Benefits/Pensions Blog Posts
- Benefit Funds, Under Limited Circumstances, Have Priority in Bankruptcy February 2012
- The Third Circuit recently ruled that a multiemployer defined benefit plan has priority
over general unsecured creditors in bankruptcy proceedings but only in certain limited
circumstances. Specifically, if an employer withdraws from a plan after it files for
bankruptcy...
[read more]
- Court Finds Withdrawal Liability Is Not A Plan Asset January 2012
- In a case where the employer was represented by lawyers from Susanin, Widman & Brennan, P.C.,
the U.S. District Court for the District of New Jersey found as a matter of law that unpaid
withdrawal liability does not constitute a “plan asset” under the Employee Retirement Income
Security Act (“ERISA”)...
[read more]
- PA Court Allows Union Benefit Fund To Assert Mechanics Lien January 2012
- On January 6, 2012, the Pennsylvania Superior Court held, in a matter of first impression,
that employee benefit funds could file mechanics lien claims for unpaid contributions owed to
union members as a result of collective bargaining agreements between a contractor and the unions...
[read more]
- Supreme Court Will Review Constitutionality Of Health Care Reform December 2011
- On Monday, November 14, 2011, the United States Supreme Court agreed to decide
the constitutionality of the sweeping health care reform law, known as the Patient
Protection and Affordable Care Act. The Court agreed to hear two major questions...
[read more]
- Multiemployer Defined Benefit Pension Plan May Have Priority In Bankruptcy December 2011
- The U.S. Court of Appeals for the Third Circuit recently ruled that a multiemployer
defined benefit plan has priority over general unsecured creditors in bankruptcy proceedings
but only in certain limited circumstances. See In re Marcal Paper Mills, Inc., 650 F.3d
311 (3d Cir. 2011)....
[read more]
- FASB Issues New Accounting Standard For Multiemployer Pension Funds October 2011
- On September 21, 2011, the Financial Accounting Standards Board (“FASB”)
issued a new accounting standard to provide more transparency around multiemployer pension
fund disclosures. [ASU No. 2011-09, Compensation – Retirement Benefits –
Multiemployer Plans: Disclosures about an Employer’s Participation in a Multiemployer
Plan]...
[read more]
- Two Federal Courts Permit Alter Ego Liability Under ERISA February 2011
- As a general proposition, the Employee Retirement Income Security Act of 1974
(“ERISA”) provides the exclusive remedy for claims for contributions to plans governed
by ERISA. Two (2) recent decisions have called into question whether
ERISA’s statutory scheme is the only mechanism to impose withdrawal liability on a company...
[read more]
- PPACA Claims Regulations November 2010
- On 22 July 2010, Interim Final Regulations were jointly issued by the Department of the
Treasury, Department of Labor, and Department of Health and Human Services, setting forth
new requirements for internal claims and appeals, and external review processes under the
Patient Protection and Affordable Care Act (“PPACA”)....
[read more]
- FASB Delays Public Company Multi-Employer Liability Reporting November 2010
- On 27 October 2010, the Financial Standards Accounting Board (FASB) indefinitely
postponed the effective date of requiring public companies who participate in
multi-employer plans to report on their accounting statements potential unfunded
liabilities from such plans...
[read more]
- New Accounting Standards Proposed For Multi-Employer Plans October 2010
- On September 1, 2010, the Financial Accounting Standards Board (FASB) issued a Proposed
Accounting Standards Update for Multi-employer Pension Plans for public comment. The FASB
issued the document after receiving comments from stakeholders regarding the perceived lack
of transparency about employers’ participation...
[read more]
- Ninth Circuit Rules State Courts Have Jurisdiction to Decide QDRO Issues September 2010
- On 22 July 2010, the U.S. Court of Appeals for the Ninth Circuit ruled that
state courts have jurisdiction under the Employee Retirement Income Security Act
(“ERISA”) to determine whether domestic relations orders (“DRO”) meet ERISA’s
requirements to be “qualified” domestic relations orders (“QDRO”)...
