In Bulk Transp. v. Teamsters Union No. 142 Pension Fund, No. 23-1563, 2024 WL 1230236 (7th Cir. Mar. 22, 2024), the Seventh Circuit held that the contributions used to calculate an employer’s withdrawal liability may include only the contributions the
Compensation & Benefits Blog
The View from Proskauer on Developments in the World of Employee Benefits, Executive Compensation & ERISA Litigation
The Compensation & Benefits Blog, published by Proskauer Rose LLP, focuses on legal developments and regulatory updates related to employee compensation, retirement plans, and benefits administration. It covers topics such as ERISA compliance, qualified retirement plan limits, private investment fund regulations under ERISA, flexible spending accounts, and withdrawal liability issues affecting private equity funds and their portfolio companies. The blog addresses the intersection of labor and employment law with financial and investment considerations, providing insights on fiduciary duties, plan asset regulations, and litigation risks associated with employee benefit plans and private market investments.
Latest from Compensation & Benefits Blog - Page 10
California District Court Denies Motion to Dismiss 401(k) Excessive Fee and Underperformance Claims
A California district court recently denied a motion to dismiss claims that the fiduciaries of a 401(k) plan breached their ERISA fiduciary duties of prudence and loyalty by selecting underperforming, high-cost investments and causing the plan to pay excessive fees…
Agencies Update Guidance on Group Health Plan Contraceptive Coverage Requirements
The Departments of Labor, Treasury, and Health and Human Services (the “Departments”) recently issued guidance for group health plans outlining a “therapeutic equivalence” medical management technique for required preventive services coverage of contraceptives. The guidance, which was issued in the…
Wisconsin Federal District Court Issues Five Rulings on Motions to Dismiss 401(k) Investment and Fee Cases – Is There a Way to Reconcile Them?
Defense counsel frequently lament the difficulties of defending 401(k) investment and recordkeeping fee litigation when different judges render conflicting rulings on motions to dismiss seemingly indistinguishable complaints. Even when the judges purport to apply the same legal standards, the outcomes…
Act Fast (If You Get the Letter)! IRS Pre-Examination Retirement Compliance Pilot Program is Extended
On February 7, 2024, the IRS announced the second phase of its Pre-Examination Retirement Compliance Program (we discussed phase one in our earlier post here). Under this program, sponsors will be notified that their plan is selected for examination…
Transparency in Coverage Rules: When Accurate Estimates for Low‑Utilization Items and Services Are Not Available
Last week, the Departments of Labor, Treasury and Health and Human Services (“the Departments”) issued an FAQ about the final Transparency in Coverage rules (“TiC Rules”). This FAQ addresses compliance with cost‑sharing disclosure requirements where a plan is providing cost…
Notice 2024-02: IRS Offers Guidance on (Some) SECURE 2.0 Questions
Approximately one year after Congress enacted the SECURE 2.0 Act of 2022 (“SECURE 2.0”), the IRS issued Notice 2024-02, which addresses SECURE 2.0 implementation issues and extends the plan amendment deadline. Although Notice 2024-02 offers helpful guidance for employers…
Glass Lewis and ISS Announce Updates For 2024 Proxy Season
Glass Lewis (“GL”) recently released its annual Benchmark Policy Guidelines for 2024. This update makes several changes to how the proxy advisory firm will evaluate company policies related to executive compensation. Institutional Shareholder Services (“ISS”) also released updates to its…
Putative ESOP Class Action Dismissed for Failure to Exhaust Administrative Remedies
The decision in Bolton v. Inland Fresh Seafood Corp. of America Inc., No. 22-cv-4602 (N.D. Ga. Dec. 5, 2023)should serve as a reminder to all ERISA practitioners that, if litigating in courts of the Eleventh Circuit, participants must exhaust a…
Congress Proposes SECURE 2.0 Technical Corrections Bill
As previously discussed, the SECURE 2.0 Act of 2022 (“SECURE 2.0”) was signed into law on December 29, 2022 as part of the 2023 Consolidated Appropriations Act, and included a myriad of required and optional plan design changes for retirement…