In late 2022, the U.S. Department of Labor (DOL) issued the final regulations addressing the responsibilities of ERISA fiduciaries when considering environmental, social, and governance (ESG) factors in investment decisions. These regulations also govern the exercising of shareholder rights, such as voting proxies, that might impact ERISA-covered clients. The new DOL rule on proxy voting…
In the world of ERISA litigation, keeping an eye on recent decisions can be informative and potentially impactful for corporations and law firms alike. This October 2023 edition of The Friday Five, provides a concise exploration of recent rulings. Saul Ewing LLP highlights cases that cover a wide array of topics, including the questionable effect…
In the world of venture capital and finance, acronyms and terms can often become convoluted, leaving both investors and entrepreneurs perplexed. One such term that has become prevalent among U.S.-based investors is “MRL”, which stands for a management rights letter. Despite its commonality, many are left wondering: “What is an MRL?” and “Why does this…
In the past month, plaintiffs have filed two separate lawsuits, Dimou v. Thermo Fisher Scientific, Inc. and Rodriguez v. Intuit, Inc., accusing plan fiduciaries of violating the Employee Retirement Income Security Act of 1974 (ERISA) by leveraging plan forfeitures to offset future employer contributions. This recent flurry of lawsuits is targeted at a common practice…
The fiduciary standards of ERISA and applicable tax rules have, for a long time, presented a challenging spectrum for benefit plan administrators. Given the complexity of the responsibilities, sourcing for formidable best practices has emerged as a common concern for plan sponsors aiming to enhance their compliance, regardless of the plan type involved. Following our…
The legal landscape of the National Employee Retirement Income Security Act (ERISA) and retirement plan regulations have undergone significant changes over the last decade. In light of this, legal professionals in corporations and law firms are grappling with the evolving environment. Ary Rosenbaum of The Rosenbaum Law Firm P.C. provides insight into his experience in…
In a noteworthy legal development, the Tenth Circuit has ruled that the Employee Retirement Income Security Act (ERISA) overrides the Oklahoma Pharmacy Benefit Manager (PBM) reform law. This decision came in response to a petition filed by the Oklahoma Attorney General seeking an En Banc Rehearing on September 19, 2023. The Oklahoma Attorney General’s petition…
Keating Muething & Klekamp PLL have recently distributed their monthly update on significant Employee Retirement Income Security Act (ERISA) legal developments. The September Monthly Minute is directed to corporate legal professionals and covers three important areas: tobacco surcharge cases, gag clause attestation, and adjustments to the Affordable Care Act (ACA) affordability percentage. The Monthly Minute…
Private investment fund managers who oversee funds subject to Title I of ERISA and are not feeder funds (referred to here as “ERISA Funds”) are facing some important deadlines. By December 1, 2023, these managers must ensure compliance with the Department of Labor’s (DOL’s) 2022 regulation that specifies fiduciary responsibilities regarding plan investment selection and…
In this third part of our series on employee benefit plans, we will discuss some of the more unnoticed yet potentially consequential health and welfare issues that can arise within staff benefit structures. With an understanding of these common faults, plan sponsors can optimise their benefits offerings, mitigate problems, and ensure compliance with the Employee…
In the context of American retirement policy, the 401(k) plan has rather evolved, for better or for worse, to become a centrepiece. With these changing pressures, it is crucial to examine some of the common pitfalls that occur with 401(k) plans, which can often be overlooked in the fast-paced corporate world. As Part Two of…
A recent development has led to discussions within the legal community around whether plaintiffs in the Fourth Circuit may be granted “surcharge” as a remedy for breach of fiduciary duty under the Employee Retirement Income Security Act (ERISA). The matter was extensively addressed in a legal publication by Troutman Pepper. In contrast to the traditional…
The Democratic members of the United States Congress have recently reintroduced a set of bills that seek to establish the necessity of spousal consent for distributions from 401(k) retirement plans. If passed into law, the regulations would extend additional protection to spouses in matters related to retirement savings and assets distribution.More details can be found…
Operating within the complexities of the Employee Retirement Income Security Act of 1974 (“ERISA”) can pose significant challenges for plan sponsors. Unlike traditional labor and employment considerations, ERISA’s fiduciary standards may appear more stringent for those involved in making corporate decisions. As ERISA has continued to broaden its reach, it could be argued that it…
As corporations prepare to navigate the upcoming 2023, it’s crucial to focus on the Employee Retirement Income Security Act (ERISA) guidelines pertaining to employee welfare plans. A significant aspect of these guidelines is the necessary distribution of Summary Plan Descriptions (SPDs) to plan participants. This process lets benefactors know their respective entitlements, rights, and obligations,…
In an era where legal liability is an almost persistent threat, having a sound and proactive approach to risk management is critical. This rings especially true for sponsors and providers of retirement plans, where the chances of being sued are conspicuously high, regardless of the quality of their work or services. JD Supra provides a…
Recent developments within the realms of ERISA lawsuits have led to a rare bench trial. Given that ERISA fiduciary claims are on the rise, it is of utmost interest that the case of Nunez et al., v. B. Braun Medical Inc. et al. was permitted to proceed to trial, given the long-standing rarity of such…
A recent survey by the National Bureau of Economic Research (NBER) found that workers tend to value 401(k) matching contributions more than direct cash or wage increases. In fact, a dollar contributed to their 401(k) appears to be twice as effective at attracting employees as a dollar increase in wages. In an ever-tightening labor market,…
In the wake of the SECURE 2.0 legislation, Platinum 401k, a Florida-based third party administration firm and ERISA 3(16) Plan Administrator, has pioneered a 403(b) Pooled Employer Plan (PEP). This move presents an opportunity for organizations, notably those with generic, starter or frozen 403(b) plans, to potentially benefit from lower costs, better investments, and improved…
The U.S. Department of Labor (DOL) has drawn attention as it recently issued a Request for Information (RFI), asking for stakeholder input surrounding various regulatory issues tied to the SECURE 2.0 Act. The request, which took place on August 11, 2023, spans a range of topics, primarily focusing on the reporting and disclosure requirements under…
Responding to member feedback amid the Covid-19 pandemic, the International Swaps and Derivatives Association (ISDA) has published several standard form amendments to the ISDA Master Agreement. This move came after consultation with ISDA members, starting in 2022. The amendments cover areas such as standard notice provisions and force majeure language, all of which can be…
On June 30, 2023, the Indiana Department of Financial Institutions published an advisory letter addressing the issue of e-lien fees that are not payable to the Indiana Bureau of Motor Vehicles. This publication was sparked by the mandatory induction of a statewide electronic lien, and title system. The assessment was shared in a letter formulated…
In a significant ruling, the Tenth Circuit Court of Appeals has bolstered the position of ERISA (Employee Retirement Income Security Act of 1974) with a decision favoring pharmacy benefit managers (PBMs). The case, Pharmaceutical Care Management Association v. Mulready, highlighted the ongoing tension between state laws and the powers granted by the aforementioned federal statute….
Last month, numerous pivotal judgments unfolded in the sphere of the Employee Retirement Income Security Act (ERISA), shedding light on issues surrounding lawsuit timing, the substantiation needed for an LTD termination resolution, court’s discretion to credit and discredit expert opinions, the pretext an insured might need to demonstrate they were prejudiced by the conduct of…
In an unexpected development, the Ninth Circuit has once again revised its opinion in the Wit v. United Behavioral Health case. Affirming its prior ruling that denied motion to vacate and superseding its prior Wit Opinion, the federal appellate court has been persistent in its adaptations. This index case involves patients struggling with mental health…