[read more]
- Unemployment Benefits Extended To November 2010 August 2010
- On 22 July 2010, President Obama signed legislation extending jobless benefits to 2.5
million unemployed Americans only hours after the House approved the bill by a vote of 272-152.
The law applies to out-of-work Americans who have not yet exhausted up to 99 weeks of aid and
it will apply retroactively to late May...
[read more]
- Congress Provides Multiemployer Pension Funding Relief July 2010
- On 25 June 2010, President Obama signed the Preservation of Access to Care for
Medicare Beneficiaries and Pension Relief Act of 2010. The law contains multiemployer
pension funding relief with respect to the 2008 market crisis. The law permits certain
multiemployer defined benefit pension plans to elect special...
[read more]
- DOL Expands the Definition of "Son or Daughter" Under FMLA July 2010
- On 22 June 2010, the United States Department of Labor (DOL) issued an Administrator
Interpretation clarifying the proper interpretation of the terms "son or daughter" under
the Family Medical Leave Act (FMLA). Under the new interpretation, FMLA coverage includes
not only biological, adopted or foster children but also...
[read more]
- How to Obtain Tax Benefits Under the HIRE Act June 2010
- Please find below information on an employers' eligibility to
receive two new tax benefits under the Hiring Incentive to Restore
Employment Act (HIRE Act), enacted 18 March 2010: (1) The Payroll
Exemption; and (2) the New Hire Retention Credit. The new tax benefits
only apply to the hiring and retention of a "qualified employee"...
[read more]
-
Court Rules ERISA's Anti-Cutback Rule Doesn't Forbid Reduction
in Optional Form of Benefits April 2010 - The U.S. District Court for the
District of Columbia held on 22 March 2010 that a law firm did
not violate the Employee Retirement Income Security Act's
(ERISA) anti-cutback rule when it paid a former law partner a
lump-sum distribution of her cash balance pension plan account
that was nearly 50 percent less...
[read more]
- Mechanic Pursues Retaliation Claim for Wife's Chemotherapy Costs April 2010
- On 11 January 2010, the U.S. District
Court for the District of New Jersey ruled that a mechanic who
alleged he was fired for seeking payment for the cost of
chemotherapy his wife was undergoing to treat breast cancer can
continue with his retaliation claim. Christian Pailleret asserts
that he was fired in violation of Section 510...
[read more]
-
Presence of Unpaid Consultants at Fund Trustees' Meeting
Does Not Defeat Attorney-Client Privilege March 2010 - The District Court for the District of Columbia recently ruled
that the attorney-client privilege between pension fund trustees
and their attorney was not defeated when a trustees' meeting was
attended by two unpaid consultants. The consultants attended the
meeting at the trustees' request...
[read more]
-
Congress Considers Bills for Pension Plan Relief and to Provide
Tax Incentives for Hiring Unemployed Workers March 2010 - On 11 February 2010, the Senate Finance Committee released
proposed legislation primarily designed to provide tax incentives
for employers that hire unemployed workers in 2010. The bill is
entitled the Hiring Incentives to Restore Employment (HIRE) Act...
[read more]
- Sixth Circuit Rules Employer Cannot Use Contract Deadline as Defense Against Funds November 2009
- The U.S. Court of Appeals for the Sixth Circuit ruled in
Laborers' Pension Trust Fund v. Rocwall Co., No. 08-1574
(6th Cir. 12/16/09) that a provision in a collective
bargaining agreement that gave the union a 90-day time limit
for making claims for contributions from an employer cannot
be enforced on a group of multiemployer pension funds...
[read more]
- Bills Seek to Add Additional Transparency Requirements to Retirement Plans October 2009
- The Retirement Savings Transparency Act of 2009 (RSTA)
(HR 2792) and the Defined Contribution Plan Fee
Transparency Act of 2009 (DCPFT) (HR 2779) were recently
introduced in the United States House of Representatives and referred
to the Committee on Education and Labor. If enacted, these two pieces
of legislation would enhance the flow of information to participants
in self-directed plans...
