Allen Steinberg : Perspectives

Employee benefit plans—especially retirement and health care—have become an increasingly important part of the employment relationship. For employers, these plans represent an important part of the total compensation package, a tool for retention and recruitment, and a growing financial and compliance burden. For employees, these plans represent a key part of their overall financial security and wellbeing, a financial burden, and a source of complexity and frustration. In effect, it’s complicated. Our firm is dedicated to helping employers manage these complexities and focus on the important things.

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erisachicago

26.08.2024 09.07 CDT

New lawsuit makes serious allegations that TIAA stacked the deck to enhance profitability

New Lawsuit Targets TIAA and Morningstar

New lawsuit makes serious allegations that TIAA stacked the deck to enhance profitability

Fiduciary Morningstar TIAA

A new fiduciary case alleges that TIAA and Morningstar colluded to alter asset allocation tools to promote certain TIAA annuities. The case is directed at TIAA and Morningstar, rather than at plan sponsors—and could create liability for TIAA and Morningstar for both ERISA and non-ERISA plans. The complaint rehashes some old criticism of TIAA—but also contains some significant new accusations. If this case succeeds, it could have some far-reaching implications.

erisachicago

25.07.2024 01.57 CDT

New IRS guidance clarifies how employees can access their funds in an emergency.

New Rules for Emergency Distributions

New IRS guidance clarifies provisions of SECURE 2.0 allowing employees to access their funds in an emergency.

Distributions Emergency

The IRS has recently released Notice 2024-55, providing guidance on provisions of SECURE 2.0 dealing with certain emergency distributions from retirement plans and distributions to victims of domestic abuse.

erisachicago

24.06.2024 04.17 CDT

DOL narrows rules for employers to join together in offering benefit plans.

Birds of a Feather?

DOL Narrows Rules for Association Health Plans

Employer ERISA MEPs

The U.S. Department of Labor (DOL) has issued new guidance narrowing when a group of unrelated employers can join together and form an association health plan (“AHP”)—a plan that is treated as a single employer plan under ERISA. The new guidance narrows the circumstances under which an AHP can be considered an employer-sponsored plan under ERISA. This ruling may also foretell changes to the rules governing multiple employer retirement plans (MEPs).

erisachicago

13.05.2024 01.08 CDT

DOL Tries (Again) to Replace 1975 Rules and Redefine ERISA Investment Fiduciaries.

If At First You Don’t Succeed…

DOL Tries to Redefine Who Is an Investment Fiduciary Under ERISA

Advice Fiduciary Investment

The United States Department of Labor has finalized new rules defining who is an investment fiduciary under ERISA. These new final rules mark the latest effort (started in 2010) to update a fiduciary definition that was initially adopted in 1975. The DOL also issued a new exemption allowing these fiduciaries to engage in certain transactions (such as accepting commissions) that would otherwise be prohibited.

erisachicago

12.01.2024 02.55 CST

IRS Guidance on recent legislation helps employers start planning for next few years.

SECURE Act Provisions Start Taking Shape

As we enter 2024, employers (and their providers) are starting to get more IRS guidance on recent pension legislation.

Legislation SECURE 2.0 SECURE Act

The IRS ended 2023 with new guidance on the SECURE Act and SECURE 2.0. These included proposed regulations on the new requirements for long-term part-time employees and a grab-bag of Q&As on miscellaneous provisions of SECURE 2.0. Overall, the IRS guidance does not contain dramatic surprises—but it does help employers and their providers start planning for the next few years.