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

Time to revisit the Retirement Equity Act? Married Spouse denied $2.7 million ESOP Benefit of Deceased Spouse

By Jeffrey Cairns | April 10, 2018

ERISA and Other Benefits Litigation, Retirement Plans On April 3, 2018, The Eighth Circuit Court of Appeals affirmed a summary judgment decision against Susan Wengert who had sued the plan administrative committee of the Majors Plastics ESOP, the personal representative of the Timothy McConnell Estate and the Trustee of the Timothy McConnell Trust in federal district...

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Department of Labor Issues Proposed Rules Expanding Access to Association Health Plans

By Jeffrey Cairns | January 5, 2018

Health Care Reform, Health Plan, Welfare Plans On October 12, 2017 President Trump issued an Executive Order concerning a number of health plan market initiatives. One of the items included in the Executive Order was a directive to the Secretary of Labor to issue proposed regulations or guidance within 60 days from the date of the Order, “to expand access to...

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Tibble and Class Action Plaintiffs Win Round Two versus Edison International and Its 401(k) Investment Committees

By Jeffrey Cairns | August 22, 2017

ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans In past articles in this Blog I reported on decisions of the 9th Circuit Court of Appeals and ultimately the U.S. Supreme Court dealing with a class action for breach of fiduciary duty for selecting retail mutual funds in 1999 for which lower costs institutional funds were available....

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No Additional Delay on Effective Date of New Fiduciary Standards – DOL

By Jeffrey Cairns | May 25, 2017

ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans This week, new U.S. Department of Labor Secretary Acosta announced that the final fiduciary regulations would go into effect on June 9, 2017. The Department also issued two pieces of guidance with regard to the regulations also referred to as the “Conflicted Advice Rules”.  The guidance consists of a set of FAQs...

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Embezzlement of 401(k) Deferrals by COO of Architecture Firm is (Doubly) Costly

By Jeffrey Cairns | March 27, 2017

ERISA and Other Benefits Litigation, Fiduciary Guidance, Payroll, Retirement Plans On March 22, 2017, the U.S. Court of Appeals for the Second Circuit ruled against Christine Bodouva that her restoration of funds to her Company’s 401(k) Plan should be offset against the District Court’s order for forfeiture in her criminal trial. U.S. v Christine Bodouva, Case 16-3937, 2nd Cir....

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IRS Issues Substantiation Guidelines for 401(k) Hardship Distributions

By Jeffrey Cairns | March 2, 2017

Retirement Plans On February 23, 2017, the Internal Revenue Service issued a “Memorandum for Employee Plans (EP) Examinations Employees,” outlining Substantiation Guidelines for safe harbor hardship distributions from 401(k) plans (“Memorandum”). The purpose of the Memorandum is to provide IRS field examiners with guidance...

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Owner/Trustee of 401(k) Plan Accused of Having Eyes Wide Shut on Fiduciary Duties

By Jeffrey Cairns | October 25, 2016

ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans, Uncategorized Last June I blogged about the trend of participant fee class actions moving down to smaller 401(k) Plans. http://benefitsnotes.com/2016/06/inside-trustees-for-small-minnesota-401k-plan-face-class-action-over-excessive-fees/ Occasionally, class actions are brought based on other breaches of fiduciary duties,...

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Inside Trustees for Small Minnesota 401(k) Plan Face Class Action Over Excessive Fees

By Jeffrey Cairns | June 1, 2016

ERISA and Other Benefits Litigation, Fiduciary Guidance, Retirement Plans A Minneapolis law firm recently filed a class action complaint against Lamettry’s Collision, Inc. and the Trustees of its 401(k) Plan, CFO Stephen Daniel and President Joan Lamettry for various breaches of fiduciary duty with respect to fees charged to Plan participants’ accounts in the Company’s 401(k) Plan....

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IRS Relaxes Rules for Mid-Year Changes

By Jeffrey Cairns | February 2, 2016

Retirement Plans Since its availability, many 401(k) plan sponsors, particularly smaller employers have adopted a “Safe Harbor” plan design under Code Section 401(k)(12) or (13) and 401(m)(11) or (12). Safe Harbor plan designs include both a fully vested 3% qualified non-elective employer contribution or a fully vested employer...

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Another ROBS Gone Wrong – IRS Disqualifies ESOP

By Jeffrey Cairns | January 5, 2016

ERISA and Other Benefits Litigation, Retirement Plans On November 23, 2015, the U.S. Tax Court issued a declaratory judgment that the Internal Revenue Service (IRS) did not abuse its discretion in issuing a Letter of Revocation of the tax qualified status of the Fleming Cardiovascular, P.A. Employee Stock Ownership Plan (ESOP). Background The Plan sponsor, Fleming...

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