[read more]
- DOL Announces Comment Period for COBRA Notices September 2009
- According to the 24 August 2009 Federal Register, the
Labor Department's Employee Benefits Security Administration is
seeking public comment on model notices developed to implement
the health care continuation coverage provisions of the American
Recovery and Reinvestment Act (ARRA). The agency is seeking
public comment...
[read more]
- Minimum Wage Rate Increases to $7.25 per Hour July 2009
- Effective 24 July 2009, the Federal Minimum
Wage Rate under the Fair Labor Standards Act (FLSA) increases
to $7.25 per hour. On May 25, 2007, the Federal Fair Minimum
Wage Act of 2007 was signed into law. This Act, among other
things, amended the Federal minimum wage in section 6(a)(1) of
FLSA...
[read more]
- New Pennsylvania COBRA Law Headed to Governor Rendell for Approval June 2009
- Governor Ed Rendell plans to sign a new law that will
extend health insurance rights to employees of small business.
The legislation creating a "Mini-COBRA" health insurance plan in
Pennsylvania is headed to Governor Ed Rendell
for enactment following Senate approval on 3 June 2009...
[read more]
- DOL Delays Investment Advice Class Exemption June 2009
- On 22 May 2009, DOL announced that it would delay the effective
date of a new class exemption from ERISA's prohibited transaction
rules relating to investment advice to participants in self-directed,
individual account retirement plans. The new effective date is
18 November 2009. The class exemption was first published on 22 August
2008...
[read more]
- Pennsylvania's New Insurance Coverage Requirements for Autism June 2009
- Pennsylvania passed House Bill 1150 which included the Pennsylvania
Autism Insurance Act and which becomes effective on 1 July 2009.
Under the Act, certain private and government health insurance providers
must provide coverage for individuals under 21 years of age for the
diagnosis and treatment of autism...
[read more]
- Seventh Circuit Rules that Pension Applicants are Entitled to Actuarial Adjustment April 2009
- On 23 March 2009, the Seventh Circuit ruled that a pension
applicant is entitled to an actuarial adjustment to the monthly
amount of pension payments based upon the period of time between the
date the plan receives a complete, written application and the date
the applicant first receives a monthly pension payment...
[read more]
- DOL Publishes COBRA Subsidy Notices April 2009
- On 19 March 2009, the DOL published several versions of model notices for
use in connection with the COBRA subsidy notice requirements of
the American Recovery and Reinvestment Act of 2009. The
Act provides that certain employees may purchase COBRA
continuation coverage at a subsidized rate of 35% of the normal
rate for up to nine months...
[read more]
- Fair Pay Act Reverses Supreme Court Decision on Statute of Limitations March 2009
- President Obama signed the Lilly Ledbetter Fair Pay Act ("Act") into
law on 29 January 2009, effectively reversing the United States
Supreme Court's 2007 decision in Ledbetter v. Goodyear Tire & Rubber
Co., 550 U.S. 618 (2007). The Act redefines an "unlawful employment
practice" by essentially resetting the statute of limitations clock...
[read more]
- Court Holds that ERISA Permits Retirement Age to be Determined by Years of Service March 2009
- In Fry v. Exelon Corp. Cash Balance Plan, Docket No. 08-1135,
the U.S. Court of Appeals for the Seventh Circuit recently ruled
that the Employee Retirement Income Security Act (ERISA)
permits a retirement plan to define normal retirement age based
upon an employee's years of service...
[read more]
- Employers Required to Subsidize COBRA Benefits for Certain Former Employees March 2009
- Under the COBRA provisions of the American Recovery and Reinvestment
Act of 2009, eligible employees who have been involuntarily
terminated may now obtain subsidized health insurance coverage.
While COBRA required employers to offer health care insurance
coverage to certain terminated employees...
[read more]
