ERISA & Employee Benefits

DOL Issues FAB 2018-1

On April 23rd, in Field Assistance Bulletin ("FAB") 2018-01, the DOL provided guidance to the Employee Benefits Security Administration's national and regional offices on how to respond to inquiries about Interpretive Bulletin ("IB") 2016-01 relating to shareholder rights and written investment policy statements and IB 2015-01 relating to economically targeted investments. Perhaps not ...

2018 Update for Internal Revenue Code Section 162(m) Changes

The Tax Cuts and Jobs Act of 2017 made fundamental changes to Section 162(m) of the Internal Revenue Code. The general nature of those changes is noted below, along with thoughts about their impact on public companies - and next steps that compensation committees should consider. Forward-minded action is warranted in order to preserve corporate deductions, especially for severance and other ...

Tax Exempt Organizations: Get Your Filings Right - Or Else...

At the IRS, does anyone really read Form 990s, 990-EZs, and 990-PFs? Interestingly, the first level reader is apparently not a human . . . but an IRS computer. Those who prepare 990 filings should take notice because their mistakes could trigger an IRS audit.

Court of Appeals Decision on Fiduciary Rule Changes the Legal Landscape and Creates Uncertainty

The viability of the DOL's Fiduciary Rule and related exemptions was put in some doubt yesterday by a Court of Appeals decision that "vacate[s] the Fiduciary Rule in toto." The U.S. Court of Appeals for the Fifth Circuit, in U.S. Chamber of Commerce v. United States Department of Labor, upheld a comprehensive challenge brought by the U.S. Chamber of Commerce, SIFMA, the American Council of Life ...

Qualified Plan Changes in Bipartisan Budget Act of 2018

On February 9, 2018, Congress passed the Bipartisan Budget Act of 2018 ("Budget Act"). This two-year budget agreement contains a number of provisions relating to tax-qualified retirement plans, including hardship withdrawal changes, improper levies, and disaster relief provisions.

Compensation and Benefits: The Front Line in the War Against Sexual Harassment

Our article, "Hitting Workplace Harassers Where It Hurts" (National Law Journal, 12/30/2017*), began by recognizing that a 2016 EEOC study carried the following warning about sexual harassment in the workplace: "Much of the training done over the last 30 years has not worked as a prevention tool." We concluded with this suggestion: "Imagine a training session that starts by highlighting the ...

IRS Extends Deadline for ALEs to Distribute 2017 ACA Reporting Forms to Individuals

The IRS has issued Notice 2018-06, which provides an automatic 30-day extension to the deadline for Applicable Large Employers ("ALEs") to distribute the 2017 Affordable Care Act ("ACA") reporting forms to employees and covered individuals.

PBGC Issues Final Regulations for Terminating Defined Contribution Plans

The issue of missing participants in terminating defined contribution plans is not a new one. The issue was addressed by the Department of Labor in Field Assistance Bulletin, 2014-01, Fiduciary Duties and Missing Participants in Terminated Defined Contribution Plans ("FAB 2014-01"). FAB 2014-01 provided guidance with respect to search steps and distribution options for terminating defined ...

2018 Medicare Part A Deductibles and Part B Premiums

The Centers for Medicare & Medicaid Services ("CMS") has announced the Medicare Part A deductibles and Part B premiums for 2018. Medicare Part A covers inpatient hospital and hospice care, while Part B covers outpatient services such as doctors' visits.

Excess Employee Remuneration for Tax-Exempt Organizations

Today, President Trump signed the tax bill (formerly known as "The Tax Cuts and Jobs Act") into law. The tax bill had to be renamed as the not-too-catchy "Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018" (the "Act") after the Senate parliamentarian objected to the original name. The tax bill was passed by both Chambers ...