Age-Discrimination Claims Against Cash Balance Plans Still Have Life
Two recent decisions show there is still life in age-discrimination claims against cash balance plans. In Re J.P. Morgan Chase, the district court for the Southern District of New York denied the plan’s motion to dismiss an age-discrimination claim, applying an analysis that considers all cash balance plans inherently age-discriminatory. IRS Releases Final Regulations on Using Electronic Media to Satisfy “In Writing” Requirements
The IRS has released final regulations allowing plan administrators to use electronic systems to satisfy “in writing” requirements. The regulations give sponsors two ways to satisfy the requirements for notices and set out separate rules for electronic elections and consents. The final rules generally take effect on January 1, 2007. DOL Clarifies Interaction Between HSAs and ERISA
In Field Assistance Bulletin (FAB) 2006-2, the U.S. Department of Labor (DOL) draws the lines more clearly between practices that do and don’t make a health savings account (HSA) subject to ERISA, something most employers prefer to avoid. Earlier guidance on the subject had left employers somewhat confused about what constituted a “safe” level of involvement. How Will FASB’s Accounting Changes Affect Shareholders’ Equity and Credit Ratings?
On September 29, 2006, the Financial Accounting Standards Board (FASB) released its Statement of Financial Accounting Standards No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans (SFAS 158). Phased Retirement: A Conflict in the Works?
Beginning in 2007, the Pension Protection Act of 2006 (PPA) permits in-service retirement plan distributions to employees 62 and older. The act does not mention the IRS regulations proposed in 2004 (see Watson Wyatt Insider, December 2004), which would permit phased retirement distributions to employees 59½ and older, as long as certain conditions were met. New Jersey Court Affirms the Rights of Same-Sex Couples
In Lewis v. Harris, decided October 25, 2006, the New Jersey Supreme Court ruled that same-sex couples in New Jersey are entitled to the same rights and benefits enjoyed by heterosexual couples under state marriage laws. Court Rules ERISA Preempts Maryland Health Insurance Law
In Retail Indus. Leaders Association v. Fielder, a federal judge in Maryland ruled that ERISA preempts the Maryland Fair Share Health Care Fund Act, which was slated to become effective January 1, 2007.
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