ERISA & Employee Benefits

Ninth Circuit Changes its Position on the Enforceability of Arbitration of Breach of Fiduciary Duty Claims Under ERISA §502(a)(2)

The Ninth Circuit, in Dorman v. The Charles Schwab Corporation, modified its position on the enforceability of arbitration agreements to ERISA claims of breach of fiduciary duty on behalf of the plan under ERISA Section 502(a)(2). The Court found an arbitration provision in the plan document was enforceable against the plaintiff. The Dorman decision may encourage plan sponsors to amend plan ...

Does Your Plan use a LIMITED SCOPE AUDIT for Form 5500 Financial Reporting?

There has been a significant new development for employee benefit plan administrators of large plans who opt for a "limited scope audit" by the plan's auditor for Form 5500 reporting of the plan's financial information, as permitted by ERISA Section 103(a)(3(C). This new development only applies in the event that information on the plan's assets is provided by and certified to by a bank or other ...

Proposed IRS Regulation Would Eliminate "One Bad Apple" Rule for Multiple Employer Defined Contribution Plans

On July 3, 2019, the IRS proposed a new regulation addressing one problem experienced by multiple employer defined contribution plans (DC MEPs) which are tax qualified as single plans under Section 413(c) of the Internal Revenue Code (the "Code"). Under 413(c), the failure by one contributing employer to meet the qualification rules would result in the disqualification of the entire plan. The ...

Deal-Breaking M&A Issues Related to Employee Benefit Plans and Executive Compensation

Employee benefit and executive compensation issues can disrupt merger and acquisition transactions when overlooked until the last minute, or cause major post-transaction problems if not properly addressed before closing. The list below is intended to facilitate the detection, negotiation, and resolution of possible employee benefit plan and executive compensation-related problems. As a general ...

PBGC Requests OMB Approval for Data Collection for ERISA Title IV Coverage Analysis

The Pension Benefit Guaranty Corporation ("PBGC") issued a notice (84 Federal Register 20168 (Wednesday, May 8, 2019)) informing the public that the PBGC has requested the Office of Management and Budget ("OMB") approve a collection of information necessary for the PBGC to determine, upon request by the plan, whether (or not) a plan is covered under Title IV of the Employee Retirement Security ...

IRS Expands Determination Letter Program - Revenue Procedure 2019-20

In Revenue Procedure 2016-37, the Internal Revenue Service ("IRS") eliminated the long-standing program under which a plan sponsor could request a determination that its individually-designed plan satisfies the tax-qualification requirements of Internal Revenue Code Section 401(a), except for initial qualifications and qualifications upon plan termination. Plan sponsors and employee benefit ...