rules under Code Sec. 432(k) for plan sponsors that are required to reinstate certain previously suspended benefits as a condition of receiving special financial assistance from the PBGC under section 9704 of [ARPA]. The IRS also provides guidance on whether make-up payments with respect to previously suspended benefits are eligible to be rolled over to another eligible retirement plan under Code Sec. 402(c), and the extent to which any special financial assistance received by the plan is not taken into account in determining contributions required under Code Sec. 431."

Health Reform Should Build on Current Employer-Provided System, Voters Say

"Eighty-five percent of voters like their current health care coverage.... 79 percent gave an excellent or good rating for high quality care; and 77 percent gave an excellent or good rating for choice in doctors.... 65 percent gave a negative rating for costs that are affordable; and 62 percent provided a negative rating for transparency in pricing.... Employer-provided health care coverage ... came out on top across all measures polled, particularly on choice, quality, and comprehensive coverage."

Distribution Options in 2021 for Beneficiaries of Traditional and Roth IRAs (PDF)

Detailed 2-page chart showing distribution options in 2021 for various kinds of beneficiaries (a surviving spouse who is the sole primary beneficiary, other named individuals, a trust, etc.) under a traditional or Roth IRA, and how they are affected by the IRA owner's date of death. (Reprinted with permission from the 2021 Supplement to the 9th Edition of the Roth IRA Answer Book, by Wolters-Kluwer.)

Health Care Costs for 2020 Likely to Be Lower Than Expected

"Direct costs related to COVID-19 varied widely among plans, but a significant amount of care was delayed or cancelled in the first half of the year. Even accounting for unplanned expenses due to COVID-19 testing and treatment, overall health care costs are likely to be lower in 2020 than was projected prior to the pandemic[.]"

Fiduciary Breach Claim Dismissed Where Proposed Corrective Action Would Have Required Fiduciaries to Act in Corporate Capacity

"A plan sponsor could be held vicariously liable, under respondeat superior theory, for the actions of its plans' fiduciaries, according to a federal trial court in New Jersey. However, the plan fiduciaries were not required to make public corrective disclosures, in their corporate capacities, to satisfy their fiduciary obligations under ERISA." [Perrone v. Johnson & Johnson, No. 19-923 (D.N.J. Apr. 29, 2020)]

Health Plan Administrator's Exclusion of Fentanyl for Off-Label Use Was Not Unlawful Sex Bias Under ACA

"Denying the couple's bid to reconsider the previous dismissal of their claim with prejudice, a federal district court in New York ruled that there was no error in the prior determination that Section 1557 does not allow disparate impact claims, but even if did, the couple failed to present any statistical evidence to support such a claim. And under the proper disparate treatment standard, they failed to plausibly allege that the administrator intentionally discriminated against them or that such discrimination was a substantial motivating factor in its decision to rescind the prior administrator's authorization for fentanyl to treat the wife's disease." [Weinreb v. Xerox Business Services, No. 16-6823 (S.D.N.Y. Jul. 27, 2020)]

Internal Benefits Committee of Non-Profit Hospital Qualified for Church Plan Exemption as Principal Purpose Organization

"The internal benefits committee administering the pension plan of a multi-billion-dollar non-profit hospital constituted a principal purpose organization for purposes of the church plan exemption under ERISA ... The committee, which was empowered with discretionary authority to implement plan provisions, maintained the plan and functioned as a group of people working together for a shared purpose." [Sanzone v. Mercy Health, No. 18-3574 (8th Cir. Mar. 27, 2020, corrected Apr. 9, 2020)]

FAQs Provide Additional Guidance on Group Health Plan Coverage Under FFCRA and CARES Act

"The reimbursement requirements of CARES Act Section 3202(a) do not apply to any items and services other than diagnostic testing for COVID-19.... The FAQs also indicate that the statute generally precludes balance billing for COVID-19 testing. However, it does not preclude balance billing for items and services not subject to CARES Act Section 3202(a) although balance billing may be prohibited by applicable state law and other applicable contractual agreements."

Court Refuses to Overturn Decision of Multiemployer Plan Trustees; Participating Employer Had Made Financial Proposal

"Whether the Kroger proposal would actually have injured the plan was not determinative, the court stressed, as there was no genuine dispute that the trustees considered several sources of input, weighed the risks, and made a choice that benefitted the plan as a whole. Thus, even if the trustees' decision did not provide the greatest value to the plan, the decision did not constitute an abuse of discretion, as the trustees reasonably believed the Kroger proposal would harm most beneficiaries." [Campbell v. Whobrey, No. 16-4631 (N.D. Ill. Mar. 22, 2020)]