Blockchain is a revolutionary technological tool in the way it tracks and stores data, decentralizes information, establishes trust in electronic files, and dispenses of intermediaries. This technology powers virtual currencies, also known as cryptocurrency or virtual tokens. Companies are raising money using “initial coin offerings” (ICOs) and using tokens to compensate and incentivize founders, directors,
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Arbitration of ERISA Claims – Update
By René E. Thorne on
Some of you may remember that back in 2015, we published an article entitled Arbitration of ERISA Claims – Yes You Can! A link to that article can be found here. In that article, we suggested that one key reason for adding ERISA claims to your arbitration agreement was to avoid class actions through…
IRS Reduces HSA Contribution Amount for Current Year
In 2017, the IRS released the 2018 inflation-adjusted figures for contributions to Health Savings Accounts (HSAs). The contribution limits for HSAs associated with High Deductible Health Plans was increased to $3,450 for individuals with self-only coverage and to $6,900 for individuals with family coverage. In December, the President signed the tax reform bill commonly known…
Employer Health Plan Premiums Rose in 2016, But Just Barely
By Stephanie O. Zorn on
Posted in Uncategorized
Premiums for Affordable Care Act (ACA) marketplace coverage continue to sky rocket, with the average cost of a benchmark plan in the individual market place rising 20% this year. There is very different news for employer-sponsored plans. According to the nonprofit Kaiser Family Foundation, in 2016 annual family premiums rose on average a modest 3%…
TCB on the BIC: DOL Issues Guidance on Application of the Fiduciary Rule’s New Best Interest Contract Prohibited Transaction Exemption
By Amy M. Thompson on
On October 27, the DOL published guidance on the new prohibited transaction exemptions (“PTEs”) issued under the DOL’s rule redefining “fiduciary” in the context of providing investment advice (See “Guidance,” here). Intended as a means to provide protections to retirement investors, the Fiduciary Rule and related PTEs require all those providing retirement investment advice…
How Can Employees Help Victims of Louisiana’s August 2016 Storms. . .Through an Employer Leave Donation Program or Leave Sharing Program?
By Jackson Lewis P.C. on
Posted in Uncategorized
Leave Donation.
In mid-September, the IRS announced income tax relief for individuals who donate through their employers to aid victims of the Louisiana storms that began on August 11, 2016. See IRS Notice 2016-55 (Sept. 16, 2016). To get this special relief — similar to that provided for leave donation aid given after the…
The Internal Revenue Service Issues Final Rules Defining Marriage
By Jackson Lewis P.C. on
Posted in Uncategorized
The Internal Revenue Service (“IRS”) has recognized that marriages of couples of the same sex should be treated the same as marriages of couples of the opposite sex for federal tax purposes. On September 2, 2016, the IRS issued final regulations — in furtherance of the Supreme Court’s decisions in Obergefell v. Hodges and Windsor…
Arbitrator Slashes Annual Withdrawal Liability Payments in Underfunded Multiemployer Pension Plan Dispute
By Robert R. Perry on
Posted in Uncategorized
Employers who cease contributing to an ERISA multiemployer pension plan are liable for their allocable share of any underfunding, or “withdrawal liability.”
For a variety of reasons, withdrawal liability has become both prevalent and significant. Indeed, the Pension Benefit Guaranty Corporation (the federal agency tasked with the enforcement and regulation of the withdrawal liability rules)…
More Permissible Mid-Year Changes to Safe Harbor Plans and Safe Harbor Notices
By Jackson Lewis P.C. on
Posted in Uncategorized
An employer can adopt what is called a “safe harbor” 401(k) plan. Such a plan requires an employer to commit to making a specific contribution to each plan participant. In doing so, the plan is deemed to pass the annual Actual Deferral Percentage (ADP), the Actual Contribution Percentage (ACP), and the Top Heavy tests, which…
The Obergefell Effect: Applying the SCOTUS Decision to Qualified Retirement and Health and Welfare Plans
By Kellie M. Thomas on
On December 9, 2015, the IRS issued Notice 2015-87 [link below], which provides guidance on the application of the recent United States Supreme Court (“SCOTUS”) decision in Obergefell v. Hodges [link below] to qualified retirement and health and welfare plans.
Prior to the 2013 SCOTUS decision in United States v. Windsor [link below], Section 3…