The Supreme Court yet again has the opportunity to opine on whether the terms of an employee benefit plan are enforceable as written — this time in the context of a plan’s deadline for participants to bring a lawsuit on a denied benefit claim. On October 15, 2013, the nine justices will hear oral argument […]

On June 26, 2013, the United States Supreme Court issued its landmark decision in U.S.v. Windsor, holding that section 3 of the Defense of Marriage Act (“DOMA”) is unconstitutional under the Due Process Clause of the Fifth Amendment .1Windsor has significant implications for retirement and health and welfare plans subject to federal law, including the […]

The American Taxpayer Relief Act of 2012 (the so—called “Fiscal Cliff Bill”), passed on January 1, 2013, extends the existing limited in—plan Roth conversion option under Internal Revenue Code (“Code”) section 402A to all vested amounts in a participant’s account, including amounts not yet eligible for a distribution. The new rules apply to in—plan Roth […]

On December 31, 2012, the Internal Revenue Service (“IRS”) rang in the New Year by issuing an updated version of its Employee Plans Compliance Resolution System (“EPCRS”), in Rev. Proc. 2013—12. This new version of EPCRS replaces Rev. Proc. 2008—50. Although the new procedure takes effect on April 1, 2013, it may be relied upon […]

The Internal Revenue Service (the “Service”) recently released Notice 2012–76, which contains the 2012 Cumulative List of Changes in Plan Qualification Requirements (the “2012 Cumulative List”) described in Section 4 of Revenue Procedure 2007–44. The 2012 Cumulative List is to be used by plan sponsors and practitioners submitting determination letter applications for plans during the […]

On November 16, the Internal Revenue Service (IRS) issued Announcement 2012-44, which contains guidance providing streamlined plan procedures for loans and hardship distributions to victims of Hurricane Sandy through Feb. 1, 2013. A hardship distribution or loan for a need arising from Hurricane Sandy may be made under these streamlined procedures from a “qualified employer […]

The Internal Revenue Service has announced the annual cost-of-living adjustments applicable to dollar limitations for pension plans and other retirement-related items for Tax Year 2013. Many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain […]

On September 28, 2012, Governor Jerry Brown signed into law a bill (S.B. 1234, the California Secure Choice Retirement Savings Trust Act) that would require private sector employers to enroll their employees in a payroll deposit retirement savings arrangement called the California Secure Choice Retirement Savings Investment Program “Program”). It is not clear whether the […]

In its next term, the U.S. Supreme Court will address a split among the federal Circuit Courts of Appeals regarding whether equitable defenses may limit a plan’s reimbursement rights in an action for equitable relief under the Employee Retirement Income Security Act of 1974 (“ERISA”), despite express plan terms that disclaim such defenses or give […]

A considerable controversy has arisen regarding U.S. Department of Labor (the “DOL”) guidance on the participant disclosures a defined contribution plan sponsor is required to provide if the plan’s investment platform offers brokerage windows, self-directed brokerage accounts or similar arrangements (collectively referred to here as “brokerage windows”). The core concerns are that the guidance may […]

Most business owners expect that when they purchase the assets of another business, as opposed to purchasing the shares of a corporation, they are shielded from most, if not all, of the selling business’s existing liabilities. Those liabilities — accounts payable, any existing legal claims against the business, etc. — should remain with the selling […]

IRS 2011 Cumulative List The Internal Revenue Service (the “Service”) has released Notice 2011– 97, which contains the 2011 Cumulative List of Changes in Plan Qualification Requirements (the “2011 Cumulative List”) described in Section 4 of Revenue Procedure 2007– 44. The 2011 Cumulative List is to be used by plan sponsors and practitioners submitting determination […]

On October 25, 2011, the Department of Labor (DOL) issued a final regulation regarding the rendering of investment advice by a fiduciary to participants and beneficiaries in participant-directed individual account plans and individual retirement plans (e.g., plans subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA).1 The final regulation, effective for […]

The Internal Revenue Service has announced the annual cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2012. For the first time in three years the increase in the cost-of-living index met the statutory thresholds that triggered the adjustment of many of the limitations: Limitations that Have Increased Limitations […]

On July 18, 2011, the United States Court of Appeals for the Fifth Circuit handed down a decision in Brown v. Continental Airlines, Inc., 2011 WL 2780505, on appeal from the U.S. District Court for the Southern District of Texas, that clarifies a plan administrator’s duties in connection with reviewing QDROs that may have been […]