Employers often ask how far withdrawal liability extends? Does it include other business entities owned by the same company? What about property those other entities own? On July 7, 2021, the Seventh Circuit decided in Local 705 International Brotherhood of Teamsters Pension Fund v. Pitello that withdrawal liability can reach affiliated trades or businesses that are under “common control” with the withdrawing employer, including any real estate owned by...
Continue reading…Zirbel v. Ford Motor Company – Benefit Overpayment Decision Upheld in the Sixth Circuit
Incompetent Board of Trustees is not a defense. Benefit overpayment cases having been trending across the country. One of the latest was heard by the Sixth Circuit Court of Appeals in Ohio. In Zirbel v. Ford Motor Company, the appeals court upheld the Ford retirement plan’s decision on a benefit overpayment mistakenly paid to an ex-spouse of a participant. In this case, Donna Zirbel received a $351,000 retirement-benefits payment from...
Continue reading…No Surprises Act Expands Emergency Medical Services in Two Important Ways
The No Surprises Act ushered in several changes for health and welfare plans. Much has been said about the out-of-network emergency medical charges, out-of-network charges provided at an in-network facility, and air ambulance rules. But the Act also expanded the definition of “emergency services” in two important, but subtle, ways. That definition now includes (1) services provided at a “Free Standing Emergency Department” and (2) Post-Stabilization Services. Free Standing Emergency...
Continue reading…The IRS Gives Defined Benefit Plans Two New Options to Address Overpayment
Mistakes are a fact of life and administering a pension plan is no different. In fact, the average pension plan is full of landmines that can create potential problems, most notably the accuracy of plan data, benefit calculations, and accrual computations. That is why the IRS created the Employee Plans Compliance Resolution System, or “EPCRS,” to help plan sponsors proactively address and correct any mistakes or errors they encounter. Recently,...
Continue reading…Protecting Plan Assets – Department of Labor Releases Cybersecurity Guidance
Are your assets properly protected? Are your firewalls up to date? As of 2018, defined benefit and defined contribution plans hold over nine trillion dollars with of assets. However, the level of security safeguarding these assets were deemed subpar by the Department of Labor (DOL). As a result, the DOL drafted broad-reaching guidance to address issues with securing assets. On April 14, 2021, the DOL’s Employee Benefits Security Administration (ESBA)...
Continue reading…U.S. Supreme Court Upholds the Affordable Care Act (Again)
Like a cat with nine lives, the Affordable Care Act has survived yet another challenge at the U.S. Supreme Court level. On a 7-2 vote, the Court rejected the latest challenge to the Affordable Care Act (“ACA”), concluding that the plaintiffs did not have standing to challenge the constitutionality of the Act. With this ruling, authored by Justice Breyer, the ACA looks secure for the foreseeable future. In the latest...
Continue reading…The New Mental Health Parity Analysis: The Department of Labor Issues Guidance to Assist Health Plans with Compliance
On December 27, 2020, Congress enacted the Appropriations Act, which included several provisions that affected Health & Welfare Plans. One of those provisions required Health Plan to perform an analysis of the Plan’s “Non-Quantitative” Treatment Limits (“NQTLs”). NQTLs are rules, limits, or restrictions on coverage that are cannot be counted; such as rules on prior authorization, standards for admitting providers to the network, and the classification of treatments as...
Continue reading…Modern Board of Trustee Meetings Require a Modern Trust Agreement
The global pandemic has had a substantial impact on all our lives. Nearly every aspect of our day-to-day life has changed in some way. In the Taft-Hartley fringe benefit world, many Boards of Trustees have been forced to meet virtually as opposed to meeting in person since the pandemic began. Only just recently have most Plans began to meet in person again. While the preference may be for Trustees...
Continue reading…Ohio Modifies Employment Discrimination Law: The Impact of the New Ohio Employment Law Uniformity Act
Recently, Governor Mike DeWine signed into law the Employment Law Uniformity Act. This Act amends the employment protections in the Ohio Civil Rights Act in multiple respects, which include expanding the statute of limitations and clarifying administrative procedures and remedies. The purpose of Ohio’s new law is to conform more closely to federal Equal Employment Opportunity (EEO) laws. The law went into effect on April 13, 2021. Statute of Limitations....
Continue reading…Final Thoughts on the New (and Temporary) COBRA Subsidy
DOL RELEASES MODEL ARPA COBRA NOTICES
Final Thoughts on the New (and Temporary) COBRA Subsidy
Recently, the Department of Labor released the final model COBRA Notices for the new subsidy created under the Americans Rescue Plan Act of 2021 (“ARPA”). This new subsidy requires plans to cover the full COBRA cost between April 1, 2021 and September 30. 2021 for eligible participants. ARPA also requires plans to... Continue reading…