Benefits Notes |

Employee benefits are an important part of every employees' total compensation package. The continuously evolving landscape in the areas of health care reform, retirement plan design, and executive compensation makes it difficult for employee benefits professionals to keep up with relevant developments. The employee benefits attorneys at Stinson Leonard Street provide human resources professionals, plan fiduciaries, actuaries, accountants, and others in the industry with practical and cost-effective assistance as they navigate through the complex laws, regulations and guidance that govern employee benefits plans. This blog highlights key developments in the employee benefits field and items of interest to our clients. Our Bloggers →

Latest Benefits Notes Posts

Be Careful What You Promise Employees Who Leave Your Employment

By Angela Bohmann | March 5, 2015

ERISA and Other Benefits Litigation, Welfare Plans Clients sometimes like to ease the transition for employees who are retiring or whom the client would like to encourage to leave. One strategy is to continue the employee “on payroll” for a period of time with the expectation that all benefits will remain in place. However, the practice makes benefits lawyers...

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Make Sure Participants Know When Their Plan Benefits Have Been Transferred

By Angela Bohmann | February 25, 2015

Retirement Plans Employers need to make sure that their employees know when benefits shift from one plan to another as illustrated by this case from Utah: Martin Marietta Corporation (Martin) operated a cement plant that it later decided to lease to Southwestern Portland Cement Company (Southwestern). The employees operating the...

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Employers Can Be Responsible for FICA Withholding Errors

By Angela Bohmann | January 13, 2015

Deferred Compensation and 409A, Payroll Back in 2013 I blogged about a class action lawsuit brought against Henkel Corporation for improper Social Security (FICA) tax withholding from nonqualified deferred compensation benefits. I am blogging now on an update to that case. To understand that case we need to review the taxation of nonqualified deferred...

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Plan Administrators Have Discretion to Round

By Angela Bohmann | December 17, 2014

Retirement Plans Cash balance plans often provide a pay credit and an interest credit in determining a participant’s accrued benefit. The pay credit is often a percentage of compensation. The interest credit is established in the plan and can be a fixed rate or a formula. Recently the Duke Energy Retirement Cash Balance Plan was...

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Undocumented Worker Can Cause Health Plan Problems

By Angela Bohmann | December 8, 2014

ERISA and Other Benefits Litigation, Health Plan Employers know that since the 1980s they have been required to check the lawful work status of employees that they hire through the I-9 process. Employers also know that Immigration and Customs Enforcement (ICE) can audit their workplaces, as can the Department of Labor, and impose fines and other sanctions for...

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EEOC Challenges Honeywell’s Wellness Program

By Angela Bohmann | December 3, 2014

Health Care Reform, Health Plan The EEOC recently sued Honeywell International, Inc., claiming that Honeywell’s wellness program violated the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA). Although the EEOC sued two other employers for wellness program violations before it sued Honeywell, this is...

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Attention All You Procrastinators!

By Angela Bohmann | November 17, 2014

Health Care Reform The Centers for Medicare and Medicaid Services (CMS) has postponed to 11:59 pm on December 5, 2014, the deadline for health insurance issuers and self funded plans to submit their annual enrollment count for the transitional reinsurance program. The deadline was otherwise November 15, 2014. The payment deadlines of...

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Penalty for Employer Missed COBRA Notice Affirmed

By Angela Bohmann | September 17, 2014

Health Plan Almost two years ago I blogged about a federal district court decision from Alabama that imposed a penalty of $37,950 ($75 a day) on an employer that failed to provide a COBRA notice for a dental plan to a former employee. With attorneys’ fees and costs, the employer owed a total of $83,063.45. That case has now...

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Employers Should Monitor Closely Group Term Life Insurance Enrollments

By Angela Bohmann | August 27, 2014

Welfare Plans Many employers offer group term life insurance, including supplemental life. Often an employee who wants to buy coverage above a particular level after an initial open enrollment period must show evidence of insurability. This requirement is present to protect the plan from adverse selection so that employees do not...

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Failure to Cover Applied Behavior Analysis for Autism Spectrum Disorder Violates Federal Mental Health Parity Law

By Angela Bohmann | August 22, 2014

Health Plan Parents have searched for effective therapies for children with autism spectrum disorder. One therapy that has shown promise, at least for some children, is applied behavior analysis (“ABA”), which is an intensive behavioral interaction health service. However, ABA is expensive, in some cases requiring many hours...

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