Puerto Rico - INSIDER highlights
Several articles this month may be of interest to Puerto Rico employers.
- The article Corporate
Accountability Law Affects Retirement Plans, Executive Compensation
discusses how new legislation affects “black-out” periods
in pre-tax savings plans. In addition, this legislation requires certain
disclosures when owners and top executives purchase stock and also highly
restricts company loans to directors and other top executives.
- Senate
Moves Forward on 401(k) Protections discusses legislation now being
discussed in Congress requiring quarterly benefit statements for all
defined contribution plan participants and allowing employees to diversify
out of employer stock after three years. Employers would also have to
provide basic investment guidelines to employees. While the provisions
are not yet law, the proposals give an indication of the direction in
which Congress is moving.
- The article entitled Supreme
Court Rules Against ERISA Preemption of State Law discusses the
recent Supreme Court ruling in Rush Prudential HMO, Inc. v. Moran. The
Court decided that state law is not preempted by ERISA in cases of insured
group health plans. This means that such plans are subject to independent
benefit review statutes adopted by states (and Puerto Rico), even if
such statutes go beyond what is required under ERISA.
- Don’t miss additional articles available in our online version
of the Insider at http://insider.watsonwyatt.com/.
Please feel free to call us if you have any questions on these materials.
Sincerely,
|
