INSIDER

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. [December 2006]

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.  [December 2006]

Court Rules Plan’s Recognition of Former Distributions Invalid
In Miller v. Xerox, a district court ruled that in coordinating earlier distributions with later benefit accruals in a defined benefit floor offset plan, Xerox’s plan had violated ERISA. Floor offset plans coordinate benefits from a defined contribution plan and a defined benefit plan, typically reducing benefits under the defined benefit plan by the balance in the defined contribution plan. [July 2006]

Disaster Relief: Lending a Helping Hand
In the wake of Hurricane Katrina and the urgent need for charitable relief, many employers want to make a difference. [October 2005]

ERISA Preempts State Laws That Automatically Revoke Ex-Spouse Beneficiary Designations
The Supreme Court has ruled that ERISA preempts state laws that automatically revoke spousal beneficiary designations after a divorce. The ruling applies to all ERISA-covered plans, such as life insurance, retirement and most types of executive deferred compensation plans. [May 2001]

DOL Issues Guidance on Demutualization
The Department of Labor recently released several pieces of guidance with important information for employers on how an insurer's demutualization affects ERISA employee benefits plans. Demutualization is when a mutual insurance company, which is owned by policyholders, converts to a stock company, which is owned by shareholders. [April 2001]

2000 Form 5500 Changes
The 2000 Form 5500 has some new features, including changes in ERISA Filing Acceptance System (EFAST) processing, a new EFAST help line and financial reporting requirements for certain plan investments. [March 2001]

DOL Issues Final SPD Rules
The Department of Labor (DOL) has issued a final rule amending the labor regulations that govern the content of summary plan descriptions (SPDs) provided to employee benefit plan participants and beneficiaries under ERISA. [January 2001]

Duty to Disclose Plan Changes: Binns v. Exxon
In Bins v. Exxon, the Ninth Circuit Court heard arguments on whether an employer violated its duties under ERISA by not informing employees that the company was "seriously considering" a proposal to offer enhanced retirement benefits, which might affect the employees' decision to retire.  [October 2000]

Supreme Court Rules in Favor of HMOs
HMOs recently scored a small victory when the Supreme Court unanimously ruled in Pegram v. Herdrich that an HMO cannot be sued under ERISA for offering monetary incentives to doctors for containing costs. In Pegram, a physician-employee owned HMO (Carle) offered incentives connected to a physician reward for limiting patient treatment. The particular incentive at issue was a year-end distribution to the HMO physicians based on the profitability of the HMO.  [August 2000]

HHS Issues QMCSO Regulations
The Departments of Health and Human Services (HHS) and Labor each recently issued proposed regulations on state implementation of the Child Support Performance and Incentives Act of 1998 (CSPIA).  [January 2000]

Online Year 2000 ERISA Reporting Calendars
The Year 2000 ERISA Reporting Calendars are now available...online!  [January 2000]

Funding Limits Hit Thin Cats, Too
Since the passage of ERISA, funding limits have chiseled away at pension benefits. Over the years, a pattern has emerged where limits are introduced at one level but are later reduced. The net effect of this pattern has been that the provisions covering tax-qualified plans today are not nearly as generous as they were a couple of decades ago.  [September 1999]

SPD Changes in the Pipeline
A well-designed summary plan description (SPD) meets ERISA requirements for content and serves as a useful communications tool for plan sponsors as well.  [July 1999]

DOL Proposes Changes to SPD Content Regulation
ERISA requires employee benefit plan administrators to furnish Summary Plan Descriptions (SPDs) to each plan participant and beneficiary. The SPD is the primary vehicle under ERISA for informing participants and beneficiaries of their rights, benefits and obligations under their employee benefit plans. Since the 1977 release of the initial regulations governing SPDs, the laws that affect benefit plans and the design and practices of health care programs have changed significantly. In response to those changes, the Department of Labor (DOL) has proposed amendments to the labor regulation governing the content of SPDs. [November 1998]

DOL Proposes to Strengthen ERISA Claims Procedures
The Department of Labor (DOL) has issued a proposed regulation that would provide increased protection for group health plan claimants. The new regulation would apply only to participants in plans subject to ERISA.  [November 1998]

PBGC Responds to Calls for Action
The Watson Wyatt Insider has published several articles addressing PBGC policies and practices that we believe are detrimental to the growth of defined benefit plans.  [November 1998]

PWBA Urges Plan Administrators to Address Y2K Problem
The Pension and Welfare Benefit Administration (PWBA) has issued its second press release on the Year 2000 software problem, stressing to plan administrators their fiduciary responsibility to protect workers' benefits and ensure that the problem is addressed.  [September 1998]

DOL Urges Plan Administrators to Address Year 2000 Software Problem
In a recent press release, Olena Berg, Assistant Secretary for the DOL's Pensions and Welfare Benefits Administration, said that employee benefit plan administrators have a fiduciary responsibility to address the Year 2000 software problem. [May 1998]

Health Care QUEST Enters Quality Debate
The Health Care Quality, Education, Security and Trust (QUEST) Act sponsored by Senators James Jeffords (R-Vermont) and Joseph Lieberman (D- Connecticut) is the latest entry into Congress' health care quality debate.  [April 1998]